August 3, 2012

Combo Meals Down By A Billion


For several years, speaking as a customer, I've been commenting that McDonald's
food has gotten too expensive relative to the avalible value offerings. I know
there have been changes to the Dollar Menu but then offers like the $1.00 drink
come along. This summer I've enjoyed my $1.00 ice tea and an item or two off the
Dollar Menu. My average check is always $3.00 or less.

Time magazine is reporting on data from the NPD Group that says sales of larger
combo meals have decreased 12% over the past five years.

NPD restaurant industry analyst Bonnie Riggs says, “The number-one reason
they said they stopped is that the dollar menu is a better deal.” Customers who
used to buy combo meals but don’t anymore discovered that “you can ‘bundle’
from the value menu and it is a cheaper price.”

The point? As long as I can build a meal for $3.00 or $4.00 there's no way I'm
paying  $6.00 or $7.00. The McDouble is an excellent sandwich and the McChicken
is a nice change of pace. I don't think I've had a Big Mac yet this year and I know
I haven't had a QPC - but on many occasions I've eaten two McDoubles.

Again, as a customer, I'll show up in many McDonald's restaurant's customer counts
but not at the bottom of the P&L.

Time reports HERE

2 comments:

Anonymous said...

The Dollar Menu should be downsized until it disappears

Anonymous said...

Value meals actually only account for 12% of my product mix. Yet when you look at the menuboard that's what is most prominent. We have to be realistic and change the way we are merchandising rather than to be diluted into taking up 60% of a menuboard featuring 14 EVMs that we just continue to sell less and less of.