Fast food giant McDonald's is keeping up with its competitors, trying to please increasingly frugal American consumers in the face of high inflation.
On Wednesday, McDonald's announced that next month it will start selling a $5 &#34;poor man's meal&#34; in the United States, which includes a McDonald's cheeseburger/chicken sandwich, small fries, a drink, and a 4-piece McNuggets (the poor man's meal sold domestically has been a 2-piece set for 13.9 yuan).
The promotion will start on June 25th and last for about a month.
Last month, McDonald's had already hinted at launching a promotional plan. However, many McDonald's franchisees opposed the previous promotion plan, believing that it would not bring the expected foot traffic and that the cost was too high. It wasn't until last week that the $5 four-piece &#34;poor man's meal&#34; plan finally received approval from the McDonald's Distributors Association.
Data from the market research company Revenue Management Solutions shows that in the first three months of this year, foot traffic at fast food restaurants in the United States decreased by 3.5% compared to the same period in 2023. Chain stores like Starbucks and Wendy's have seen a decline in foot traffic in recent quarters compared to the same period last year.
Chain restaurants have generally launched promotional activities this year to cope with the decline in foot traffic. Many consumers are tired of the high cost of dining out, leading them to reduce the number of times they eat out and reduce their spending when dining out.
Over the past year, food inflation in the restaurant industry has slowed down, but the cost of dining out is much higher than before. According to data from the U.S. Department of Labor, fast food prices in April were 33% higher than in 2019.
Wall Street News has mentioned that the global consumer market is witnessing a new trend: in an environment of high inflation and high interest rates, consumers are abandoning big brands and embracing &#34;low prices&#34;. Chain restaurants like JackintheBox, Chili's, and Applebee's are increasing their discounts to attract budget-conscious fast food customers. With a low-price strategy, the &#34;poor man's supermarket&#34; Aldi is also rising globally

American chain restaurant companies are generally increasing their discounts to attract budget-conscious fast food customers

Another well-known brand "Embracing Low Prices"! McDonald's plans to launch a $5 "Poor Man's Combo" in the United States