McDonald’s plans to launch a $5 meal deal in the US next month to counter slowing customer sales and consumption frustration with high prices.
The deal would allow customers to receive a four-piece McNugget, fries, a small drink and a McDouble burger or McChicken sandwich for $5 in most areas, according to a person familiar with the deal who was not authorized to discuss your details. .
The one-month deal is scheduled to begin June 25 and will be announced nationally. Some higher-cost stores, such as those in California or Hawaii, may charge more, the person said.
McDonalds did not confirm the upcoming deal when asked about it Thursday by The Associated Press. But the Chicago-based burger giant said last month it planned to ramp up business to combat slowing customer traffic in some markets.
“We know how much it means to our customers when McDonald’s delivers meaningful value and communicates it through national advertising,” McDonald’s said in a statement Wednesday.
The meal offer would be a substantial discount from the list prices of the items that will be included in the limited time offer. A McDonald’s store in Michigan charged $9.66 for four items sold individually on Thursday.
Fast food prices have risen dramatically in recent years due to a variety of factors, including high labor, food and paper product costs. Between the first quarter of 2022 and the first quarter of 2024, the amount spent per person per visit at a U.S. fast food restaurant increased 25%, from $12 to $15, according to Technomic, a restaurant data company. .
McDonald’s said at the beginning of this year which was seeing fewer visits to the US and lower spending from customers earning less than $45,000 a year.
As food inflation has slowed, more people are choosing to eat at home, said the president of McDonald’s and CEO Chris Kempczinski he said. In the first quarter, the company said fast food traffic remained flat or falling in many key markets, including the US, Canada and the UK.
“The consumer is certainly being very picky in how they spend their money,” Kempczinski said during a conference call with investors. “It may be more pronounced among lower-income consumers, but it is important to recognize that all income brackets look for value.”
During the same call, Kempczinski said McDonald’s needed a national deal that emphasized its value if it wanted to keep up with rivals.
Other chains also reported slowing sales. Starbucks said last month that it was seeing a sharper and faster decline in U.S. consumer confidence than anticipated in the January-March period. Starbucks said it plans to open its Rewards app to non-members in July so they can take advantage of offers providing.
This story originally appeared on Time.com read the full story
