Did McDonald’s price itself out of a market it dominated for decades?
Earnings reports suggest that some consumers have turned away from fast-food restaurants as their menu offerings have become more expensive.
Excerpt:
When Nick Martinez and his family wanted a quick, inexpensive and reliable meal, McDonald’s used to be their go-to choice.
Now it costs so much, he said, that he lets his 5-year-old son pick from a range of spots near their home in Colton, California, that might have seemed too pricey in the past.
“McDonald’s isn’t the best value anymore,” said Martinez, 50, who has three children. “People are saying, ‘Well, if I’m going to pay $5 for a fry, I’ll just go to this place over here.’”
https://www.washingtonpost.com/business ... staurants/
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That's exactly what I did, switching over to Applebee's. It was a no-brainer. First of all, I go to a McDonald's just a few times a year -- twice, maybe three or four times at the most. And Applebee's burger offerings are not only better --- fast-casual, a step up from fast food --- but cheaper as well. You can't top that.
Here' the money quote:
Generally speaking, the price gap between fast-food, fast-casual and sit-down restaurants has blurred, said Sara Senatore, an analyst at Bank of America. That makes it harder to justify spending more than $10 at McDonald’s when a few extra dollars can buy meals at Wingstop, Shake Shack or other fast-casual restaurants that are perceived as higher quality, she said.