Dollar Menu–>$5 Menu


Original Image by Matt McGee via Flickr
Original Image by Matt McGee via Flickr

By: Nikki Nies

 My generation grew up with the Dollar Menu.  You can’t talk about the Dollar Menu without mentioning McDonald’s, nor can you talk about McDonald’s without the mention of the Dollar Menu.   Although, the Dollar menu’s been an integral part of McDonald’s since 2002, there are some new prices changes around the corner.

Yes, there will still be some $1 menu items, which has generated 13% of sales, but in addition, there will be $2 sandwiches, as well as $5 meals (i.e. 20 piece nuggets), called price tiers.  The Dollar Menu will still be advertised, but more as a starting price than an across the board menu option.

CEO Don Thompson defends the changes as a way to give more options to customers as well as providing an evolved menu that stands the test of labor pressure and increasing commodities.

You can also thank climate change’s contribution to the change in prices. With rising temperatures since 2011, drought conditions have occurred more in OK and TX, leading to increased feed and more expensive cattle on the market. us-drought-conditions-moderate-severe-extreme-exceptional_chartbuilderAlso, beef prices have increased since 2008 .

While the McDouble was hailed as “the most bountiful food in human history” for supplying 390 calories at such a low cost, even it can’t last forever

With an adjustment for inflation, $1 in 2002 is equivalent to $1.30 present day.  One day, it’ll be impossible to sell $1 burgers because the cost and profit need will be too high.  Introducing non-$1 food items is a slow way to decrease the number of $1 meals offered.

Be ready for the additional price changes starting November 4th.  Is it wishful thinking that such price hikes will encourage others to lessen their frequency at drive thru’s and fast food?  Low income as well as those that can’t stay away from convenience foods, argue one can’t beat $1 meal.

Sources: http://finance.yahoo.com/news/mcdonald%E2%80%99s-new–dollar-menu–goes-up-to–5-144930006.html
http://qz.com/138384/climate-change-cost-you-the-mcdonalds-dollar-menu/

http://foodbeast.com/2013/09/04/mcdonalds-decides-upgraded-dollar-menu-can-cost-like-2-5/

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