Saturday, June 22, 2024

McDonald’s Franchise Owners Condemn New $5 Meal

McDonald's Open 24 Hours - Depositphotos
McDonald’s Open 24 Hours – Depositphotos

*McDonald’s locations in the US plan to introduce a combo deal comprising a burger, fries, drink, and nuggets for $5. However, restaurant owners express concerns about potential financial implications.

As we reported previously, the fast-food giant faces profit declines amid economic challenges. To counter this, McDonald’s is ofering a $5 meal option, CBS News reports, which aims to lure customers back with wallet-friendly deals amidst nationwide inflation.

However, a collective of independent McDonald’s franchise owners has voiced their opinions regarding the $5 meal bundle set to launch this summer, Daily Mail reports.

The board of the National Owners Association wrote in a letter to membership: “The fact remains that in order to provide the consumer with more affordable options, they must be affordable for the owner/operators.”

The group added, “McDonald’s vast resources and financial investment are essential to any sustainable affordable strategy.”

McDonalds discrimination allegations
A McDonald’s fast food restaurant is seen in Belmont, United States on April 03, 2023. (Photo by Tayfun Coskun/Anadolu Agency via Getty Images)

Per CNBC: “The letter calls the McDonald’s business model a “penny profit business, with 10-15% margins,” and says “There simply is not enough profit to discount 30% for this model to be sustainable. It necessitates a financial contribution by McDonald’s.”

According to DailyMail.com, not every restaurant will offer the $5 meal deal.

A McDonald’s spokesman said: “We know how much it means to our customers when McDonald’s offers meaningful value and communicates it through national advertising. That’s been true since our very beginning and never more important than it is today.”

At the April 30 earnings call, McDonald’s CEO Chris Kempczinski said, “Consumers continue to be even more discriminating with every dollar that they spend as they face elevated prices in their day-to-day spending, which is putting pressure on the industry.”

“It’s imperative that we continue to keep affordability at the forefront for our customers,” he added.

Meanwhile, two people familiar with the $5 plan speak out in the TODAY report below.


READ MORE FROM EURWEB.COM: McDonald’s Mulls New $5 Meal Offering Amid Economic Challenges | VIDEO

We Publish News 24/7. Don’t Miss A Story. Click HERE to SUBSCRIBE to Our Newsletter Now!

YOU MAY LIKE

SEARCH

- Advertisement -

TRENDING