McDonald’s Dollar Menu Rollouts Nationally

The company is banking on the new value platform to spur sales after a rather tepid showing so far this year.

October 23, 2013

OAK BROOK, Ill. – With a challenging fourth quarter ahead, McDonald’s is unveiling a revamped dollar menu in the hopes of turning around its slow sales performance, Nation’s Restaurant News reports.

All of the fast-food giant’s more than 14,000 U.S. locations will switch to the new Dollar Menu & More selections starting November 4. The company will support the rollout with national advertising beginning Veteran’s Day.

“This is one of the ways that we can maintain the Dollar Menu in the face of rising commodity and labor pressures, but also get a little more margin basis on some of the products at $2 and some of the products at higher price points,” said CEO Don Thompson. “The franchisees support this.”

The value menu has more items than the old Dollar Menu, with prices ranging from $1 for single items, $2 for sandwiches and $5 for sharable items. During the third quarter, despite the limited-time offer of Mighty Wings, U.S. same-store sales jumped a mere 0.7% and traffic slumped overall.

Thompson pointed to the revised Dollar Menu & More as a way to keep a base of customers coming back. “While it only represents 13 percent to 15 percent of sales, you’ve got about a third of the customers that will leverage that Dollar Menu in some form or fashion. It is a strong part of the base,” he said.

The company still plans to offer new items and limited-time products. “Those limited-time offers … help not only with margin, but they help with the excitement for the customer,” said Thompson. “We need to be able to balance both of those two into the barbell, and we have to fill in what’s in between. That’s the reason for Dollar Menu & More.”

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