Burger King is going after McDonald’s by offering cheaper prices.
Beginning today, the fast food chain will start selling 10-piece nuggets for $US1.49, or about 15 cents each, the company said in a news release.
The new promotion is a bid to steal market share from competitors, particularly McDonald’s, writes Craig Giammona at Bloomberg News.
“They’re competing aggressively with McDonald’s, and they’re doing it as a very low price to draw people in,” Darren Tristano, executive vice president at research firm Technomic, told Bloomberg. “The goal is to steal share from the other burger brands around them.”
The company also recently offered a two-for-$US5 sandwich deal.
Burger King’s promotional strategy has helped the company boost sales during an industry-wide slump.
To help offset the discounts, Burger King raised the prices of some items.
While McDonald’s is offering a promotion on free coffee, the higher price of burgers is a turnoff for consumers.
A Double Quarter Pounder with cheese, fries, and a drink now totals about $US7.50 at some Chicago locations, Bloomberg reports.
Rather than appealing to value-conscious customers, McDonald’s is trying to emulate “better burger” chains like Shake Shack and Five Guys.
The chain is testing technology that lets customers building their own burgers by choosing a bun, toppings, cheese, and more from a touchscreen.
Customers then waited at their tables until their orders were ready.
McDonald’s is planning to roll out the new system in 2,000 restaurants by the end of this year, according to The Economist.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.