McDonald's Reducing Combos Meal Costs to Attract Price-Sensitive Customers Again

In an attempt to address customer concerns about rising prices and revive its image as an affordable option, McDonald's has launched several initiatives.

According to Joe Erlinger, the U.S. President of McDonald's, the average price of a Big Mac in the U.S. increased from $4.39 in 2019 to $5.29 in 2021, representing a 21% increase with all inflationary pressures factored in. This increase has led to some concerns among customers, with some reports suggesting that the price of a Big Mac has risen 100% since 2019. However, Erlinger has emphasised that while high-priced burgers may exist, they are exceptions, not the norm at McDonald's.

To combat this perception, McDonald's and its U.S. franchisees have agreed to keep the cost of eight popular combo meals 15% lower than if the items were bought separately. This price reduction strategy is aimed at targeting budget-conscious consumers and boosting McDonald's value proposition.

As part of this strategy, McDonald's introduced a new "McValue" menu category in January, offering a "Buy One, Add One for $1" option for breakfast, lunch, and dinner. The chain also launched app-specific deals to drive customers to its platform, such as free medium fries with a $1 purchase every Friday in 2025 and a free McCrispy chicken sandwich for new app users.

Local franchisees are also getting in on the action, offering their own special deals on items such as the McGriddle and app-exclusive offers like 20% off $10 or more.

In addition, McDonald's will be running a $5 breakfast and $8 Big Mac and McNugget combo meal special later this year. This move is part of the franchisees' efforts to reduce the cost of combo meals and maintain McDonald's affordability.

Erlinger addressed these concerns in a note to customers in May 2024, blaming "poorly sourced reports" for contributing to the narrative of significant price increases beyond inflationary rates. He also pointed out that reports of $18 Big Mac meals being sold were exceptions, not the norm.

It's clear that McDonald's is taking steps to address customer concerns about price increases and is working hard to maintain its reputation as an affordable fast-food option. With its new initiatives, customers can expect to enjoy their favourite meals at a more affordable price.

McDonald's Reducing Combos Meal Costs to Attract Price-Sensitive Customers Again