On January 12, 2025, people gathered outside a McDonald’s in Lisbon, Portugal. The fast-food giant is introducing new value deals, like the McValue Menu, to attract budget-conscious customers. This move comes as global sales face challenges due to changing consumer habits.
McDonald’s is also updating its franchising standards to ensure that franchises provide good value to diners. Andrew Gregory, McDonald’s senior vice president, announced that starting January 1, 2026, the company will better assess how franchisees set their prices. He emphasized the need for clear accountability, saying the goal is to ensure every restaurant delivers reliable value.
Currently, franchisees operate about 95% of McDonald’s locations worldwide and have the authority to set their prices, often with advice from external pricing consultants. The new standards will require a comprehensive review of pricing strategies to ensure they truly offer value.
This shift arrives at a critical time. McDonald’s U.S. President Joe Erlinger recently urged owners to focus on promoting value offerings, recognizing that many customers are spending less. A recent report showed that low-income consumers have been dining out less frequently. To win back customers, McDonald’s has introduced value menus not only in the U.S. but also in key markets like France and Germany. These efforts have helped reverse a decline in same-store sales and attract even wealthier customers looking for affordable options.
However, McDonald’s CEO Chris Kempczinski warns that consumer pressure is likely to persist into 2026. He said, “We remain cautious about the health of the consumer in our top markets.”
The updated standards may create tension between McDonald’s and its U.S. franchisees, who already have a complicated relationship with the company. An advocacy group for McDonald’s operators has asked the corporation to support franchisees financially to make discounts sustainable. A grading system introduced several years ago upset many franchisees, leading to concerns about its impact on workforce morale during a labor shortage.
To aid franchisees, McDonald’s is investing in tools that help them understand how to deliver value locally. As noted by Chief Restaurant Officer Mason Smoot, while franchisees set their own prices, they now have added resources to make informed decisions. This includes access to pricing consultants and other supports to enhance the customer experience.
In a broader context, the restaurant industry as a whole is facing similar challenges. Many restaurants are leaning into value promotions to draw in customers. Still, operators must balance these discounts with profitability, making the business landscape increasingly delicate.
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