For Fast Food Chains, Are Value Menus Worth It?

At the beginning of the year, McDonald’s launched a revamped Dollar Menu after a desolate, disappointing two-year hiatus. $1 McChickens were back, along with $2 Sausage McGriddles and $3 Triple Cheeseburgers. The new menu was structured as a pick-your-own-adventure of $1, $2, or $3 options, instead of the previous setup of a handful of items all priced at around $1. The launch made a lot of noise, and the competition saw an opportunity to boost their own value menus alongside McDonald’s marketing blitz. Wendy’s expanded its 4 for $4 value menu to include eight options, and Taco Bell launched a limited release of $1 Nacho Fries. Jack in the Box, a California-based fast food chain, even launched a value menu for the first time. Four months into the renewed rush to save a buck, are restaurants' investments in value menus paying off? Initial Results In McDonald's case, the structure of the $1, $2, $3 menu made it an easy sell not just as a separate value menu, but as a collection of low-cost items