McDonald’s ‘Dollar Menu’ set to cost hungry customers a lot more
The chain’s new lineup is being tested in five markets in the US, Ofelia Casillas, a spokeswoman for the company, said.
One test includes $1 (€0.75), $2 and $5 fare; another has $1, $1.79 and $4.99 items.
“It just sounds like they’ll be raising prices,” said Peter Saleh, a New York-based analyst at Telsey Advisory Group. The industry’s “definition of value has moved up from the Dollar Menu to $1.50 or $2.”
McDonald’s earnings have trailed analysts’ estimates for the past two quarters amid shaky consumer confidence and more competition from rivals introducing new food.
The chain also is facing a franchisee revolt. One point of tension is the increasingly difficult economics of the Dollar Menu, according to a document obtained by Bloomberg News recapping an April franchisee meeting.
Store operators also have met to discuss rising costs, as well as how an increasingly complex menu slows down service.
“An important part of this test is making sure franchisees have a strong voice in the decision-making process,” said Casillas, the spokeswoman. “We encourage this dialogue and working with them to do what is right for our collective businesses and customers.”
Beef Prices Restaurants including McDonald’s have faced higher beef prices after a drought last year made it more expensive for farmers to feed cattle.
“You can’t sell a burger for $1 anymore because the cost of beef has gone up so much,” Saleh said. -
