OAK BROOK, Ill. –
McDonald’s is rolling out a new line of quarter pounders to replace its Angus
Third Pounders, which it has yanked from the menu, Nation’s Restaurant News
reports. The premium burgers will come in Bacon and Cheese, Deluxe and Habanero
Ranch.
The burger chain tested
the new line in Sacramento, California, and Toledo, Ohio, for nine months. The
new quarter pound versions will sport a bun with more whole grains, but the
original Quarter Pounder will stay nestled inside the regular bun.
The Angus Third Pounders
failed to sell more than 24 or so units a day, which frustrated franchisees.
Same-store sales in U.S. locations dropped 1.2% during the first quarter, which
also saw restaurant-level margins falling 1.4% to 16.2% of sales.
“The franchisees have
known for months, and everyone’s eager to get it done,” said Richard Adams, a
former owner-operator of a McDonald’s. “It’s a baby step. Any time you can get
a product out of the restaurant that’s selling only a few per day, that means
less inventory and spoilage, so that’s good. This new Quarter Pounder has no
new investment in new equipment or remodeling, which is also good. But a lot of
it will be determined by the selling price."
What no one knows yet is
if McDonald’s will offer the new line at a discount. Aggressive pricing might
encourage sampling, but sustaining lower price points will be difficult over
the long run. “I think the news should be viewed as a positive for the brand
and the franchisees,” said Darren Tristano, Technomic executive vice president.
“They’ll have opportunities to put the marketing focus on one of the best
burgers McDonald’s has. … It’s still a good burger and a signature item, so why
compete with it?”
In other fast-food news,
Taco Bell is piloting a “waffle taco” in Southern California. The company is
mum about the new breakfast item, which gained a boost in social media. Fans
say it contains sausage and scrambled eggs in a taco-like waffle. Taco Bell has
been testing breakfast over the past year in around 800 units.