McDonald’s survey: $5 menus lure back inflation-stricken customers

To win back inflation-hit consumers, fast-food and casual dining chains have launched discount menus this year – and recent data shows it’s working.

Restaurants such as McDonald’s, Starbucks, Chili’s and Buffalo Wild Wings saw increased customer traffic after introducing menu deals and limited-time discounts, a new survey shows.

McDonald’s launched its highly anticipated $5 meal deal in June, which includes a McDouble or McChicken, four nuggets, a small order of fries and a small soft drink – competing with the discount menus of rivals Wendy’s and Burger King.

The world’s largest fast-food chain launched the limited-time offer on June 25, McDonald’s busiest Tuesday of the year to date. According to analytics firm Placer.ai, visits were 8% higher than the average Tuesday so far this year.

During the remainder of the launch week, the data shows that visits averaged at least 5% more than the daily average since the beginning of the year.

The fast-food giant also introduced Free Fries Friday – free medium-sized French fries with a minimum purchase of $1 for app users. The offer is valid until the end of the year.

Meanwhile, coffee giant Starbucks had success with its limited-time offer of half-price iced drinks on Fridays in May.

According to Placer.ai, visits to Starbucks on May 3, the Friday before the offer launched, were 1.1% below the Friday average so far this year.

When the half-price promotion went into effect on May 10, visits increased 20% above the previous year’s average, according to the data.

Chili’s Grill & Bar revamped its “3 for Me” savings menu in April, adding new options to the menu, including the Big Smasher Burger.

The affordable menu includes an appetizer, a main course and a drink of your choice starting at $10.99.

As in other restaurants, the inexpensive menu at Chili’s also increased customer frequency.

According to Placer.ai, visits to Chili’s increased 4.7% in the week before the value menu update compared to 2023. In the week of the update, visits increased 17.3% above the 2023 average, according to the data.

Buffalo Wild Wings is offering unlimited boneless wings for $19.99 starting Monday and Wednesday.

The Georgia-based sports bar franchise introduced the offer on May 13. It was originally scheduled to run through July 10, but the Buffalo Wild Wings website is still advertising the deal.

According to Placer.ai, traffic to the restaurant increased by 8 percent immediately after the deal. According to the data, visits increased particularly sharply on Monday and Wednesday, by 45.6 percent and 49.3 percent, respectively.

According to the data, visits on Monday and Wednesday remained above average during the seven-week period following the introduction of the unlimited offer.

Buffalo Wild Wings – owned by Inspire Brands under the same umbrella as Arby’s, Sonic Drive-In and Dunkin’ Donuts – has treated its customers to a number of special offers this year, including $5 beers on National Beer Day.

Although inflation is currently easing and stands at around 2.6%, consumers have been hit hard by prolonged inflation, which has led to price increases and a decline in spending on non-essential items.

Grocery and fast food prices have risen sharply in the United States since the pandemic.

According to the U.S. Department of Agriculture’s Economic Research Service, food prices rose 25% between 2019 and 2023.

And the average price of a McDonald’s Big Mac in the U.S. is $5.29 – a 21 percent increase since 2019, Joe Erlinger, president of McDonald’s USA, said in May.

To counteract the effects of inflation, restaurants have introduced cheap menus to attract cash-strapped customers.