Hollis Johnson
McDonald's is cutting the Happy Meal from its value menu.
- McDonald's cut the Happy Meal from its $1 $2 $3 menu.
- Previously, the $3 Happy Meal was one of the best deals you could get at McDonald's, representing a discount of up to 25%.
- The change comes as McDonald's and fast-food rivals grapple with how to best win over budget-conscious customers.
- On Tuesday, McDonald's announced plans to debut a new "classic meal" deal option, following the success of a 2-for-$5 Mix and Match Deal.
McDonald's has quietly removed one of the best deals from its value menu.
The fast-food chain has cut the Happy Meal from its national $1 $2 $3 menu, a change first spotted by Brand Eating.
The Happy Meal cost $3 when McDonald's launched its new value menu in January. At the time, Business Insider reported that the deal was the "biggest bang for your buck" on the $1 $2 $3 menu. According to Credit Suisse, the $3 Happy Meal represented a discount of up to 25%.
"The $1 $2 $3 Dollar Menu was created to bring our customers better value with the intent to flexibly rotate menu items on and off over time," McDonald's representative Andrea Abate said in an email to Business Insider.
"Some markets may even offer slight variations to the menu that best fit the preferences of their local customers," Abate continued. "While the Happy Meal is no longer part of the nationally advertised $1 $2 $3 Dollar Menu, it is still available for $3 at some U.S. restaurants."
Hollis Johnson
McDonald's Happy Meal.
McDonald's has been exploring a range of ways to win over budget shoppers.
On a call with analysts on Tuesday, McDonald's announced plans to launch a new "classic meal" deal option. The chain recently wrapped what executives called a "successful" 2-for-$5 Mix and Match Deal, which debuted in August. McDonald's has also been pushing digital discounts to convince customers to download its app.
Meanwhile, some analysts have questioned McDonald's focus on the $1 $2 $3 menu. Neil Saunders, the managing director of GlobalData
"This does drive some traffic, but the message is both tired and drives people to trade down rather than to explore higher priced options," Saunders continued.
McDonald's isn't alone in its value obsession as fast-food rivals battle to win over budget shoppers.
Earlier this year, Wendy's expanded its 4-for-$4 bundle deal and Taco Bell doubled down on its $1 menu. KFC's US chief marketing officer, Andrea Zahumensky, told Business Insider that the chain is testing new value platforms as customers are increasingly economically squeezed.
"It's really in response to watching our customers' needs," Zahumensky said. "They are more pinched than ever, so we want to provide solutions for them so they can come to KFC and really feel satisfied."