The Journal: McDonald’s Wants To Offer Quality and Value. Can It Do Both?

Joe Erlinger, president of McDonald’s USA, was recently a guest on The Journal podcast. He spoke with host Kate Linebaugh about the strategies McDonald's is employing to maintain customer satisfaction amidst rising prices and a growing demand for healthier food options. 

With nearly 90% of Americans eating at McDonald's at least once a year, Erlinger acknowledges the company has had to address the impact of inflation on its prices. However, when Linebaugh questioned Erlinger about a viral tweet from last year where a consumer paid $18 for a Big Mac meal at a rest stop in Connecticut, Erlinger explained that this instance in particular was an exception.

“Because we're fully franchised, our restaurants set their own prices, our franchisees set their own prices, and so that's not representative of the value and affordability that we offer as a brand every day and that our customers seek from us,” he said.

Most McDonald’s locations within the U.S. are run by franchisees who set their own menu prices, but amidst inflation, those prices are going up across the board — something Erlinger readily admitted is true.

“I’ve acknowledged that actually in an open letter that's available for anyone to check out on McDonalds.com. And we did that at McDonald's because of all of this scrutiny and attention that we receive,” he said. “I think it's important for a brand like ours to be transparent, to be open, to be honest, especially because we touch so many communities.”

To tackle the challenge of maintaining affordability, McDonald's recently introduced a $5 value meal, which includes a McDouble or McChicken, four-piece Chicken McNuggets, small fries and a small soft drink. This initiative, originally successful in upstate New York, is now a national promotion. 

In response to evolving consumer preferences, McDonald's has made significant strides in improving the quality of its food. The company has reduced unnecessary preservatives and transitioned to cage-free eggs, among other changes. While some customers might miss the salads, which have not returned to the menu, Erlinger noted that McDonald’s will adapt if demand rises.

Despite the push towards healthier options, the attempt to introduce a plant-based option — the McPlant — did not succeed in the U.S. market. Erlinger pointed out that customers prefer classic offerings like French fries and the new value meals over plant-based proteins.

Additionally, McDonald’s is focusing on sustainability and responsible sourcing. Erlinger highlighted the company's efforts in sustainable agriculture and grazing practices to address climate change. He emphasized the need for McDonald’s to stay relevant to consumer needs, especially during economic uncertainty, ensuring that value and affordability remain central to their offerings.

To listen to the full podcast, click here.

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