Price war is on! KFC in the United States once again launched a $5 "poor man's meal" to combat sluggish consumption

The price war among American fast-food restaurants is intensifying.

In the current economic downturn, especially for middle and low-end consumers, chain restaurants like McDonald's and Burger King have quickly introduced $5 meal deals. KFC also launched its own "budget meal deals" in April and August this year, attempting to attract consumers with low prices and maintain market share.

Middle and low-end consumers seem to have reached the limit of absorbing price increases for goods and services, with various industries issuing profit warnings. The market expects more and more fast-food restaurants to offer discounts.

KFC has launched a series of promotional meal deals this year

Since the beginning of the year, KFC has introduced various promotional meal deals in spring and autumn, with prices as low as $4.99 and $5 for individual meals, aiming to make KFC affordable for everyone.

On April 8th, KFC announced the launch of value meal deals, which will continue until the end of the year. These promotional meal deals include: a $4.99 two-piece chicken meal, a variable-priced four-piece chicken meal for two, and a $20 six-piece chicken family meal. None of these meal deals include the drinks usually included in KFC combos.

The $4.99 meal deal includes a chicken leg, a chicken thigh, mashed potatoes, and a biscuit.

On August 12th, KFC once again introduced a $5 promotional meal deal, offering three choices: chicken leg, chicken thigh, mashed potatoes, and biscuit, classic bowl with KFC chicken tenders, and KFC chicken tenders with fries.

Nick Chavez, Chief Marketing Officer of KFC USA, wrote in a statement:

"We are expanding the 'Taste of KFC' promotional meal series, offering three choices at an incredible price. For just $5, everyone can find a combination that suits them."

Weak consumer demand, price war likely to continue

In the face of high inflation and interest rates, with personal savings depleted and credit cards maxed out, middle and low-end consumers seem to have reached the limit of absorbing price increases for goods and services.

During this earnings season, the mention of "weak consumer demand" in earnings conference calls surged to 6 times, the highest level since the global financial crisis. The slowdown in consumption continues to strengthen, with management teams from various industries such as luxury brands, airlines, travel companies, fast-food chains, theme parks, and consumer goods companies issuing profit warnings.

The market expects more and more fast-food restaurants to offer discounts