free html hit counter McDonald’s CEO speaks out on new ‘tip’ policy as he slashes price of value meals – My Blog

McDonald’s CEO speaks out on new ‘tip’ policy as he slashes price of value meals


MCDONALD’S CEO has spoken out on a new policy amid price reductions on value meals.

The fast food giant has been focusing on affordability for customers in recent years amid economic uncertainty.

Portrait of Chris Kempczinski.
McDonald’s CEO Chris Kempczinski (pictured) has spoken out about a tip policy
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Aerial view of a McDonald's restaurant with a customer walking away.
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The fast food giant also recently confirmed more value meal offers (stock image)[/caption]

Since 2022 and post-COVID inflation pressures, McDonald’s and other competitors have been dealing with backlash over menu prices.

At one point, consumers were spotting Bic Mac combo meals for as much as $18 and 40-Piece Chicken McNugget meals for $25.

Except, around the beginning of last year, CEO Chris Kempczinski emphasized McDonald’s focus on making its offerings more feasible for low-income Americans through “menu innovation.”

What followed was the new McValue Menu, $5 Meal Deals, and other opportunities and discounts for fast foodies.

Still, while consumers who are higher earners continue to spend consistently on premium items and fast food delivery, those with lower income are still cutting back, according to what Kempczinski argued in a recent interview with CNBC’s Squawk Box.

Despite McDonald’s “value journey,” it’s still a challenge.

“Particularly with middle and lower-income consumers, they’re feeling under a lot of pressure right now,” the CEO explained.

“There’s a lot of commentary around, ‘What’s the state of the economy, how’s it doing right now?’ And what we see is, it’s really kind of a two-tier economy.”

“If you’re upper income, earning over $100,000, things are good … what we see with middle and lower-income consumers, it’s actually a different story,” he added.

Kempczinski said traffic at McDonald’s locations for this group of consumers is down by double digits, and they’re electing to eat at home far more.


As a result, US same-store sales for the company were down 3.6% in the first quarter of 2025, its largest decline since 2020.

Some recent rollouts like the launch of the McCrispy Strips and the Snack Wrap returning helped spike sales and foot traffic, but

This is part of the reason why McDonald’s recently revamped the $5 Meal Deal, which is now the $5 Extra Value Meals.

Starting Monday, September 8, customers will be able to get eight discount meals for breakfast, lunch, and dinner, at all of McDonald’s over 13,000 locations nationwide, offering savings of around 15%.

McDonald’s Extra Value Meals

On September 8, 2025, McDonald’s is launching its Extra Value Meals. There are eight options for customers to choose from, and each is listed below:

  • Sausage McMuffin with Egg
  • Sausage Egg & Cheese McGriddles
  • Egg McMuffin
  • Bacon, Egg and Cheese Biscuit
  • Big Mac
  • 10-piece Chicken McNuggets
  • Any variety Quarter Pounder burger (Original, Bacon, or Deluxe)
  • Any variety McCrispy Sandwich (Original, Deluxe, or Spicy Deluxe)

TIP TURMOIL

McDonald’s is also focused on providing its workers with appropriate compensation, which is what lead the company to split from the National Restaurant Association, per Kempczinski’s comments.

There were specific issues with the no-tax-on-tips policy that was solidified under President Donald Trump’s One Big Beautiful Bill Act (OBBA) in July.

“Anything that is done to help restaurant workers, I’m in favor of,” Kempczinski explained.

“The issue with no tax-on-tips is it only benefited those restaurants that have tips.”

“We don’t do tipping in McDonald’s, and so we don’t get the benefit of, essentially, that tax relief here.”

Kempczinski instead wants an increase to the minimum wage for both tipped and non-tipped employees across the board.

He argued that it could reduce poverty and job turnover.

The federal minimum wage for non-tipped workers has been $7.25 since 2009, per the US Department of Labor.

WAGE WARS

The McDonald’s CEO’s position was also supported by One Fair Wage, an advocacy organization dedicated to ending the $2.13 minimum tipped wage specifically, per Nation’s Restaurant News.

“McDonald’s CEO’s comments expose what we’ve been saying for years: the sub-minimum wage for tipped workers is indefensible,” Saru Jayaraman, president of One Fair Wage, argued in a statement.

“It is unfair to workers, a legacy of slavery that was created to allow restaurants to hire women of color for free, forcing them to tolerate economic instability and harassment to feed families from tips.”

“But it is also unfair to employers — not just businesses like McDonald’s, but thousands of small businesses across the country that do not ask customers for tips and are required to pay their workers a full minimum wage with tips on top,” Jayaraman continued.

“It is time to close the loophole and ensure every worker earns a real minimum wage with tips on top directly from their employer.”

McDonald’s CFO was also left defending the company’s reputation recently after a $7 price outrage.

A new rule at the fast food giant has been slammed as well, with fans saying things are “getting out of hand.”

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