business news in context, analysis with attitude

Advertising Age reports that McDonald's plans to change the structure of its Dollar Menu - adding pricer items (including sandwiches that go for as much as $5) and renaming it the "Dollar Menu & More."

The company said the change will be national, supported by national ad dollars, and will begin on November 4.

The story says that "the menu makes room for what the company calls 'pricing flexibility' for items like the McDouble, a product that caused friction between franchisees and corporate. In 2008, McDonald's and franchisees were at odds over the double cheeseburger. Franchisees wanted it off the dollar menu in light of rising commodity costs and what they said was a decrease in profitability. In the end, the compromise was the McDouble, a burger with one slice of cheese (instead of two) and two patties."
KC's View:
There is a sense that McDonald's, seeing stagnant growth numbers, is a little desperate. By calling this thing the "Dollar Menu & More," it sounds like it wants to have things both ways. Which may means that it only is watering down its message and image.