McDonald’s is responding to rising concerns over its pricing by cutting the cost of its combo meals. This decision comes after significant criticism that prices have become too steep for many customers. Just weeks ago, the CEO acknowledged the need for change in how customers perceive the value of the chain’s offerings.
The company is working closely with its U.S. franchisees to implement these reductions, marking combo meals down by 15 percent compared to buying items separately. The discounts are set to start next month, and McDonald’s plans to help franchisees absorb potential losses from these price cuts. According to a company executive, “Customers are telling us they need more of the everyday value and affordability that defines the McDonald’s brand.”
Additionally, McDonald’s is reintroducing some well-known branding, including the “Extra Value Meals,” and expanding deals with breakfast and other popular items. CEO Chris Kempczinski pointed out during an investor call that perceptions of value are largely shaped by menu prices, noting, “The single biggest driver of what shapes a consumer’s overall perception of McDonald’s value is the menu board.” He admitted that the trend of combo meals exceeding $10 can harm how customers view the brand.
The issue of pricing reached a peak earlier this year when a social media post featuring an $18 Big Mac meal circulated widely, inciting frustration among fans of the chain. McDonald’s USA President Joe Erlinger described the situation in an open letter, expressing concern over the viral price point. He clarified that it was an anomaly, stating, “It frustrates and worries me, and many of our franchisees, when I hear about an $18 Big Mac meal being sold.” He also cited that the average price of a Big Mac has only increased from $4.39 in 2019 to $5.29 in 2023—a rise of 21 percent.
Despite the price cuts, experts suggest that some franchise owners may raise prices for individual items to balance out discounts. However, customers can still anticipate consistent pricing across the board for the new $5 and $8 meal options aimed at boosting affordability and customer satisfaction.
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