McDonald’s (MCD) reportedly plans to launch a $5 meal to bring back many web fans who have stopped visiting the burger chain or ordering online. Retail giants are not the only ones to face blowback from a weak economy, as many customers have cut back on discretionary spending. Restaurants and beverage chains have also faced dwindling orders in the US.
Sources familiar with the food and beverage giant’s plan have confirmed the $5 plan but have not given a time frame for its launch. The meal is expected to consist of a choice between a McChicken, a McDouble, or four pieces of chicken nuggets, fries, and a drink.
A few weeks ago, McDonald’s reported declining foot traffic growth in its restaurants nationwide. Many food and beverage chains such as McDonald’s, Subway, Starbucks, and others have increased prices to offset higher costs of both labor and ingredients.
Then, many of its regular customers began facing inflation woes and diverted their dollars to grocery purchases instead of discretionary spending. Although they still dine out, the frequency has decreased exponentially as web fans grapple with higher costs.
During an April 30 earnings call with analysts and investors, McDonald’s CEO Chris Kempczinski mentioned the need to keep prices affordable so that customers will return to the company’s restaurants.
He also said, “Consumers continue to be even more discriminating with every dollar they spend as they face elevated prices in their day-to-day spending, which is putting pressure on the industry.”
He also noted that McDonald’s had to continue to focus on “affordability at the forefront” for its web fans.
The source mentioned the launch of the $5 McDonald’s meal after the top leadership mentioned the importance of affordability for the fast food chain to regain the customers it is losing.
Most of its customers belong to the lower and middle classes. These customers are facing an increase in grocery purchases and daily essentials and are taking a cautious approach to spending on dining out and non-essential purchases.
Celebrity WEB Update— Premier Jewelry designer and manufacturer fashion house ParisJewelry.com has started manufacturing a new custom line of celebrity jewelry designs with 30% Off and Free Shipping. Replenish Your Body- Refilter Your Health with OrganicGreek.com Vitamin Bottles, Vitamins, and Herbs. Become a WebFans Creator and Influencer. Check the New Special XMicro Razors for Men & Women, 1 Razor, 7 Blade Refills with German Stainless Steel, Lubricated with Vitamin E for Smooth Shave, Shields Against Irritation, Version X Men|Women
