McDonald’s USA president Joe Erlinger recently appeared on NBC’s “Today” show to address growing concerns among customers about rising fast food prices. During his interview, Erlinger introduced McDonald’s latest effort to provide value amidst inflationary pressures: the $5 value meal deal. This initiative allows customers to choose between a McDouble or McChicken sandwich, paired with small fries, four-piece McNuggets, and a small soda, all for a fixed price.
Erlinger’s appearance came in response to widespread feedback from customers, gathered through extensive field visits, focus groups, and direct observations in McDonald’s restaurants across the country. He acknowledged that many patrons are feeling financially stretched due to the cumulative effects of inflation over recent years. This feedback has influenced McDonald’s strategy to focus on offering value and affordability rather than engaging in what he termed as “fast food wars.”
Addressing specific concerns about pricing, Erlinger acknowledged instances where individual franchise locations have charged exceptionally high prices, such as the $18 Big Mac meal in Connecticut, but emphasized these cases as outliers rather than representative of overall pricing strategies. To counter broader misconceptions, Erlinger penned an open letter aimed at clarifying McDonald’s pricing policies and the factors influencing them.
Erlinger explained that while certain menu items, like the Big Mac, have seen price increases over the years—rising from an average of $4.39 in 2019 to $5.29 in 2024—a 21% hike—these adjustments are necessary to offset rising operational costs. These costs include significant increases in crew salaries, up approximately 40% since 2019, and higher expenses for food and packaging materials.
Contrary to accusations of price gouging, Erlinger provided data indicating that McDonald’s overall restaurant margins have remained stable since 2019. He underscored that franchisees retain autonomy in setting menu prices, which can vary based on local economic conditions and operating expenses.
Looking ahead, Erlinger expressed confidence that initiatives like the $5 value meal deal would help reshape public perception and reaffirm McDonald’s commitment to affordability. He described this period as “the summer of value” at McDonald’s, emphasizing the company’s ongoing efforts to provide accessible dining options amidst economic challenges.
In conclusion, Erlinger’s statements on the “Today” show aimed to reassure customers about McDonald’s pricing policies amid broader economic uncertainties. By highlighting initiatives to maintain affordability and transparency, he sought to reinforce McDonald’s position as a consumer-focused brand amidst evolving market conditions.