NEW YORK — Nearly all McDonald’s locations in the U.S. will continue offering the “$5 Meal Deal” after people flocked to the promotion amid rising food prices.
Since its launch in June, the limited-time offer has “resonated with our millions of customers,” and the company claimed the move would take business away from competitors, according to an internal McDonald’s memo obtained by CNN. As a result, 93% of U.S. stores will keep the offer on their menus through August.
The chain has come to the conclusion that when people go to McDonald’s, they mainly want a burger and fries.
At the end of June, McDonald’s launched the “$5 Meal Deal,” which was actually only supposed to be valid for one month. The menu includes a McDouble cheeseburger or a McChicken sandwich, small fries, four Chicken McNuggets and a small soft drink.
McDonald’s said 93% of its U.S. stores will keep the $5 offer on their menus for another month.
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McDonald’s has consistently talked about its tendency to raise prices on its menu items without feeling the churn of customers – until the first quarter of this year, when the company reported weaker-than-expected sales. But the rise in food prices hasn’t been limited to McDonald’s alone; other chains have felt the impact as well. Diners aren’t eating out as often and spending less when they do, leading to declining fast-food sales and fewer restaurant visits.
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The $5 deal meets “the goal of bringing guests back to our restaurants” and even encourages some people to purchase items at full price, leading to a larger increase in sales, the memo said.
McDonald’s will report its results on July 29 and said in the memo that the company would consider a “further extension” of the $5 deal beyond August.
Specific financial data was not mentioned in the memo. Pacer.ai, an independent analytics firm, said in a recent report that the deal increased traffic in the restaurants, proving “how well this special offer is resonating with McDonald’s fans.”
Starbucks, Wendy’s, Taco Bell and Burger King have also expanded their menu offerings in recent weeks to increase profits.
After rising prices scared customers away, restaurants responded by introducing value menus. But how much value is there in these “value-for-money” meals?
Fast-food restaurants are in the midst of a cheap meal war and are offering special deals to lure customers back into restaurants despite inflation concerns.
Weird History Food takes you back to the ’90s to relive one of McDonald’s biggest and most delicious failures – the Arch Deluxe. When it comes to succeeding in the market, knowing your competition is crucial. But even more important than knowing your competition is knowing your target audience – and that’s exactly the mistake McDonald’s made with the introduction of the Arch Deluxe burger in 1996.
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