Study Reveals How $5 Value Meal Has Impacted McDonald’s Foot Traffic
Placer.ai recently released a study showing how the ongoing fast-food price wars have impacted five major chains. The report examined how value deals from Buffalo Wild Wings, Starbucks, Chili’s, and McDonald’s have affected the chains’ business.
In May, Buffalo Wild Wings began offering a $19.99 all-you-can-eat wings and fries deal which caused such a storm with its client base that the chain recently extended the promotion. The following month, McDonald’s saw some controversy when it announced its new $5 value meal, which includes a McDouble or McChicken, a four-piece Chicken McNuggets, small French fries, and a small drink.
Starbucks, meanwhile, offered customers a 50 percent discount on Fridays; and Chili’s revived its 3 For Me combo, in which customers receive a beverage, appetizer, and main course for only $10.99.
While McDonald’s courted significant controversy with the $5 deal, it’s proven to be a tremendous boon to the chain’s business. June 25, the day the promotion launched, was the busiest Tuesday McDonald’s has seen so far this year, drawing eight percent more visits than the year-to-date Tuesday average. Similar visitation patterns have repeated in the following weeks, speaking to how popular the deal has proven.
The increased foot traffic no doubt comes as a relief to the franchise, which has seen prices rise exorbitantly due to inflation.
Buffalo Wild Wings saw a nearly identical increase in foot traffic after it launched its all-you-can-eat deal on May 13. Overall traffic rose by 8.1 percent, while Monday traffic increased by nearly three percent, and Wednesday traffic increased by almost four percent.
Both Starbucks and Chili’s have seen enviable growth under the chains’ respective promos. Starbucks’ year-to-date numbers jumped by 20 percent over the average. Similarly, in the weeks after Chili’s reinstituted the 3 for Me combo, foot traffic increased by 27.5 percent. Chili’s is still experiencing a marked increase in foot traffic due to this deal.
The results of Placer.ai’s study serve as concrete proof that amidst increasing fast food prices, customers are exceedingly receptive to bargains. You can check out Placer.ai’s full report here.