Did McDonald’s kill the American middle class?


As the Businessinsider.com states, the McDonald’s representatives renewed their latest sale strategy. Due to this, their sales came off the limits. It phenomenal cause it happens for the first time during the last 5 years. Same-store sales at its US restaurants rose 4.5% in the most recent quarter and same-store traffic increased 1%, the company said on Tuesday. The representatives mentioned, that their newest success is the result of the changed menu. For instance, McPick had its second promotion, and the price for any soft drink of any size is 1 dollar.

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McDonald’s launched McPick 2 two years ago after customers protested the company’s decision to reformulate the Dollar Menu by axing the $1 price ceiling and turning it into the “Dollar Menu & More” with items that cost up to $5.
The $2 McPick 2 deal brought McDonald’s most popular value offering closer to the $1 price ceiling of the Dollar Menu. In such a way the fast-food chain managed to get to the people of not very high salaries. At the same time, they started to target upsale customers by premium menus, including coffee drinks of high quality and matching fancy burgers.

As we see, now McDonald’s had profit from the low-priced and high-priced menus. Yet the middle-priced Dollar Menu & More failed. It is pointing to the common American disease, which is slowly disappearing of the local middle class.

“While consumers felt more optimistic about the economy and their finances, it was McDonald’s focus on value and low prices that drove trade,” Neil Saunders, managing director of retail consulting firm GlobalData Retail.

Yet this problem causes the profit loss from everywhere.

“We remain encouraged that McPick still has resonance, especially given the continued increase in the number of offers and deals from fast food rivals,” Saunders said.