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McDonald's $5 meal deal causes outrage among restaurant owners - as they write a damning letter to HQ (Brandonomics strikes again)
Daily Mail ^ | 5/21/24 | Daniel Jones

Posted on 05/21/2024 6:53:00 PM PDT by Libloather

An independent group of McDonald's franchise owners have spoken out about the the chain's $5 meal bundle planned for this summer.

The US's biggest fast food chain is trying to lure back customers fed up with its price hikes.

Customers will get a total of four items - either a McDouble or McChicken sandwich, small fries, small soft drink and four McNuggets - for $5.

'The fact remains that in order to provide the consumer with more affordable options, they must be affordable for the owner/operators.

'McDonald's vast resources and financial investment are essential to any sustainable affordable strategy,' the board of the National Owners Association wrote in a letter to membership.

The letter says that McDonald's restaurants have small profit margins - of '10 to 15 per cent' - which makes it hard for them to run offers like the $5 meal bundle without help from head office.

'There simply is not enough profit to discount 30% for this model to be sustainable. It necessitates a financial contribution by McDonald's,' the letter says, according to CNBC.

DailyMail.com reported last week that not every restaurant will offer the deal - with those that have higher labor and rent costs opting out.

We also told how the deal will only last for a month from June 25 - rather than all summer.

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

(Excerpt) Read more at dailymail.co.uk ...


TOPICS: Business/Economy; Front Page News; Government; Politics/Elections
KEYWORDS: deal; inflation; letter; mcdonalds; meal
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A damning letter. Something new. Just saw my first bottle of Coke Spiced. Not gonna do it.
1 posted on 05/21/2024 6:53:00 PM PDT by Libloather
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To: Libloather

Wendy’s Biggie Bag is $5.

Bacon/cheese burger, fries, drink and 6 nuggets.


2 posted on 05/21/2024 6:56:59 PM PDT by TexasGator
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To: TexasGator

4 nuggets here, and the burger patty is at least as small as McDonald’s, a size that didn’t exist in the “Where’s the beef?” days. However, it is one of the better values among fast food chains.

I like the free Senior drinks at Wendy’s.


3 posted on 05/21/2024 7:00:56 PM PDT by Dr. Sivana
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To: Libloather

I cannot even get the mcd app to work on my phone

originally annoying but not a big loss.

I remember when they had 500,000 served and that was a super big deal.

Years later when the little town my grandparents lived in got one, and everyone was all excited about it, and the kids wanted to work there.


4 posted on 05/21/2024 7:01:29 PM PDT by algore
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To: Libloather

McDonald’s is a real estate company that sells burgers.


5 posted on 05/21/2024 7:02:06 PM PDT by dfwgator (Endut! Hoch Hech!)
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To: Libloather

I remember buying double cheeseburgers for $1.

I remember buying Wendy’s chicken sandwiches for 99 cents.

I remember buying Burger King Big Fishes for $1.89.

I pretty much have given up on restaurants.


6 posted on 05/21/2024 7:10:39 PM PDT by Brian Griffin
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To: Libloather

They’re good as long as they stay away from an all-you-can-eat shrimp special.


7 posted on 05/21/2024 7:13:34 PM PDT by PLMerite ("They say that we were Cold Warriors. Yes, and a bloody good show, too." - Robert Conquest )
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To: Libloather

Coming back from the airport I noticed the Outback Steakhouse went out.

A few other places also went out.

I feel sorry for the restaurant operators and their employees, but my bank calculates debits correctly.


8 posted on 05/21/2024 7:13:54 PM PDT by Brian Griffin
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To: Libloather

So the current $3 bundle (by me anyway) is a double cheese and small fry

This offers the cheaper to make McDouble and small fries and adds a drink and 4 piece for $2.

The cost of that piece of cheese missing on the McDouble probably covers or damn close to covers the raw cost of the drink.

So $2 more dollars for 4 McNuggets. Seems if the $3 deal is viable this $5 should be viable.

No it’s a low margin, but I don’t see this as a money loser if the current $3 meal
Is viable which it clears is at least in some markets.

Methinks the real issue is, unlike the $3 bundle which gets zero promotion, this will be heavily promoted and folks are afraid a lot of folks buying the full price stuff will buy the deal instead


9 posted on 05/21/2024 7:15:15 PM PDT by HamiltonJay
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To: Libloather

My local Aldi sells 29 ounces of nuggets for $4.84.


10 posted on 05/21/2024 7:15:52 PM PDT by Brian Griffin
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To: HamiltonJay

I feel for the restaurant owners and their employees.

However, my bank knows how to do math.


11 posted on 05/21/2024 7:17:46 PM PDT by Brian Griffin
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To: Libloather

At least they aren’t charging for the spit.


12 posted on 05/21/2024 7:18:38 PM PDT by moovova ("The NEXT ELECTION is the most important election of our lifetimes!“ LOL...)
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To: Libloather

I typically paid 1.5Euros for a McDouble in Spain.


13 posted on 05/21/2024 7:22:34 PM PDT by Brian Griffin
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To: HamiltonJay
"So the current $3 bundle (by me, anyway) is a double cheese and small fry"

The soda/pop that would be "extra" is 98% city-water with CO2 and syrup. They expect you will add the drink.

14 posted on 05/21/2024 7:24:33 PM PDT by outofsalt (If history teaches us anything, it's that history rarely teaches anything.)
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To: Libloather

They’re trying to please the franchisees who are complaining about being stuck with skimpy profits. I would imagine most franchisees are now owned by Muslims, people from India, the cartels etc..

We quit going to restaurants and McWhopper slop joint$. They want way too much money. Ya see the bill and quickly feel you’ve just been robbed at gun point. It’s not all bad, as I do enjoy all the videos of people going ape sh*t in these places.


15 posted on 05/21/2024 7:29:10 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: Libloather

I stopped doing fast food when the lockdowns went out of fashion. Nowadays I buy my usual 97/3 ground beef, a bag of potatoes, all the fixings, and make my own burgers and fries for nowhere near the cost of fast food (so called “because it speeds you to your grave” lol). If I’m really jonesing for nuggets, there are a lot of “taste-alikes” out there, all still cheaper than a food-racketeer.


16 posted on 05/21/2024 7:31:03 PM PDT by Retrofitted
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To: algore
I remember when they had 500,000 served and that was a super big deal.

I remember our manager climbing a ladder and changing our sign from 5 to 6 billion.

17 posted on 05/21/2024 7:34:44 PM PDT by E. Pluribus Unum (The worst thing about censorship is █████ ██ ████ ████ ████ █ ███████ ████. FJB.)
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To: Libloather

McD has priced itself almost completely outside of its core patronage constituency....families

the dollar menu is GONE
the prices on the (mostly quite tiny) burgers are doubled
the kiddie packs (whatever they were called, the boxes with grub and a toy inside) are GONE
the kiddie playlands are GONE

so who is gonna spend $12 or $15 on a little low-quality burger, fries, and soda? The people who can afford this are mostly not people who want to eat McD grub in the first place

just saying, the company’s marketing focus used to be quite effective and now they’ve flushed it down the toilet

I sure wouldn’t buy any McD stock


18 posted on 05/21/2024 7:38:50 PM PDT by faithhopecharity (“Politicians are not born. They're excreted.” Marcus Tillius Cicero (106 to 43 BCE))
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To: Brian Griffin

“I remember buying double cheeseburgers for $1.”

I remember buying burgers for 15 cents.

McDonalds kept that price for over 20 years. Amazing!


19 posted on 05/21/2024 7:41:36 PM PDT by TexasGator
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To: TexasGator

Ray Kroc is turning over in his grave.


20 posted on 05/21/2024 7:42:00 PM PDT by dfwgator (Endut! Hoch Hech!)
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