kranky
Elite Member
- Oct 9, 1999
- 21,014
- 138
- 106
That list is a little dated but I just read an article about how McDs is really struggling at the moment. One of the more interesting observations was how the dollar menu used to boost profits but now is hurting them.
Originally the dollar menu would help drive customers to "upsell themselves" - if there was an item for $2.50 that was a better version of the item on the dollar menu, many customers would move up to the $2.50 item.
Now, there are very few items in that "just a little more" price range. There are dollar menu items, and $4-5 items, and customers are staying with the dollar menu where there is almost no profit. The price gap is too large.
Originally the dollar menu would help drive customers to "upsell themselves" - if there was an item for $2.50 that was a better version of the item on the dollar menu, many customers would move up to the $2.50 item.
Now, there are very few items in that "just a little more" price range. There are dollar menu items, and $4-5 items, and customers are staying with the dollar menu where there is almost no profit. The price gap is too large.
