McDonald's is serving up new meal deals but is not winning back enough customers, as a barrage of promotions and marketing has fallen short. With gas prices, rents and interest rates rising, lower-income consumers are feeling pinched and far more sensitive to price. The chain's many simultaneous promotions created complexity in the kitchen, hurt customer service and weighed on sales, and this summer many franchisees opted out of the under $3 menu items McDonald's had pushed to its lowest-income customers. CEO Chris Kempczinski said he has heard customers loud and clear, including their call for more menu innovation rather than the same old offerings. McDonald's is offering 8.5 billion dollars to its franchisees, most of it in help with capital expenditure, because each is being asked to spend about a million dollars renovating. Earlier this year the stock was at an all-time high, showing how quickly fortunes can change in the fast food industry.
McDonald’s CorporationMcDonald's promotions and under-$3 meal deals failed to win back enough price-sensitive customers, weighing on sales.
