Meet Paul, the McDonald's Menunaire

Amanda Latifi

Competitor value offers in the US recession saw the quality perception of McDonald's Dollar Menu offer eroded. McD's needed to switch the market agenda away from cheapness to value for money

MARKET CONTEXT

McDonald's Dollar Menu was once the undisputed leader of the value pack. However, in 2008, as the US economy began to sink into a deeper recession, consumers started tightening their purse strings and the quick service restaurant (QSR) industry noticed a softening in their core menu sales.

Eating out is often the first line cut from the budget (source: Roper, Public Pulse, Sept 2008; Spring Core Report – survey results). So, fine dining and casual dining restaurants started throwing 'buy one entrée get one free offers' at consumers and littering mail boxes with coupons (source: The Cassandra Report, Future Issues, Jan 2009). And McDonald's became the target of competitive efforts to devalue its valuable, value position.