NEW YORK — McDonald’s is hoping a new value menu will win back customers who have been put off by its higher prices.
On Friday, the fast-food chain unveiled the “McValue” menu, a new, budget-friendly category that will roll out at U.S. restaurants on January 7. The popular $5 meal deal, unveiled earlier this year, will be the centerpiece. The menu will also feature a new “Buy One, Add One for $1” option that includes breakfast.
McDonald’s is trying to reignite growth after a dismal few quarters. The value perception of the chain has dimmed among its cash-conscious customers because the average price of its menu items has soared around 40% over the past five years, in line with rising costs, according to the company.
“When it comes to value, we know there’s no one-size-fits-all. We’ve worked closely with our franchisees to create a new platform that will let our customers define value on their own terms,” Joe Erlinger, president of McDonald’s USA, said in a statement.
The chain had been making some progress before an E. coli outbreak in October caused sales and traffic to nosedive. McDonald’s announced last week that it’s pumping $100 million into marketing and aid to franchises most heavily affected by the health scare.
Also on the McValue menu are more in-app offers, plus local food and drink deals organized by its franchisees.
The national rollout of McValue helps “enhance the broader image of McDonald’s as a value-oriented brand,” according to David Henkes, a senior principal at Technomic, a food industry research and consulting firm.
“Restaurant traffic remains challenged, and this really represents a line of thinking that value will continue to be important to the consumer for the foreseeable future,” he told CNN. “Inflation remains elevated, and creating a more structured, long-term value platform tells me that McDonald’s really sees opportunity in doubling down in its focus on budget-oriented consumers.”
The new menu category is McDonald’s largest value-minded effort since 2018, when it priced some items from $1 to $3.
But the dollar menu proved relatively unpopular compared to the far more successful $5 value meal, which rolled out this summer. Customers weren’t necessarily shopping for inexpensive food as much as more bang for their buck.
Ultimately, inflation has all but wiped out the items found at the lower end of that pricing tier. The McValue menu will replace what’s left of it.
