McDonald's Eyes $5 Value Meal to Boost Sales Amidst Inflation Woes

In a bid to lure back inflation-weary customers, McDonald's is considering a limited-time $5 value meal. This bundle, featuring a choice of a McChicken or McDouble, along with a four-piece Chicken McNuggets, fries, and a drink, aims to provide a budget-friendly option for consumers.

Franchisee Negotiations and Coca-Cola's Support

Franchisees initially rejected a similar $5 offer, but McDonald's, with the help of Coca-Cola, sweetened the deal. The revised offer is expected to be approved in a franchisee vote this week. The National Owners Association (NOA) praised Coca-Cola's involvement but expressed disappointment at the lack of financial contribution from McDonald's.

Addressing Declining Restaurant Visits

McDonald's aims to combat the decline in restaurant visits caused by inflation. The company believes a national value offer would be more effective in attracting price-sensitive consumers than local or app-based deals.

Balancing Value and Profitability

While franchisees support offering value to customers, they remain concerned about the impact on profitability due to rising costs. They advocate for value-engineered items like the McDouble or the reintroduction of popular options like the Snack Wrap to mitigate the potential financial strain.

Competitive Landscape

The $5 price point has become a battleground for fast-food brands, with Taco Bell, Wendy's, and Burger King already utilizing bundled offers to attract customers. McDonald's is now entering this competitive arena with its $5 value meal, hoping to regain lost market share.

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