RESTAURANT BUSINESS ONLINE – McDonald’s decision to lower prices on its combo meals and bring back the Extra Value Meals moniker has had a predictable impact on the fast-food sector.
Several restaurant chains have introduced new value deals this week, including Wendy’s, which is now selling an $8 combo meal featuring two of its Jr. Bacon Cheeseburgers, fries and a drink. The company says that the offer effectively gives customers a Jr. Bacon Cheeseburger for free.
Jack in the Box, meanwhile, is cutting the prices on many of its combo meals, with most of them under $10. It is also promising a host of value deals over the next several weeks, including a $5 Smashed Jack burger next week, during “Burger Week.”
Several other chains over the past couple of weeks have started offering new value deals, including Little Caesars and White Castle.
McDonald’s this week intensified a year-long fast-food value war by convincing franchisees to cut prices on combo meals by 15% from the prices of the items bought individually.
According to a Restaurant Business analysis of Technomic Price Pulse data, the result lowered prices of those combo meals by an average of 50 cents apiece nationwide—though the actual cut will vary based on location and combo meal.
Not all fast-food chains have felt necessary to respond and one industry executive said privately that their existing combo meal discounts were already as strong as the ones McDonald’s is now offering …
