This was an article pointing out the drop in McDonald's sales last October. They've since rebounded somewhat.
I thought this was interesting:
They obviously felt the change away from the "Dollar Menu" was to blame for part of the sales drop. This explains the huge upswing in McDonald's "Dollar Menu" TV commercials I keep seeing.
In the U.S., for example, the company is refocusing on the Dollar Menu, which was introduced about a decade ago. The move comes after an attempt to shift customers to an "Extra Value Menu," which charges slightly higher prices, fell flat.
And in this article "Wendy’s Doubles Down on Dollar Menu", with their "Right Price, Right Size" menu, it seems as if Wendy's is going down the route McDonald's abandoned...pricing "value" menu items more than a dollar. Will this work for Wendy's when it didn't work for McDonald's?
How much influence does a "Dollar Menu" have in driving customers to a fast food restaurant? Is it a determining factor or just one factor of many? What is it about breaking the dollar barrier that turns customers away, or in Wendy's case, hopes to keep drawing them in?