McDonald’s Revival Efforts
McDonald’s Snack Wrap is finally returning to menus and will be sold on Thursday as part of the chain’s efforts to resuscitate sales. The snack wrap was withdrawn from most menus in 2016 but has remained a fan favorite, with thousands of people demanding its return.
The Return of a Fan Favorite
The relaunched version features the chain’s new crispy chicken strips, salad, and cheese on a tortilla, with the option to add either ranch dressing or spicy pepper sauce. The menu item, which is a permanent addition, costs $2.99. This move is part of McDonald’s recent changes to turn its fortune around, following two consecutive declines in sales in the United States.
Challenges Facing the Company
McDonald’s has been facing challenges, including a decline in sales among low- and middle-income consumers who have been cutting back on expenses due to economic uncertainty. The company is not alone in its financial slump, as other fast-food chains, including Chipotle, Sweetgreen, and Starbucks, have reported meager results this year.
Industry Trends
According to RJ Hottovy, head of analytical research at Placer.ai, the reintroduction of the snack wrap will likely be a positive step for McDonald’s. He notes that the return of nostalgic products can drive incremental visits for competing fast-food chains. The fast-food industry has been experiencing a shift towards snacking, particularly in the afternoon.
Menu Updates
McDonald’s has introduced several new menu items, including a spicy version of its Egg McMuffin for a limited time. The chain has also added a new "Daily Double" cheeseburger, a Hershey’s S’mores McFlurry, and a blueberry and cream cake. These time-limited dessert offers are part of a planned partnership with Krispy Kreme to sell donuts in all its US restaurants.
Future Plans
Drinks will likely be part of the next shakeup, with McDonald’s announcing in May that it was dropping its McCafé spinoff in response to demand for specialty coffee and increased competition from beverage chains. Some of the drinks sold earlier will soon be available from McDonald’s. The company’s latest menu indexes correspond to several innovation trends in the fast-food category, including a shift towards snacking. So far, new additions have contributed to incremental visits at certain times of the day.
