Fast-food battles are once again good news for frugal customers, as Burger King slashes the price of chicken nuggets.
On Thursday, the burger chain announced that it was bringing back the deal that offers 10-piece chicken nuggets for only $US1.49. The chain previously debuted the nugget promotion in January, as well as last October.
For comparison, last week, 10 chicken nuggets in New York City cost almost four times as much, at $US5.89 — some of the most expensive fast-food nuggets around.
The deal comes at a time when fast-food chains are battling it out to establish themselves as the low-price leader in the industry.
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 $US2: 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 $US4” meal of a junior bacon cheeseburger, four chicken nuggets, small fries, and a drink for just $US4. 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 $US5 “Fill Up” meal that includes an entree, drink, several sides, and a dessert for $US5.
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.
Franchisees at chains like McDonald’s are known for their distaste for offerings that cost just $US1, which result in thin — if any — profit margins, especially as costs associated with ingredients and labour increase. By launching short-term promotions for a bundle of offerings that are slightly more expensive than $US1, 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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