McDonald’s to cut combo meals prices after admitting expensive menu – What about India?
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McDonald’s to cut combo meals prices after admitting expensive menu – What about India? Photograph: (Unsplash)
After the CEO admitted the menu was too expensive, McDonald's is set to slash its prices for combo meals. The lower menu prices are expected to take effect next month. The chain is also expected to expand its combo offerings.
McDonald’s is reportedly cutting the prices of its combo meals to make them affordable for customers again. This comes weeks after the fast food chain’s CEO publicly admitted that its menu has gotten too expensive and vowed to fix the problem. The lower menu prices are expected to take effect next month.
McDonald’s and its US franchisees have now agreed to reduce the price of eight popular combo meals by 15 per cent of the total cost of buying the items separately. The chain will also be providing financial support to franchisees to lower the prices, CNN reported, citing sources familiar with the company’s plans. The news was first reported by The Wall Street Journal.
McDonald’s to expand combo offers
The fast food giant will also be expanding combo offers, including a $5 breakfast deal and an $8 Big Mac and McNugget special on its menu in the coming months. The company will also be reintroducing the “Extra Value Meals” branding.
CEO admits McDonald’s became unaffordable
Earlier this month, CEO Chris Kempczinski said in its August 6 earnings call that “consumers’ value perceptions are most influenced by our core menu pricing.” He also admitted that the chain has become unaffordable over the years, saying that value-minded consumers are “too often” seeing combination meals that cost over $10. This is “shaping value perceptions in a negative way,” he said.
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“The single biggest driver of what shapes a consumer’s overall perception of McDonald’s value is the menu board,” he said. “And it’s when they drive up to the restaurant and they see the menu board, that’s what’s shaping the, that’s the number one driver.”
Following the pandemic, customers’ perception of the chain amid the rising inflation changed from a cheap place to get a quick meal to a pricey fast food joint that barely undercut higher-quality restaurant chain alternatives like Applebee’s or Chili’s, which continue to thrive over the recent years.
Will price cuts be implemented in India outlets?
Meanwhile, McDonald’s India has not announced any such price cuts as of now. It remains unclear whether the new combo offerings and lower prices will make it to the menus of McDonald’s outlets and franchisees in India.
