Many customers may be dissatisfied because their favorite menu items have been altered at both fast food restaurants.
Today’s fast food restaurants are up against a formidable foe. Food, packaging, labor, electricity, and just about everything else have all increased in price at a time when consumers are increasingly price-conscious. Many people are concerned that the U.S. economy is already in a recession regardless of whether or not this is the case. It’s easy to see why shoppers are being cautious: rents are going up, food costs are going up, and gas prices are going down, but they’re still relatively high.
That’s good news for premium fast food chains like McDonald’s and bad news for value fast food chains like Wendy’s (WEN) – Get Wendy’s Company (The) Report and Burger King (QSR) – Get Restaurant Brands International Inc. Report. Customers looking to save money, or those looking to downgrade from pricier alternatives, are a prime target market for these chains. On the other hand, both chains’ established clientele count on regular discounts to remain available.
Wendy’s has already implemented a radical improvement there, and Burger King has now followed suit.
Wendy’s had to (mostly) discontinue its most appealing promotion.
Wendy’s 4 for $4 deal, which included a drink, small fries, four chicken nuggets, and a Jr. Bacon Cheeseburger, Crispy Chicken sandwich, Doublestack (Jr. Cheeseburger with two patties), or a Jr. Cheeseburger, was the chain’s main draw for a long time.
If you wanted two burger patties on your sandwich, you could have them added for no extra cost. You can imagine how popular that deal was, but as prices went up, Wendy’s brought back the $5 Biggie Bag and gradually phased out the 4 for $4.
The 4 for $4 deal was preserved by the chain but was only available when purchasing a Jr. Cheeseburger. The option of sandwiches was then shifted to the $5 Biggie Bag special. It wasn’t the perfect answer, but it did satisfy the needs of those who wanted to eat for less money.
Burger King has also implemented this pricing shift, but their customers who are particularly price-sensitive may not be as pleased.
One of Burger King’s New Menu Items Is Extremely Expensive
Since about the middle of April, in apparent response to the Biggie Bag, Burger King has been offering a $5 Your Way Meal. In 2021, it made its debut on menus before disappearing a few months later.
The chain has once again cut the $5 price point, but it’s not that easy. By adding a $6 Your Way Meal, Burger King isn’t just raising prices; it’s also increasing the amount of food you get for that dollar.
You can get a Rodeo Double Cheeseburger or a Bacon Double Cheeseburger, along with 9 pieces of Chicken Fries and Value Fries for just $6 with the new “Your Way Deal,” as reported by Chew Boom. A Double Whopper Jr., four pieces of nuggets, a small order of fries, and a small drink made up the $5 Your Way Value Meal.
In this case, the math involved in calculating the profit margin is clearly complex. Compared to the original $5 meal, the larger, more expensive meal is clearly more profitable for Burger King.
Some Burger Kings are charging an extra $1 for the new $6 Your Way meal, adding to the confusion.
One of Burger King’s biggest challenges is convincing customers that the new offer is worth the higher price. Unlike Wendy’s the chain did not keep the old price point so if you want a combo meal that includes a sandwich, a chicken-based entree (nuggets for Wendy’s, “fries” for Burger King), fries, and a drink, at The Home of the Whopper, you’ll have to spend at least $6.
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