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The $5 Deal and the M-shaped Society
Is It Possible the Sweet Biggie Deal Adversely Affects You?
The Economist’s June 29 weekly edition has an interesting article titled “McDonald’s v Burger King: what a price war means for inflation.” I like its subtitle even better — “American consumers will be licking their lips. So will Federal Reserve officials.”
Price War
Starting June 25, 2024, McDonald’s will offer a sandwich or burger, fries, chicken nuggets, and soft drinks for just $5. McDonald’s calls this the “summer of value.”
It is a no-brainer that Burger King, a rival of McDonald’s, the other fast-food market leader, offers its version of value meals at $5.
Reading the same article from the Economist, it is more surprising that Starbucks is pairing a sandwich and a coffee/tea at $6. More shocks to come: when I was talking to a friend this morning, I discovered that Starbucks is throwing a “Parings Menu” ranging from $5 to $7 — you can get a tall coffee or tea, iced or hot, and a croissant starting at $5. (see below image from Starbucks’ official website)
