McDonald’s new $5 Meal Deal isn’t going as planned (so far …)

In recent news, McDonald’s has been facing a tough crowd. With inflation squeezing wallets, the fast-food giant tried to attract cost-conscious customers by launching a new $5 meal deal on June 25. The offer includes a McChicken or McDouble, a four-piece chicken nugget, fries, and a drink, all for just five bucks. Sounds like a deal, right? However, after more than a month, this strategy isn’t quite hitting the mark. Despite the promotion, McDonald’s isn’t seeing a significant boost in foot traffic at its restaurants.

Analyst Peter Saleh has pointed out that the timing of the July 4th holiday and Hurricane Beryl in Texas might have skewed results. So, it’s too early to judge whether the $5 menu will indeed drive more customers through the doors. McDonald’s CEO Chris Kempczinski also mentioned in a recent earnings call that consumers are being more cautious with their spending due to rising prices, impacting the entire quick-service restaurant (QSR) sector.

To add to the mix, McDonald’s has been under fire for its price hikes. Since 2014, the fast-food chain has increased its menu prices by 100%, which is a whopping three times the national inflation rate. This has led many Americans to rethink their fast-food habits. A recent survey revealed that 62% of Americans are eating less fast food due to high prices, and 78% now see it as a luxury. The rising costs have many opting to cook at home instead of splurging on fast food.

As McDonald’s navigates these economic pressures and shifting consumer behaviors, it’s clear that the fast-food industry is grappling with significant challenges. Whether this new menu deal will ultimately help McDonald’s reclaim its customer base or if the company will need to pivot its strategy remains to be seen………[read more]

Rising Dough

How do consumer spending habits and inflation impact the profitability and pricing strategies of major fast-food chains like McDonald’s?

*Click on the “Full Loaf” icon to read the full article! After you read the full article, let us know your thoughts.

0 0 votes

Article Rating

☕️ **Discover Stone Street Coffee Company – Your Coffee Haven!** Today’s Dough readers, if you’re on the hunt for exceptional coffee and cold brew, look no further than Stone Street Coffee Company. We at Today’s Dough are smitten with their rich coffee blends and refreshing Cold Brew. Stone Street’s commitment to quality shines through in every sip. Now, exclusively for our readers, click the banner above to snag a $5 off coupon on your next order. Experience the finest, ethically sourced beans roasted to perfection. Join the Stone Street community, savor top-notch coffee, and elevate your daily brew. ☕️🌟