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McDonald’s Tries to Win Back Diners

McDonald’s is using discounts to attract customers who have cut back on eating out. On November 4, the company reported that sales at its established US restaurants fell 0.2 percent in the three months ending September 30. Higher living costs have pushed some diners toward alternatives, including convenience stores and home cooking. However, McDonald’s said its US business showed signs of improvement in September and October. Promotions included a two-dollar breakfast sandwich and free fries with a minimum purchase of one dollar. The company also reported that global sales at comparable restaurants grew 1.5 percent during the quarter. This shows that its performance differed across markets. Offering cheaper meals also creates challenges within the business. Some franchise owners, who operate restaurants under the McDonald’s brand, have raised concerns about rising costs.

The news raises a familiar question about what makes a meal good value. A low price matters, but customers may also consider portion sizes, quality and convenience. Cooking at home can reduce spending, although shopping, preparation and washing dishes take time. For someone with a busy schedule, paying more for a ready-made meal may feel worthwhile. Discounts can help people stay within a budget, but they may also encourage extra purchases. A cheap main dish becomes a more expensive meal when drinks and side dishes are added. Restaurants face their own limits because they must pay for ingredients, wages and rent. The challenge is to keep meals affordable while earning enough to run the business.

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Chat

Talk about these words from the article.

discounts / attract / cut back / living costs / diners / alternatives / convenience stores / promotions / franchise owners / portion sizes / quality / budget / ingredients / wages / affordable

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Discussion

1. How have your eating habits changed as food prices have risen?

2. What makes a fast-food meal good value for you?

3. How do discounts influence where and what you eat?

4. When is paying more for convenience worth it?

5. How do you compare the full cost of cooking at home with eating out?

6. What restaurant costs would you find hardest to control?

7. How could restaurants attract customers without lowering prices?

8. What would make you return to a restaurant you had stopped visiting?