McDonald's Franchisees Advocate for Sustainable Affordability in Upcoming Value Meal Promotion
ICARO Media Group
In an effort to ensure long-term sustainability for operators, an independent advocacy group of McDonald's franchisees has expressed their support for the company's upcoming value meal promotion while pushing for future contributions from McDonald's.
The National Owners Association (NOA) has praised the affordability that the value meal will bring to consumers. However, the group highlights the need for McDonald's to provide financial support to make the discounted offering sustainable for owner/operators.
In a letter addressed to the NOA membership, the board emphasized the importance of affordability for both consumers and franchisees. Citing McDonald's resources and financial investment, the board stated that these factors are essential for any sustainable affordable strategy.
According to CNBC, the $5 value meal will be featured on McDonald's menu boards starting from June 25, and the promotion will run for approximately a month. The value meal will include a selection of items such as a McChicken or McDouble, four-piece chicken nuggets, fries, and a drink. This combo will be priced significantly lower than purchasing these items individually.
The introduction of the value meal comes at a time when lower-income consumers are scaling back their spending in the face of persistent inflation. Brands like McDonald's are striving to provide greater value to their customers.
To make the deal more enticing for both McDonald's and its franchisees, Coca-Cola reportedly added marketing funds. This move followed an initial proposal that did not meet internal requirements. Coca-Cola expressed its commitment to partnering with customers for marketing programs that meet consumer needs.
While McDonald's declined to comment on the NOA letter, the company acknowledged in a statement to CNBC the importance of offering meaningful value to its customers through national advertising. McDonald's highlighted the significance of value to its brand since its inception.
The NOA has proposed additional measures beyond the $5 value meal promotion. They suggested menu innovations, such as the reintroduction of snack wraps using existing chicken breasts, as well as the inclusion of popular beverages from McDonald's spinoff chain, CosMc's, in flagship locations. These suggestions aim to excite customers and employees alike.
The NOA's ideas were raised earlier in the year as the advocacy group urged McDonald's to add affordable options to the menu without discounting core items that are considered iconic.
McDonald's has previously noted a significant increase in cash flows for U.S. franchisees, with an average increase of nearly 50% since 2018. Despite accounting for inflation, 2023 was highlighted as one of the most profitable years for franchisee cash flow in the company's history.
As the $5 value meal promotion approaches, McDonald's franchisees, through the NOA, continue to advocate for sustainable affordability, urging the company to support operator profitability while providing affordable options to customers.