American fast-food restaurants McDonald’s and KFC reduced product prices by US$5 per serving down. This is done in order to encourage combination food products with a higher price, which is US$10 to US$30 per serving.
Citing Reuters, Tuesday (22/6), this policy is the company’s strategy to increase sales and profits. This is also an attempt by companies to offset rising food prices when the US economy reopens after the lockdown some time ago.
Meals priced at US$5 per serving or below usually include a sandwich, soda, and fries. The package has long been a staple of McDonald’s and KFC offerings.
Fast food restaurants deliberately do this to attract customers. However, bids priced at US$5 and below have not benefited the company in the last 18 months.
During the COVID-19 pandemic, fast food restaurants gained market share from other restaurants that were forced to close. However, now the US economy is reopening. McDonald’s and KFC sell new, more expensive sandwiches and treats to customers. This strategy worked. Sales at fast food restaurants rose 11.5 percent in May 2021 compared to the same period in 2019. Then, profit margins also rose across some products. Meanwhile, Wendy’s said it was a pioneer of low-cost menus in 1989. They dedicated part of their menu board to price. food around 99 cents.