McDonalds continues losing low-income customers

Low-Income Diners Are Staying Away

McDonald’s built its empire on affordable burgers and fries. But lately, the customers who made the chain famous are eating elsewhere.

CEO Chris Kempczinski acknowledged in 2025 that visits from low-income diners have dropped by double digits for nearly two years straight.

The company is scrambling to win them back with value meals and app deals, but what’s driving people away goes deeper than missing dollar menus.

The CEO Says Real Incomes Are Down

During a 2025 earnings call, Kempczinski said low-income consumers are facing macroeconomic pressures that are causing them to purchase fewer menu items, skip meal occasions, or eat at home.

He acknowledged that despite recent meal deals, the trend of lower-income customers avoiding McDonald’s has persisted for nearly two years. “With the low-income consumer, despite improvements in wage gains, real incomes are down,” the CEO explained.

Prices Have Roughly Doubled Since 2014

According to a FinanceBuzz study, McDonald’s menu prices for popular items have doubled on average between 2014 and 2024, a 100% increase that is more than any other fast food chain examined.

McDonald’s has disputed this methodology, calling the 2024 prices “significantly inflated.”

The McChicken cost $1 in 2014, but in 2025 it’s priced around $3.10—a substantial increase.

The Quarter Pounder with Cheese meal used to cost $5.39 and now runs customers close to $12. Fast food stopped being cheap years ago.

A Big Mac Cost $2.24 in 2000

In the last 25 years, the price of a Big Mac has increased significantly.

In 2000, a Big Mac averaged about $2.24, according to The Economist’s Big Mac Index. By 2025, the average price in the U.S. is now $5.79 to $6.01, depending on the time of year. Some locations charge far more.

In 2023, a Big Mac was going for $8.29 in Darien, Connecticut, with a customer’s post going viral after showing a Big Mac Combo Meal’s $17.59 price tag.

McDonald’s says its price increases match rising costs, but customers aren’t buying that explanation.

The $5 Meal Deal Launched in 2024

To stop the bleeding, McDonald’s introduced the $5 Meal Deal starting June 25, 2024, for a limited time.

The deal includes a choice of a McDouble or McChicken sandwich, four-piece chicken McNuggets, small fries, and a small soft drink.

The $5 value meal was a resounding success, so much so that McDonald’s decided to keep it going even after the summer.

Then came the bigger push: starting January 7, 2025, McDonald’s introduced its McValue platform in restaurants across the country, adding a Buy One, Add One for $1 deal.

McDonald’s Is Paying for the Discounts

Here’s the part most people don’t know.

McDonald’s executives told investors that the company is splitting the cost of discounted Extra Value Meals with U.S. franchisees through early 2026 to make the deals work financially.

McDonald’s CFO Ian Borden said the company is covering about half of the effective menu price cut, spending roughly $15 million in September and expecting around $75 million in the fourth quarter to fund the $5 and $8 meal promotions.

The company is literally subsidizing affordability.

The Tough Love Instagram Video

In December 2025, Kempczinski posted a video to Instagram titled “Tough Love with the McDonald’s CEO.”

He encouraged people to take full ownership of their professional journeys rather than waiting for others to open doors for them.

His advice: “Nobody cares about your career as much as you do.”

He warned viewers the message might hurt their feelings, then told them to stop expecting anyone to look out for them.

“You’ve got to own it. You’ve got to make things happen for yourself,” he said.

The Video Drew Mixed Reactions

The video attracted attention and sparked debate online.

Some viewed the advice as practical career guidance, while others questioned the timing and tone given McDonald’s ongoing struggles with worker relations.

The company has faced lawsuits and union organizing efforts over worker conditions, including allegations of low pay and limited advancement opportunities for frontline staff.

To some observers, telling workers to hustle harder while paying them minimum wage didn’t land well.

Kempczinski Made $18.2 Million in 2024

McDonald’s disclosed its CEO’s pay was 1,014 times its median employee’s pay for the fiscal year ending in 2024.

Kempczinski received a total compensation of approximately $18.2 million, including a base salary of $1.53 million, with the majority comprising stock awards, options, and other incentives.

That works out to roughly $50,000 per day.

An E. Coli Outbreak Hit Quarter Pounders

McDonald’s faced another crisis in late 2024.

A total of 104 people infected with E. coli O157:H7 were reported from 14 states, with illnesses starting between September 27 and October 21, 2024.

Of 98 people with information available, 34 were hospitalized, and 4 developed hemolytic uremic syndrome, a serious condition that can cause kidney failure. One death was reported from an older adult in Colorado.

Slivered onions previously served on McDonald’s Quarter Pounder burgers were the likely source of contamination.

Boycotts Targeted McDonald’s in 2025

The People’s Union USA, the movement behind boycotts of Target and Walmart, urged Americans to refrain from shopping at McDonald’s between June 24 and 30, 2025.

A second boycott was scheduled for August 2025 and lasted throughout the month.

The organization accused McDonald’s of price gouging, exploiting tax loopholes, suppressing workers’ rights and union efforts, and rolling back diversity commitments.

In June 2025, the number of customers who visited McDonald’s stores declined by 2% year-over-year.

McDonald’s Rolled Back Diversity Goals

In January 2025, McDonald’s became one of the largest U.S. corporations to back off on some of its diversity, equity, and inclusion practices.

The company said it will no longer set aspirational representation goals and is retiring its Supply Chain’s Mutual Commitment to DEI pledge.

McDonald’s is also changing the name of its diversity team to the Global Inclusion Team and stopped participating in external diversity surveys.

The rollback came after activist pressure and a Supreme Court ruling against affirmative action.

Visit the Original McDonald’s Site in California

The story of McDonald’s started in San Bernardino, California, where brothers Richard and Maurice McDonald opened their original restaurant on May 15, 1940.

That building was torn down in 1971, but the Original McDonald’s Site and Museum stands at 1398 North E Street, preserving artifacts and memorabilia from the early days when a hamburger cost 15 cents.

The unofficial museum is free to visit. You can see early equipment and photos showing how a tiny burger stand became a global empire serving 68 million customers a day.

This article was created with AI assistance and human editing.

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