The representative U.S. fast food chain McDonald's has begun reducing product prices. As the economic downturn and the burden of dining out has led to a decrease in visits from low-income customers, it has implemented a special measure.
On the 20th (local time), The Wall Street Journal (WSJ) reported, "As consumers protested the steep rise in menu prices, burger chains have started to regain price competitiveness" and noted, "McDonald's proposed to offer financial support if franchise owners agree to the price reductions."
According to WSJ, McDonald's has decided, in consultation with its franchises in the U.S., to set the prices of eight popular combo meals at 15% lower than the total of the individual menu items. The reduced prices will take effect from September, and franchise owners are expected to maintain these prices until early next year.
Furthermore, McDonald's plans to introduce the $5 breakfast combo and the $8 Big Mac and McNugget combo meals under the name "Extra Value Meals" by the end of this year. McDonald's also released "Extra Value Meals" in 1991, during a time of fierce competition among fast food chains, to attract customers.
This decision aims to regain price competitiveness. Recently, as the economic downturn has thinned the wallets of American consumers, even McDonald's has seen an increase in customers who find prices burdensome. In areas like San Francisco, San Jose, and Oakland, the price of a Big Mac combo is approximately $13.17.
McDonald's has been steadily increasing prices. According to the company, the price of the popular Big Mac combo set rose by 27% from 2019 to 2024. An increase in expenses due to inflation is cited as a primary reason.
In a recent earnings announcement, McDonald's reported that second-quarter sales increased by 5% year-on-year to $6.84 billion (approximately 9.6 trillion won). The company noted that, during the same period, visits from middle-income customers increased slightly, high-income visits grew significantly, but store visits from low-income customers decreased by double digits.
After the earnings announcement earlier this month, McDonald's U.S. division chief Joe Erlinger stated in an internal message, "Customers are seeking the everyday value and reasonable prices that have defined the McDonald's brand more than ever."