A McDonald’s insider revealed the secret behind this big menu change
McDonald’s is the industry leader for fast food.
What McDonald’s implements in terms of prices and items trickles down to every other chain.
And now a McDonald’s insider revealed the secret behind this big menu change.
McDonald’s introduces a $5 value meal
Starting June 25, McDonald’s will introduce a $5 value meal consisting of small fries, a small drink, chicken nuggets, and a McChicken or a McDouble.
“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,” a statement from McDonald’s announcing the move read.
Corporate leadership admitted the company needed to implement new strategies to keep customers coming into franchise locations due to President Joe Biden’s inflation causing price increases that lowered demand.
“Consumers continue to be even more discriminating with every dollar that they spend as they faced elevated prices in their day-to-day spending, which is putting pressure on the [quick-service restaurant] industry,” CEO Chris Kempczinski said on the April 30 earning call.
The freakout over inflation began when a McDonald’s location reported selling an $18 Big Mac meal.
And while the $18 price tag was isolated to a single restaurant, the price hikes across the country at McDonald’s are very real.
CNBC reported that the “average price of a Big Mac meal today is $9.29, up 27% from $7.29 in 2019. The price for a 10-piece McNuggets meal is up 28% over the same period, and the price of medium french fries increased 44%.”
A corporate insider speaks
TikTok influencer Mike Haracz is a former McDonald’s corporate chef.
In his latest video, Haracz broke down the math behind McDonald’s $5 menu.
He explained the cost to McDonald’s to sell a small fry or a small drink was tiny and that if they could sell each item for a dollar they would be swimming in profits.
That’s why Haracz said McDonald’s would bundle them with “premium” items like a sandwich or Chicken McNuggets.
‘If you think about these bundles, you usually get four items – two that are a little more premium and two that are a lot cheaper,’ Haracz added.
Haracz told his followers that in the old days of the dollar menu, “smart” customers would go in and load up on burgers because it provided a better bang for the buck.
‘Smart people like myself and you would just buy a bunch of the burgers,’ Haracz continued.
But that works to the customer’s benefit as the value is on their end.
McDonald’s wants customers purchasing items off the menu that have a higher profit margin.
Hence the four-item $5 bundles includes the small fries and drink.
‘They would not make as much money, so they’re bundling these together so that you might be ordering things that you normally wouldn’t,’ Haracz concluded.
