McDonald's Might Be Preparing Customers For The End Of $US1 Burgers

McDonald’s is rolling out a new “Dollar Menu And More” next month.

The tiered menu will include $US1 favourites like the McChicken alongside more expensive, shareable items like the a $US5 20-piece McNugget.

McDonald’s CEO Donald Thompson said the new menu “expands on rather than dismisses the Dollar Menu.”

But Venessa Wong at Bloomberg Businessweek has an interesting theory for why McDonald’s is putting more expensive items on the menu.

“The new menu will help customers become accustomed to seeing the higher prices at low-end of the menu,” Wong writes.

If this is true, McDonald’s could be easing customers in to more expensive price points.

Food-price inflation has made items on the Dollar Menu less profitable, with the $US1 burger especially problematic after last year’s droughts, reports Leslie Patton at Bloomberg News.

McDonald’s needs to start charging $US1.50 or $US2 for Dollar Menu items, Peter Saleh, an analyst at Telsey Advisory Group, told Bloomberg.

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