1y ago

McDonald's executives admit diners think prices are too high, say they're working to create value

www.cnbc.com

McDonald’s executives acknowledged during an earnings call Monday that diners consider the company’s prices too high, and said they are taking a “forensic approach” to evaluating prices.
Amid a broader consumer pullback and increasing prices, fast-food chains have had a difficult time drawing in lower-income diners.
The company’s recent $5 value meal offering was initially successful in bringing lower-income diners back to stores but has yet to translate into higher sales, company executives said.

30 comments

Stop. Eating. This. Shit.
- Personally I stopped eating fast food almost entirely (I mostly cook for myself), but food deserts are real and many people have few reasonable options. I don't think anyone eating McDonald's is under the impression that it's good for them.
"Create value"
God. Please just fucking stop. What value do they want to "create"? It's shitty food. Its "value" is in being cheap.
- It's shitty food. Its "value" is in being cheap.
  And fast, but it hasn't been either of those things for a while.
- It's just corporate-speak for "How can we change the menu so we still make the same amount of money, while confusing the customer into thinking they're spending less"
  
  Maybe if they fired half the MBAs they could make food that people would buy at reasonable prices.
More sawdust!
- You think we can afford sawdust?!? More floor sweepings! They're locally sourced!
- Okay now drunk me kind of wants a sloppy joe, but it's a McDonald's shitty sugary bun with taco bell ground beef.
It's more expensive than in and out these days. McDonalds is absolutely not worth what they're charging.
They're taking a "forensic approach". They're "working to create value", instead of just lowering their artificially jacked up prices. This means they're trying to create more value for shareholders and execs, not customers - obviously, not surprising, just interesting seeing the way they weasel themselves around the actual issue.
- Well yeah, they aren't going to voluntarily lower prices. That's sacrilege.
- I'm just relieved they are busy creating "value" instead of "percieved value".
- Pretty much, only with more salt
I don't go to McDonald's often. But the last time I went I couldn't believe the prices, and worse was the quality. Since COVID everything has gone up but McDonald's doubled that and dropped quality too. It is so terrible now. Even considering the low standard it had before.
- Yes, but they're making lots of money, so it's okay
Have they considered making their food less shitty at the same price? The race to the bottom price-wise never ends well.
"Create value" howsabout you create some cheaper prices?
The only thing I ever get from McDonald's anymore is happy meals for my kids. At one store it's 6 dollars, at the a mile down the road it's 4.
I've been in restaurants for most of my adult life, and even our own pricing has gotten out of hand. I don't like it, but that's food costs. We can't sell a protein dish for $10 if the protein is $7.50 at cost. I'm not getting McDonald's back here, I'm sure their corporate greed is excessive, but it's not just them dealing with higher priced food. We try to make as much as we can in house to avoid preservatives and chemical bullshit, as well as maintaining a lower cost, but even that is getting to be too much and finding skilled labor that can prep things that a lot of other restaurants buy outright is getting expensive, too. Luckily, the place I work at now is a brewery as well, and the beer sales can subsidize our food costs, but if we didn't have that beer, we'd be fucking done.
I tried the "value" meal they introduced recently. There was also a coupon for buy one 6 piece get one for .29 cents so it was enough food to share with others. I could've sworn the burger and chicken sandwich meals were supposed to be $5 but the burger one was $6. I get it and I was stupid and didn't check it, sure enough they forgot the sandwich... so glad they offered such great value.
Their food is a result of decades of small incremental changes to make the food cheaper and profitable, a few pennies at a time. Fast forward to today and what MacDonald's has to offer now doesn't even taste like burgers anymore.
More value. Yet you didn't say to whom, the customer or shareholders.
McShit 🐩💩
- McGenocide 👶🏼 💀
How can we create value for our customers?
Well customers like good service, customers also like being served by happy people. Let's require all our workers to smile all the time and act happy.
Perfect. We can also increase the prices since the service is going to be so satisfactory.
Perfect.
Pure poison.
- About to get worse when they make it "cheaper"
  
  We've scientifically found a new way to recycle 100% of items that make their way into our trash bins!
  Cool! Care to explain how?
  Uhh... No.
meanwhile burger king (at least in sweden) gives you 2 chicken royale meals and 2 crispy chicken burgers for 16.6 USD, since discovering that they have these infinite-use coupons we've been actually able to afford some fast food for once.

30 comments