McDonald’s introduced a new menu called “McValue” at its restaurants in the United States on Tuesday, January 7th. This is the brand’s most significant value menu in years, aimed at attracting customers who have been feeling increasingly distant due to rising prices.
In addition to the popular $5 meal launched earlier this year, the McValue menu will also offer a new “add $1 for buy one get one free” option, including meals for all times of the day. The new menu will also provide more app-exclusive deals and dining offers from local franchisees.
Since 2019, McDonald’s product prices have increased on average by 40% due to rising costs, leading many customers to perceive a decline in the “value” of the nation’s largest fast-food chain.
McDonald’s announced the introduction of the new menu last November when sales and foot traffic had significantly decreased following an E. coli outbreak. McDonald’s stated that it would invest $100 million in marketing efforts and support the most affected franchisees.
McDonald’s will release its quarterly financial report on February 3rd, giving investors their first glimpse of whether these new initiatives have been effective.
According to CNN, as prices are rising from food to housing, many consumers are feeling increased economic pressure. David Henkes, a senior principal at food industry research and consulting firm Technomic, said that the nationwide launch of McValue by McDonald’s helps to “enhance McDonald’s image as a value-oriented brand.”
Henkes also pointed out that restaurants are still facing challenges in foot traffic, and this initiative shows that “value” remains crucial to consumers in the foreseeable future.
This is the largest reform McDonald’s has made to its value menu since 2018 when some items ranged from $1 to $3 in price. However, that promotion was not as successful as this summer’s $5 meal launch. Customers are not just seeking “cheap,” but are looking to get more “value” for the same price.
Ultimately, inflation has rendered almost all items in that price range obsolete, now replaced by McValue.
McDonald’s has enlisted WWE wrestler and actor John Cena to promote the new menu.