McDonald's is taking proactive measures to reestablish its position as an economically affordable fast-food option in the United States. The company plans to launch a $5 breakfast meal and reduce the prices of eight popular meals by 15%, a result of weeks of consultation with franchisees. The discount campaign is expected to begin in early September, aimed at addressing the decline in customer traffic caused by escalating inflation.
Joe Erlinger, President of McDonald's USA, stated: "Customers have clearly expressed—they want affordable prices that align with the McDonald's brand promise." According to Black Box Intelligence data, the fast-food industry has seen a 2.7% decline in customer traffic this year, against which this strategy is being launched. Despite recent same-store sales growth, customer visits remain below expectations.
To alleviate franchisee concerns, McDonald's will subsidize losses from discounted pricing. The company and franchisees will jointly fund marketing campaigns to promote the new value offerings. For example, a $10 meal will drop to approximately $8.50 under the new pricing structure.
