McDonald’s New $5 Meal Deal Amid Inflation, Rising Prices, Customer Dissatisfaction

In a strategic shift to regain patronage of low-income consumers, McDonald’s will reintroduce a $5 meal deal to counteract the negative impact of soaring menu prices on its revenue and store foot traffic.

This comes in the wake of reduced customer visits and dissatisfaction with high costs.

McDonald’s CEO Chris Kempczinski emphasized the need for affordability during a first-quarter earnings call last month, revealing plans to enhance value offerings as a core strategy.

$5 meal deal

The $5 meal deal, previously proposed and rejected by franchise operators, is now on the table again with revised terms, according to Bloomberg and CBS reports. The revamped offer is expected to include a choice between a McChicken, a McDouble, or four-piece chicken McNuggets, accompanied by fries and a drink.

The push for affordability was reiterated by Kempczinski in the April earnings meeting. He highlighted ongoing consumer scrutiny over expenditures amid rising everyday prices, pressing the fast-food industry to prioritize budget-friendly options. “It’s imperative that we continue to keep affordability at the forefront for our customers,” Kempczinski said.

$ 5 meal deal caroll oliver mcdonalds in 5th ward. image from youtube screenshot.
McDonald’s $5 meal deal. image from youtube screenshot.

Ongoing Negotiations

While McDonald’s corporate continues to negotiate with franchise owners on the rollout of these deals, the specifics of where and when these meal deals will be available remain uncertain, as they may be regional.

In a related development, McDonald’s experimented with regional offers that garnered significant attention. A promotional “MickeyD’s Dinner Box” deal in Texas, priced at $12, was shared widely online by a mother who claimed it sufficiently fed her family of five.

This deal included two cheeseburgers, four small fries, ten-piece chicken nuggets, and two Big Macs. However, pricing and availability of similar deals varied significantly across different states, with some reporting costs ranging from $18.99 to $35.99.

McDonald’s says franchisee store owners have the autonomy to set prices and create promotions, suggesting that such deals can be tailored to local market demands. They are accessible through the McDonald’s app.

As families across the USA grapple with the effects of sustained high inflation, many feel the pinch in their daily lives, particularly for essential purchases like food. The consumer price index, a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services, saw a consistent rise, placing additional financial stress on households.

Inflation was 3.5 percent in March, signaling that costs, especially for groceries and dining out, continue to climb.

This inflationary pressure is more than a mere statistic for many American families; it translates directly into tougher choices at the supermarket and a reduction in discretionary spending.

For lower-income families, the impact is even more pronounced, forcing them to cut back on non-essential items and seek out budget-friendly options for meals, both at home and when dining out. This shift in consumer behavior pushes businesses like McDonald’s to rethink their pricing strategies to maintain their customer base.

The reintroduction of McDonald’s $5 meal deal is a direct response to these economic conditions.

By offering a more affordable dining option, McDonald’s aims to lure low income consumers back. They’ll do this by alleviating some of the financial burden faced by families who enjoy its products but are repelled by rising prices.

These initiatives are critical as fast food chains not only compete with each other but they vie for the attention of consumers who increasingly turn to less expensive cooking-at-home options due to tightened budgets.

In essence, as inflation continues to affect the purchasing power of the average consumer, companies that offer tangible value through affordability are likely to retain customer loyalty.

McDonald’s strategy to reintroduce budget-friendly meals reflects an understanding of the economic landscape and a commitment to serve a diverse customer base grappling with the realities of inflation.

big mac screenshot

Alan Gray
Alan Gray is the Publisher and Editor-in-Chief of NewsBlaze Daily News and other online newspapers. He prefers to edit, rather than write, but sometimes an issue rears it's head and makes him start hammering away on the keyboard.

Content Expertise

Alan has been on the internet since it first started. He loves to use his expertise in content and digital marketing to help businesses grow, through managed content services. After living in the United States for 15 years, he is now in South Australia. To learn more about how Alan can help you with content marketing and managed content services, contact him by email.

Technical Expertise

Alan is also a techie. His father was a British soldier in the 4th Indian Division in WWII, with Sikhs and Gurkhas. He was a sergeant in signals and after that, he was a printer who typeset magazines and books on his linotype machine. Those skills were passed on to Alan and his brothers, who all worked for Telecom Australia, on more advanced signals (communications). After studying electronics, communications, and computing at college, and building and repairing all kinds of electronics, Alan switched to programming and team building and management.He has a fascination with shooting video footage and video editing, so watch out if he points his Canon 7d in your direction.