Although the promotion is a first for Chicago-area McDonald's, it's been done before in other markets, according to a spokeswoman cited by Reuters. And before you get used to your good/cheap coffee and McMuffin breakfast for $2, don't. There are no plans to make this a permanent deal. The chain has had a dollar menu since 2002, and it generates about 10% of sales, according to analysts. Although the dollar menu can cut into a franchise's profits, it draws in new customers, who then supplement their dollar menu items with soft drinks and desserts. Breakfast is one of the more profitable times of day, so bringing in the dollar menu to this segment suggests McDonald's is feeling the pinch. Makes sense: the unemployed are hardly lining up to get their quick breakfasts any more, and sales are reflecting that.
McDonald's is also following the herd: Burger King, Wendy's and Taco Bell all have low-cost breakfast items.
What's your taste? Will a dollar menu get you into McDonald's more in the morning?
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