McDonald’s mulls raising prices nationwide in Dollar Menu revamp
The Dollar Menu at McDonald’s may soon see higher prices and new offerings as the fast food company mulls a nationwide launch of a “Dollar Menu and More” concept this year, a spokeswoman confirmed Wednesday.
McDonald’s Corp., which has recently struggled to compete with other fast food giants, said it is considering changing its Dollar Menu, introduced over 10 years ago, to evolve with shifting consumer preferences and the needs of the business.
Currently, it is testing the Dollar Menu and More concept in five markets that include Fresno; Columbia, S.C.; and Memphis, Tenn.
The new menu has new single burgers, more chicken options and double patty and deluxe versions of some of the current $1 items.
In addition, the menu has not only $1 items, but items that cost between $2 and $5 as well. The $5 items are dubbed “shareable,” and they include a 20-piece Chicken McNuggets, a spokeswoman said.
The announcement that the Dollar Menu and More could expand nationally comes a month after McDonald’s reported that second-quarter earnings fell 2 cents a share short of expectations.
Don Thompson, the company’s chief executive, also warned of further challenges ahead as fast food companies adjust to increasing competition, industrywide discounting measures and higher labor and commodity costs.
McDonald’s is not the first fast food restaurant chain to tweak its value menu items. Wendy’s recently revamped its 99-cent menu and now calls it the “Right Price Right Size” menu with items costing up to $2.
Retailers, too, have raised prices on some value items. Trader Joe’s, for instance, raised the price of its Charles Shaw label wine, known as “Two-Buck Chuck,” by 50 cents earlier this year. It now retails for $2.49 in California stores instead of $1.99.
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