15% Discount on Combo Meals Starts Next Month
Financial Support for Participating Franchisees
McDonald's, the hamburger franchise that once sparked controversy over its "18-dollar Big Mac set," has decided to cut combo meal prices by 15% at its U.S. locations.
According to the Wall Street Journal (WSJ) on August 20 (local time), McDonald's and its U.S. franchisees have agreed to price eight popular combo meals 15% lower than the combined cost of the individual items. For example, a combo meal currently priced at $10 is expected to drop to $8.50.
The company plans to provide financial support to franchisees who participate in the price reduction, and the lower prices will take effect starting next month.
Along with the price cuts, McDonald's will introduce new combo meals. These include a $5 breakfast set and an $8 "Big Mac·McNugget Special." The company also plans to revive the "Extra Value Meal" name, a once-popular brand.
Chris Kempczinski, CEO of McDonald's, said during an earnings announcement earlier this month, "Consumers' perception of value is determined by menu prices," adding, "Combo meals priced well over $10 are negatively affecting customers' perceptions." He emphasized, "We must correct our menu pricing."
The controversy intensified in 2023 when a Big Mac set was sold for $18 at a U.S. rest stop, drawing attention on Reddit, the largest online community in the U.S. At the time, the president of McDonald's USA explained that it was a "special case" and stressed that the price increase did not significantly exceed the rate of inflation.
This strategy of lowering combo prices and expanding new menu items is seen as an effort to ease consumers' "price burden" while helping McDonald's reclaim its original image as an "affordable dining option."
WSJ noted, "The restaurant industry, especially the fast food sector, is struggling as inflation-weary consumers are dining out less," and pointed out, "While McDonald's same-store sales in the U.S. have returned to growth in recent quarters, the number of customer visits has fallen short of expectations."
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