Posted on 05/21/2024 6:53:00 PM PDT by 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.
(Excerpt) Read more at dailymail.co.uk ...
I live in So Cal…. Will have to look up locations that are still open.
I remember my first trip
to Mickey-D’s. 1959 in
Shelbyville, In.
Burgers were 10 for a buck.
(but you had to buy 10 for
that price)
Fries stayed the same at a
nickle.
Back when real barley malt
was used in a milkshake.
I will definitely buy this deal - however you can increase your food with very little effort (your current deal)
My best friend and I would get a single from Wendy’s, medium French fries and a drink for $3.50 in college. This was 1984.
I remember tacos being $.89 at Taco Bell - I know there is inflation but paying almost $20 for a McDonald’s meal is insane.
You can get two double cheeseburgers at my McDonalds for $2.89, but the chopped up tendons sticking in between your teeth let’s you know how they do it.
McDonald’s is a real estate company that sells burgers.
*********
Bingo, they choose to build where the real estate is going up and put a burger joint on it.
The drinks have never been worth it. When we would go to Micky D’s, we bought water elsewhere. We paid only for the food.
$6 now in Phoenix
Heck, my first brand new car cost me around 43400.
Of course, I was earning $2.25 an hour then.
Last month I paid $3200 for a lawn mower.
I did and regret it. If you’ve ever gone thru one of those carwashes with the delux foams that smell like air freshener as the smell comes thru the air vents or if you get your car cabin air freshener changed and they foam deodorize the air vents then you’ll know what the taste and aroma of a Coke Spiced. It’s some what like the smell and aroma of Cavendish pipe tobacco, pre smoke and the smoke aroma.
Don’t try it...disgusting. I was expecting more like a clove/cinnamon type flavor which might not have been bad at all.
And we FORGET what we were getting paid!
Too bad they don’t come as far east as Indiana.
They make the story about McDonalds but it’s really a statement on how hard inflation is hitting the People - and now we can expect tax increases to try to finish us off.....
There ya go.
Try $3400
McD abandoned families/children long ago
Look at their marketing these days
Nearly all urban and black focused.
“Coca Cola and its franchisees, who run nine in ten restaurants”
Regardless of who owns the corporation McDonalds (it is a publicly traded company), the Coca Cola corporation really runs McDonalds. They get profit from the Coke products sold at McDonalds, which means offering a $5 product line is a loss-leader to them and they make the profits on the drinks. The other 10% of franchisees do not receive any profits from the drinks sold so they cannot afford to offer a loss-leader like the $5 menu.
Market forces to lower prices CANNOT WORK if government price fixing of labor is in play.
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