McDonald’s, the fast food giant, announced on Tuesday, September 2nd, that they will be introducing more value meals to attract cost-conscious American customers.
For over a year, the foot traffic at fast food chains has been declining due to reduced spending by low-income consumers. McDonald’s and its competitors have been using discounts and promotions to lure customers back to their restaurants. Last summer, McDonald’s introduced a $5 value meal and extended promotional activities, followed by buy-one-get-one offers on a variety of items.
Starting this Monday, September 1st, McDonald’s is reintroducing 8 value meals, the last time they promoted value meals was before the outbreak of the COVID-19 pandemic. The company stated that purchasing a value meal can save customers 15% compared to buying the main dish, fries, and drink separately.
The eight value meals include: Sausage McMuffin with Egg, Sausage Egg and Cheese McGriddle, Egg McMuffin, Bacon, Egg, and Cheese Biscuit, Big Mac, 10-piece Chicken McNuggets, any Quarter Pounder Burger, and any McCrispy Sandwich.
Additionally, McDonald’s will be offering two new limited-time discounted meals: Sausage McMuffin with Egg, Hash Browns, and a small coffee for $5; Big Mac, medium fries, and medium soft drink for $8.
McDonald’s CEO Chris Kempczinski said in an interview with CNBC on Tuesday that the purpose of introducing new meals is to attract customers who have not yet used the McDonald’s mobile app to get discounts, or customers who purchase existing value meals. They make up about half of McDonald’s clientele.
“Especially for low and middle-income consumers, they are under significant pressure now,” he said. “What we are seeing is a two-tiered economy among consumers.”
In early August, during McDonald’s latest earnings call, he emphasized the fast food industry’s reliance on low-income consumers. He stated, “Re-attracting low-income consumers is crucial because they tend to visit our restaurants more frequently than middle to high-income consumers.”
McDonald’s also plans to roll out more promotional activities later this year. Starting in November, they will offer the Bacon, Egg, and Cheese Biscuit for a discounted price of $5, and the 10-piece Chicken McNuggets for a special price of $8.