The big deal: Why are fast-food chains suddenly offering discounts?

After inflation and price hikes, a need to bring customers back

Illustration of a cheeseburger with a sale tag
"The bill for years of hiked prices and record profits is coming due."
(Image credit: Illustration by Stephen Kelly / Getty Images)

They're calling it the "summer of food deals." Restaurant chains like McDonald's, Burger King and Starbucks are "promoting affordability as consumers trade down to eat at home," Axios said, offering $5 bargain combos designed to entice inflation-weary Americans back to the drive-thrus. Prices at the chains are up 31% since the pandemic, which "priced out many who turned to fast-food restaurants as a cheaper alternative." 

"Price promotions are a gamble," CNN said. The $5 deals might jump-start lagging sales, but the low prices also "eat into margins." And there's no guarantee it will work. McDonald's — whose month-long value deal includes a small sandwich and chicken nuggets, plus fries and a drink — in 2018 introduced a new menu of $1, $2 and $3 items. That effort "was not successful" in boosting traffic, one analyst said. But chains feel like they have little choice now. "There is a battle to try and hang on to market share."

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Joel Mathis, The Week US

Joel Mathis is a writer with 30 years of newspaper and online journalism experience. His work also regularly appears in National Geographic and The Kansas City Star. His awards include best online commentary at the Online News Association and (twice) at the City and Regional Magazine Association.