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CHARLEBOIS: McDonald’s price freeze fuelling full-scale price war

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Decision by country’s largest quick-service restaurant player will create ripple effects across entire supply chain

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McDonald’s Canada has just pulled the pin on a full-scale price war. 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.

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The reaction from competitors was immediate. Burger King and Wendy’s are already leaning harder into value bundles and limited-time discounts.