As the holiday season approaches, fast-food chains are gearing up with festive promotions, special menu items, and branded merchandise to attract customers and enhance the holiday spirit. However, these seasonal strategies are not merely about spreading cheer; they are a response to shifting consumer habits and a slowdown in demand within the quick-service restaurant industry.
Amid economic uncertainties and rising food prices, many consumers have become more cost-conscious, opting to cook at home to save money. This behavior contributed to a 1% decline in customer traffic across the food service sector for the quarter ending June 2025, reports Circana. In light of this, fast-food brands are constantly seeking innovative ways to engage and retain their customers.
While seasonal menus have long been a staple strategy, many companies are also venturing into merchandise to diversify revenue endeavors and maintain customer interest. Notably, McDonald’s is launching “The Grinch Meal” in partnership with Dr. Seuss’s timing of “How the Grinch Stole Christmas!” This festive bundle includes new Dill Pickle McShaker Fries, a choice between a Big Mac or 10-piece Chicken McNuggets, a medium drink, and a pair of holiday-themed Grinch socks. The meal debuted on December 2 at participating locations across the U.S., following its successful introduction in various international markets last year.
In addition to the Grinch Meal, McDonald’s is offering a winter collection filled with apparel, accessories, and festive décor available in its online stores. This move aligns with a trend as various fast-food competitors also unveil holiday merchandise. Chick-fil-A has introduced its own holiday collection, while Starbucks has released its annual festive merchandise alongside a Hello Kitty collaboration. Burger King sold out its 2025 BK Advent Calendar in record time, and KFC premiered its Holiday Bucket Collection online. Raising Cane’s has also jumped into the fray, launching holiday ornaments and plush toys.
The pricing reality is stark, as fast-food menu prices have surged between 39% and 100% from 2014 to 2024—dramatically exceeding the national inflation rate of 33%. McDonald’s prices have doubled within that span, leading to significant challenges as consumers may choose home-cooked meals over dining out. According to analyst Sujeet Naik of Coresight Research, this shift directly impacts revenue and customer traffic for restaurants.
As competition heats up, fast-food chains are innovating menu options and exploring branded merchandise to meet evolving consumer expectations and enhance their sales dynamics. McDonald’s, specifically, has established new global Category Management teams to bolster product innovation efforts. Signs of improvement are emerging as total company comparable sales grew 3.6% year-over-year in the third quarter of fiscal 2025, with U.S. sales up by 2.4%.
Nonetheless, McDonald’s remains cautious about consumer health heading into 2026, emphasizing that maintaining customer loyalty and adapting to the challenging economic climate is crucial for the brand’s foundational success. The push for engaging, innovative offerings during the holidays represents a strategic move to forge deeper connections with consumers even as the industry navigates economic hurdles.