Burger King and McDonald's engaging in $5 meal promotions amidst rising costs
Burger King's offering includes a choice of three sandwiches, chicken nuggets, fries, and a drink
Low-income Americans cutting back on fast food due to cost concerns
McDonald's $5 promo announced one week prior to Burger King's trial run
Rising labor and food costs blamed for higher menu prices in recent years
In a fast-food landscape plagued by soaring prices and consumer backlash, Burger King has decided to launch a $5 meal promotion in an attempt to ramp up sales. This comes after rival McDonald's announced its own $5 promo just one week prior. Burger King's offering includes a choice of one of three sandwiches along with chicken nuggets, fries, and a drink. The company plans to begin the trial run before the McDonald's $5 promo slated for June 25. This move by Burger King is in direct response to rising labor costs and food costs that have been blamed for higher menu prices in recent years. In an effort to lure back cash-strapped customers, both Burger King and McDonald's are turning to promotions and deals in hopes of regaining their trust. However, these promotions come at a time when low-income Americans are being particularly affected by price hikes and are cutting back on fast food. As foot traffic at certain locations has either decreased or slowed in growth, restaurants have reported that rising labor costs and food costs are to blame for the higher prices. Burger King, McDonald's, Wendy's, and others have all pointed to these factors as the reason for their price hikes in recent years. However, labor advocates dispute this claim and argue that rising employee wages are not solely responsible for higher fast-food costs. A March analysis of California fast-food restaurants by the Roosevelt Institute, a liberal think tank, noted the industry's record profit margins. The hikes appear to be particularly damaging to low-income Americans. A January poll found that about 25% of people making under $50,000 were cutting back on fast food due to cost concerns.
Burger King's owner, Restaurant Brands International, has acknowledged that consumers have become more sensitive to price. McDonald's CEO Chris Kempczinski also expressed a similar sentiment in an earnings call last month, stating that the company must be
Consumers are pulling back on spending due to inflation.
Chains have been under pressure to boost profits amidst consumer pullback.
Accuracy
Burger King is bringing back its $5 value meal.
The Burger King $5 meal deal includes a choice between three sandwiches, chicken nuggets, fries and a drink.
Burger King plans to run the $5 deal for several months compared to McDonald's reported four-week campaign.
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(85%)
The author makes several appeals to authority when quoting Charlie Morrison, CEO of Salad and Go. This is an informal fallacy as it does not add any new information or argument from the author but rather relies on the credibility of the quoted person. The article also contains some inflammatory rhetoric when describing consumers as 'looking for value hacks' and 'being a little bit more discerning about what they're spending on and how they are spending.' This is an example of loaded language, which is an informal fallacy that attempts to manipulate the reader's emotions. The author also makes some generalizations about consumers pulling back on spending and food companies responding with value offerings without providing any concrete evidence or data to support these claims.
Chains are taking lots and lots of price when they feel like they can and then when the consumer starts to push back, we go right back into the cycle of value orientation.
What doesn’t seem to be working is the idea of sustaining an everyday low price and a price that consumers can afford.
Even from some of these off price discount retailers, people are looking for value. They’re looking for cheaper options right now as they are being a little bit more discerning about what they’re spending on and how they are spending.
