Most recently, Burger King entered the $1 burger battle with news that it would roll out a $1 double cheeseburger to all U.S. locations on Oct. 19. A few days later, Jack in the Box unveiled its new Bonus Jack Combo Meal, which features a double-patty cheeseburger along with a small order of fries and a small drink for the suggested price of $3.99.
The new offerings will compete with McDonald’s Dollar Menu, which includes the McDouble sandwich, and Wendy’s 99-cent specials, including its Double Stack, as well as the proliferation of premium burgers, like the Big Carl at Carl’s Jr., muscling their way onto fast-food restaurant menus as operators work to enhance their value messages with both low-cost and more upscale items.
As consumers continue to battle against recessionary pressures, not the least of which is rising unemployment, deals are crucial to winning customer traffic—even as restaurants question whether pervasive discounting will affect perceptions of quality, or spoil consumers to the point where low prices or value-driven deals will be required for the long term.
“Bottom line is, you are going to see significant discounting continuing in the Quick Service Restaurant industry,” said Alan Vituli, chairman and chief executive at Carrols Restaurant Group Inc., the largest Burger King franchisee, during the company’s latest conference call in August. “We believe that Burger King’s strong value proposition coupled with a renewed focus on value advertising can and should resonate with consumers in the current economic climate.”
According to research from The NPD Group, when consumers who had cut back on restaurant visits were asked what would entice them to go to restaurants more often, they listed discounts, coupons for a free item, more dollar menu items, a choice of price offerings and other cost management options. The largest percentage of respondents, 31 percent, wanted price discounts on regular menu items, while 24 percent wanted coupons for free items and 23 percent wanted $1 or 99-cent offerings.
October 7th, 2009 at 1:29 PM
I love the dollar menus! Glad to hear more companies are rolling out items on them.
October 7th, 2009 at 1:31 PM
This makes me question why the prices were higher in the first place. If they can afford to sell it for a dollar now, why could’nt they a year ago? What was the profit on it before the discounted it?
October 7th, 2009 at 1:33 PM
I think 1 day a week the should make every menu item a dollar, could you imagine the drive thru line then? I’d wait, if my meal was only going to cost me $1.
October 12th, 2009 at 12:42 PM
Dollar Menus – sometimes you get what you pay for!
October 13th, 2009 at 11:22 AM
I wish someplace would put a Ribeye steak on a dollar menu! Now thats a deal.
November 1st, 2009 at 10:25 AM
I don’t care how much it costs. The fat and calories are just not worth it. I wish a drive thru restaurant would open that gave you some healthy choices.
November 1st, 2009 at 11:39 PM
Unfortunately it tastes like a $1 meal!
November 2nd, 2009 at 9:03 AM
Keep the magic of the $1 menu coming. Our kids love it.
November 20th, 2009 at 3:09 AM
“you get what you pay for”. . . . scary thought!
Almost as scary as, “you are what you eat”
December 14th, 2009 at 11:05 PM
I’ll be sorry to see the extra $1 menu items leave. It sure makes it easier when you take your kids out for lunch.
December 15th, 2009 at 9:52 PM
Grace – I love your comment! It really makes you think – lol.
December 21st, 2009 at 12:18 PM
I eat off of $ menus about once a week. And I normally choose where I go based on price. It’s a good decision to have more restaurants with them.
January 7th, 2010 at 2:54 AM
I use the dollar menu quite often and find that Burger King far surpasses Mc Donalds by far. Broiled over fried of course.