McDonalds’s is deciding to launch a new version of its Dollar Menu, which includes items that priced up to $5. In order to compete with other fast-food chains’ menus, chief marketing officer Neil Golden said that the menu provided a “broader range of profitability” for its restaurants. The new “Dollar Menu & More” menu has been tested in many states already.

Although prices of products will cost more, especially when compared to Wendy’s new “Right Price Right Size” menu, McDonald’s new menu includes more variety, including new chicken items and burgers with extra toppings. Along with that, the huge brand loyalty McDonald’s maintains could allow the new menu scheme to work. These factors could actually lead to an increase in sales. Costs for ingredients have climbed rapidly in recent years, and it’s sensible of McDonald’s to keep the classic Dollar Menu, which is extremely appealing to low-income customers such as kids, but also implement a new higher-priced menu with many more options for consumers. This allows the company to effectively target a bigger market as some people may desire bigger portions or want to share with friends and also set reasonable prices to balance with its ingredients costs.

(198)

Works Cited:

“McDonald’s Exploring Changes to Dollar Menu.” Crain’s Chicago Business. Crain Communications, Inc., 4 Sept. 2013. Web. 07 Oct. 2013. <http://www.chicagobusiness.com/article/20130904/NEWS0702/130909949/mcdonalds-exploring-changes-to-dollar-menu>.

Dollar Menu. Digital image. N.p., 2008. Web. 7 Oct. 2013. <http://2.bp.blogspot.com/-o_Mhk56TfaE/UXNemd6AeMI/AAAAAAAA7KI/ajVHAmsLYZI/s1600/mcdonalds-dollar.jpg>.