McDonald's $5 meal deal causes outrage among restaurant owners - as they write a damning letter to HQ (Brandonomics strikes again)

Daily Mail ^ | 5/21/24 | Daniel Jones

[Libloather]

An independent group of McDonald's franchise owners have spoken out about the the chain's $5 meal bundle planned for this summer.

The US's biggest fast food chain is trying to lure back customers fed up with its price hikes.

Customers will get a total of four items - either a McDouble or McChicken sandwich, small fries, small soft drink and four McNuggets - for $5.

'The fact remains that in order to provide the consumer with more affordable options, they must be affordable for the owner/operators.

'McDonald's vast resources and financial investment are essential to any sustainable affordable strategy,' the board of the National Owners Association wrote in a letter to membership.

The letter says that McDonald's restaurants have small profit margins - of '10 to 15 per cent' - which makes it hard for them to run offers like the $5 meal bundle without help from head office.

'There simply is not enough profit to discount 30% for this model to be sustainable. It necessitates a financial contribution by McDonald's,' the letter says, according to CNBC.

DailyMail.com reported last week that not every restaurant will offer the deal - with those that have higher labor and rent costs opting out.

We also told how the deal will only last for a month from June 25 - rather than all summer.

Despite McDonald's making $14.5 billion profit last year, the deal is being subsidized by its drinks supplier Coca Cola and its franchisees, who run nine in ten restaurants.

[HartleyMBaldwin]

I remember when you could buy one of every item on the McDonald’s menu and stay under $5.

[Chode]

think endless shrimp...

[Mr Rogers]

I used to go get 2 double cheeseburgers for $2.80. That was while Trump was President.

[TexasGator]

“I sure wouldn’t buy any McD stock”

Pays 2.5% dividend

Market Insider: McDonald’s stock has received a consensus rating of buy. The average rating score is Baa1 and is based on 81 buy ratings, 16 hold ratings, and 0 sell ratings.

[Reno89519]

Well, their loss. I hope McDonalds can put out a $5 meal so they can compete with Taco Bell and Burger King.

[faithhopecharity]

you’re just a young pup!

we remember when 13 (of the little) burgers came in a nice big bag for $1 (at predecessor just like McD)

[faithhopecharity]

thanks for the stock info
i wont buy it but i am almost pretty cautious about stocks

i like to see a going concern with a clear future

sort of like most of Warren Buffet’s investments

McD looked like it had the formula down pat (and could have interested me as a stock) a few years ago

but in the last 3 years or so, McD has abandoned its core customer constituency (families looking to satisfy kiddies’ hunger pains quickly and inexpensively) while not developing any new one(s)

[dfwgator]

They’ve catered to the ghetto crowd for years.

[faithhopecharity]

at today’s McD high prices, that would not appear to be a winning long-term marketing strategy

[Dragonspirit]

They artificially push the hourly to $20, they continuously restrict water and grazing use rights for farmers and ranchers, they allow punitive lawsuits for hot coffee and burdensome labor contracts disallowing machines to be fixed or software to be used and they of course never stop adding restrictions to fuel, pesticides and fertilizers. Then they scratch their heads why it doesn’t work anymore or falsely blame various boogie men of “corporate greed”.

[Newbomb Turk]

The problem is not McDonalds. The problem is our overall economy. Joe Biden's policies, Obama's third term, have trashed a great economy that he inherited from Trump. Food, Fuel, Housing prices and Interest rates are all at at double or more than under Trump.

Government policies that not a single American voted for are the cause of much this exoritant pricing.

[Charles Martel]

Ray Kroc is turning over in his grave.

Boom, Like That.

[nuke_road_warrior]

They're good as long as they stay away from an all-you-can-eat shrimp special.

Beat me to it.

[Brian Griffin]

The per employee/hour cost of restaurant help is up about four-fold since Zero took office.

[Brian Griffin]

I make a pretty good egg roll.

Aldi’s has 12 oz. of frozen Gulf shrimp for as I remember $4.49.

[null and void]

It’s not all bad, as I do enjoy all the videos of people going ape sh*t in these places.

It's probably less enjoyable IRL...

[Brian Griffin]

“They’ve catered to the ghetto crowd for years.”

I was in Burget King in Hartford, CT. Some customer was asking for a coupon discount without a coupon. It threw the entire operation out of whack.

I watched in amazement as one person prepared all the food.

[Mears]

I’m sure we all remember those prices .

…

[Brian Griffin]

The new restaurant franchises near me are Wendy’s and Dunkin’ Donuts.

[faithhopecharity]

We think for a really good quality burger, it is Five Guys always fresh but yes, expensive

for a decent quality burger a few bucks cheaper than 5G,
Habit

Decent in our opinion:
In and Out, but the lineup of cars is always impossible

Decent in our opinion:
Wendy’s but their new higher prices are out of line, imho.
ChickFilA (not quite a burger of course, and personally I have to remind them to cook it completely but it is pretty good for what it is)
SuperDuper burgers

Usually Digestable when fresh and you chew it well:
Burger King

totally off our list:
McD (causes me to vomit)
Jack’s Box

your mileage may vary.