McDonald’s Brings Dollar Menu Back, With Prices from $1 to $3

As it attempts to up the value, the Dollar Menu has been brought back by McDonald’s, but will have certain options that cost more than just a buck.

The burger chain giant said on Monday that it was rolling out a new lineup of foods for low cost nationwide on January 4. The new lineup is the $1-$2-$3 Dollar Menu that will include a broad range of items that cover three price points.

Included in the new menu for $1 will be the Sausage Burrito, Cheeseburger, McChicken and any soft drink size. Selections for $2 will include Sausage McGriddles, Bacon McDouble, 2-piece Crispy Tenders, and some small beverages at McCafe.

The $3 options include Sausage McMuffin with Egg, Triple Cheeseburger, Classic Chicken and the Happy Meal, which is appearing for the first time in one of McDonald’s national discount menus.

In the fast food industry prices are hugely important and with increased competition for customers’ business, menus of this kind are becoming popular across the industry.

McDonald’s said it brought back the menu to recapture diners who are value-oriented.

The company, based in Oak Brook, Illinois lost a possible 500 million transactions over the past four years due to value-oriented customers going elsewhere to eat.

The Dollar Menu was previously offered at McDonald’s but stopped during 2012 because of limitations of what it sold for only $1.

At the same time, Burger King has Value Menu while Wendy’s has the Right Price, Right Size Menu.

The philosophy at McDonald’s is that it is not necessary to win on value, but they cannot lose on value either. The burger chain needs to be playing the value game so it can drive traffic, said an industry analyst on Wall Street.

The new menu that includes options between $1 and $3 will help to give diners more options while still driving sales up.

Selling $1 food is problematic when speaking about profitability, so it needs to be valued and structured in the same way. The analyst added that money can be made while at the same time convincing customers they are receiving good value.

McDonald’s is also increasing upscale offerings. Last May the Signature Crafted Recipes lineup of sandwiches debuted for between $4.99 and $5.19 and this past September the McCafe brand was revamped adding more coffee drinks.

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