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McDonald's franchisees are rebeling against dollar menu

A McDonald's golden arches sign against a blue sky.It's not that all the franchisees are against the dollar menu, but they don't want to have to spend money advertising it, either. That's understandable: they want customers to purchase the more expensive items so that they can make more money.

The franchisees argue that they're paying a higher minimum wage and food costs are skyrocketing. They're worried that more and more people are "trading down" for value menu items, and at the same time they're not getting enough new customers to make up the difference.

A spokesperson for the company said that there will always be a little bit of push and pull, but that problems will always be resolved because the company only makes money if the franchises do.

Er, good luck.

[Via Advertising Age]

How do you feel about McDonald's Dollar Menu?
It's my go-to stop for a quick, fast lunch.5513 (63.5%)
It's a guilty pleasure, but ever since I saw Super Size Me, I try to stay away.1623 (18.7%)
McDonald's still has a Dollar Menu?1545 (17.8%)

Filed Under: Business, Chefs & Restaurants, Fast Food, Restaurants
Tags: advertising, AdvertisingAge, franchises, McDonalds, valuemenu

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Reader comments (Page 3 of 3)

Amanda

6-06-2008 @1:06PM Amanda said... We only get fast food three or four times a year because the nearest fast-food places are 12 miles away from our town, and when we do, we stick to the Dollar Menu because it's within our budget, and also because the portion sizes are right. And I happen to LIKE that two-pies-for-a-dollar deal because then I get to have one and give the other to my husband! If McD's gets rid of the Dollar Menu, we're taking our business elsewhere!
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Bill

6-06-2008 @1:23PM Bill said... McDonalds Bacon,Egg and Cheese on a bagle with a coffee- &5 and change. Fresh made Eggs made how I like 'em, with 5 strips of Bacon cooked just right, a nice fresh Buttered Bagle, Fresh coffee and a complimentary newspaper to read at my local Bagel Place- $3.23. Sitting in peace, reading the paper and enjoying breakfast UNDER 5 bucks without having little brats running and screaming while their Soccer Moms shoot the bull and ignore them, PRICELESS !!!!
Reply

tamara

6-06-2008 @1:24PM tamara said... i never get a big mac or anything else that has beef
in it so it makes no difference to me because i don't eat their often anyway. but i do like the dollar item. individual portions in those packages are expensive to begin with. it cost more for the manufacture to do that in the first place.
they should just use them only if only for carry out only. Yes, the price of gas has gone up and most places have no choices but to raise the price.
why doesn't the corporation ask less of the franchise
holders for less money not more money. everytime
minium wage goes up then all business have to make adjustments that causes the prices to go up with.
try running a business where employess need to make a business run sucessful. unless you have run a business the person has a right to thier voice thier concern about issues. this is free enterprise
i am glad that they still do have the dollar menu
because i eat small portion to begin with do to my food allergies. so for me to find any food to eat
i am doing good. all the food that is in the store I am also allergic to. cook what you are allergic to
try eating that. most of the time I am hungry because
i can't eat food only small bites.
Reply

babszee27

6-06-2008 @3:27PM babszee27 said... since i dont drink soda, its not worth it for me to get the full meals...i get a dbl cheeseburger and small fry.
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fatso

6-06-2008 @1:47PM fatso said... All that I eat are fast food deserts, mainly MickeyD pies. There are many days that I eat 9 to 12 pies with milk a day over a three meal session. The dollar menu doesn't mean much to me as they never include pies. KFC has good deserts too.
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tami

6-06-2008 @1:54PM tami said... When they stop pre-making burgers an hour in advance and storing them in bins..then I may think about ordering more expensive items. Nothing irks me more than when I pay over 6 or 7 bucks for a "value" meal and the burger has been sitting a while and is rubbery & tastes horrible and the fry oil hasn't been changed. McDonalds is terrible for this as well as Burger King. You want us to spend more money ? Give us a good product...not inferior dog food people !!!!
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Alan

6-06-2008 @2:19PM Alan said... Accually the article is not quite accurate. McDonald's states that they only make money if the franchisee's make money. This is inaccurate. McDonald's Corporation is the Franchisor and they charge the franchisee a royalty on gross sales, not profits. There aim is to drive sales upward which increases their royality income. Franchisee's are fighting the dollar menu because there is no profit in it. Should be fun to watch.
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Shellie

6-06-2008 @2:18PM Shellie said... I live in Germany, and it is quite the norm for BK or McD's to charge for ketchup. The first packet is free with your fries, but if you want extra, it's 15-30 cents per packet.

Free refills on drinks are also seldomly found.
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Rob

6-06-2008 @3:09PM Rob said... Well, Mcdonalds needs to figure out that the majority of their customers are those who are struggling themselves. It is a way to have an alternative to 100% home made, without breaking the bank. Families with small kids, single parents, joe lunchbucket all enjoy a meal out that doesn't require a second on their underwater home that they may be evicted from. maybe it would be cheaper for McD if these people didn't patronize the establishment at all. No employees to have to deal with, no food to buy, no paper products to buy, no bathrooms to get cleaned every two hours, wouldn't have to deal with tardy employees, or those who don't show up for their shifts, how would that be? You know, I tried my free chicken sandwich the other day, and I had tried my free Breakfast Burrito about a month ago. The chicken sandwich just doesn't compare to Chik-fil-A, and the Breakfast Burrito wasn't good at all, but they keep pushing these items to get us all off the $1 Dbl Cheeseburger, and the $1 sausage buscuit. It isn't going to happen. If you want your customers to upgrade, you have to offer them something worth upgrading to. Keep trying McDonalds, but the value meals are what keep many coming through the door. Think about it.
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BobS

6-06-2008 @6:01PM BobS said... you know I rarely eat fast food, I cook for my son and I and friends. my friends and I are fat and my son who eats fast food almost everyday is skinny as a rail. to all those folks who want to sue Mcd's for getting fat, my son wants to sue because he isn't getting fat go figure I guess there really isn't an answer, but, when I do go to Mcd's I like the dollar menu without it I think they may hurt because of the economy
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dallas

6-07-2008 @4:14PM dallas said... if you think paying extra for ketsup is bad,when you order at the counter, they ask you if its to eat in or go. if you say in they charge you more. its called a eat in tax. it go's from .19 to .25 cents so far. they don't tell you there is a tax on eating in side. always tell them its to go, then sit down inside to eat. give them a dose of thier own medicine. look at your reciept next time.
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me

7-06-2008 @4:13AM me said... "
When they start charging for ketchup and napkins, THEN we'll be in trouble. Til then please remember that the guy who runs the franchise in your area is trying to make a buck while paying the same gas prices, food costs and electricity bills as you. Don't moan too much when he is forced to raise his prices to cover his costs cause if you were him, you'd have to do the same or lose the store."

I hear where you're coming from, but let's not be ridiculous. Owning a McDonalds is not like working for median income much less minimum wage... Following the same dollar menu that other stores have implemented is not going to put any franchise owner in jeopardy of not being able to afford gas or pay bills. The money they clear will be pretty much the same, and all it will do is cut down profit margins a litte... Not enough to cause any amount of trouble though. If that were the case, the dollar maneu would not exist.
Reply

me

7-06-2008 @4:14AM me said... "
When they start charging for ketchup and napkins, THEN we'll be in trouble. Til then please remember that the guy who runs the franchise in your area is trying to make a buck while paying the same gas prices, food costs and electricity bills as you. Don't moan too much when he is forced to raise his prices to cover his costs cause if you were him, you'd have to do the same or lose the store."

I hear where you're coming from, but let's not be ridiculous. Owning a McDonalds is not like working for median income much less minimum wage... Following the same dollar menu that other stores have implemented is not going to put any franchise owner in jeopardy of not being able to afford gas or pay bills. The money they clear will be pretty much the same, and all it will do is cut down profit margins a litte... Not enough to cause any amount of trouble though. If that were the case, the dollar maneu would not exist.
Reply

Alison

8-04-2008 @5:59PM Alison said... This makes me sick...what you may ask...stupid pety customers who complain because prices are going up...but I bet you don't complain when you get a raise. I wonder if people who work at McDonald's deserve raises, since people in fast food deal with people who think that just because they work there that they "need a calculator to make change for a dollar." I'm on a limited income just like the majority of Americans, and you know? I work at McDonald's and I get treated like crap by customers, and sometimes I wonder if it's really worth the $6 every hour. But you know it pays the bills, you know since i'm paying my way through college. I think that if you don't understand that the company still has to make a profit dealing with rising prices I think you may want to come back to the real world. Just like McDonald's, you as a customer have a choice. If your going to complain about the service you get, I would put money on the fact that they don't care to lose your business. Too many " people" have cussed me and made me cry to care about your complaints about McDonald's. Try working there, then complain about it. McDonald's is a wonderful company to work for. They treat their employees well, which is good since most customers don't. Don't get me wrong, their are great customers, ones that will thank you and smile and greet you, ones that actually treat you like a person. Maybe that's what you should think about next time you go to McDonald's or any fast food restuarant, rather than fuss about the prices. It's not our fault. It's not the store's fault. THank you to the people who have made my working experience wonderful. I'm sorry to everyone else, try to find something else that makes you happy.
Reply

54 Comments / 3 Pages

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