McDonald’s Launches New Extra Value Meals as Consumer Demand for Value Continues to Climb

After a lackluster second-quarter sales report, with a marginal U.S. increase largely driven by pricing increases (rather than traffic increases), McDonald’s is making a bid for consumer attention with price reductions in its combo meals. Its new Extra Value Meals, available starting September 8, will include favorites like Big Macs and Egg McMuffins.

This shift will address ongoing affordability concerns — visible across countless market segments and geographies — and boost the brand’s value proposition in consumers’ eyes.

“Today, too often, if you’re that consumer, you’re driving up to the restaurant and you’re seeing combo meals priced over $10,” CEO Chris Kempczinski said during a conference call with investors in August, the Associated Press reported. “That absolutely is shaping value perceptions in a negative way. So we’ve got to get that fixed.”

McDonald’s move is just the next in a long line of restaurant franchises looking to boost their value with consumers, following Dunkin’s $6 Meal Deal, Wendy’s $5 Biggie Bag, and Burger King’s $5 Duo and $7 Trio Meal Deals.

This industry-wide shift creates a complex balancing act for franchisees and franchisors. Though these brands must maintain profitability, recognizing what consumers want and leveraging that desire to drive foot traffic and recapture market share can boost a brand’s relevance in the crowded market. By lowering the price barrier and bringing real value back to the menu, the franchises can continue to adapt to and meet consumer demand.

Read the full article here.

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