Dive Brief:
- McDonald’s Big Arch Burger and Shamrock Shake limited-time offers had only a modest and short-lived positive impact on traffic, according to a report from Placer.ai.
- During the week of Feb. 16, when the Shamrock Shake launched, traffic rose 5.5% year over year, but then slid to negative 0.5% the next week. The Big Arch only generated a 2.2% traffic boost during the week of its launch, from March 2 to March 8, per Placer.ai.
- Comparatively, McDonald’s Grinch Menu led to an uptick in visits during the week of Dec. 1 that sustained throughout the rest of the month. The return of the Snack Wrap also led to a double-digit traffic jump last summer.
Dive Insight:
The Big Arch Burger generated significant social media buzz after a video of CEO Chris Kempczinski eating the item went viral, and led to other burger chains issuing their own videos as a cheeky response. That still wasn’t enough to lead to an immediate uptick in traffic.
“The limited impact of these LTOs suggests consumers may be growing more selective in their spending amid ongoing economic pressure,” Shira Petrack, head of content at Placer.ai, said in the report.
The Big Arch Burger is priced at around $8 to $9, with some locations selling it for over $12, according to the New York Post. That is more than the cost of a Big Mac Extra Value Meal. McDonald’s has been taking a similar barbell strategy to other chains — offering premium items at a higher price while also leaning into value offerings — allowing it to appeal to various income demographics. Oftentimes, consumers will come to restaurants after seeing a value option, but then order a premium item in addition to, or instead of, the value choice.
McDonald’s is reportedly planning to roll out a new value platform with items priced at $3 or under. Placer.ai said the chain can’t just rely on flashy LTOs or just value as reliable traffic drivers. Instead, the strategies must reinforce each other.
“Pairing LTOs with a clearer value proposition — such as the upcoming McValue 2.0 — may prove more effective, with limited-time items drawing attention and value-focused offerings encouraging repeat visits,” Petrack wrote. “In a price-sensitive environment, this dual strategy could drive a more sustainable traffic lift than product innovation or value promotions alone.”
