Focus on Food Not Price

Discussion
Nov 26, 2002
George Anderson

By George Anderson


Last week’s announcement that Burger King was lowering prices on additional menu items to compete with McDonald’s dollar offerings had absolutely no effect on Wendy’s, the country’s number three burger chain.


John Schuessler, chief executive officer, Wendy’s told Reuters, “The restaurant industry is not just about a dollar menu or a 99-cent menu. While the other chains focus on a dollar menu, we already have one that has worked, and we’ll continue to do other things.”


Wendy’s has instead decided to focus on new menu offerings to create separation between itself and its two larger competitors. “We have a pipeline of new products. Our cupboard is full, and we have a lot of options,” said Mr. Schuessler.


Moderator’s Comment: What is your take on the dollar
menu price war?


The price war between McDonald’s and Burger King has meant
lower revenues without an increase in sales. It’s time for the fast feeder chains
to focus on the food and the dining experience and to take a pass on the gimmicks.
It’s hard once you’ve convinced a consumer that something is worth a dollar
to get them to pay more than that. [George
Anderson – Moderator
]

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