Marketing

Fast-food chains intensify their value push

McDonald’s is kicking off its McValue menu with John Cena. Subway is launching a daily value meal of its own. And KFC is bringing back $5 bowls. Can they cure chains' traffic ills?
McDonald's McValue
McDonald's is releasing its McValue menu with John Cena and offers from other brands. | Photo courtesy of McDonald's.

McDonald’s kicked off its new permanent value menu, called McValue, on Tuesday featuring the wrestler-turned-actor John Cena and promotional offers with 16 different brands from American Airlines to YouTube TV. 

And it was the third release regarding a value promotion from a major fast-food brand this week. On Monday, the sandwich giant Subway revealed a permanent value offer of its own, featuring a “Meal of the Day” offer for $6.99 for a six-inch sub or $9.99 for a footlong and a choice of either two cookies or chips and a drink. 

The chicken chain KFC, though it is not explicitly a value offer, did bring back its $5 Bowls, including the Nashville Hot Loaded Fry Bowl with chicken nuggets, fries, coleslaw, pickles and Nashville Hot Sauce. 

Welcome to the January during the fast-food value wars.

The start of the year is typically the time when major quick-service chains unleash new value offers, because January and February are traditionally weak months for sales and brands are looking to get customers in the door. 

This year that month has come with the additional pressure of a market in which consumers have cut back on their fast-food visits, frustrated with years of rising prices. After taking the pandemic and the years afterward off, brands kicked off a discounting push last year, kicked off by McDonald’s and its $5 Meal Deal. 

Yet that has also run into some concern about profitability. Franchisees, who operate most of the stores for these brands, have to generate a profit off their sales. With costs continuing to increase, particularly in places like California where the minimum wage for fast-food workers is $20 an hour, a sustained value push could create real headaches for operators.

While there is some evidence that traffic improved toward the end of the year, executives have continued to sound concerns about the operating environment. “The industry environment remains challenging, there’s no doubt about that,” CFO Ian Borden said in October. “Consumers are under pressure.” 

KFC is bringing back its $5 Bowls. | Photo courtesy of KFC.

McDonald’s value offer is designed to be a permanent part of the company’s menu. It’s patterned after permanent value menus in other markets, such as Germany and Australia. The menu bundles local, digital and national offers in one format and is designed to both amplify and simplify its discount marketing.

The menu will include the $5 Meal Deal, which includes a four-piece Chicken McNuggets, small fries, small drink and a choice of a McChicken or a McDouble. It also includes a buy-one, get-one for $1 offer, featuring a select group of items, such the McChicken, Double Cheeseburger or a Sausage McMuffin or Sausage Biscuit in the morning.

McDonald’s is pushing this with Cena, the WWE wrestler and actor in movies such as "The Suicide Squad." Cena is a “McValue ambassador."

The company is also offering customers who interact with McValue ads the ability to earn discounts from other brands, such as a free month of YouTube TV or 20 minutes of free WiFi on American Airlines or even a Tinder Gold Premium Access subscription.

Subway’s value offer offers customers discounts on meals if they order specific subs on a different day. The offer features a Cold Cut Combo on Monday, the All-Pro Sweet Onion Chicken Teriyaki on Tuesday, Meatball Marinara on Wednesday, Baja Chipotle Chicken on Thursday, Tuna on Friday, the BMT on Saturday and The Philly on Sunday. 

As for KFC, its selection of bowls reappears periodically. The company is offering five bowls, including the Famous Bowl that features mashed potatoes, gravy, corn, cheese and chicken nuggets. But there are two other bowls featuring its Nashville Hot Sauce, including the Nashville Hot Mac and Cheese Bowl. The company also has its original Mac and Cheese bowl.

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