Opinion: From McDonald’s price freeze to a supply chain squeeze |
Today’s battle is unfolding in an inflationary environment marked by weaker demand, declining restaurant visits, and widespread financial stress across foodservice. This is not about gaining market share. It is about preserving demand.
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McDonald’s Canada has just pulled the pin on a full-scale price war.
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By freezing prices for an entire year on its $5 Value Meals and $1 menu items, the country’s largest quick-service restaurant player is locking in entry-level affordability at a moment when consumers have made it unmistakably clear they have had enough of fast-food inflation.
This is not a marketing flourish. It is a defensive economic move.
The reaction from competitors was immediate.
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Burger King and Wendy’s are already leaning harder into value bundles and limited-time discounts.
When McDonald’s moves, the entire quick service restaurant (QSR) sector adjusts.
There is no larger price setter in Canadian food service, and history shows that when McDonald’s chooses to compete on price, everyone else must follow — whether they can afford to or not.
What makes this moment especially notable is that it has been a long time since Canada has seen a true fast-food price war.
The last nationwide episode dates back to roughly 2013 to 2015, when McDonald’s aggressively expanded dollar-menu pricing and value breakfasts to protect traffic.
Rivals followed suit, but that war ended quietly as costs stabilized and chains pivoted toward premiumization — craft burgers, specialty coffees, delivery fees, and app-driven upselling.
From about 2016 onward, the........