McDonald’s New $1, $2, $3 Menu Could Be A Growth Or Decline Factor In Business

Overall, franchisees in McDonald’s believe that the new $1, $2, $3 menu will help boost their sales going into 2018. They have already seen some enthusiastic customer response to...

Overall, franchisees in McDonald’s believe that the new $1, $2, $3 menu will help boost their sales going into 2018. They have already seen some enthusiastic customer response to the menu, and they believe that this will continue as more people hear about it. At the same time, others worry that this menu setup will have the average customer spending less when they go to McDonald’s. That could also drive up food costs, and this whole idea may backfire to some extent.

The company has already been seeing some momentum says CNBC due to the release of its signature burger collection and special priced drinks. They clearly released those burgers to compete with other fast food chains like Hardee’s/Carl’s Jr., and it does seem to have paid off. Additionally, customers are loving that they can get any size soft drink for the price of just one dollar. They may also enjoy a small McCafe beverage for just two dollars.

One franchisee said about the new dollar menu that it is only good for driving up the number of guests that McDonald’s serves on a given day. He said that it is not geared towards some of the more profitable items that McDonald’s serves. As such, many guests may be drawn away from purchasing something popular like the Signature Burgers in favor of the cheaper dollar menu. That could hurt the bottom line for individual store owners. He also worries that he loses more control over his food costs and the profit that he is able to generate from his stores.

Interestingly, a lot of these issues may revolve around the geographic area that a McDonald’s is located at. Estimates for same-store growth vary wildly based on what part of the country the store is located. The South is expected to see the lowest same-store growth over the next year at just 0.9 percent. Meanwhile, the West could enjoy the largest growth, at least according to estimates, when it is expected to have around five percent same-store growth.

It might prove a challenging time for store owners, but the McDonald’s Corporation itself is probably going to come out of this quite nicely. Their newly revamped dollar menu is almost certain to drive up the number of customers that the store has, even if this does not translate to more money for the individual store owners. It is something that we will have to wait and see what happens with in the coming year.

Categories
BusinessMcDonald'sMcDonald's Corporation

RELATED BY