McDonald’s is favoring $10-$30 “combo meals” over $1 specials!
The fast food company announced a partnership with K-Pop sensation BTS earlier this year, which ended up being a huge success for the Illinois-based chain. Not only did it drum up excitement on social media, but it also drove foot traffic to McDonald’s restaurants, which is really what the company wants post-pandemic.
But the success of the pricey combo meal reveals a fast food trend that Reuters says may mean the end of value meals as we know it. Say it ain’t so!
The news agency reports that the fast food chain is scaling back on their under-$5 value options due to post-Covid shrinking profit margins.
ICYMI, the Dollar Menu was first rolled out in 2002, and featured such items as a hamburger or a sausage McMuffin (2009) for a mere 60 cents; all made possible by falling prices for meat, cheese and other ingredients. Times changed, and the $1 menu was essentially done away with in 2017. Now the store has a $1, $2, $3 menu instead.
One fast-food franchisee pointed out that the American consumer in 2021 seems to be less budget-conscious than previous generations.
“I’ve never seen consumers less price sensitive than they are today,” the owner told Reuters.
The BTS combo meal included a “10-piece McNuggets, medium fries, a medium Coke, and sweet chili and Cajun sauces inspired by menu items in McDonald’s South Korea,” according to the release and sold for $11. That’s a 10x increase from the Dollar Menu. This is not a trend we like to see!
