Fast Food Chains Introduce a Slew of Value Items to Try to Win Back Customers

[bjl584]

Value meals: McDonald's, Wendy's, Burger King vie for low-income diners (cnbc.com)

[disneysteve]

I don't really get the "race to the bottom" mentality of these companies. Why cut your profits to appeal to low income folks? Dining out, even at McDonald's, is a luxury. If money is tight, the last thing you need to be doing is going out to eat. Dave Ramsey tells folks they shouldn't see the inside of a restaurant unless they're working there.

I think over the years the fast food chains like McDonald's and Burger King and Wendys have been working to improve their food offerings and modernize their locations to better compete with the fast casual chains like Panera that have captured a large part of the market. They can't simultaneously do that and target the low income folks who want the $1 menu back.

If these places want to survive and thrive, they need to make themselves more attractive to middle class folks, not lower class customers. Personally we rarely go to a fast food chain because for just a couple of dollars more we can get a much better meal in a nicer setting. That's what the fast food places need to figure out.

[Fishindude77]

You're talking logic and that doesn't apply to a great deal of fast food customers.
Low income folks are a huge percentage of their clientele. The fact that they rarely fix a meal at home is a big part of why they are poor.

Most of the rest of us only eat that cr#p when there aren't other options, such as while traveling, etc.

Sure, they offer a few salads to folks like yourself that might want a healthy choice, but they probably sell 50 or 100 cheese burgers for every one salad.

[james.hendrickson]

I totally just saw Dairy Queen was offering a meal deal for $7 - I think the fast food industry is feeling the inflation pinch.

[ua_guy]

What if the answer to the "inflation pinch" is to make oneself more valuable, instead of hoping everyone else will lower their prices? I also don't understand the race to the bottom, but clearly they know they have a captive audience.

[disneysteve]

Another answer is to return to your roots. Burgers used to be smaller. Fries used to be smaller. Sodas used to be smaller. You used to be able to get a meal that was 400-500 calories instead of 1,000 calories or more. There are restaurants that we just don’t go to because the servings are way too large.

[Jluke]

Stopped at McD’s last Monday. Not for me.

hamburger
small fries
small milkshake ($4.50)

the hamburger looked tiny.

we must have got extra fries because there were a lot of them.

milkshake was small, especially for that price.

it’s a must to use the app to order because they have deals there.

I saved 2.00 off the order but it was still $9

[Fishindude77]

I'm not too sure the hamburger at MacDonalds is even meat?
Last time I tried that stuff, I took a few bites and tossed it out the truck window.

[ua_guy]

Another answer is to return to your roots. Burgers used to be smaller. Fries used to be smaller. Sodas used to be smaller. You used to be able to get a meal that was 400-500 calories instead of 1,000 calories or more. There are restaurants that we just don’t go to because the servings are way too large.

I find it interesting that there's a recent media buzz accusing Chipotle of using smaller serving spoons and reducing portions. Chipotle is one of the biggest offenders of "over serving" portion sizes without asking. I usually have to tell them I only want half a scoop of rice and beans, else the burrito is basketball-sized and explodes upon unwrapping. Same with sour cream...they'll glob half a home-sized carton on there unless you say "Just a little tiny bit, please, like a table spoon".

That said, Chipotle seems to be one of the better values for portions and selection of healthy/quality ingredients in the fast-casual space.

[disneysteve]

That said, Chipotle seems to be one of the better values for portions and selection of healthy/quality ingredients in the fast-casual space.

And that's exactly why fast food places are suffering. For just a tiny bit more money (or even the same money), you can get a far better meal at a fast casual place. A lot of people who previously turned to McDonald's or Burger King or Wendy's now go to Chipotle or Panera or Naf Naf or Cava or any of those sorts of places that are a step up in quality and service from fast food. The fast casual places also have great rewards programs where you earn discounts and freebies. Some of the fast food places do that now too, but I don't think that's a big enough draw to get people back who have moved on to better food options.

[LivingAlmostLarge]

And that's exactly why fast food places are suffering. For just a tiny bit more money (or even the same money), you can get a far better meal at a fast casual place. A lot of people who previously turned to McDonald's or Burger King or Wendy's now go to Chipotle or Panera or Naf Naf or Cava or any of those sorts of places that are a step up in quality and service from fast food. The fast casual places also have great rewards programs where you earn discounts and freebies. Some of the fast food places do that now too, but I don't think that's a big enough draw to get people back who have moved on to better food options.

I will agree with this. For a bit more you get a much nicer meal. But also the bottom line is it's getting so expensive to eat out that you don't do it.