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[cormack12]

Source: https://www.bbc.co.uk/news/articles/c728313zkrjo

McDonald's is reconsidering its pricing strategy, after customers cutting back their spending took a bite out of the fast food giant's sales.

Outlets open for at least a year saw sales fall 1% over the April-June period compared with a year earlier - the first such decline since the pandemic.

McDonald's said lower income customers were particularly hurting and the loss of those buyers was not being made up by wealthier households trading down.

Demand at its restaurants fell in the US, the company said, while weakness in France and price wars in China also weighed on sales.

Price increases, made in response to inflation, had "led consumers to reconsider their buying habits", Mr Kempczinski admitted.

 

[The Cockatrice]

Price increases, made in response to inflation, had "led consumers to reconsider their buying habits", Mr Kempczinski admitted.

The whole McDonalds shtick was very cheap fast food. It wasnt good or healthy but we all had cheap cravings which worked well for them. How crazy that when your garbage food gets expensive people will avoid it lmao.

 

[-BLITZ-]

So prices are the problem in McDonald's world, no matter how unhealthy their customers eat. For them, all that matters is that the number of buyers flows as they say. The time will also come when the number will decrease even more. If a number of customers have dropped, why do they think they will come back if in the meantime they have found an alternative, maybe even healthier at a cheaper price than their McDonald's food.

 

[jufonuk]

Wasn’t it always the place you could go if you had no money?

 

[Ovek]

Price increases, made in response to inflation

I fucking hate this bollocks. What really is driving massive prices increases and lower quality is massive unchecked corporate greed.

Fuck them and their shitty "food".

 

[navii]

“Cheap” food places are now so expensive that the proper “expensive” restaurants are looking like good value.

 

[thefool]

>cheap fast food is not cheap anymore
>sales fall

 

[Complistic]

>cheap fast food is not cheap anymore
>sales fall

Absolutely insane, what could be the reason

 

[Mr Reasonable]

I just googled to find out how much a big mac meal is now, which is what I used to get when I used to eat at McDonald's. A large one is £5.09, apparently.

I did some googling and when they were introduced in 1995 a large value meal was £3.18

Putting that into the bank of England's inflation calculator, £3 in 1995 is £6 in 2024.

So, in a sense a meal is cheaper now than when they first introduced them.

I wonder if this is a case, again, of wages not keeping pace with inflation.

 

[Rran]

“Cheap” food places are now so expensive that the proper “expensive” restaurants are looking like good value.

This is accurate. I can either spend $11 at a fast food place, get horrible--or in the case of those dumb kiosks, no--service, and essentially flip a coin on whether or not the food will be fresh. Or, I can spend $13 on a lunch special at a Mexican place and get some delicious flautas and free salsa.

The lack of a value menu means the $4 okay meal vs $10 restaurant meal of yesteryear no longer applies, and the worse service and consistency nowadays make fast food an even less-appealing option.

 

[jufonuk]

I just googled to find out how much a big mac meal is now, which is what I used to get when I used to eat at McDonald's. A large one is £5.09, apparently.

I did some googling and when they were introduced in 1995 a large value meal was £3.18

Putting that into the bank of England's inflation calculator, £3 in 1995 is £6 in 2024.

So, in a sense a meal is cheaper now than when they first introduced them.

I wonder if this is a case, again, of wages not keeping pace with inflation.

Happy meal was 2.99 at one time.

McDonald’s isn’t as good as five guys. But the price ion both makes me rather eat at home. If I were to I would choose five guys.

 

[Rockondevil]

I used to enjoy McDonald’s for a cheap easy burger but now it costs the same as the burger joint that sells better quality near me.

If they drop prices I’ll go back sometimes but until then why wouldn’t I eat better for the same cost.

 

[Mr Reasonable]

Happy meal was 2.99 at one time.

McDonald’s isn’t as good as five guys. But the price ion both makes me rather eat at home. If I were to I would choose five guys.

£3.18 for a large though - I was trying to compare like for like (I assume you mean Value, not happy meal)

I don't really get burgers out often, but have had decent ones in Honest Burgers. But it doesn't seem fair to compare mcdonald's to five guys et al when the latter charge 2-3 times as much.

 

[Punished Miku]

The only drive through I go to now is this local mexican place. Fresh egg tacos, packed. Real eggs, not fake trash. Cooked when I order it, multiple homemade salsas. And it's cheaper. The list goes on. Many far better options that are cheaper. Many sit down places are literally cheaper. I can go to a local burger place and get a burger and fries that's all custom, homemade ketchup and guiness mustard, applewood smoked bacon and jalapeno, sweet potato fries, all for like $14. There's a relatively upscale place with wine bottles covering the walls where you can still get a smoked chicken sandwich that's ridiculously good with fries for like $14, brought to you by a server in dress attire.

 

[jufonuk]

£3.18 for a large though - I was trying to compare like for like (I assume you mean Value, not happy meal)

I don't really get burgers out often, but have had decent ones in Honest Burgers. But it doesn't seem fair to compare mcdonald's to five guys et al when the latter charge 2-3 times as much.

McDonald’s is getting up there for price similar to five guys.

But of I go out I’d rather go elsewhere

Five guys is amazing I think.

 

[lmimmfn]

This will happen across industries.

Since Covid all industries have been price gouging, increasing inflation and now because of higher interest rates coupled with the cumulative inflation since covid people are really struggling as wages havnt increased to match.

Great so see their bottom line dropping and realising they can't keep gouging.

I havnt eaten in a McD's since 2020 thankfully and of course was awful as expected.

 

[Mr Reasonable]

McDonald’s is getting up there for price similar to five guys.

But of I go out I’d rather go elsewhere

Five guys is amazing I think.

I think Mcdonald's is £5.09 for a Big Mac, large fries and large drink.

How much is the 5 Guys equivalent? Google reckons it's £12-15 and that a hamburger on it's own is £6.95.

Same as you though, I don't generally go to Mcdonald's under normal circumstances, so I'm not really up on any of this stuff, I'm only really interested in the broader economics of it.

 

[Azzurri]

No one wants to pay $20 for a few things at McD's.

 

[BlackTron]

If you look at the inflation rate, McDonald's prices track. The thing is even though the money is worth less, their client base doesn't have proportionally more of it, and prices of other food items not made of shit and cardboard haven't increased with inflation at the same pace, so the difference between what you're paying and the value you're getting has never been more apparent.

I thought the prices were crazy intentionally so that either it works and they fleece you, or get your data in exchange for deals in the app. A medium fry is over FIVE DOLLARS but costs nothing with the app it's like bribery lol. But I guess the franchisees don't see anything for that data and just dump free fries everywhere.

I'm surprised they're only 1% off with their pricing strategy.

 

[Mistake]

if you're going to spend as much as chick-fil-a for worse food, why not go to chick-fil-a?

 

[Billbofet]

I haven't been to a McD's in years but it was my only option a few months back.
I went in to make sure my order would be correct, and a dude is sitting at the counter just staring off into space. He won't take my order and directs me to the disgusting kiosks.
Having not been there in a while, and not having the app, it felt like an eternity to enter my Big Mac "value" meal in.
The total came to $13. The food was just okay, but I used to get that same meal in college for $2.99.

They deserve all the failure they have had lately. For these prices, you can go to a much better chain or local restaurant, get actual service, and fresher food.

 

[hemo memo]

I mean Mcdonalds used to be unhealthy food that’s cheap. Now it’s just unhealthy food with a lot of better alternatives. I mean you don’t need a business degree to realize that.

 

[diffusionx]

I like McDonald's but I don't know why I would go there when I could go to The Habit, or Shake Shack, or a local place, because they're not competing on price anymore and haven't been for a while.

 

[Raven117]

“Cheap” food places are now so expensive that the proper “expensive” restaurants are looking like good value.

Yup. (Not that I ever eat at McDonald’s).

 

[6502]

They aren't that bad, it's shit food for ok price. KFC on the other hand have chucked prices up over 50% in the last few years by me. Annoying enough when the pieces are half the size they are here vs in London, but when a bargain bucket goes from £10 to £15 it is clear they are gouging us.
I used to regularly feed the family with a takeaway for £15-£20, I stopped entirely when orders regularly hit £40 plus. For an extra tenner we can go to the pub and each have sirloin steak, chips, veg and onion rings at normal prices.

 

[ResilientBanana]

They mean ingredients. Can't make better profits by decreasing prices alone without changing a few ingredients.

 

[DosGamer]

I think the price differences between going to McDonalds and ordering versus using the app have created this to an extent.
I can go and get take out at a restaurant that offers kids meals that are cheaper than paying for a meal for my daughter at McDonalds. that is a problem ... when restaurants are cheaper than fast food.

 

[AJUMP23]

$10 for 2 cheeseburgers fries and drink is steep, and no one should pay that.

Wasn’t it always the place you could go if you had no money?

Taco Bell too, but that is gone now.



Look what the government took from you.

 

[OmegaSupreme]

I still dig on their nuggies occasionally, but they are way more expensive than they should be.

 

[SlimySnake]

Inflation has gone up by like 15% in the last 4-5 years. Their prices along with everyone else's prices have doubled. Or gone up 100%. Im sorry but thats fucking nonsense.

All these corporations and i mean all of them have used the inflation excuse to inflate their prices even more. Tim Hortons, Netflix, Disney, Microsoft are all doing what mcdonalds is doing. My fucking iced capp went from $2.50 to $4.00 in a span of 4 years. thats a 60% increase. Thats not inflation. Thats greed. The mcdonalds hashbrown is now $1.79. It was $1 before covid. thats a 79% markup. wtf.

The only ones normal are some midwest chains like In n Out, Culvers, and Chick Fila who have largely kept their prices the same.

 

[Sleepwalker]

I am thankful to all these fast food companies for making their shit a terrible deal, helps me stay disciplined and eat at home.

2 Burger combos at burger king is almost $30 cad. I can go to an actual good restaurant and share a meal with my wife for a little more.

0 value.

 

[MudoSkills]

I think they should lean in, double prices. Work that brand equity.

 

[West Texas CEO]

The whole McDonalds shtick was very cheap fast food. It wasnt good or healthy but we all had cheap cravings which worked well for them. How crazy that when your garbage food gets expensive people will avoid it lmao.

Very much this. A lot of these fast food joints have now "broken" these unspoken rules by trying to charge premium prices for sub-par food. (and oftentimes sub-par service)

Although the McDonald's near me is still pretty cheap, even without using any apps.

On a side note, I don't get the hate for using the kiosks. I'd much rather put in the order directly myself, rather than have to interact with some pimple-faced, low IQ loser behind the counter.

 

[winjer]

I haven't been to a McDonalds is about 6-7 years. Not because of any boycott or anything like that.
It's just that I don't care that much about it. The price is not that much lower than a normal restaurant.
At a normal restaurant I can get a full meal, that tastes better, is more nutritious and healthier.
So I just don't have any reason to go to a MacDonalds.

 

[rm082e]

I don't follow WWE, but I remember flipping channels years ago and seeing one of the big dudes on Letterman. He said "If I got into a McDonalds, I'm going to spend about $20." I remember thinking he's eating for 3 people...

Today I'm looking back at that and laughing.

 

[NickFire]

Inflation has gone up by like 15% in the last 4-5 years. Their prices along with everyone else's prices have doubled. Or gone up 100%. Im sorry but thats fucking nonsense.

All these corporations and i mean all of them have used the inflation excuse to inflate their prices even more. Tim Hortons, Netflix, Disney, Microsoft are all doing what mcdonalds is doing. My fucking iced capp went from $2.50 to $4.00 in a span of 4 years. thats a 60% increase. Thats not inflation. Thats greed. The mcdonalds hashbrown is now $1.79. It was $1 before covid. thats a 79% markup. wtf.

The only ones normal are some midwest chains like In n Out, Culvers, and Chick Fila who have largely kept their prices the same.

Greed is always a factor. But it also seems a convenient excuse that people rely on to shift blame IMO.

 

[IDKFA]

I wonder if this is a case, again, of wages not keeping pace with inflation.

Pretty much nailed it there. Especially in the UK.

I'm making more money than was 5 years ago, but the cost of living is far, far higher than my wages have grown.

 

[Jack Videogames]

I pay 13/14e for a large meal of whatever special there is in McDonalds. For maybe 5e more you can eat an an infinitely better junk food joint and for 10e more you enter fork-and-knife restaurant territory. They definitely lost the price battle and they better steer course before it's too late.

 

[Big Baller]

Getting nuggets tonight

 

[Mr Reasonable]

Getting nuggets tonight

 

[Sushi_Combo]

Haven't gone into a McD's in years to order a meal, partly because I've started to stop eating garbage fast food but also their prices are just out of whack.

Their Coffee's are good though.

 

[jshackles]

In 2019 my local McDonalds had a "family value meal" that you could order that wasn't on the menu.

2 Big Macs
2 McChickens
20 Piece Nuggets
2 Large Fries

It was $14. It could easily fill my family of four to the bursting point.

Now one Big Mac is $9. They have a similar combo meal now that is $42 (same stuff, but the two fries are small size instead of large). Literally three times as expensive for less food.

 

[StreetsofBeige]

McDonald’s trying to push their fast food dominance hoping every customer goes along for the ride. But it gets to a point people see the cost/value equation and say forget it. For an extra couple bucks you can get something much better. It takes longer to get your food but Hero Burger has a $10 everyday combo by my place which is a burger, fries and drink. Much better than any mcds combo.

Only time I do McDonald’s is if there’s a cheap combo deal or $1 cone. Paying regular price is insane. And in Canada the prices are stupid. 20 McNuggets is like $15 by itself.

 

[ultrazilla]

Source: https://www.bbc.co.uk/news/articles/c728313zkrjo

McDonald's is reconsidering its pricing strategy, after customers cutting back their spending took a bite out of the fast food giant's sales.

Outlets open for at least a year saw sales fall 1% over the April-June period compared with a year earlier - the first such decline since the pandemic.

McDonald's said lower income customers were particularly hurting and the loss of those buyers was not being made up by wealthier households trading down.

Demand at its restaurants fell in the US, the company said, while weakness in France and price wars in China also weighed on sales.

Price increases, made in response to inflation, had "led consumers to reconsider their buying habits", Mr Kempczinski admitted.

This is the best news for American's health-STOP EATING AT MCDONALD'S.

There is nothing nutritious or healthy about that shit. All fast food for that matter.

 

[Dutchy]

Fast food is to be eaten with moderation so I don't see the problem. Make it 3 times more expensive for all I care. People might rethink their lifestyles.

 

[Solarstrike]

 

[JCK75]

It won't be easy but they need to come up with some value menu options..
Some places are nuts, my Ex took my son to five guys... two burgers, two fries, one drink.. $30

 

[SlimySnake]

I pay 13/14e for a large meal of whatever special there is in McDonalds. For maybe 5e more you can eat an an infinitely better junk food joint and for 10e more you enter fork-and-knife restaurant territory. They definitely lost the price battle and they better steer course before it's too late.

Use the app.

You get free large fries for spending $2.

You can then use another coupon in a separate order to get free nuggets with purchase of 6 piece nuggets. There are coupons every day for $2 breakfast sandwiches down from $4.50. Today they have a deal where you get free fries with a coke or free fries with a fillet o fish.

The thing is most people dont use the app. I see people paying $13 for a meal ahead of me in the drive thru and im getting more for a fraction of what they paid. its just fucked up.

 

[Alebrije]

Wasn’t it always the place you could go if you had no money?

It seems it no longer is , just wonder where the people is going now?

 

[SlimySnake]

It won't be easy but they need to come up with some value menu options..
Some places are nuts, my Ex took my son to five guys... two burgers, two fries, one drink.. $30

it was probably around $35.

If you are getting a single cheeseburger at five guys, thats $9.29. smallest fries are $5.29. One soda is $3.19 for some reason. thats $18.

i used to go eat there regularly around ten years ago, but i almost never go there anymore. charging $5.29 for small fries is criminal. they used to give a lot of fries back in the day so i didnt mind paying $3-4 for them. but now they have reduced the portions. they no longer fill the bag up like they used to. doubled the price and reduced the portion by half. fuck em.

Chipotle is legit about to have riots over the portion size too. they have increased the prices by almost 50% and keep reducing chicken portions. i got double protein the other day paying an extra $3.50 and the portion was basically what we used to get back in the day without paying for double.