Major US retailers including McDonald’s, Target, Kohl’s, and Pizza Hut are slashing prices to drive foot traffic, as tariffs threaten to push prices higher and cash-strapped households pull back. The move comes as lower-income households disproportionately trade down or pause spending.
To combat the economic strain, companies such as McDonald’s, Target, and Kohl’s are expanding deals and leaning on subsidies to cut costs. For example, McDonald’s is rolling out nationwide combo meal discounts in September, while Kohl’s is reversing years of coupon exclusions to woo frustrated shoppers. Pizza Hut is launching $5 “Crafted Flatzz” before 5pm, while Olive Garden is reviving its Never Ending Pasta Bowl at the same price.
Industry experts say that companies are willing to trade profit for traffic as consumers seek value and sharp pricing to stretch their budgets further. Neil Saunders, managing director of GlobalData, notes that offering more value options on menus can help course correct. Rick Gomez, Target’s chief commercial officer, agrees, saying that consumers are looking to navigate inflation and uncertainty around tariffs.
However, not all brands are passing along the cost of tariffs in the form of higher prices. Estée Lauder is weighing increases, while some other companies have already started raising prices or signaling planned hikes. The corporate pricing dam appears to be cracking, as companies absorb the costs of tariffs through price cuts and subsidies.
Source: https://www.axios.com/2025/08/20/value-meal-mcdonalds-target-prices-kohls-coupons