Fast food giant McDonald’s is reportedly preparing to launch a new $5 discount meal in an effort to win back customers struggling with soaring prices from the disaster that is Bidenomics. The move comes as rampant inflation has driven up costs across the industry leaving many lower-income consumers unable to afford once-cheap fast food fare.
According to an anonymous source familiar with the plan the proposed $5 deal could include a McChicken or McDouble sandwich along with fries and a drink. The initiative reflects McDonald’s recognition of the need to focus on affordability amid weaker-than-expected financial results.
So to be clear after doing away with their $1 $2 $3 value deals #McDonalds is going to bring back the same value deals menu at the super low price of $5 $6 and $7
What a deal!!! https://t.co/z9bfJ0iDYM pic.twitter.com/rXDKqFdFjE
— Ronnie Spangler (@Mar4L) May 12, 2024
McDonald’s CEO Chris Kempczinski acknowledged the lack of a nationwide value platform in the U.S. market. But the company’s franchisees who operate the vast majority of its restaurants may resist the promotion fearing a hit to their profitability particularly in states like California where the minimum wage for fast food workers recently rose to $20 per hour.
To address these concerns McDonald’s has reportedly secured funding from Coca-Cola to help offset potential losses for franchise owners. The company previously attempted to gain operator support for the $5 meal deal earlier this year but failed to secure their endorsement.
It is shockingly expensive to actually feed a family of four at McDonalds. A Big Mac meal near me costs $9.99. That's $42.90 in total (including tax) for four people.
I am happy to hear that McDonalds is considering a $5 meal deal. I am a huge fan of McDonalds, but I've noticed… https://t.co/8fqKN4K9Fy pic.twitter.com/yDeBcDUXOJ
— Misha Turtle Island 🐢 (@MishaFitton) May 10, 2024
The proposed value meal has generated mixed reactions on social media with some users expressing skepticism about its appeal. McDonald’s has seen its prices double since 2014 outpacing many of its competitors according to FinanceBuzz. Combined with persistent inflation under the Biden administration this trend has squeezed out many budget-conscious fast food customers.
McDonalds $5 meals under Bidenomics pic.twitter.com/ZEYFg1tpBu
— Matthew Brown (@mattb1x) May 11, 2024
As McDonald’s looks to navigate the challenging economic landscape and win back price-sensitive consumers the success of its $5 meal initiative will likely hinge on its ability to strike a balance between affordability and franchisee profitability. With the fast food giant’s iconic status and massive scale even a modest boost in value-seeking customers could provide a much-needed lift to its bottom line.
