McDonald’s franchisees have agreed to implement significant price cuts on combo meals as the fast-food giant works to restore its reputation as an affordable dining option for consumers watching their spending.
The company and its U.S. franchisees reached an agreement after weeks of negotiations to reduce the cost of eight popular combo meals by 15 percent compared to purchasing the items separately.
This decision represents a coordinated effort to address growing concerns about the chain’s pricing structure.
The company is also clearly listening to its budget-conscious customers, unlike Cracker Barrel.
Company materials reviewed by the Wall Street Journal revealed the details of this pricing strategy.
McDonald’s has committed to providing financial support to franchisees who participate in the program, according to sources familiar with the negotiations.
The new pricing initiative will include a $5 breakfast combo and an $8 combination meal featuring either a Big Mac or McNuggets.
These offerings will be marketed under the “Extra Value Meals” brand and are scheduled to launch later this year.
McDonald’s operates through a franchise model, with the majority of its restaurants worldwide owned and operated by independent franchisees.
This structure required extensive coordination between corporate headquarters and individual restaurant owners to implement the pricing changes.
Fox Business reported that McDonald’s has been actively working to enhance its value proposition and increase customer traffic among price-sensitive consumers who have become more selective about their dining choices.
In January, the fast-food chain introduced a new “McValue” menu category as part of its broader comeback strategy.
This initiative offers customers a “Buy One, Add One for $1” option across breakfast, lunch, and dinner menu items.
The company simultaneously launched app-exclusive promotional deals designed to drive customers to its digital platform.
These promotions include free medium fries with any $1 purchase every Friday throughout 2025 and complimentary McCrispy chicken sandwiches for new app users.
Local franchisees have been encouraged to create their own promotional offers on popular items such as the McGriddle.
Additional app-exclusive deals include 20 percent discounts on orders totaling $10 or more.
Fox noted that during 2024, McDonald’s faced significant public relations challenges when reports emerged about extremely high-priced menu items.
Stories about $18 Big Mac meals generated widespread criticism and damaged the company’s value-oriented brand image.
McDonald’s U.S. President Joe Erlinger addressed these concerns directly in a May 2024 customer communication.
He attributed the negative publicity to “poorly sourced reports” that contributed to misconceptions about the company’s pricing practices.
“This is inaccurate,” Erlinger stated regarding claims that McDonald’s had raised prices significantly beyond inflationary rates.
He emphasized that while some high-priced items exist, these represent exceptions rather than standard pricing.
Erlinger expressed frustration about reports of an $18 Big Mac meal, noting this occurred at only one location among more than 13,700 U.S. restaurants.
He stated his concern about customers believing such pricing represents the norm across all locations.
The executive also addressed claims that Big Mac prices had doubled since 2019.
The average Big Mac price in 2019 was $4.39, while the 2024 average reached $5.29, representing a 21% increase over five years, according to Erlinger’s data.
Erlinger attributed this price increase to inflationary pressures that affected the entire food service industry during this period.
The company maintains that its pricing adjustments have remained proportional to broader economic factors rather than exceeding inflation rates.
The new combo meal pricing strategy represents McDonald’s most comprehensive effort to rebuild consumer confidence in its affordability while maintaining profitability for franchisees through corporate financial support.
The post McDonald’s Slashes Combo Meal Prices 15% in Major Push to Win Back Budget-Conscious Americans appeared first on Resist the Mainstream.
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Author: Jordyn M.
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