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McDonald's is taking steps to tackle consumer dissatisfaction concerning menu prices that continue to increase. The fast-food chain plans to set affordability into its core business model to directly address the issue.

To do this, McDonald's has officially announced the addition of a mandatory 'value provision' to its franchising standards worldwide. The company said this will take effect in January 2026.

Embedding Affordability Into the Brand's Global Standards

In an internal memo, Andrew Gregory, Senior Vice President of Global Franchising, outlined the directive.

'Effective 1 January 2026, we are enhancing our global franchising standards across all Segments to reinforce accountability for value leadership,' Gregory stated.

The burger chain clarified that the driving force behind its new value mandate is two-fold: curbing rampant price inflation and urgently winning back its crucial base of budget-conscious customers. This strategic shift is being hailed as a landmark operational move, signifying a profound change in the partnership between the corporate structure and its independent owner-operators.

By implementing this rule, the parent company secures unprecedented leverage to guarantee price competitiveness across its extensive global network. Now, while McDonald's pointed out that individual franchisees will continue to have the right to set local prices for their stores, the headquarters will assess the results of the franchisees' pricing decisions from now on.

This effectively grades franchisees on their ability to maintain affordability.

'With enhanced standards, we aim to provide greater clarity to the System to ensure every restaurant delivers consistent, reliable value across the full customer experience,' Gregory added. 'This approach enables franchisees to bring local insight to how value is delivered in their restaurants.'

Context: The Industry 'Value War'

The decision comes as the fast-food sector engages in an aggressive 'value war'. Competitors such as Burger King and Wendy's have aggressively marketed discount bundles to attract diners weary of cumulative inflation, which has seen the price of some fast-food items rise by nearly 40 per cent since 2019.

McDonald's own $5 (£4) Meal Deal, launched earlier this year, was a temporary measure to stem the bleeding. However, executives have recognised that temporary promotions are insufficient to restore the brand's reputation for affordability. The new franchise standard institutionalises value, moving it from a marketing tactic to a contractual obligation.

Friction with Franchises

This shift in standards may upset some of McDonald's store franchisees across the US, as they have historically clashed with the head office's decisions. Independent operators, represented by groups like the National Owners Association (NOA), often argue that corporate mandates squeeze their margins while labour and utility costs remain high.

To mitigate this friction, the restaurant chain also invested in advanced data and analytical tools that will help operators strategically determine how to improve pricing and deliver agreeable value within their specific local markets.

'While Owner/Operators continue to set their own prices and make decisions that reflect local market nuances,' Mason Smoot, McDonald's USA Chief Restaurant Officer said in a separate memo. 'We have now strengthened individual accountability for value leadership – equipping you with approved pricing consultants, tools, and other levels that support informed choices and elevate the overall guest experience across all order points.'

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