McDonald’s franchisees are expressing their support for the company’s upcoming value meal promotion while also raising concerns about its long-term sustainability. The National Owners Association (NOA), an independent advocacy group of McDonald’s franchisees, believes that for the value meal to truly provide affordable options for consumers, it must also be affordable for the owner/operators. The NOA emphasizes that McDonald’s financial investment and resources are crucial in ensuring the success and sustainability of any affordable strategy.
According to the NOA, McDonald’s business model operates on slim profit margins of 10-15%. This makes it difficult to offer a 30% discount on the value meal without additional financial contributions from McDonald’s. The NOA is calling for the company to provide the necessary support to make the discounted offering viable for franchisees in the long run.
The $5 value meal, set to launch on June 25 and last for approximately a month, aims to attract lower-income consumers who may be cutting back on dining out due to rising inflation. The meal includes a McChicken or McDouble sandwich, four-piece chicken nuggets, fries, and a drink. The bundled price is significantly lower than purchasing each item individually.
Coca-Cola has reportedly added marketing funds to enhance the appeal of the value meal for both McDonald’s and its franchisees. Initially, an internal proposal for the promotion did not meet the company’s requirements, but with Coca-Cola’s support, the value meal was able to move forward.
The NOA’s letter also suggests other ways for McDonald’s to innovate its menu and offer more affordable options. One suggestion is to bring back items like snack wraps that utilize existing chicken breasts, reducing food costs for franchisees. Additionally, the NOA proposes introducing the top two beverages from McDonald’s spinoff chain, CosMc’s, to flagship locations as a means of exciting customers and employees alike.
These ideas were originally presented by the NOA earlier in the year as part of their push for affordable options on the menu without discounting core and iconic items. The group believes that McDonald’s CEO, Chris Kempczinski, has acknowledged the growing need for affordability among US consumers. However, they assert that value has always been a fundamental aspect of the brand and urge the company to continue prioritizing affordability.
In conclusion, while McDonald’s franchisees support the upcoming value meal promotion, they emphasize the importance of making it sustainable for owner/operators. The NOA calls for financial contributions from McDonald’s to ensure the affordability of the offering. In addition to the value meal, the NOA suggests menu innovations and bringing popular beverages from CosMc’s to flagship locations. These ideas aim to provide greater value to customers and generate excitement among both customers and employees. Ultimately, the NOA believes that affordability has always been central to McDonald’s brand and should continue to be prioritized.
 emphasizes the need for affordability for both consumers and owner/operators, calling for financial support from McDonald's. Learn about the challenges of offering a 30% discount on the value meal and the role Coca-Cola has played in enhancing its appeal. Explore innovative menu suggestions and the importance of prioritizing affordability for McDonald's.){kind=link}