In a bid to lure back customers affected by recent price hikes, McDonald’s is rolling out a new $5 meal promotion.
This limited-time offer, beginning June 25 and lasting about a month, is designed to provide a budget-friendly option in an increasingly costly fast-food landscape.
Let’s dive into the details of this promotion and the customer reactions it’s sparking.
The $5 Meal Deal: What’s Included?
The $5 meal deal will feature a choice between a McChicken, a McDouble, or a four-piece chicken nuggets, accompanied by small fries and a small drink.
This value-packed meal aims to attract customers seeking affordable dining options amid rising food prices.
“We know how much it means to our customers when McDonald’s offers meaningful value and communicates it through national advertising. That’s been true since our very beginning and never more important than it is today,” McDonald’s USA told CBS MoneyWatch.
Franchise Approval and Strategic Timing
Bloomberg first reported on McDonald’s plans for the $5 promo meal, noting that the proposal required approval from franchise owners.
This week, franchise owners, including John Palmaccio, consented to the promotion, with McDonald’s expressing gratitude in an internal message.
“Great value and affordability have always been a hallmark of McDonald’s brand, and all three legs of the stool are coming together to deliver that at a time when our customers really need it,” said Palmaccio.
The Economic Context
The introduction of the $5 meal deal comes as McDonald’s grapples with slower foot traffic in its restaurants.
Inflation-weary customers are cutting back on fast-food dining following significant price hikes across many chains.
From 2014 to 2024, chains like Popeye’s, Jimmy John’s, and Subway increased their food prices by 86%, 62%, and 39%, respectively.
Rising labor and food costs are driving these price hikes, disproportionately affecting low-income Americans.
A January poll by Revenue Management Solutions found that about 25% of individuals earning under $50,000 were cutting back on fast food, citing cost concerns.
Casual dining restaurants like Applebee’s and IHOP are also experiencing a decline in patronage from low-income customers.
McDonald’s CEO Chris Kempczinski emphasized the need to maintain affordability during an April 30 earnings call, stating, “Consumers continue to be even more discriminating with every dollar that they spend as they face elevated prices in their day-to-day spending, which is putting pressure on the industry. It’s imperative that we continue to keep affordability at the forefront for our customers.”
Customer Reactions: Mixed Reviews
While McDonald’s aims to boost foot traffic with the $5 meal deal, some customers are already criticizing the promotion.
Comments on social media platforms reflect a range of opinions, from skepticism to outright dismissal.
One X user responded to McDonald’s announcement with frustration over the deal’s temporary nature:
“$5 meal coming but for only 1 month?? No thanks! You want to lure us in and hope we’ll stay and want to pay your crazy high prices? Not a chance!” — Mason Gunn (@MasonGunn01)
Another customer criticized the meal for being “skimpy”:
“McDonald response is to make one of its least sold items, because of how skimpy it is, a price special. A McDouble, small fries and a drink for $5. Sadly what McDonalds doesn’t seem to get is that should be its everyday price not a special.” — Michelle Sanford (@Michelle60711)
Franchisee Skepticism
Some franchisees are doubtful about the profitability of the $5 meal deal, given the recent surge in food prices.
The Wall Street Journal reported that while the promotion is aimed at boosting foot traffic, franchisees are concerned about its financial viability.
On TikTok, user sources_say questioned how McDonald’s can afford to offer the deal amid inflation:
“I’m not going to get that. How is this food so cheap due to inflation?”
Despite these concerns, McDonald’s executives are determined to offer value-driven promotions, believing that price-conscious customers will appreciate the effort.
They have limited price increases overall, hoping to retain customers wary of rising costs.
Competitive Landscape
McDonald’s is not alone in its struggle to maintain customer loyalty amid rising prices.
Competitors like Wendy’s have also introduced value meals, such as the 4 for $4 and the $5 Biggie Bag.
These meals include similar items, offering a small hamburger or four-piece chicken nuggets, small fries, and a small drink.
Casual dining chains are also stepping up their game.
Chili’s, for instance, is targeting fast-food chains with new offerings like a smash burger, appealing to customers looking for better value in sit-down dining experiences.
Conclusion: A Strategic Gamble
McDonald’s $5 meal deal represents a strategic gamble to attract price-sensitive customers in a highly competitive and inflationary environment.
While the promotion has received mixed reactions from customers and franchisees, its success will hinge on McDonald’s ability to deliver perceived value and affordability.
As food prices continue to rise, McDonald’s and other fast-food chains must navigate the delicate balance between cost and customer satisfaction.
The coming months will reveal whether this $5 meal deal can successfully lure back customers and reaffirm McDonald’s position as a leader in the fast-food industry.