Burger King Is to Launch $5 Meal Before McDonald's in The Battle for the Budget Eater
The biggest names in fast food are going head-to-head with super cheap meal deals. Burger King is firing the first shot by rolling out its new $5 "Your Way Meal" before McDonald's can debut its own $5 offering.
According to an internal memo, Burger King's budget meal will let customers pick one of three sandwiches, plus chicken nuggets, fries, and a drink - all for just five bucks. The chain plans to promote this value meal "for several months," longer than the roughly one-month run planned for McDonald's similar $5 deal.
"We are moving full speed ahead to launch our $5 value meal before they do," states the memo from Burger King's U.S. and Canada president Tom Curtis seen by Bloomberg.
With Americans feeling the pinch of high inflation, these chains are battling fiercely for the price-conscious customer. Recent surveys show nearly 8 out of 10 people now view fast food as a luxury they can rarely afford. As the price gap narrows between fast food and slightly pricier fast casual spots like Chipotle, some diners are opting to spend a little more at the trendier chains.
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Both Burger King and McDonald's CEOs have stressed the need to keep things affordable for their customer base. That's leading to this discount meal showdown, with other chains like Wendy's and Chili's also introducing ultra-low-price promos.
But McDonald's franchisees have warned that such steep discounts threaten to make these value meals unprofitable. One independent owner group stated bluntly that "there simply is not enough profit to discount 30%" on a $5 bundle like this.
Still, with household budgets stretched thin, the fast food giants are willing to sacrifice some margins to fill those value-seekers' stomachs with cheap eats. Who will end up the winner in this war for the thrifty diner? Only time will tell, but one thing is clear - customers will be the ones enjoying the real spoils in this battle of the bargain meals.