McDonald's $3 Value Menu Fails Due to Inconsistent Franchise Execution
McDonald's launched a revamped McValue menu in April with ten items priced under $3. Despite initial unanimous approval from franchisees, the promotion has not met expectations due to inconsistent execution across locations. Only about 60% to 65% of McDonald’s restaurants are offering all 10 items at the recommended pricing. The issue stems partly from the fact that nearly all U.S. McDonald's locations are franchises, and franchisees have discretion over operational decisions including pricing. Some operators opted out or adjusted prices based on local conditions such as high-cost real estate like airports. Additionally, removing other digital promotions to make way for the $3 menu may have hurt sales further. McDonald’s CEO Christopher Kempczinski acknowledged that this contributed to weak U.S. same-store sales growth in Q2 and admitted it was a poor trade-off with loyal customers affected by lost offers.
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