The strategy for a successful dollar menu is to hope people order more items, and then more expensive items, so that the restaurant ends up with a profit in the deal.
"It could be a situation where someone goes in thinking about buying one thing and then gets thinking, 'This is pretty reasonable,' and going to add on a few things," said R.J. Hottovy, a restaurant analyst at the investment research firm Morningstar.
Just about all fast-food chains are in the value game — even if it isn't at the $1 level.
Burger King has a Value Menu. Wendy's has the Right Price Right Size Menu. Then, Dairy Queen, KFC and Carl's Jr./Hardee's all have $5 meal deals.
A rebounding economy doesn't nix the need for value options on menu boards. Low- and middle-income consumers continue to feel the pressures of stagnant wage growth and higher rents and health care costs. They'll gravitate to the value menus.
"We’ve always known customers love the idea of value at McDonald's. That's never changed. What's evolved is they want more choice, but with the familiarity of the original Dollar Menu," said McDonald's U.S. president Chris Kempczinski about the new $1 $2 $3 Dollar Menu. "If you think about any retail concept, value will always be an important element, whether you're selling clothes or hamburgers and fries."
https://www.usatoday.com/story/news/2017/12/06/mcdonalds-taco-bell-others-pile-just-buck-deals/923029001/
"It could be a situation where someone goes in thinking about buying one thing and then gets thinking, 'This is pretty reasonable,' and going to add on a few things," said R.J. Hottovy, a restaurant analyst at the investment research firm Morningstar.
Just about all fast-food chains are in the value game — even if it isn't at the $1 level.
Burger King has a Value Menu. Wendy's has the Right Price Right Size Menu. Then, Dairy Queen, KFC and Carl's Jr./Hardee's all have $5 meal deals.
A rebounding economy doesn't nix the need for value options on menu boards. Low- and middle-income consumers continue to feel the pressures of stagnant wage growth and higher rents and health care costs. They'll gravitate to the value menus.
"We’ve always known customers love the idea of value at McDonald's. That's never changed. What's evolved is they want more choice, but with the familiarity of the original Dollar Menu," said McDonald's U.S. president Chris Kempczinski about the new $1 $2 $3 Dollar Menu. "If you think about any retail concept, value will always be an important element, whether you're selling clothes or hamburgers and fries."
https://www.usatoday.com/story/news/2017/12/06/mcdonalds-taco-bell-others-pile-just-buck-deals/923029001/
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