USA – McDonald’s has announced that it will extend its US$5 value meal beyond its initial four-week window in most U.S. markets as the fast-food giant says the offer is driving traffic back to restaurants.
In a memo to the U.S., the executives wrote that nearly every business unit, encompassing 93% of its restaurants, voted to extend the promotion past its original end date late this month. The memo said the majority of locations will extend through August or plan to vote on whether to do so.
The US$5 value meal rolled out on menu boards beginning June 25 was initially set to last roughly a month. It includes a McChicken or McDouble, four-piece chicken nuggets, fries, and a drink. The combo costs substantially less than purchasing those items individually.
“Our message is resonating with our millions of customers,” Myra Doria, national field president, and Tariq Hassan, U.S. chief marketing and customer experience officer, wrote in the memo.
“When our customers are ordering the US$5 Meal Deal, they aren’t visiting the competition, and early performance shows this deal is meeting the objective of driving guests back to our restaurants.”
The move comes as restaurants offer deals to boost sagging traffic, as consumers — particularly lower-income diners — balk at higher prices after years of inflation-fueled hikes.
The meal has faced competition from other chains, including Burger King, Wendy’s, Taco Bell and even Starbucks, which have offered deals ranging between US$3 and US$5, as companies look to bring value-conscious consumers in a highly competitive environment.
The memo said, “We must remember that driving guest counts ultimately propels our business and is the key to sustained growth.”
Apart from McDonald’s, other restaurant chains like Burger King (BKW), Wendy’s, Starbucks (SBUX), and Taco Bell have also launched similar meal deals to bring in more customers amid rising food prices and heavy competition.
Coca-Cola invested marketing funds to make the initial value offer more appealing to franchisees. Some franchisee advocates had pushed for future contributions from the company to make the discounted offering sustainable for operators in the long run.
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