After years of price increases and a decline in customers, fast food chains in the United States are competing with each other and offering value deals in hopes of bringing more foot traffic into their establishments.
“McDonald’s, Pizza Hut, Starbucks, KFC have all been experiencing declines in traffic,” said Clive Veroni, a marketing consultant in Toronto.
“McDonald’s in fact has increased its price faster over the last 10 years than any other major fast food chain and now they’re starting to feel the effects of that.”
A Bloomberg report first confirmed McDonald’s will introduce a $5 value menu in the United States on June 25 for one month. The news outlet later reported Burger King will offer its own $5 value meal that will launch before McDonald’s and run over a longer campaign.
“The inflationary pressures that customers have been under over the last several years are now finally starting to impact fast food restaurants,” Veroni said.
Affordability issues are also being felt in Canada.
Chrystal Bandura, from Calgary, tries to budget as best as she can for her family of five. With three older children, fast food used to be the place to go for cheap eats, but she says not anymore.
“It’s all so expensive all the time it hurts,” she said. “It’s tough to, you know, afford this kind of thing.”
Henry Chan, also from Calgary, said he never thought fast food would be so expensive.
“Normally it’s $15 or $20 if you go to McDonald’s or like $100 for food for a family,” he said.
He says he tries to hunt for deals or opts to stay home, but that grocery bills are also high.
In an email to CTV News, McDonald’s and Burger King said they are not currently offering the $5 value meal in Canadian restaurants and didn’t say if it will come in the future.
Customers here want it.
“That’s super important because some people just do need to live off of fast food. There’s just no other options for them. So no, I absolutely think that that’s [a] great idea,” Bandura said.
