Monday, August 4, 2008

Breaking News...$1 menu could be $1.19...gasp!

This just in (and a portion literally copy and pasted from their website) from the Wallstreet Journal...

In an interview, Don Thompson, president of McDonald's U.S. business, said the company has tested ways to make the burger less expensive to make. Some restaurants are selling it with one slice of cheese instead of two, and billing it as a "double hamburger with cheese." Others are offering a double hamburger without cheese. Some are selling the traditional double cheeseburger at prices ranging from $1.09 to $1.19.

The company is also considering expanding what it considers the middle tier of its menu, items ranging from about $1.30 to $2. "We know customers are facing tough times in this economy," Mr. Thompson said.
Launched in 2003, the Dollar Menu has been a key driver of sales at McDonald's 14,000 U.S. restaurants and has helped it ride out dips in consumer spending. But recently, franchisees have complained that the menu has brought too much unprofitable traffic into their restaurants.
The biggest question for the eight-item menu is what to do with the double cheeseburger, considered its anchor. High dairy prices have pushed up the cost of cheese, and McDonald's predicts more pressure because its beef costs will be higher this year. Mr. Thompson said if McDonald's moves the double cheeseburger off that menu, there would still be some type of $1 burger.

Perhaps no one but me will find this worthy of "Breaking News." Considering the fact that just moments ago I spoke of cheese woes, I think we can all agree that I am on the cutting edge of economics. I partake in the $1 menu as much as humanly possible. I have excellent health care coverage that affords me the opportunity to eat on a budget. The next time you go looking for two all beef patties, special sauce, lettuce, CHEESE on a sesame seed bun....it may not be there!

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