McDonald's has announced that it will release a new meal deal in an effort to encourage more low-income customers.
The new deal comes after the Chicago-based business raised the prices on its products.
It might have started out as one of the most affordable options out there, but several global pressures have impacted on McDonald's.
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These include food-specific things like the price of cooking oil, which has been impacted by the Russian invasion of Ukraine, and the source of a significant portion of the global supply.
McDonald's has also seen shortages in other key ingredients for the food that it makes.
Elsewhere, there are things like increasing fuel costs, making everything more expensive.
The end result is, McDonald's has raised its prices. Meaning that low-income customers who might otherwise have gone there are instead choosing to eat at home.
As a way to counter this, McDonald's has announced that it will be offering a new meal deal which is aimed at getting lower income customers back through its doors.
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This new combo meal will consist of a either a McDouble or McChicken Sandwich, small fries, small soft drink, and a four-piece chicken nuggets, costing $5.
In April 2024 McDonald's announced that its global sales growth had slowed down for the fourth quarter in a row.
CEO Chris Kempczinski acknowledged in a call for earnings that it would be 'important to recognize that all income cohorts are seeking value'.
Speaking to the Wall Street Journal, a spokesperson for McDonald's said that creating a value deal was part of a national strategy.
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The spokesperson said: “That’s been true since our very beginning and never more important than it is today.”
McDonald's USA said in a statement: “We know how much it means to our customers when McDonald’s offers meaningful value and communicates it through national advertising. That’s been true since our very beginning and never more important than it is today.”
McDonald's is not the only company affected, with many customers from lower incomes reportedly moving away from global restaurant chains.
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The rising cost of living has instead prompted many to eat more at home as a way to save money.
Bloomberg has reported that McDonald's is currently working with franchise owners to get the new combo deal rolled out.
The deal will still move through different franchises for the chain, meaning that it's not clear at present how the new deal will be introduced nationally.
Featured Image Credit: Alex Segre/UCG/Universal Images Group via Getty Images, Brandon Bell/Getty ImagesTopics: News, McDonalds, Food and Drink, US News
Kit Roberts