In an effort to attract price-conscious consumers amid a rising cost-of-living crisis, McDonald’s Canada has introduced a new C$1 ($0.73) ‘everyday’ 10oz coffee offer. This low-cost option is available across its 1,400 restaurants and can be upgraded to larger sizes for a small additional fee. The initiative is part of McDonald’s strategy to offer more affordable options, contrasting sharply with higher-priced competitors like Tim Hortons and Starbucks. The offer comes at a time when food and beverage prices in Canada have surged by 5%, leading to a 2% decline in out-of-home food and beverage sales. The new pricing positions McDonald’s as a more economical choice compared to other market players. However, the sustainability of this pricing strategy remains in question, especially given past instances where McDonald’s franchisees in the US had to abandon similar $1 coffee deals due to increased operating costs. The launch of this offer in Canada follows the introduction of a $5 value menu in the US, highlighting McDonald’s ongoing efforts to provide budget-friendly options. Franchisees have expressed concerns over the financial viability of such discounts and have sought subsidies to maintain these low prices.
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