How Long Can McDonald's Afford To Keep The Double Cheeseburger On The Dollar Menu?
Double cheeseburger fans are going to have to face a grim reality. The rising cost of raw materials means that McDonald's has to pay more for beef-- and the double cheeseburger will probably have to leave the dollar menu.
"The cost implications of having that value menu have changed when you see what's going on in beef and chicken," CEO Ralph Alvarez told investors, "The way the dollar menu looks today won't be the way it's going to look next year. In this current environment, we've got to make sure we're pricing smart, not just pricing low."
The Chicago Tribune reports that McDonald's did not elaborate on what exactly they will be changing about the popular menu, but did disclose that "tests" are underway in which the double cheeseburger is more expensive.
Get them while they're cheap.
Changes ahead for dollar menu [Chicago Tribune]
(Photo: Matt McGee )
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Comments:
@ScubaSteveKzoo: Agreed. I think last time I hit up MickeyD's they still had the 4 @ $1 nuggets.
Best. Deal. Ever.
I had this same thought the other day, when grabbing a couple DBL CHZ's. Probably the best deal going these days.
I will really miss this option if they axe it. This was my secret weapon against hunger, when almost completely broke.
My guess will be the Dollar menu dissapears, and the DBL CHZ goes to $1.50. I think they will move to a VALUE MENU format like TacoBell/Wendy's with varying price points. (Which would suck)
I'm with you, for the most I have given up all fast food, though occasionally I must give into my temptation for reconstituted chicken.
@Imaginary_Friend: Yeah, I always figured they were either using the double cheeseburger as their loss leader to get you to spring for other shit or they were just using the absolute lowest quality ingredients possible.
@Imaginary_Friend: I guess they figured that they would start at a loss but eventually profit from so many people ordering the dollar cheeseburger. It's all about volume I guess...Hopefully
@Imaginary_Friend: They don't take a loss on the sale of a double cheeseburger (at least not yet), but they don't make that much of a profit either. The point of the dollar menu is to get people to come for the sandwich and blow money on the real money makers pop and fries.
@evslin: @rickhamilton620: @Methusalah: Okay, I get that it's a loss leader, but is it actually real beef? At all? That just blows my mind. I don't even think it's possible to make an egg sammich that cheap.
The must be making a killing on the side dishes and drinks.
How about Wendy's, I don't see how they can legally call their "Stack Attack" a "double cheese burger" because, while they do have two small, thin, meat patties THEY ONLY HAVE ONE FRACKING SLICE OF CHEESE!!! Excuse me, but I call a double cheese burger, double cheese and double burger, no exceptions! Back when McDonald's had the triple burger, they called it the triple burger with cheese, because you only got two slices of cheese on it. Wendy's needs to give us all our second slices of cheese or start calling it what it truly is, a double burger with cheese.
@Methusalah: Oh by the way... that's only factoring in how much the franchise pays for the ingredients. If you consider paying the employees who sell and cook the food the result may be a loss (depending on how many are sold, the amount the employee is paid, etc.).
With prices going up like they are, it's not surprising. As I recall, hamburgers at McDonalds, Burger King, and the like never have had huge profit margins. It's the volume of business they do that has allowed them to make money.
That said, even $2 for one sounds cheap to me now compared to paying around $17 for a value meal here in Norway (ok, I'll admit to visiting Burger King a couple of times here, but never McDonald's!)
@jst07: The damn 24hr McD's around here cuts off the dollar menu at like 10PM. Just the "expensive" stuff after.
@Imaginary_Friend: Yes it's real beef and they claim it doesn't contain parts like eyes and whatnot.
For a somewhat vague and entirely corporate response:
@mdoublej: That's because they can't afford to pay the employees using the small profit margin provided by the cheap food items they stop selling. They also reduce the menu to reduce the amount of wasted food (meat is cooked before you get there and held in a heated cabinet for about 15 minutes before it should be discarded) for much the same reason.
@Tallanvor: $17 for a value meal? You guys must live like kings. What's the minimum wage over there? I think it would be cheaper for you folks to buy your fast food from the US and have it flown over. Talk to your fellow countrymen and women; our economy needs stimulating.
@Methusalah: Hah! Ilove this one:
" Do you use old cows to make the meat in your burgers?
McDonald's is committed to serving safe, high-quality beef everywhere we do business. Every McDonald's beef supplier - both locally and globally - must meet our stringent standards for food safety, quality, animal welfare and social accountability that go far beyond government requirements. Our beef suppliers are monitored and audited on a regular basis to ensure they follow our rigorous standards.
June 2008 "
Notice how they never really answered the question.
@Imaginary_Friend: Hehe, yeah it seems like they would just be better off not answering the question at all. I think they do an o.k. job answering the other ones though.
@ratnerstar: "I'd gladly pay you Tuesday for a hamburger today."
Or, I would gladly pay you today for a hamburger on Tuesday.






























As guilty as I might be about swing though and grabbing one of those at 2AM I say good riddance. People don't need that cheap of access to fat riddled food like McD's