Quoted – Fast Food Keeps Pushing Value Envelope

Taking the value menu down yet one more rung, Taco Bell has introduced a $2.00 combo meal featuring a taco or burrito, medium soft drink and a bag of Doritos. The move is seen as a direct strike at popular dollar menus at McDonald’s and other hamburger chains, where three items cost $3.

Commercials that began running Sunday even poke fun at the dollar menu. Taco Bell workers and customers are seen pondering how the chain can sell three items for $2, and assume one of the items must be “free.” The actors then argue about which item the freebie is.

Speaking to Walletpop.com, Scott Testa, professor of business administration at Cabrini College, said fast food chains are using these deals as loss leaders and hoping consumers stock up on fuller-margin items.

“They get you in with the $2 promotion and while people are there they hope they will spend money on other areas such as some extra guacamole and up-sell them on those products,” he said.

http://www.retailwire.com/news/article.cfm/14514

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McDonalds and its Healthy Menu

Ronald McDonald
Image via Wikipedia

McDonalds and other fast food restaurants are starting to and have been marketing a “Healthy Menu”. But, is their new health oriented menu going to change the dynamic of the eatery. We saw McDonalds and others advertising a tasty and quick and affordable product. Now they started working the coffee scene and health scene. I think that they will soon begin to target health food as their main advertising campaigns.
After so many years of marketing fast food—The Big Mac—people already know what McDonalds has to offer in that sense. But, it is a harder sell to convince people who are health conscious to go to these places to eat. It is also very hard to convince a Starbucks customer to go to McDonalds to get a Cappuccino.
Although it is not impossible for these things to happen it will take time and money. Money is not a problem for McDonalds, the health-craze isn’t going anywhere and Coffee drinkers are definitely not changing habits. Plus, people who regularly eat at McDonalds are going to continue to eat there, they are basically loyal customers. I think McDonalds will start to target Health Conscious people, continue to target young kids and also coffee drinkers.

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