May 24, 2024

McDonald’s wants to introduce a $5 meal deal in an effort to win over cash-strapped consumers.

Bloomberg, citing anonymous sources with knowledge of the situation, reported that the bundle may consist of a McChicken or a McDouble with fries and a drink.

That strategy, however, may be difficult for the fast food chain to put into place, at least in the U.S., in part because McDonald’s relies tremendously on a franchised business model. About 93% of its restaurants are operated by franchisees.

It isn’t the first time the company has attempted to launch the $5 deal, according to the unnamed sources, who told the publication the chain fell short of getting approval after some franchisees said they worried they would lose cash on the initiative.

In March, the company said it would make its burgers bigger, up its chicken supply, and refine its coffee experience, all in a bid to get consumers back.

In states like California, where a new law introduced in April raised the minimum wage to $20 an hour, chains like McDonald’s are struggling to keep prices low.

McDonald’s value proposition also comes at a time when the chain, and other food giants, are dealing with high inflation and waning consumer demand.

But that hasn’t kept McDonald’s from pushing its value plan idea into international markets, according to CEO Chris Kempczinski.

“What we don’t have in the U.S. right now is a national value platform at the same time that our competitors are out there with the national value platform,” said Kempczinski during the company’s first quarter earnings call last month.

“So the opportunity for us in the U.S., I think, is to get more aligned as a system around a strong national value proposition, that we can then use our media scale to drive high consumer awareness on it,” he added.

McDonald’s did not respond to a request for comment.

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