In July, McDonald’s reported a decline in same-store sales for the first time in nearly four years, a drop attributed to tightened consumer spending following prolonged periods of high inflation. In response, the fast-food giant introduced a $5 summer deal in June, designed to offer an affordable option for customers struggling amid inflation and high interest rates.

The limited-time meal deal, which includes a choice of a McDouble, McChicken sandwich or a 4-piece Chicken McNuggets, along with a small fry and soft drink, has been well-received by customers. And now that customers continue to grapple with economic strain, McDonald’s extended the offering until December. (Related: Bidenomics: Big Mac extra value meal now costs $10 more than it did during Trump’s era.)

“We’re committed to keeping our prices as affordable as possible,” Joe Erlinger, president of McDonald’s USA, said in September.

McDonald’s is also releasing app-exclusive promotions, including a fried chicken sandwich for $2. Kempczinski is also looking at ways to do a complete “reset” or overhaul of its value offerings, noting that the number of $1, $2 and $3 menu offerings has shrunk in recent years amid rising food and operating costs.

In line with this, Kempczinski also noted that chicken, a food way cheaper than beef, could play a key role in offering more affordable meal options.

“It’s easier to deliver value on chicken products than it is on beef products,” he explained, adding that beef prices are currently more than twice those of chicken on a per-pound basis.

“We’re starting to talk about 2025, and my message to our teams has been: ‘We need to be preparing for another challenging year,'” Kempczinski said. “We need to be making sure that we’ve got a really strong value proposition in all of our markets.”

Harris will continue Bidenomics despite its negative consequences if elected president

In an article for  Zero Hedge, Tyler Durden wrote that economic conditions for low-income consumers are expected to worsen through the end of the year, particularly due to potential increases in energy prices.

“Economic conditions for the working poor will only get more challenging through the end of the year. MCD reports third-quarter earnings on Oct. 29. The lingering problem for consumers is an energy price shock at the pump could materialize if Israel begins bombing Iran’s crude oil export facilities. Consumers need to buckle up,” Durden wrote.

Rep. Randy Weber (R-TX) noted that “Harris would not have changed a damn thing” from the policies of the Biden administration.

“If you think four more years of Harris won’t mean the same high gas prices, inflation, open borders and crime, I’ve got oceanfront property in Oklahoma to sell you! Kamala Harris admitted she wouldn’t change a thing from Biden’s disastrous policies,” Weber posted on X, along with a clip of Harris’ guesting on ABC’s “The View” on Oct. 8.

In other words, there will be no respite for these economic strains if Harris wins in November.

Follow Collapse.news for similar stories. Watch this clip from Fox Business as former U.S. International Trade Commission Chief Peter Morici discusses how President Joe Biden’s management of the American economy has been “a failure.”

This video is from the News Clips channel on Brighteon.com.

More related stories:

• BIDENOMICS claims another victim: Retail store chain Bob’s Stores to close down all locations by July 14.
• BIDENOMICS: UPS cuts 12,000 jobs due to decreased shipping volume, tense union negotiations.
• Bidenomics in shambles: Microsoft cuts 1,900 jobs in gaming market.
• Inflation comes roaring back as Bidenomics harms American households.
• Major Burger King franchisee files for BANKRUPTCY as fast-food industry faces doom of “Bidenomics.”

Sources include:

• ZeroHedge.com
• Bloomberg.com
• Brighteon.com

Only the most affluent can afford to live there and many of them are choosing to leave. Recent trends over the past two years have seen an indisputable exodus from a city that is known for its lifestyle options. It was once considered a privilege to live there. Today, it’s such a burden that the people are trying to escape.

As Gemini AI details, New York City continues to break records for rent prices:

As of September 2024, the average rent in New York City is $3,869 per month, which is 147% higher than the national average. The average rent for different apartment sizes is:

• Studio: $3,145 per month for an average of 444 sq ft
• One bedroom: $3,869 per month for an average of 597 sq ft
• Two bedroom: $5,268 per month for an average of 791 sq ft
• Three bedroom: $6,509 per month for an average of 1,009 sq ft

In June 2024, the median rent in Manhattan was $4,667 per month, which was a record high.

Unfortunately, many are unable to leave without giving up their careers. The city is still one of the world’s hubs for all things finance and those who work for companies embedded in New York City keep the outrageously priced apartments in high demand.

According to NY Post:

The hunt for a New York City apartment has gone from frustrating to downright feral.

This summer, renters are battling it out like never before, all for a shot at a roof over their heads in a city where landlords are calling the shots and jacking up prices to astronomical levels.

Take Aurielle Catron, a 29-year-old security engineer who braved the NYC jungle in search of a two-bedroom in Bushwick. After a brutal month-long search and 52 viewings, Catron landed a rent-stabilized fourth-floor walk-up for $3,200 a month.

It wasn’t her dream pad — it’s missing a laundry room and elevator — but after losing a bidding war that saw a $2,800 unit shoot up to $3,600, she was just relieved to have a place to call home.

“Most restaurants lose money, and there’s a reason for that. It’s a hard business with low margins and trends that are hard to navigate,” Jonathan Carson, the co-CEO of market strategy company Stretto, told The Epoch Times.

“When you add higher prices and a continually and increasingly overburdened consumer balance sheet, I think it makes the industry prime for restructuring,” he said.

Carson, who handles business reorganizations, said his company is aware of at least 17 national restaurant chains that have filed for bankruptcy in 2024.

Among the higher profile restaurant casualties this year which have filed for Chapter 11 bankruptcy protection this year are Roti, Buca di Beppo, Tijuana Flats, Sticky’s finger Joint, and Red Lobster.

Consumer Habits Have Changed

Laura Adams, a money expert and award-winning author who also hosts the weekly Money Girl podcast, told The Epoch Times that changes in consumer habits such as cooking at home and ordering home delivery have especially plagued the fast-casual tier of the restaurant industry.

“Consumers who dine at lower-end restaurants are the ones who will stop dining out first, and they’ll be the last ones to return because of unaffordability,” she said. “I think people have become used to ordering out, eating casually at home, and wearing casual clothes while watching Netflix.”

One of the changes in the restaurant industry that exploded during the pandemic was home-delivery services like Uber Eats, Grubhub, and DoorDash. The delivery companies, though, take large commissions from restaurants already struggling to make a profit.

Doordash orders can take as much as a 30 percent commission from restaurants.

“Doordash is a double-edged sword. It gives you the opportunity to get more food to more people, but it takes a pretty sizeable chunk off the bottom line,” said Justin Winslow, president and CEO of the Michigan Restaurant and Lodging Association.

“In third-party delivery, you have a real prisoner’s dilemma. You either shun the opportunity and limit your top-line gross sales, or you accept it and realize your ability to profit from those customers is harder than those inside your restaurant,” he told The Epoch Times.

Doordash is now the top restaurant-delivery app in the United States. At the end of 2023, DoorDash had 550,000 partner restaurants and grocery stores using its platform. However, the company is still looking for its first quarter of profitability.

In a written response to The Epoch Times, DoorDash’s corporate communications group wrote: “Our mission at DoorDash is to grow and empower local economies, and we’ve built tools that help restaurants expand their business and reach more people in their community.”

A Variety of Issues

Adams said that to survive, restaurants must offer something unique to make consumers leave their homes to experience it.

“I think if companies can’t differentiate themselves, they’re going to have a hard time. Maybe a restaurant like Red Lobster gets transformed, but it’s sad to see such a well-known brand wither away. When you see folks cutting back on dining out, you need to offer something unique,” she said.

The reason behind many Chapter 11 restaurant-restructuring filings this year needs to be discussed more, according to Carson, who has more than 20 years of bankruptcy experience.

He believes many of the filings have much to do with getting out of rent agreements. “You can walk away from a lease with Chapter 11 bankruptcies. The company can take the liability off their PNL [profit and loss],” he said. “But you do still have some casualties along the way.”

As tough as the restaurant economic and consumer market is today, Winslow says the restaurants in his organization are still reeling from the response to the pandemic that ended two years ago.

“The long tail of COVID is still impacting this industry more than any others. We did a poll in June, and I wasn’t prepared for how severe the fallout has been, with 60 of our members losing foot traffic in the last year and only 25 seeing an increase in top-line sales,” Winslow said.

“Forty of them are currently not profitable, and two out of every five of our restaurants are at risk for closure in the near future.”

Asked if she would advise anyone to open a restaurant today in this economic environment, Adams said, “I would say it is one of the most difficult businesses you can choose to run, and I would make sure you have the expertise and a record of success before you do it.”