Is McDonald’s losing its crown? Why Aussies are choosing trendy burger joints

For decades, McDonald’s has been the undisputed king of fast food in Australia. From the first golden arches in Yagoona back in 1971 to more than 1,050 stores nationwide today, Macca’s has been a go-to for a quick, cheap meal. 

But recent figures suggest the burger giant’s reign may be under threat, with Aussies increasingly turning their backs on Big Macs in favour of new, ‘premium’ fast food options.

So, what’s behind this rare dip in McDonald’s sales—and what are Australians eating instead? Let’s take a closer look at the changing fast food landscape, the impact of rising prices, and whether McDonald’s can win back its loyal fans.

The price of convenience: Is McDonald’s still good value?

For many of us, McDonald’s has always been synonymous with value. But as the cost of living continues to bite, even the golden arches are feeling the pinch. 

In the past three years, the price of a six-pack of nuggets has jumped by more than 20%, now costing over $8. A small Big Mac meal will set you back more than $12, and if you’re after a larger burger combo, you could be paying upwards of $15.

These price hikes haven’t gone unnoticed. ‘McDonald’s has lost that perception of representing value,’ says Shaun Weick, deputy portfolio manager at Wilson Asset Management. 

‘I’m continually hearing that McDonald’s is losing market share because they’ve priced themselves out of the market; they’ve gotten too expensive.’

With the price gap between Macca’s and more ‘premium’ fast food chains narrowing, many Aussies are asking: why settle for a basic burger when you can get a gourmet meal for just a few dollars more?

The rise of the ‘premium’ fast food rival

Enter the new kids on the block: Guzman y Gomez, Grill’d, Betty’s Burgers, El Jannah, and a host of other upmarket fast food chains. These brands are offering fresh, customisable meals—think burritos, charcoal chicken, and burgers with all the trimmings—often for less than $20.

According to Ben Dixon, CEO of research firm Fonto, these alternatives are winning over customers who want more bang for their buck. 

‘There is definitely a preference for those alternatives, particularly as the gap in cost for those meals reduces,’ he says. 

Fonto’s research shows McDonald’s consistently underperforms on customer satisfaction compared to its rivals, with price being a major sticking point.

It’s not just about the food, either. Many of these new chains are tapping into trends like healthier ingredients, plant-based options, and more sustainable packaging—appealing to a generation of diners who want more than just a quick feed.

Can Macca’s compete on convenience?

Despite the challenges, McDonald’s still has one big advantage: convenience. With more than 1,000 locations across Australia, drive-thrus, 24-hour service, and a slick app for online ordering, it’s hard to beat Macca’s when you need food fast.

The company is also trying to woo back budget-conscious customers with its ‘loose change menu’—offering smaller, cheaper items to tempt people back through the doors. In Canada, a similar strategy with $1 coffees has proven popular.

But is it enough? Fast food chains are walking a tightrope, trying to balance rising costs with the need to keep prices low. When KFC faced backlash over price increases, it quickly rolled out new value deals to win back customers. Will McDonald’s follow suit?

The bigger picture: How the cost-of-living crisis is changing our eating habits

It’s no secret that Australians are feeling the squeeze. With grocery bills, petrol, and mortgage repayments all on the rise, many households are rethinking their spending—including how often they eat out.

For some, that means cutting back on takeaway altogether. For others, it’s about getting better value for money—whether that’s a bigger, tastier burger from a rival chain, or a meal deal that stretches a little further.

There are signs that inflation is starting to ease, and further interest rate cuts could put more money back in people’s pockets. But as Weick points out, it’s not clear whether McDonald’s will benefit from any recovery—or if Aussies will stick with their new favourites.

What does the future hold for McDonald’s?

While McDonald’s global share price remains strong, the real test will be whether its Australian franchisees can weather the storm. 

Running a Macca’s isn’t cheap, and with customers becoming more price-sensitive, franchise owners will be hoping the company can adapt quickly.

For now, it seems the days of the $5 meal deal are well and truly over. But with competition heating up, and Aussies more spoilt for choice than ever, McDonald’s may need to rethink its strategy if it wants to stay on top.

Have your say

Have you noticed the price of your favourite Macca’s meal creeping up? Are you trying out new fast food options, or cutting back on takeaway altogether? We’d love to hear your thoughts and experiences—share your comments below!

Also read: Uber Eats secrets revealed: How one mum nabbed burgers for just $3