Mickey D and the 1-2-3 Dollar Menu

December 23, 2017
Mickey D and the 1-2-3 Dollar Menu

Article Title: No Matter How McDonald’s Tries To Go Upscale, The Dollar Menu Lures It Back

Author of Article: Micheline Maynard

Date of article: December 6, 2017

Source URL: https://www.forbes.com/sites/michelinemaynard/2017/12/06/no-matter-how-mcdonalds-tries-to-go-upscale-the-dollar-menu-lures-it-back/#6436dc1347eb

McDonald’s is implementing a 3-tier value menu strategy that allows it to better compete with other bargain fast-food chains such as Taco Bell.  This is McDonald’s attempt to shift its operations strategy from a focus on quality (better burgers with healthier ingredients) and speed (mobile and kiosk ordering) to cost.

The new 3-tier value menu is a twist to McDonald’s popular Dollar Menu.  It gives McDonald’s the flexibility of offering customers three categories of food priced at $1, $2, and $3 without sacrificing profit margins.

Discussion Questions
1. What is McDonald’s operations strategy in 2018?

Guidance: Discussion may focus on operations strategy, competitive priorities, and product design.

2. How has McDonald’s changed its operations strategy in the past to remain competitive in the fast food industry?

Guidance:  Discussion may focus on the dollar menu, upscale burgers, cleaner ingredients, faster technology, and/or healthier offerings.

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