McDonald's to extend $5 value meal in most markets as diners return
McDonald's is extending its $5 value meal promotion through August, following strong customer response and support from 93% of restaurants. The deal aims to attract value-conscious consumers amid rising prices.
Read original articleMcDonald's has announced the extension of its $5 value meal promotion in most U.S. markets, citing its effectiveness in increasing customer traffic to restaurants. Initially launched on June 25, the promotion was set to last for four weeks but will now continue through August in the majority of locations, as nearly all business units, representing 93% of restaurants, voted in favor of the extension. The value meal includes a McChicken or McDouble, four-piece chicken nuggets, fries, and a drink, offering significant savings compared to purchasing the items separately. Executives noted that the promotion is resonating with customers and helping to keep them from visiting competitors. This decision comes amid a competitive landscape where other fast-food chains, such as Burger King and Starbucks, are also offering similar deals to attract value-conscious consumers, particularly in light of rising prices due to inflation. The memo emphasized the importance of driving guest counts for sustained business growth. Additionally, Coca-Cola has contributed marketing funds to support the promotion, and franchisee advocates have suggested ongoing financial support to maintain the deal's viability. McDonald's is scheduled to report its earnings on July 29.
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Are they basically creating two price tags: for those who do and don’t really care enough? Ie. we’ll take your money if you’re fine paying a whole lot more for a meal. Otherwise here it is for half off.
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In the UK for example, Pret has brought back its £1 filter coffee (a staple of many years up until the pandemic/shortly after. But still overpriced as it tastes disgusting). Perhaps they also realised raising their croissants 60% was too much, and have reduced it down to only a 30% increase. A competitor, Greggs, has been killing them with new stores opening weekly
I can't keep up with McDonald's pricing but I know the value items such as a cheeseburger and double cheeseburger (£2.29) never went away. But they've made some big increases in eg mcflurry (regular size used to be £1, now something like £2.40)
Perhaps some companies must be feeling the pinch, or at least, being crushed by competition
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