How $5 has become the fast food industry's magic number
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Natalie Peeples/Axios
The summer of food deals has a magic number with the $5 value meal, the fast-food industry's latest push to bring consumers back.
Why it matters: Restaurant chains, including McDonald's, Burger King and Starbucks, are promoting affordability as consumers trade down to eat at home.
The big picture: The $5 price and a flurry of new discounts replace the $1 deals that were dismantled with soaring prices.
- Sam Zietz, CEO of GRUBBRR, a self-ordering technology company, said recent price hikes have priced out many who turned to fast-food restaurants as a cheaper alternative.
- "These consumers are starting to see more value in sit-down eateries as the prices become more similar," Zietz told Axios.
By the numbers: Prices of "meals at limited services eating places" are up 31% since before the pandemic, according to the Bureau of Labor Statistics.
- This has outpaced wage gains for workers that grew 25%.
Yes, but: Kevin Hart, chief sales officer at Upside, a cashback food and fuel app, told Axios the value-menu frenzy is a dangerous game.
- "Using blanket discounts to carve out your competitive advantage is a fool's errand that will end up hurting smaller retailers the most," Hart told Axios.
Zoom in: Here's a rundown of some of the recent deals and new menu items.
McDonald's $5 meal deal debut
McDonald's new limited-time $5 meal launched Tuesday with a choice of a sandwich (McDouble or McChicken), small fries, four-piece Chicken McNuggets and a small soft drink.
- The value of the meal varies by location. A McDouble, fries, nuggets and soda's add up to $9.06 at a South Florida McDonald's, $10.46 in Los Angeles and $13.46 in New York City.
The fine print: McDonald's said the McDouble meal option "may be priced at $6 at select restaurants," including in California, Washington and Manhattan.
Burger King $5 Your Way Meal
Burger King rolled out its new value meal two weeks ago, which comes with chicken nuggets, fries and a soft drink and a choice of three sandwiches.
- The deal is expected to stick around for several months.
Starbucks Pairings Menu
Starbucks has been offering more deals like half-off and buy-one-get-one drinks since May that have been extremely rare since COVID.
- The coffee giant released a new "Parings Menu" that starts at $5 and offers discounts when getting certain drinks and food items.
Popeyes adds free boneless wings promo
Popeyes is banking on boneless wings and a limited-time offer to drive traffic instead of a $5 meal.
- The chain added boneless wings to its permanent menu Tuesday and launched a promotion for six free boneless wings with $10 app or website purchase through July 14.
More from Axios:
