Burger King is bringing back a reliable weapon in the fast-food price wars
On Thursday, the burger chain announced that it was bringing back the deal that offers 10-piece chicken nuggets for only $1.49. The chain previously debuted the nugget promotion in January, as well as last October. Hollis Johnson
Earlier this week, news broke that McDonald's will offer a "McPick 2" deal that allows customers to pick two of the following items for $2: a McDouble, a McChicken, small fries, and mozzarella sticks. The deal, which will roll out starting January 4, will help kick off a broader value platform that McDonald's is planning to roll out next year.
In October, Wendy's started offering a "4 for $4" meal of a junior bacon cheeseburger, four chicken nuggets, small fries, and a drink for just $4. The promotion helped drive solid sales at the chain, which saw same store sales rise 3.1% in the third quarter.Outside of the burger industry, KFC is offering a $5 "Fill Up" meal that includes an entree, drink, several sides, and a dessert for $5. While these chains want to become customers' go-to spot for offering the best value and lowest prices, the fast-food industry is increasingly turning away from a "Dollar Menu" mentality.
neonbubble on flickr
neonbubble on flickr
Franchisees at chains like McDonald's are known for their distaste for offerings that cost just $1, which result in thin - if any - profit margins, especially as costs associated with ingredients and labor increase. By launching short-term promotions for a bundle of offerings that are slightly more expensive than $1, companies are able to increase traffic and entice customers into buying an entire meal.One in four of McDonald's customers are primarily focused on value, according to company executives.
With low-prices as the No. 1 priority, customers can easily be swayed by promotions - something that makes them a prime target for fast-food chains hoping to boost sales. As chains fight to win over these customers, consumers win, with lower-priced nuggets, burgers, and even mozzarella sticks.
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