Key facts
- McDonald's customers surveyed overwhelmingly expressed dissatisfaction with the value offered for the price.
- Over half of respondents to a Business Insider survey rated the value at McDonald's as "poor" or "very poor."
- Some customers are reducing their visits to McDonald's due to rising prices and perceived lower quality for cost.
- McDonald's CEO Chris Kempczinski cited issues with rolling out an under-$3 value menu and excessive promotions for recent sales slowdown.
- The company's stock has fallen 9.6% year-to-date.
McDonald's customers are voicing significant concerns about the chain's pricing and value offerings, with many indicating they are reducing their visits or seeking alternatives. A Business Insider survey of 227 respondents revealed that approximately 57%, or 130 individuals, rated the value they received for their money at McDonald's as "poor" or "very poor."
Customers like Steve Armstrong noted that competitors like Burger King offer better value and quality for burgers. Christoph Winarski, who visits McDonald's weekly, is reconsidering his habit as fast-food meal prices approach those of sit-down restaurants. Brian Schnabel found McDonald's new under-$3 menu items to be overpriced, reminiscing about the previous dollar menu.
McDonald's CEO Chris Kempczinski acknowledged that the company has faced execution problems, particularly with rolling out an under-$3 value menu and managing an excess of promotions. These issues contributed to a slowdown in US sales growth during the chain's second quarter. Despite these challenges, Kempczinski stated that the company's underlying strategy remains sound.
Some customers did express satisfaction with newer value offerings, with one survey respondent noting a return to McDonald's due to "outstanding deal" value meals. However, others cited a decrease in in-app deals and promotions as a reason for visiting less frequently, with some stating they would not return unless significant changes occur.
Industry expert Mike Perry suggested that McDonald's might benefit from reframing its under-$3 items as add-ons to full meals or focusing more on bundled meal deals, similar to successful strategies employed by chains like Chili's. Perry advised against using the term "value" explicitly, arguing that a focus on meal deals can be more sustainable and profitable in the long run.