McDonald's "Poverty Tax": Why Is the Fast Food Giant Losing Popularity?
What's Wrong with McDonald's?
America's McDonald's same-store sales plummeted by 3.6% in Q1 of 2025, marking its worst performance since the pandemic in 2020 and experiencing a second consecutive quarter of decline, representing the longest low point in a decade.
Why is this happening? Ordinary people can't afford it anymore.
Price Hikes Drive Away Core Customers
Since 2019, McDonald's menu prices have risen by 40%, with the Big Mac meal jumping from $5 to over $10. Visits from low-income and middle-income consumers have dropped double digits — they simply can't afford it, making fast food a luxury.
McDonald's CEO admitted that cost increases of 20%-40% have been passed on to consumers.
But for families earning $30,000 annually, this is nothing short of a "poverty tax."
A Reflection of the U.S. Economy
This is not just McDonald's crisis. In 2024, the U.S. CPI rose by 3.2%, with food prices increasing more than 5%, while wages for low-income households failed to keep up with inflation, leading to a reduction in purchasing power.
McDonald's losing ordinary customers exposes the growing inequality in society: if even fast food is unaffordable, what simple pleasures do ordinary people have left?
Is Recovery Hopeless?
McDonald's launched a "$5 Meal" promotion in an attempt to win back customers, but the coverage was limited and the effect negligible.
Consumer trust has collapsed; the pricing strategy made them feel betrayed.
The once king of fast food now resembles a "rich club."
McDonald's predicament serves as a warning: abandoning core customers will eventually lead to consequences.
Can it regain its初心?
If even fast food is unaffordable, the rift in American society will only deepen.
Source: WSJ
Original Article: https://www.toutiao.com/article/1831228267485387/
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