Need some McChange?
You might be reaching for some the next time you go to McDonald’s. They decided to tweak up the famous dollar menu. Why? Too many people were ordering off the dollar menu which do not bring them any profit.
Ok before we get into the analysis of their move, lets see what they did.
McDouble moved from $1 to $1.19
Small Fries from $1 to $1.19
Double Cheeseburger $1 to $1.49
Side Salad 1$ to $1.29
Things that are a dollar on the new menu are the Buffalo Ranch McChicken, BBQ Ranch Burger, McChicken, Grilled Onion Cheddar Burger, Fruit ‘n Yogurt Parfait, ice cream cone, cookies and a large Sweet Tea.
They also introduced some things: Bacon McDouble, Bacon Cheddar McChicken and Bacon Buffalo Ranch McChicken all for $2. They also threw on there (for some odd reason) a 20 piece Chicken McNugget for $5.
Why the heck do they even call this the “dollar menu” when less than half of the menu is $1?! (I removed the ice cream cone, cookies, parfait and the ice tea because come on, lets compare apples to apples, no pun) It is an odd move since they used to just have the regular menu and then the smaller dollar menu. Now they are trying to do a bait and switch with this Dollar and More menu.
You want even more proof about a “bait and switch,” look at how they throw that side salad in the middle there under $1 but it is more than a dollar.
McDonald’s is trying to lure people in the same way that airlines are trying to sell you business class. “Oh for $50 more you can have more leg room.” Here they go: “For an extra dollar, you get bacon!”
This is a big head scratcher for me because obviously their target market is going big time to the dollar menu if they are losing money on it. McDonald’s should have looked into their Extra Value Menu and moved the pricing points there. Offer more cost effective options and see if they could had money making margins there. I assume they aren’t making enough on their new Quarter Pounders.
The key point here is the economy is not doing any better (don’t let the stock market tell you otherwise), McDonald’s dollar menu numbers show that. McDonald’s just declared war on their key market, pushing them to less options is not going to win them over to spend more money, you are just pushing them to other options. Food is too highly competitive, and fast food is even worse when it comes to loyalty.
Right idea McDonald’s, however wrong menu to revamp.