Fast food chains’ secret is the $5 meal

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In the fast-food world, five—as in $5—is the magic number.

As USA Today reports, it has become the de facto sweet spot for trying to lure in customers based on meal price.

KFC has its $5 Fill Ups. Subway brought back its famous $5 Footlong sandwiches this winter. Little Caesars boasts a $5 Lunch Combo and Taco Bell has its $5 Buck Boxes. Plus, there are Dairy Queen’s $5 Buck Lunch and Carl’s Jr./Hardee’s $5 All Star Meals that debuted in September.

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As the American fast-food devotee is conditioned to expect a good deal, and that means food offers for a crisp $5 bill are likely to be unaffected by general inflationary pressures, commodity price swings and tariffs.

“Psychologically, $5 still seems like not lot of money. It’s just a denomination of a bill,” says Ravi Dhar, director of the Center for Customer Insights at the Yale School of Management. “It can make it easier than if you’re spending $5.50 and you have to break a $10. You’re spending 50 cents more, but it feels like more.”

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