Add Wendy's to the growing list of places desperately trying to get your dollar back. The fast food giant is unveiling a new $3 breakfast deal. It's a very simple combo of potatoes with a plain egg and cheese sandwich, with either bacon or sausage. Not bad, that is a lot more like the old days.
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This is all in service of retaining customer satisfaction in an economy that is seeing consumers stay home instead. The base appeal was always in their timeliness and their price point. With cheapness not being a primary factor anymore, consumers are uneasy about eating junk. These restaurants do not incentivize consumers to spend with them anymore. Now they're busting out the cookbooks.
Now the businesses are starting to take notice that the people don't love them like that anymore. McDonald's CEO Chris Kempczinski spoke on an earnings call about the importance of understanding consumer frustration. He says, "Consumers continue to be even more discriminating with every dollar that they spend as they face elevated prices in their day-to-day spending, which is putting pressure on the industry." "[I]t's imperative that we continue to keep affordability at the forefront for our customers," he continues.
Wendy's Isn't The Only Place Trying to Cut Costs
Speaking of McDonald's, their grand idea to focus on affordability is to dangle a temporary deal in their faces and hope they bite. They are unveiling a $5 meal deal, with your choice of a McChicken, McDouble, or 4 nuggets, with a side of small fries and a drink. The kicker? It'll only last you a month. So obviously, you HAVE to go get it.
The issues with price cutting doesn't stop at Wendy's and McDonald's though. It is spreading to grocery and retail too. Consider Target, currently reducing prices on 5,000 different items or Aldi utilizing some of their savings and putting it back towards the customer by slashing costs.
The key issue with retail is stemming from an issue in real estate. Due to the increased reliance on online purchasing, the need for brick and mortar stores have decreased significantly. It's why your favorite stores of yesteryear are slowly filing for bankruptcy and vanishing from your hometowns. Why go to Toys R Us when you can order from Amazon? It's bleeding into every form of consumption, favoring convenience over the active participation of life. With steep enough prices, we'll all retreat inward and nothing will be left.
