McDonald’s $5 meal deal causes outrage among restaurant owners – as they write a damning letter to HQ

An independent group of McDonald’s franchisees has spoken out about the $5 meal bundle the chain is planning for this summer.

The US’s largest fast food chain is trying to lure back customers fed up with price increases.

Customers get a total of four items – a McDouble or McChicken sandwich, small fries, small soda and four McNuggets – for $5.

“The fact remains that if we want to provide more affordable options to consumers, they must also be affordable to owner/operators.

“McDonald’s tremendous resources and financial investments are essential to any sustainable, affordable strategy,” the National Owners Association board wrote in a letter to members.

The letter says McDonald’s restaurants have small profit margins – from “10 to 15 percent” – making it difficult for them to organize offers like the $5 meal bundle without help from corporate headquarters.

“There is simply not enough profit to give a 30% discount to make this model sustainable. This requires a financial contribution from McDonald’s,” the letter said CNBC.

DailyMail.com reported last week that not every restaurant will offer the deal – with restaurants with higher labor and rental costs opting out.

We also told you that the deal will only be valid for a month from June 25 – instead of the entire summer.

Despite McDonald’s making $14.5 billion in profits last year, the deal is being subsidized by drinks supplier Coca Cola and its franchisees, who run nine in 10 restaurants.

Some of the funding for the promotion will come from McDonald’s long-time drinks supplier Coca Cola – which will raise $4.6 million, according to the US newspaper. Wall Street Journal.

“McDonald’s gross profit for twelve months ending 2023 was $14.5 billion… if they lowered the cost of their food, maybe people would start eating there again,” someone on X wrote about the chain’s recent profits.

Social media users focused their anger on McDonald’s parent company, rather than the franchisees who – in many cases – are small business owners.

The new $5 meal bundle will be the first same-priced meal deal nationally in decades. Most McDonald’s are run by franchisees who set their own prices based on their costs. Labor and rent are much higher in some areas.

The franchisees voted to approve the deal last week. They’re eager to lure customers back, even if they have to subsidize some of the cost of the deal.

It’s not clear if McDonald’s is also bringing in some money.

A McDonald’s spokesperson said last week: ‘We know how much it means to our customers when McDonald’s delivers meaningful value and communicates this through national advertising.

“It’s been that way since our very beginning and never more important than now.”

The new deal is an attempt to win back customers who have become overpriced by the chain’s rising menu prices, with a Big Mac meal now costing as much as $19.

Over the past decade, the average cost of an assortment of typical menu items at McDonald’s has doubled. The photo shows the items that have increased in price the most

CEO Chris Kempczinski has emphasized the need for affordability amid rising costs and inflation

At one location of the popular fast food chain, a Double Quarter Pounder meal cost $18.99, which would have been well over $20 after the tax was added

The more expensive stores are trying to attract fast food customers. Chili’s and Applebee’s both have Bruger meal deals for around $10.

Recent research has also shown the extent to which McDonald’s prices have increased over the past decade, with many menu items doubling.

At one location of the popular fast food chain, a Big Mac meal cost $17.59, which would have been well over $19 after the tax was added.

McDonald’s points out that franchises set their own prices.