McDonald’s franchisee group applauds $5 value meals and pushes for more | Wilnesh News

an independent advocacy group McDonald’s Franchisees are participating in the company’s upcoming value meal promotions, cheering affordability for consumers but also pushing for future contributions from the company to make the discounted service sustainable for operators in the long term. .

“The fact remains that in order to provide consumers with more affordable options, owner/operators must be affordable. McDonald’s substantial resources and financial investment are critical to any sustainable affordability strategy,” the National Owners Association’s board of directors said in a statement the statement read.

The letter calls McDonald’s business model a “low-margin business with profit margins of 10 to 15 percent,” and says, “There are simply not enough margins to sustain this model at a 30 percent discount. It requires a financial contribution from McDonald’s.”

CNBC reported last week that the $5 meal will appear on menus starting June 25 and last about a month. Includes a McChicken or McDonald’s Double, four chicken nuggets, fries and a drink. The cost of buying them in combination will be significantly less than buying these items individually.

Faced with stubborn inflation, low-income consumers are pulling back from some restaurants, and brands want to offer customers greater value.

CNBC reports Coca Cola After the initial proposal failed to pass internal hurdles, McDonald’s increased marketing funding to make the deal more attractive to McDonald’s and its franchisees. “We often work with our customers on marketing programs to meet consumer needs. This helps us grow our business together,” Coca-Cola said in a statement last week.

McDonald’s declined to comment on NOA’s letter to its members. In a statement to CNBC last week about Value Meals, the company said: “We know that when McDonald’s delivers meaningful value and communicates that value through national advertising, it’s great for our customers. means something.

In addition to the $5 promotion, the NOA letter recommends that the company should continue to innovate on its menu, reintroducing items such as snack packs that use existing chicken breasts to create affordable options with lower food costs for owners Sell ​​cheaper.

The group also suggested picking up two of the most popular drinks from McDonald’s spin-off chain CosMc’s and bringing them to flagship stores to excite customers and employees.

The ideas were first floated by the advocacy group earlier this year as it pushed to add affordable options to menus without discounting “core and signature” items.

“Recently (McDonald’s CEO Chris Kempczinski) has made public comments about U.S. consumers’ growing demand for affordability. This is not a new or unique message; value has always been at the core of our brand,” NOA said in February.