USA (Washington Insider Magazine)— Inflation has become a new opponent for fast food restaurants in the United States. Prices rose, and a law raising the minimum pay for workers made the value of the combos no longer “economical.” However, McDonald’s is considering a proposal to go out and reclaim low-income customers, despite its idea may not have enough support among a more than interested population.
Inflation’s Impact on the Economy
While not reaching the levels seen in other countries like Argentina, the US economy has experienced a notable period of inflation. With rates reaching as high as 8% in recent years, consumer spending has been affected, prompting companies like McDonald’s to reassess their pricing strategies.
McDonald’s Response: A Focus on Affordability
At a recent shareholder meeting, McDonald’s CEO Chris Kempczinski emphasised the importance of affordability. To regain consumer trust in the face of a tightening economy, the firm plans to create a $5 combo. An anonymous source told the business media that the menu would contain a McChicken or a McDouble with fries and a beverage.
Challenges and Competition
According to Cronista, despite its plans, McDonald’s faces challenges from competitors like Burger King and Wendy’s, which already offer affordable menu options with national reach. Additionally, the majority of McDonald’s US stores are operated by franchisees, some of whom are hesitant to fully embrace the proposed affordability initiative.
Franchisee Resistance and Previous Attempts
Earlier attempts by McDonald’s to introduce nationwide value menus were met with resistance from franchisees, who feared financial losses. Although the company has made efforts to address these concerns, particularly in light of new laws such as California’s minimum wage increase for fast food employees, achieving consensus remains a hurdle.
Future Plans and Initiatives
In addition to the proposed $5 combo meal, McDonald’s has revealed intentions to expand its menu with larger burgers, more chicken alternatives, and a better coffee experience. These projects demonstrate the company’s continual efforts to respond to shifting consumer preferences and economic realities.
