Foodservice

McAngus Anguish

McDonald's cutting pricier burgers as it plays up Dollar Menu

OAK BROOK, Ill.-- McDonald's is cutting the Angus burger from its menu, reported the Associated Press. The Oak Brook, Ill.-based fast feeder had said earlier this year that it was evaluating whether to continue selling the Angus Third Pounders, which were introduced in 2009. The company also said at the time that it was it was cutting Chicken Selects and Fruit & Walnut Salad.

The changes come as McDonald's looks to keep up with shifting tastes, even as it underscores the affordability of its food. Notably, the Angus burgers were among the chain's priciest items.

At a time when the restaurant industry is barely growing, McDonald's has been playing up its Dollar Menu in ads to boost sales and steal customers away from competitors. Even if that hurts profit margins, executives say the strategy is critical to gaining market share and ensuring the long-term health of the company.

But Richard Adams, who consults for McDonald's franchisees, said that Dollar Menu has also made the Angus burger a less attractive option at around $4 to $5.

"When you can get four or five burgers off the Dollar Menu, nobody's going to buy the Angus burger," he told AP. "The Dollar Menu has become a real problem for these chains."

McDonald's Corp. said in statement Thursday that the Angus burgers "may still play a future role on our menu." It said it was removing the burgers and Angus snack wraps to "make room for new and exciting choices for our customers."

McDonald's did not immediately say whether the burgers and snack wraps remained available in some restaurants. But at a McDonald's in a Detroit suburb, the menu noted this week that they were no longer being sold. The burgers and snack wraps were still listed on the menu section of McDonald's website on Thursday.

In a bid to attract more customers in their 20s and 30s who are looking for fresher options, McDonald's recently added chicken McWraps to its core menu. According to an internal company memo obtained by Ad Age, the chain referred to the wraps as a "Subway buster" that would keep customers from heading to the sandwich chain.

Additionally, the chain now offers a version of its Egg McMuffins made with egg whites and a whole grain muffin. Customers are able to substitute egg whites into any breakfast sandwich.

McDonald's isn't the only one trying to refresh its menu. Burger King, Taco Bell and Wendy's have also been rolling out new items aimed at improving the image of their food. But traditional fast-food chains are trying to evolve in a tough economic climate, when they're also catering price-conscious customers.

Fast-food chains like McDonald's and Wendy's may seem like they would be resilient in this tough economy, but consumers have come to expect $1 burgers, and more brands have jumped on the bandwagon, with chains like Yum Brands Inc.'s Taco Bell and Arby's Restaurant Group testing out new value menus, said a Wall Street Journal report.

As a result, McDonald's has tried to make its U.S. Dollar Menu more appealing with additional items and aggressive marketing, while also creating value menus in other countries where it didn't have them.

Bowing to the pressure, Wendy's came out with a new value menu earlier this year, called "Right Price, Right Size," that includes an array of menu items ranging from about $1 to $2.

Going forward, Wendy's is going to take a "sharper-edge approach" in hyping up its 99-cent items, like the Jr. Cheeseburger and Crispy Chicken Sandwich.

"We are refining our promotional calendar for the rest of this year…with modestly more emphasis on price-value," Wendy's CEO Emil Brolick told the Journal.

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