McDonald’s has a big customer problem on hands

McDonald’s CEO Chris Kempczinski said that strain on lower-income customers was due to declining inflation-adjusted income and worsening sentiment, likely because of unease over tariffs and rising unemployment.

In August, the U.S. unemployment rate was 4.3%, the highest since 2021, and up from 3.4% in 2023.

Placer.ai says McDonald’s foot traffic this summer trailed 2024, and the trend has worsened recently, leading to a 4.4% drop in September visits.

• September 2025: -4.4%

• August 2025: -4.4%

• July 2025: -1.8%

McDonald’s foot traffic was last positive in April, before most tariffs were enacted. Since then, CPI inflation has risen to 3% from 2.3%.

McDonald’s isn’t the only QSR chain facing declining foot traffic. It’s an industry-wide problem. For instance, Wendy’s traffic was worse, falling 6.5% in the third quarter.

To address the problem and get people back to its locations, McDonald’s is pulling many levers, including:

• Driving more customers toward its loyalty program to boost visits.

• Returning Snack Wraps to its menu at a low national $2.99 price point in July.

• Launching its Extra Value Meal in September.

• Bringing back its popular Monopoly game to loyalty members on Oct. 6.

In its second-quarter earnings conference call, McDonald’s confirmed plans to double down on deals and encourage more franchisees to embrace national pricing, a challenge given that franchisees face very different labor costs and other expenses from market to market.

“The wage rates that exist across the U.S. are quite varied. And so we need to respect that and work with the franchisees on how do we solve for that in a way that works for everybody’s P&L. It’s not easy, but I think we’ve shown the ability with whether it’s the $5 Meal Deal, the $2.99 that we can come together and do it. But all of these things take a lot of conversations and collaboration,” said Kempczinski.

“Reengaging the low-income consumer is critical as they typically visit our restaurants more frequently than middle- and high-income consumers,” said Kempczinski.

That’s particularly true for McDonald’s loyalty program members. Its program has over 185 million 90-day active users in 60 global markets, and in the U.S., visits increase substantially after a person signs up. On average, McDonald’s visits jump to 26 in the year after joining, up from 10.5 times beforehand.

Related: Olive Garden makes big menu move as restaurant prices surge

This story was originally reported by TheStreet on Oct 27, 2025, where it first appeared in the Restaurant section. Add TheStreet as a Preferred Source by clicking here.