McDonald’s announced that it will drop its Big N’ Tasty burger from its Dollar menu, saying that sales weren’t strong enough to compensate for low margins. It’ll be replaced by a Double Cheeseburger, which the company says is smaller and cheaper to make, and therefore more profitable.
Analysts say that the move reflects a cutback in the fast food price war, in which McDonald’s and its brethren were slashing prices to get customers into the store.
Analysts say that the move reflects a cutback in the fast food price war, in which McDonald’s and its brethren were slashing prices to get customers into the store.
- KC's View:
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Pardon us, but we suspect that the flagging sales of the Big N’ Tasty actually are an indication that it was anything but tasty.
If a product really is that good, you don’t have to charge next to nothing to get people to try it and then keep buying it. If it’s that good, people will pay a premium for it.
While McDonald’s said that its restaurants are free to immediately begin selling the Big N’ Tasty for a higher price, we suspect that this won’t suddenly unleash a torrent of cash flowing into the company’s coffers.
If people won’t buy it for a buck, what makes the company think they’ll buy it for three? Or for whatever it chooses to charge?
Replacing it with a product that, by its very definition, serves McDonald’s needs and not the consumer’s…well, this all shows exactly how desperate and misguided Mickey D’s is these days.
