McDonald’s is surrendering control of its dollar menu to franchisees as fast-food chains battle for budget shoppers
By Sara Shaw • December 28, 2018
McDonald’s is making some changes to win over budget-conscious shoppers. Last week, the fast-food chain announced it is bringing back the 2 for $5 Mix and Match Deal, as well as revamping its $1 $2 $3 menu in early January, allowing local franchisees to have more flexibility regarding what is and is not on the menu. For some customers, that could mean fewer — or more — items on the value menu. The chain also hopes that giving franchisees more control over the value menu will make peace after franchisees formed their first-ever independent franchisee association.
McDonald’s has spent the last year grappling with how to win over budget shoppers, but the $1 $2 $3 menu did not become the silver bullet that some had hoped. Franchisees said the menu didn’t live up to the hype. One day in March, the company’s shares fell 4.8%, marking the worst dollar decline in history, following a RBC Capital Markets note that said the menu had failed to resonate with customers.