McDonald’s makes key menu decision for popular $5 meal – NBC Chicago

McDonald’s plans to offer the $5 menu, introduced in the summer, beyond the original four-week period because the menu item has been successful in luring customers back to restaurants.

In a memo obtained by CNBC, executives said nearly every business unit, or 93% of restaurants, voted to extend the promotion beyond the original end date. The memo said the majority of locations will extend or vote to extend through August.

“Our message is resonating with our millions of customers,” Myra Doria, national sales manager, and Tariq Hassan, U.S. chief marketing and customer experience officer, wrote in the memo. “When our customers order the $5 menu, they don’t go to the competition, and early results show that this offer is meeting the goal of attracting diners back to our restaurants.”

The $5 meal has been available on McDonald’s menus since June 25 and was originally intended to last about a month. It includes a McChicken or McDouble, four chicken nuggets, fries and a drink – and is much cheaper than buying these meals individually.

The dish was introduced because the world’s largest hamburger chain, based in Chicago, wants to counteract the decline in customer spending due to rising costs and inflation.

“We’ve heard the words of our fans loud and clear – they expect even more value from us and that’s exactly what they’ll get this summer,” said Joe Erlinger, president of McDonald’s USA, in a statement. “Value has always been part of our DNA. We’re focused on living up to that legacy and offering delicious, affordable options that our customers can enjoy whenever they walk through our doors, drive through our drive-thru or place an order through our app.”

In addition to the $5 meal deal, franchisees across the U.S. have their own special offers, according to the company, including “buy one breakfast sandwich, get the second for $1” or mix-and-match deals and more. Customers will need to check the deals at their local McDonald’s to find out if any are being offered.

“McDonald’s is all about affordable prices and memorable moments,” said John Palmaccio, owner and operator of McDonald’s, in a statement. “As small business owners, it’s our responsibility to provide great value to our local communities when they need it most. The $5 meal deal is the perfect complement to the everyday local deals customers can find in-store and on the app, like the 25 percent off any $10+ purchase offer I offer at my restaurants in Savannah, Georgia.”

Erlinger had previously stated that he hoped customers would find the company’s upcoming offerings “sensible.”

“It is clear that we – together with our franchisees – must continue to remain clearly focused on value and affordability,” said Erlinger.

McDonald’s recently defended itself against criticism of its price increases after viral tweets and media reports claimed that some stores were selling Big Mac combo meals for as much as $18.

In a post on the company’s website in May, Erlinger said reports that the price of the average Big Mac had doubled since 2019 were false. McDonald’s said the average Big Mac in the U.S. cost $4.39 in 2019 and now costs $5.29, an increase of 20.5 percent.

“As a brand that proudly serves nearly 90% of the U.S. population each year, we feel a responsibility to ensure the real facts are available,” Erlinger said.

Erlinger acknowledged that he and many franchisees were frustrated by a post on X last summer about a Big Mac meal in Connecticut that cost $18. He called the price an “exceptional.” He noted that franchisees own and operate 95 percent of McDonald’s stores in the U.S. and set their own prices but “work hard to minimize the impact of price increases.”

Still, the Chicago-based burger giant said prices of some products have risen more than the Big Mac. The average price of medium fries was $2.29 in 2019 and is now $3.29 – a 44% increase.

McDonald’s said the average price of all menu items has risen 40 percent over the past five years, reflecting an average 40 percent increase in labor, paper and food costs. That’s higher than overall consumer prices, which have risen 21 percent since December 2019, according to government figures.

McDonald’s saw a significant drop in footfall at its stores in the first three months of this year as inflation-hit customers in the U.S. and other major markets ate out less. As a result, the company promised more deals.