Wait, so they are implying that a McChicken and a small fry has a product cost of like $4.80? (Fountain pop has a cost of about a penny per ounce)
https://www.restaurantbusinessonline...s-5-value-meal
"The fast-food burger chain is working to convince franchisees to OK a $5 meal deal that would last for a limited time. Customers would get their choice of a McChicken or a McDouble, along with a four-piece Chicken McNuggets, fries and a drink. Bloomberg first reported the offer and several sources confirmed it to Restaurant Business.
Operators two weeks ago turned down a $5 offer through OPNAD, or the Operators National Advertising Fund. McDonald’s returned with an offer sweetened with the help of Coca-Cola.
...
“[National Owners Association], however, argues that the third leg of McDonald’s famous “three-legged stool” featuring the franchisor, franchisee and suppliers, should step up financially, too. Historically, the group said, the company helped with such strategies. “The only disappointment is the lack of any financial contribution by McDonald’s to assist with bringing these incredible value offerings to our customers,” the statement said.
Consumers have been reducing the number of visits to restaurants in recent weeks, frustrated by rising prices and overall inflation. McDonald’s executives have made it clear in recent earnings calls that they want to address this issue.
...
Franchisees in the McDonald’s system largely determine prices, with help from the accounting firm Deloitte and based on local market conditions. And they’ve been raising prices in recent years because their own costs have taken off. Franchisees worry that more aggressive value will hurt profitability.
Operators are paying more for labor, food, insurance and other expenses. Many franchisees also argue that the company has passed on expenses to the operator base with their own cuts to corporate overhead."
Also, they openly admit *all* expenses have increased, but the public talking point is just that wages have gone up.
