McFlop: How McDonald’s Big Arch video went viral but failed to flip its sales story
For decades, successful fast food chains have employed a barbell pricing strategy. On one end are their value items—think McDonald’s ‘Dollar Menu’ of the past—and on the other are premium items such as the Big Arch. When times are good, customers are lured in by value items and are tempted to trade up. But when times are tough, premium products can offset lost business by attracting higher-income consumers who trade down into the brand from the likes of, say, a Shake Shack.
Post Comment