"Too Expensive" Customers Vanish... US McDonald's Selling 6,700 Won Set Menu

US Consumers Quit Fast Food Amid High Inflation
McDonald's Plans to Launch $5 Set Menu

McDonald's USA announced that it will sell a $5 set menu starting from the 25th of next month. This appears to be a strategy to compensate for the decline in customer visits following consecutive price increases.

The American economic media outlet CNBC reported that McDonald's will sell a set menu including a McChicken sandwich or McDouble, 4-piece McNuggets, French fries, and a soft drink for $5 (approximately 6,700 KRW) for one month starting from the 25th of next month. Currently, the price for similar items in New York City is $18.26 (approximately 24,700 KRW). Coca-Cola has supported this McDonald's event with $4.6 million (approximately 6.2 billion KRW).

[Image source=Pixabay]

This promotion by McDonald's seems to be a strategy to win back consumers' favor. Currently, McDonald's is experiencing a decrease in customers compared to before due to consecutive price hikes. The Wall Street Journal (WSJ) reported last month that fast food prices are 33% higher compared to 2019 levels.

Due to the burden of fast food prices, the number of customers visiting McDonald's has decreased and spending has shrunk. McDonald's first-quarter earnings per share were $2.70, lower than the market expectation of $2.72. Accordingly, McDonald's expressed difficulties during the earnings announcement on the 30th of last month. McDonald's emphasized, "We must place special focus on maintaining reasonable prices so that customers can return." John Palmatier, the owner of McDonald's, said, "Great value and affordable prices are characteristics of McDonald's. We are working together for our customers," adding, "This is the power and promise of the Golden Arches (McDonald's iconic M-shaped logo)."

However, it is reported that there was even a dispute between McDonald's headquarters and franchise stores over the drastic set menu price. On the 14th, McDonald's sent an internal message saying, "We thank the franchise operators who quickly approved this promotion."