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McDonald’s $5 meal deal blamed for demise of french fry factory

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The biggest french fry supplier to McDonald’s has blamed the chain’s $5 meal deal for its factory closure and job losses.

Lamb Weston, the largest producer of fries in North America, announced earlier this month that it is closing a factory in Washington and laying off nearly 400 employees.

Boss Thomas Werner said that demand for fries is falling because of smaller portion sizes included in discount deals. Burger King and Wendy’s have near-identical $5 meals too.

‘Many of these promotional meal deals have consumers trading down from a medium fry to a small fry,’ he said on an earnings call earlier this month.

McDonald’s initially launched its $5 value meal as a summer promotion in June, but has extended it to Christmas due to high demand from cash-strapped customers.

‘The extension of the $5 Meal Deal, and the other offerings we’re announcing for our fall line-up, are just a few of the ways we’re working hard to offer great meals at a fair price,’ Joe Erlinger, president of McDonald’s USA, said in September.

Erlinger confirmed that McDonald’s created the deal after he ‘zig-zagged the country’ and participated in focus groups with its customers.

‘They’ve felt the stress of the inflation over the last few years, and so this is a great opportunity for McDonald’s to bring them value,’ Erlinger said.

The meal consists of a McDouble or McChicken, a four-piece portion of chicken nuggets, a small drink, and – crucially – a small portion of fries.

‘Meal deals with smaller fries portions are certainly part of the problem,’ Neil Saunders, Managing Director of GlobalData Retail, told DailyMail.com.

‘Individually this doesn’t make much difference, but across the hundreds of millions of transactions within fast food this has a massive impact on volumes.

‘The other problem alongside this is people dining out less which is also impacting the volume of fries sold.’

McDonald’s is Lamb Weston’s largest customer, accounting for 13 percent of its sales, according to CNN.

As well as fully shutting down the Washington factory, Lamb Weston also announced it was temporarily cutting production at its other plants due to the slowing of customer demand.

Following several years of price rises, many fast food giants, including McDonald’s, have begun to offer value deals in a bid to win back customers.

McDonald’s suffered a surprise fall in sales in the April to June quarter, dragged down by fewer customers visiting the chain.

Around 80 percent of french fries consumed in the US come from fast-food chains, according to Lamb Weston

 

Following several years of price rises, many fast food giants, including McDonald’s, have begun to offer value deals in a bid to win back cash-strapped customers

 

It was the first sales decline since 2020, when the Covid-19 pandemic shuttered stores and millions stayed home.

According to Lamb Weston, around 80 percent of french fries consumed in the US come from fast-food chains – which means it is also exposed to declining foot fall at other restaurants.

Customer traffic to fast-food chains dropped 2 percent last quarter and 3 percent the previous quarter compared to the same time last year, the producer said.

It comes amid reports activist investor Jana Partners is pushing Lamb Weston to explore a sale.

Lamb Weston shares jumped around 8 percent in early trading on the news from The Wall Street Journal.

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Breaking News: Nigerian Youngest Billionaire, B-Lord, Pioneers Electric Taxi Revolution in Nigeria

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In a groundbreaking move for Nigeria’s transport and energy sectors, Nigeria’s youngest billionaire and business mogul, B-Lord, has launched an electric car taxi service, marking a significant step toward sustainable mobility in the country. The initiative is set to commence operations in Anambra State.

In an exclusive statement, B-Lord disclosed that over five containers filled with fully electric city cars are currently en route to Nigeria from China. The vehicles are expected to revolutionize public transport by providing an eco-friendly, cost-efficient, and modern alternative for commuters.

To support this venture, several charging station terminals are already under construction across Anambra State. These charging hubs aim to ensure a seamless experience for the upcoming fleet of electric vehicles, setting the foundation for a robust, sustainable infrastructure.

“This initiative is not just about transportation; it’s about boosting economic growth, creating jobs, and setting Nigeria on the global map of innovation and sustainability,” said B-Lord.

The electric taxi project is poised to enhance the state’s economy by generating employment, reducing carbon emissions, and modernizing the transportation sector. Experts believe this move will ripple across other states, driving further investment in green technology in Nigeria.

As Nigeria takes its first steps into the electric vehicle era, B-Lord’s vision is a testament to the power of entrepreneurship and innovation in shaping a better future for the nation.

Stay tuned for more updates as this transformative project unfolds!

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World Pizza Day: How an Italian food favourite conquered the world

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Pizza Margherita © Liz Hafalia/San Francisco Chronicle
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17 January marks World Pizza Day, a celebration of a dish with more than 2,000 years of history. From Neapolitan and Roman styles to Margherita, diavola, and even potato-topped variations, there are few places left in the world which don’t honour this iconic culinary tradition.

In 2017, UNESCO recognised “the art of Neapolitan pizza makers” as an Intangible Cultural Heritage of Humanity, highlighting its cultural significance on a global scale.

As for the date, it wasn’t chosen randomly: 17 January coincides with the feast of St. Anthony Abbot, the patron saint of fire and related trades, including machinists, blacksmiths, and, fittingly, pizza makers.

Where is pizza eaten the most in the world? And in Europe?

In Italy, four out of ten families are expected to prepare pizza at home in 2025, according to data from Coldiretti-Ixé. Meanwhile, global pizza turnover in 2024 is projected to reach a record €160 billion, with Italy contributing €15 billion to this figure.

Pizza is a major economic driver in Italy, generating 100,000 jobs nationwide – a number that doubles to 200,000 on weekends. Each year, Italy produces 2.7 billion pizzas, equating to about 46 pizzas per person annually, a figure that includes all age groups, from infants to the elderly.

Italians’ preferences differ significantly from those of the global market. According to Coldiretti, Italians prioritize higher-quality ingredients and are willing to pay a premium for them.

Interestingly, while pizza is an Italian staple, the world’s largest per capita consumers are Americans, who eat an average of 13 kilograms of pizza per year.

In Europe, on the other hand, Italy is in first place with 7.8 kilos per year, followed by Spain’s 4.3kg, and France and Germany’s 4.2kg and in fifth position the United Kingdom with 4kg.

The rise of food delivery has significantly boosted this already thriving sector: some apps speak of ‘an order every two seconds’. Others point to year-on-year growth in turnover of 20 per cent between 2024 and 2025.

The most and least popular pizzas in the world

According to data from the food web portal TasteAtlas, the Margherita reigns as the most popular pizza in the world, followed by the Montanara and calzones. In sixth place is American-style pizza topped with cheese, vegetables, and tomato sauce. Following that is pepperoni pizza (where ‘pepperoni’ in the US refers to a type of salami) and the iconic ‘New York-style’ pizza, before circling back to fried pizza.

In last place is an Italian pizza: the ‘Mimosa pizza,’ topped with corn and cooked ham. Just above it are the Cuban pizza, the Scottish fried pizza, the Quad City-style pizza (a grilled variation popular in the US), and Canada’s unique pizza-ghetti, which features spaghetti as an additional topping.

How much does pizza cost in Italy?

Pizza has always been a popular dish in the Bel Paese, and this has never changed. On the other hand, inflation and the push for higher quality ingredients have increased the price in Italy and across Europe.

A survey by Altroconsumo calculated the average cost of a pizza, a soft drink, and service in various Italian cities. Sassari tops the list as the most expensive city (€14.67), followed by Bolzano, Milan, and Venice. On the more affordable end are Livorno (€8.67), Pescara (€9.18), Naples (€9.63), and Bari (€9.63).

Whatever pizza you love, with or without pineapple, happy World Pizza day.

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Petrol price increases nationwide

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Petrol prices across Nigeria have increased to between N1,050 and N1,150 per litre.

This increase follows a price adjustment by Dangote Refinery, which raised its rates from N899 to N955 per litre for bulk purchases.

Private depots nationwide have also raised their prices, with some locations now charging over N1,000 per litre for Premium Motor Spirit (PMS).

Oil marketers explained that the hike is primarily due to rising crude oil prices, which recently climbed to $81.84 per barrel, the highest in 2025.

Deregulation of the petroleum sector and logistics costs have further contributed to the price surge.

Areas far from depots, such as the hinterlands, are experiencing the steepest prices, with some regions reporting costs of up to N1,150 per litre.

Private depots in Lagos and Calabar have also adjusted their loading costs.

For instance, Sahara and Pinnacle depots raised prices to N970 per litre, while Rainoil and Alkanes in Calabar now charge N1,000 per litre.

Retail stations are adding logistics and regulatory charges to their prices, pushing the pump rates higher for consumers.

Marketers predict that prices will continue to rise due to the global increase in crude oil costs.

With deregulation in place, the industry relies on demand and supply dynamics, making fluctuations inevitable.

Experts warn that this trend will significantly impact consumers and businesses across the country.

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