In Lisbon, Portugal, on January 12, 2025, people sit in front of a McDonald’s storefront. McDonald’s is launching new value offerings, like the McValue menu, to combat economic challenges and attract budget-conscious customers as global sales face pressure from changing consumer trends.
Luis Boza | Nuphoto | Getty Images
McDonald’s will soon rate its franchisees on how their prices deliver value as the company updates its franchise standards as part of a broader offering aimed at winning over cash-strapped diners.
“Beginning January 1, 2026, we are enhancing our global franchise standards across all segments to strengthen accountability for value leadership,” wrote Andrew Gregory, senior vice president of global franchising, development and delivery at McDonald’s, in a memo published Monday and obtained by CNBC. “With enhanced standards, we aim to bring greater clarity to the system to ensure that every restaurant delivers consistent and reliable value throughout the complete customer experience. »
Franchise standards are the policies that define how McDonald’s operators must operate their restaurants. Continued failure to comply with these standards could result in sanctions, such as being prohibited from opening another restaurant or even termination of the franchise.
Franchisees manage approximately 95% of McDonald’s restaurants worldwide and set prices for their restaurants, with the help of third-party pricing advisors. Under the new standard, the company will “comprehensively evaluate” pricing decisions based on the value they provide, Gregory wrote in the memo.
“This approach allows franchisees to bring a local view of how value is delivered in their restaurants,” he said.
The move comes after McDonald’s U.S. President Joe Erlinger told owners last month that they need to keep their foot on the gas and stay focused on promoting the chain’s value offerings.
Across the restaurant industry, restaurants are banking on value, betting that deals will attract cash-strapped customers. But discounts that are too high can reduce profits, and operators must strike a delicate balance to preserve both traffic and long-term profitability.
For more than a year, McDonald’s has reported that lower-income consumers are spending less money and visiting their restaurants less frequently. To bring diners back to its restaurants, it has rolled out value menus in the United States and other key markets like France and Germany. So far, the efforts have paid off, as the company has reversed declining same-store sales and attracted more high-income customers who are turning to fast food.
Still, McDonald’s CEO Chris Kempczinski said he expects the pressure on the consumer won’t go away anytime soon.
“We remain cautious about consumer health in the United States and our key international markets and believe pressures will continue through 2026,” Kempczinski said during the company’s earnings conference call last month.
The change in company standards is likely to anger some U.S. McDonald’s franchisees who already have a contentious relationship with their franchisor. An independent advocacy group for McDonald’s operators has pushed the company to contribute financially to make discounts more sustainable for franchisees in the long term. Several years ago, a new rating system for franchisees drew the ire of some operators, who said at the time it would alienate workers in a tense work environment.
In addition to updating franchise standards, McDonald’s has also invested in tools to help franchisees determine how to drive value in their local markets.
“As owner/operators continue to set their own prices and make decisions that reflect the nuances of the local market, we have now strengthened individual accountability for value leadership – equipping you with vetted pricing consultants, tools and other levels that support informed choices and improve the overall customer experience at all order points,” wrote Mason Smoot, McDonald’s U.S. director of restaurants, in a separate memo sent to U.S. franchisees on Monday and obtained by CNBC.