Burger King, McDonald's and Wendy's scramble to win over deal seekers
Burger King kicked up the fast food value menu 'numbers game' Monday with a new '5 for $4' deal.聽That takes on Wendy鈥檚 鈥4 for $4鈥 meal, McDonald鈥檚 just-begun 'McPick 2 for $2'聽
Burger King kicked up the fast food value menu 'numbers game' Monday with a new '5 for $4' deal.聽That takes on Wendy鈥檚 鈥4 for $4鈥 meal, McDonald鈥檚 just-begun 'McPick 2 for $2'聽
Burger King kicks up the quick-service burger category鈥檚 value-menu 鈥渘umbers game鈥 another notch Monday with a new 鈥5 for $4鈥 deal. That takes on Wendy鈥檚 鈥4 for $4鈥 meal, McDonald鈥檚 just-begun 鈥淢cPick 2 for $2鈥 and other burger chains鈥 promotions targeting consumers who can鈥檛 afford some of the new聽premium-price聽sandwiches being offered, such as Carl鈥檚 Jr./Hardee鈥檚 new $5.59 Steakhouse Thickburger.
Burger King has been touting a 鈥2 for $5鈥 bundle with core entrees such as the recently launched Flame Grilled Chicken Burger LTO and core items such as the Big King burger, Original Chicken Sandwich and Big Fish. But this new deal lowers the price and raises the stakes, offering diners two of these five items for $4: Bacon Cheeseburger, small French Fries, small drink, 4-piece Chicken Nuggets or a warm chocolate chip cookie.
Burger King鈥檚 new deal counters the 鈥4 for $4鈥 meal that Wendy鈥檚 has offered since October 2015. That bundle includes no choices for diners; it鈥檚 simply a discounted meal that includes a Jr. Bacon Cheeseburger, chicken nuggets, small fries and a small drink. During his Nov. 4, 2015,聽 earnings call with analysts, Wendy鈥檚 CEO Emil Brolick said the company was 鈥渧ery happy with the early results鈥 from 4 for $4.
McDonald鈥檚 new 鈥淢cPick鈥 value menu, which officially launched Monday, offers diners their choice of two items from among the McDouble, McChicken, small fries and mozzarella sticks for $2. Some markets are also offering 鈥2 for $5鈥 menu packages.
Checkers/Rally鈥檚 is also in the game, offering a new 鈥$2 Meal Deal.鈥 Diners have the choice of items from a list that includes the Checkerburger with Cheese, Spicy Chicken Sandwich, Crispy Fish Sandwich, Bacon Cheddar Crisp, chili dog and small seasoned fries.
Even Carl鈥檚 Jr./Hardee鈥檚 are in, despite those chains鈥 traditional hostility to discounting. But their Sausage & Egg Biscuit is being offered at a 鈥2 for $3.50鈥 price. Jack in the Box hasn鈥檛 yet joined the value-bundle parade. Instead, it has revived its $4.99 Chipotle Chicken Club聽combo deal.
Why the rush to support the low end of the menu-price spectrum? Partly it鈥檚 a balance to 2015鈥檚 flood of higher priced burgers and entrees, which were an attempt to shore up local store profit margins. Now it鈥檚 time to focus on the other end of the price dynamic for a while.
But demographics as well as economics drive the trend. During his Aug. 5, 2015, earnings call, Wendy鈥檚 Brolick hinted at the 鈥4 for $4鈥 meal bundle that was coming. Consumers are moving away from traditional value menus, he聽said. That鈥檚 because 鈥渢here are a lot of consumers out there who are simply heavy users of quick-serve restaurants, who don鈥檛 have a lot of disposable income, and because they鈥檙e using restaurants frequently, price/value is something that is important to them. And we see that as something that will be important for a long time to come, and we just have to evolve our offering to be more relevant to the specific needs that they have.鈥
This article first appeared in Burger Business.