Good by $1 value menu?

By: trademagazin Date: 2008. 08. 06. 00:00

Due to rising food ingredient prices, McDonald's may have to change some items on its $1 value menu.

international burger chain may have to adjust some of the ingredients
and prices on its value menu in order to retain profits and sales. As
an example, the cost of cheese may decide whether the $1
double-cheeseburger stays on the menu or if it will have to be
tweaked to remain profitable. The chain told the Wall Street Journal
that they may have to only put one slice of cheese on the sandwich
instead of two.
Many consumers have seen the price of milk go up
in regular grocery stores and even large burger chains that buy their
ingredients in bulk have not been immune to the price increases.
According to some estimates, the price of milk rose by as much as 40
cents per gallon in recent months.
In addition, McDonald's said
that some items on its dollar menu were also taking away sales from
its mid-range items that cost a little more, which is something they
had no anticipated.
Still, the chain told the Journal that there
would still be some kind of hamburger on the $1 menu. Since both
Burger King and Wendy's offer a dollar menu, there would be some
pressure to McDonald's to retain such offerings as well.
The chain
added that there would likely be more products between $1 and $2
offered by McDonald's. Already some items such as the snack-wraps
that are small chicken burrito-type sandwiches are offered between $1
and $2, depending on which restaurant you go to.

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