McDonald's Rolls Out $4 Burger: Why?

The Washington Post ^ | April 22, 2009 | Frank Ahrens

[re_tail20]

With the nation in its deepest recession in decades, why would McDonald's pick this moment to launch a $4 burger?

You may have noticed the signs that just went up on some McDonald's drive-through menus: The new Angus burger. It weighs one-third of a pound. It costs four bucks.

In its first-quarter earnings conference call this morning, the company did not say it is rolling out the Angus nationwide, but it did not say it isn't. The company was cagey.

Still, they're starting to pop up -- The Ticker saw the Angus on a menu last Saturday, at a McDonald's on the road from Washington to Morgantown, W.Va.

An upscale product in this climate? What could the company be thinking?

[kellynla]

Anybody who EVER worked at McDee’s would NEVER eat their food! And for $4, you can buy a POUND of ground sirloin and cook TWO half-pounders that would taste ten times better than anything you would get at McDee’s.

[Titus Quinctius Cincinnatus]

Why not? This is the country where a large percentage of the population is individually in debt for over $10,000 a piece. A $4 burger ought to be right up their alley.

[MAD-AS-HELL]

because even in a recession, some people will find splurging for a $4 burger that probably costs McD 50 cents to make is worth doing instead of going out and spending 20 bucks somewhere else.

Btw, do you want that supersized?

For me, it’s the $1.09 McDouble.

[TSgt]

I’d rather spend another $1.00 and get a foot-long Subway sandwich which is much more healthy.

[justsaynomore]

That is exactly what is happening - we own a “higher end” fast food place (yes there is such a thing LOL), the customers we are getting now are the folks that used to eat lunch at Applebees and Chili’s. So while our overall customer count is down, the customers we have now are spending more.

We’re in a business area, the same chain in residential areas not doing so well.

[E. Pluribus Unum]

To draw customers who might otherwise go to Fuddruckers or Culvers.

[muawiyah]

Comparing the In and Out Double Double to a Five Guys is rather outre ~ few can do that. I have. Difference is In and Out has a better t-shirt for sale AND, best of all, no peanut shells being ground to powder to float in the air around the dining area.

Alas, we have no In and Out around here but I have a dozen T-shirts purchased on-line for $2.00 each.

[Rummyfan]

...In and Out has a better t-shirt for sale AND, best of all, no peanut shells being ground to powder to float in the air around the dining area.

Yes the peanuts shells bother me too...... But it's a great bacon cheeseburger.

[vox_freedom]

An upscale product in this climate? What could the company be thinking?

Maybe to make money? McDonalds seems to be doing pretty well with their business, and I'm sure has tested the concept of a quality $4 burger. That's what they are thinking.

I might try it, along with their new caramel flavored milkshake.

[GeronL]

How much is a burger at the Posts favorite bars and fancy restaurants? How much do they cost at a hotel?

[deport]

What could the company be thinking?

---

Not standing still, innovation, providing diversity, etc. Hell not everyone is on the dole, out of a job and living under a roadway.........

[EyeGuy]

“Double cheeseburger for a buck. Best bargain out there.

It has to be their loss leader. There is no profit on that.”

####

You are right about the bargain.

Regarding the lack of profitably, however, food becomes remarkably cheap when purchased in bulk.

About 10 years I had an interest in a pizza buffet restaurant. W we were able to assemble an extra large, ingredient-laden supreme pizza for significantly south of $1.00, our cost.

[shibumi]

[codercpc]

Anybody who EVER worked at McDee’s would NEVER eat their food!

1984-1986 Window Person of the Year here! I agreed with your statement 100%, until last year. McDonalds was my very last choice, but then they came out with their new coffee, and I just had to give it a try. Now I am hooked! Especially their caramel latte.

Since then, I have picked up a few sandwiches here, and there, and have discovered they are not that bad. I love the fish sandwich.

If you are a coffee lover, give McDonalds another try, you may surprise yourself.

[null and void]

One of the few reasons I am reluctant to leave CA...

[CindyDawg]

We were talking about cooking our own the other day on a different thread. Check out Paula Deen’s Big Mike burger over on the Food Net Work. :’)

[Attention Surplus Disorder]

“Gee, I wonder how many successful businesses the author has run?”

Nailed it. (I’ve run businesses but not restaurants and have no plans or desires to)

I can give half a dozen reasons why, most appear elsewhere on this thread.

But the most obvious is, uhhhh, you think McD’s doesn’t know what they are doing?

McD’s has KILLED on their salads. And their coffee thing, I’ve heard plenty of folks claim it superior to Starbucks for straight-ahead regular coffee. (I myself don’t like s-bucks reg coffee and don’t go to McD’s often enough to have a valid opinion)

[Tamar1973]

Carl’s Jr., which is the same company w/ a different name, still sells them. I just had a low-carb $6 burger the other day.

[50sDad]

Because the people who USED to be buying steaks haven’t been hit bad enough yet to buy a $.99 burger. DUH!