McDonald’s biggest menu shakeup in years rolls out Tuesday
By Jordan Valinsky, CNN
New York (CNN) — McDonald’s anticipated new value menu is rolling out to US restaurants Tuesday, marking the chain’s biggest change in several years.
The “McValue” menu category is a new, budget-friendly attempt at luring back customers who have been put off by McDonald’s higher prices. The popular $5 meal deal unveiled earlier this year is the main draw, and the McValue menu will also feature a new “Buy One, Add One for $1” option that includes breakfast.
The new McValue menu will also include more app-exclusive offers, plus local food and drink deals organized by its franchisees.
McDonald’s is trying to reignite growth after several dismal quarters. The value perception of the chain has dimmed among its cash-conscious customers: The average price of items has soared about 40% since 2019. The company says this is in line with its rising costs.
The chain announced the new menu in November, shortly after an E. coli outbreak that caused sales and traffic to nosedive. McDonald’s said it would pump $100 million into marketing and aid for franchises most heavily affected by the health scare, which has since ended.
McDonald’s (MCD) will release quarterly earnings on February 3, giving investors a first peek at whether these efforts are working.
Focusing on value
Many consumers are feeling cash-strapped, with prices rising for everything from groceries to housing—and fast food. The national rollout of McValue helps “enhance the broader image of McDonald’s as a value-oriented brand,” according to David Henkes, a senior principal at Technomic, a food industry research and consulting firm.
“Restaurant traffic remains challenged, and this really represents a line of thinking that value will continue to be important to the consumer for the foreseeable future,” he previously told CNN. “Inflation remains elevated, and creating a more structured, long-term value platform tells me that McDonald’s really sees opportunity in doubling down in its focus on budget-oriented consumers.”
The new menu category is McDonald’s largest value-minded effort since 2018, when it priced some items between $1 to $3.
But the dollar menu proved relatively unpopular compared to the far more successful $5 value meal, which rolled out last summer. Customers weren’t necessarily shopping for inexpensive food as much as more bang for their buck.
Ultimately, inflation had all but wiped out the items found at the lower end of that pricing tier. The McValue menu will replace what’s left of it.
The-CNN-Wire
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