Latest / Pricing Power Podcast with Fexingo: How Businesses Set Prices, Raise Margins, and Win Customers
How McDonald's Prices the Dollar Menu and Beyond
Lucas and Luna dive into McDonald's pricing strategy, focusing on how the fast-food giant uses its value menu to drive traffic, manage margins, and adapt to inflation. They explore the history of the Dollar Menu, the economics of a $1 item, and how McDonald's balances franchisee profitability with customer perception. Specific examples include the 2018 McPick 2 for $5, the 2022 price increases, and the ongoing tension between value and premium items like the Signature Crafted line. The hosts discuss the role of the Dollar Menu as a loss leader and its impact on brand positioning…
The skinny
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