Earlier this year, the chief executive of McDonald's stated that value meals at the prominent fast-food company were priced too high, setting the stage for the introduction of cheaper deals aimed at budget-conscious patrons. However, on the internet, shoppers are not showing interest.
TL;DR
- McDonald's $8 10-piece McNugget value meal faced backlash online from customers citing high prices.
- Customers expressed concerns about rising prices, declining quality, and long drive-through delays.
- McDonald's CEO admitted combo meals over $10 negatively shape value perceptions for customers.
- Despite criticism, McDonald's reported increased global and American comparable sales in the third quarter.
Earlier this month, McDonald’s promoted a limited-time $8 10-piece chicken McNugget value meal for November.
However, according to the company's marketing announcement on November 14th, X post, numerous individuals pledged to avoid patronizing the establishment. Their reasons varied, encompassing concerns about rising prices, a perceived decline in product quality, and extended delays at the drive-through.
“Since when is $8 a good price for 10 little nuggets, a hand full of fries and a drink?” One commenter said.
The firm addressed several of these grievances within the comments section of the post, requesting that individuals submit their personal details via private message to resolve their issues, yet the publication garnered a multitude of dissatisfied feedback.
McDonald's could not offer a prompt reply to Coins2Day's inquiry for remarks because of the holiday weekend.
The criticism emerges while the corporation endeavors to restore its reputation for being inexpensive, given that cost increases have impacted its offerings.
The firm faced condemnation last year regarding its price hikes starting in 2019, even receiving reprimands from House Republicans in an X post which asserted that, during the tenure of President Joe Biden, the cost of medium fries escalated by 167.6% and a Big Mac meal by 103.5%.
McDonald's refuted asserts its prices have doubled, stating that the average cost of the company's offerings has risen by approximately 40% over the specified duration, attributing the majority of this to “the increase of costs to run restaurants, which have gone up.” These expenses encompass a rise in restaurant employee wages by as much as 40% and greater expenditures for food and paper, as per the corporation.
Over the past couple of years, McDonald’s has been criticized online by value-conscious customers for its prices. An X post displaying a $18 Big Mac combo meal went viral in 2023, spurring debate that the chain had become too expensive. This post also elicited a response from McDonald’s USA president, Joe Erlinger, who claimed the meal was an “exception” and that the chain’s prices have not outpaced inflation.
Even CEO Chris Kempczinski admitted that combo meals costing more than $10 were “negatively shaping value perceptions.”
During the company’s second-quarter earnings call, he told investors that the “single biggest driver” of what shapes a consumer’s overall perception of McDonald’s value is the menu board.
“We’ve got to get that fixed,” he said.
During May, Kempczinski said observed that the corporation's U.S. Traffic from lower-income patrons in the first quarter of this year saw a decrease of “nearly double digits,”, while traffic from middle-income patrons diminished by a comparable figure.
He said that these consumers “in particular, are being weighted down by the cumulative impact of inflation and heightened anxiety about the economic outlook.”
Notwithstanding the negative reaction, the firm's worldwide comparable sales increased 3.6% during the third quarter—and its American sales saw a rise of 2.4%.
“We’re fueling momentum by delivering everyday value and affordability, menu innovation, and compelling marketing that continue to bring customers through our doors,” Kempczinski said in McDonald’s third-quarter earnings release.