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Tough Economy Forces McDonald's to Reevaluate Dollar Menu

Tough Economy Forces McDonald's to Reevaluate Dollar Menu


In a response to soaring food prices, McDonald's announced yesterday that it will be restructuring its dollar menu. This means swapping out the dollar menu's most popular items and replacing them with less-costly offerings. The company is testing changes to its $1 bestseller, the double cheeseburger. Chief Operating Officer Ralph Alvarez said:

The way the dollar menu looks today won't be the way it looks next year. . . . What fits on the menu will look different than now because it has to be profitable.

To offset the rising cost in cheese, which is expected to rise 21 percent this year in the US, many stores are using only one slice of cheese instead of two and touting the new offering as a "double hamburger with cheese." Other franchises have increased the cost of the double cheeseburger to $1.19.

If removed from the dollar menu, the double cheeseburger will be replaced by another burger. What do you think about the development? Will you be upset if the double cheeseburger is no longer a part of the dollar menu?

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