NEW YORK — If you want to stretch your dollar without shrinking your appetite, you’re in luck. Fast-food companies, looking for a way to attract budget-conscious customers, are offering more food for less money.
Jeffrey Davis, president of restaurant-research firm Sandelman & Associates, said that adding bigger, higher-quality sandwiches to dollar menus allows fast-food restaurants to sell premium sandwiches at a lower price.
But with commodity prices rising, lowering the prices of fast-food sandwiches could squeeze margins, especially if it doesn’t lead to better traffic and sales. The chains say the drawbacks don’t outweigh the benefit of offering more value to customers dealing with rising prices and a weak economy.
“People are looking for premium items, but there’s also a push for value,” Davis said.
Perhaps the most noticeable example of the more-food-for-less strategy is the appearance on more dollar menus of the double cheeseburger, instead of a small order of fries or a “junior” version of a burger.
“Teenagers are very sensitive to changes in gasoline prices,” Deutsche Bank economist Joe Lavorgna said.
“Typically what they have left over to spend, they will spend on fast food.”
The Associated Press
