If you are a regular at McDonald’s then you probably remember their famous Dollar Menu food selection. After they got rid of it three years ago, consumers were disappointed that they had to pay higher prices than before. But McDonald’s and their franchisees had no choice because they weren’t making much of a profit by selling foods for a dollar.
Now, it looks like another fast food chain is trying to create their own dollar menu for the long term. In December, Taco Bell introduced their Double Stacked Taco which only cost one dollar. Since many restaurants are facing sales slumps right now, Taco Bell wants to keep their dollar menu even though other restaurants are getting rid of theirs.
The reason why McDonald’s and other restaurants couldn’t keep their dollar menus is because of inflation and the rising costs of food in general. However, Taco Bell’s dollar menu only features items that are new and available for a limited time. The Double Decker Taco, for example, is a new item that is meant to attract people to the restaurant. Consumers love trying out new food items like this because they are curious. At the same time, the restaurant is hoping the consumers will purchase other items on the menu like drinks, desserts and foods from the regular menu. The idea is to get people to the restaurant, since that seems to be the hardest part.
Taco Bell doesn’t have a whole lot of items on their dollar menu so this technique kind of works for them. The area where they really profit is their $5 Craving Deals which bundles different foods together into a value meal. They have had a lot of success with their bundled meals and they likely will continue to do so in the coming years. Their dollar menu just acts as an incentive to get people there and it seems to work just fine.