McDonald's Is Extending Its $5 Meal Deal, But Franchisees Are Not Happy

Once intended as a limited month-long promo, McDonald's is extending its $5 meal deal – and although it's a win for hungry customers seeking affordable fast food prices amid a spike in the cost of dining, McDonald's franchise owners aren't as pleased. The fast food juggernaut told CNN that the $5 meal deal –  which includes a McChicken or McDouble, four-piece Chicken McNuggets, small fries, and a small drink — is "resonating with our millions of customers." But, as former McDonald's corporate chef Mike Haracz explained in a recent TikTok post, the meal deal is likely hurting franchisees.

Although the promotional deal has increased daily customer turnout, patrons are swapping their usual, more expensive orders for the bargain meal. At some restaurants, Haracz says, McDonald's customers can apply coupons to the $5 meal deal, accessing an even cheaper price point that reduces profits for franchisees. (That being said, official data detailing the financial impact of the meal deal has yet to be released.) It also appears that the purported discontent among franchisees predates McDonald's decision to extend the promo. In fact, the seeds might have been sown before the deal even kicked off.

Prior to the official launch of the $5 meal deal, the National Owners Association (NOA) of McDonald's franchises sent a letter rallying its members to demand financial help from the chain. According to CNBC, the McDonald's franchisee advocacy organization claims the meal deal's $5 price point is unsustainable and "necessitates a financial contribution by McDonald's" to continue.

NOA claims that franchisees are happy to offer the meal deal to customers if it doesn't reduce locally-owned McDonald's profit margins — a two-way-street mission that allegedly requires significant financial support from the corporation. The NOA letter also encouraged McDonald's to revive affordable fan favorites such as the snack wrap and add CosMc's drinks to the menu to mitigate rising fast food prices and please customers without relying on the finically disruptive $5 meal deal. As of this writing, no date has been set for the discontinuation of the meal deal, leaving its menu duration open-ended. Participation varies by location, as 7% of McDonald's stores will not extend the meal deal.

Despite their pleas, McDonald's has not publicly commented on or responded to the NOA demands, and the extension of the meal deal suggests that corporate leaders are prioritizing customer demands over franchise concerns. In recent weeks, other fast food giants like Wendy's, Burger King, Taco Bell, and Starbucks released their own budget meal deals. It is possible that McDonald's is extending its $5 promotion to keep up with competitors.