McDonald’s USA President Joe Erlinger reassured customers on Tuesday that he understands their concerns over rising prices. Appearing on NBC’s “Today” show, Erlinger announced the launch of a $5 value meal deal, aimed at providing affordable options during these times of inflation.
Table of Contents
Also Read: Applebee’s Date Night Pass Delirium: Exclusive Passes Vanish in a 30 seconds!
What the $5 Value Meal Includes
The new $5 value meal allows customers to choose between a McDouble or a McChicken sandwich, along with small fries, a four-piece McNuggets, and a small soda. Erlinger emphasized that this deal is designed to offer value to customers who are feeling financially stretched. “I’ve been across the country, visited our restaurants, and participated in focus groups. Customers are telling us they’re really stretched,” he said.
Addressing Price Concerns and Perceptions
When questioned about whether customer frustrations over rising costs prompted this deal, Erlinger confirmed that the feedback played a role. He framed the current competition among fast food chains not as “fast food wars,” but as “value and affordability wars,” reflecting what customers desire most.
Erlinger also addressed complaints about McDonald’s prices, particularly a viral social media post showing an $18 Big Mac meal in Connecticut. He clarified that such instances are exceptions, not the rule, and stressed McDonald’s commitment to maintaining value and affordability. “We are committed to value. I think the $5 price point and our continued focus on value and affordability will change that perception,” he stated.
Tackling Myths and Maintaining Affordability
In response to accusations of price gouging, Erlinger pointed out that McDonald’s overall price increases over the past five years are closely tied to rising operational costs, including higher salaries for restaurant crew and increased food and paper costs. He highlighted that the average price increase for a Big Mac, which went from $4.39 in 2019 to $5.29 in 2024, aligns with industry trends and inflation rates.
Erlinger also noted that franchisees set their own menu prices, which can vary by location. Despite this, McDonald’s remains focused on providing value to customers, making this summer the “summer of value” with their new $5 meal deal.
Industry Context and Competitive Landscape
The $5 value meal is part of a broader trend among fast food chains to attract budget-conscious consumers. With rising costs, chains like McDonald’s, Burger King, and Starbucks are emphasizing affordability. The fast food industry’s shift from $1 deals to more substantial discounts reflects the financial pressures customers face today.
As the prices of meals at limited-service eating places have increased by 31% since before the pandemic, offering value has become crucial for these chains. McDonald’s hopes that their $5 meal deal will not only draw in customers but also change the perception of fast food pricing during these challenging economic times.
