McDonald's Has A Big Problem With Its Customers

McDonald’s is one of the most popular restaurants in the world, but the company has recently witnessed a worrying shift in customer behavior as the economy puts pressure on many of its customers, forcing them to reduce their visits.

Customers can’t be blamed, as prices in the quick service restaurant (QSR) industry have increased significantly, making fast food considerably more expensive than in the past. When I went recently, a six-piece McNuggets, a small Sprite, and fries cost me about $8. Very expensive, right? Still, it’s not uncommon to go to McDonald’s and see value menu offerings over $10, making the cost of lunch or dinner for a small family seem more like casual dining than fast food.

Unfortunately, it doesn’t seem to be getting better. The latest inflation data from the Bureau of Labor Statistics’ Consumer Price Index shows that food prices outside the home increased 3.7% in September year over year.

With prices rising, it’s no surprise that more people are skipping the Drive-thru, a trend that Placer.ai says has gotten worse, adding more pressure on McDonald’s.

McDonald’s (MCD) foot traffic declined 3.5% overall in the third quarter, according to a recent report from Placer.ai. But when you dig deeper into the data, the numbers are even more worrying. New store openings partially offset the number. If those locations are removed from the equation, traffic to stores open at least a year fell 4%.

<em>McDonald’s foot traffic has declined as shoppers shrink amid rising prices.</em>Image source: Chip East/Bloomberg via Getty Image” loading=”eager” height=”540″ width=”960″ class=”yf-1gfnohs loader”/></div>
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“The quick-service category is under pressure from multiple fronts: persistent inflation, changing consumer behavior, budget menu fatigue, and even the growing adoption of GLP-1 weight-loss drugs, which are dampening demand for food consumed outside the home,” Placer.ai wrote.

Consumers are increasingly cautious about spending, especially households with lower total incomes, McDonald’s biggest customer. Rising layoffs and inflation outstripping wage gains are a large and persistent headwind.

“We have low-income consumers who remain under pressure; their QSR visits (industry-wide) were down double digits again in the second quarter,” McDonald’s Chief Financial Officer Ian Borden said on the company’s second-quarter earnings conference call.

Year of foundation: 1940
Number of locations worldwide: 43,477 in 2024.
Annual revenue: $25.9 billion in 2024.
Employees: >2 million worldwide, including franchises.
Source: SEC 10-K Filing.

McDonald’s CEO Chris Kempczinski said the pressure on low-income customers was due to declining inflation-adjusted income and worsening confidence, likely due to concerns about tariffs and rising unemployment.

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

Placer.ai says McDonald’s foot traffic this summer was lower than in 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 of the tariffs were enacted. Since then, CPI inflation has increased from 2.3% to 3%.

McDonald’s isn’t the only QSR chain facing a decline in foot traffic. It is a problem that affects the entire industry. For example, Wendy’s traffic was worse, falling 6.5% in the third quarter.

To address the problem and get people back inside, McDonald’s is using many measures, including:

Drive more customers to your loyalty program to drive visits.
Returning Snack Wraps to their menu at a low national price of $2.99 in July.
Launching their extra value meal in September.
Bringing back their popular game Monopoly to loyal members on October 6th.

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

“The wage rates that exist in the US are quite varied, so we have to respect that and work with franchisees on how to fix it in a way that works for everyone’s profit and loss. It’s not easy, but I think we’ve shown the ability that, whether it’s the $5 meal deal or the $2.99 meal deal, we can come together and do it. But all of these things require a lot of conversations and collaboration,” Kempczinski said.

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

This is particularly true for members of the McDonald’s loyalty program. Its program has more than 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, visits to McDonald’s increase to 26 in the year after it joins, up from 10.5 times before.

Related: Olive Garden changes its big menu as restaurant prices rise

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

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