Skip to content
Subscriber Only
Business
Economics

McDonald’s New 'Dollar Menu' Goes Up to $5

McDonald???s New 'Dollar Menu' Goes Up to $5
Photograph by Emile Wamsteker/Bloomberg

Since McDonald’s launched the Dollar Menu nationally in 2002, it has grown to about 13 percent of sales–a whole lot of McDoubles and Sausage Biscuits. But the menu is no longer working for the burger chain, so it’s rebranding it as the “Dollar Menu & More” with $1 and $2 sandwiches and even some items at $5. It’s more like a neighborhood dollar store now: the name refers to the starting price.

The idea is to promote value at additional price tiers. Hey, maybe packaging a $2 sandwich on the menu will make it seem like a better deal. McDonald’s CEO Don Thompson explained during an earnings call on Monday that the menu “gives customers a value ladder of sorts, so that based upon their discretionary spending, they have multiple offers at McDonald’s.” He emphasized that $1 items will remain–it’s still critical to retain customers–and that the chain is not abandoning the old Dollar Menu concept but helping it evolve.