Double cheeseburger by necessity: The Dollar Menu and specialty coffees help McDonald's buck trend during slumping economic times.
Posted on Saturday, November 22, 2008
NORTHWEST ARKANSAS — In a time when many businesses — let alone restaurants — are experiencing shortfalls in revenue projections, McDonald’s Corp. saw sales jump by more than 8 percent in October. Bill Mathews — who along with his brother, Walter, operates 30 McDonald’s restaurants in northwest Arkansas and the surrounding area — said that trend has continued into November.
Why McDonald’s ?
Spend a few minutes listening to orders being placed at the counter or drive-through window of any McDonald’s restaurant and the answer to that question becomes obvious.
“ I’d like six double cheeseburgers and four apple pies, ” a customer at the drive-through window of the Bentonville McDonald’s on South Walton Boulevard said on Friday afternoon.
Meanwhile, a customer in the second drive-through lane was placing his order: “ I need a double cheeseburger, a McChicken and a small fry. ”
What do all of those items have in common ? They’re on the Dollar Menu of all 31, 000 McDonald’s restaurants around the world.
“ In this economy, the double cheeseburger is big, ” said Bill Mathews. “ The Dollar Menu accounts for about 15 percent of our total sales. Even the breakfast Dollar Menu is doing well — like the dollar sausage McGriddle that was added this fall.
“ Our Dollar Menu has always done very well, but there are more people utilizing it today than ever before. People are watching their purchases everywhere. They’re still buying from other parts of the menu, but the Dollar Menu has definitely been a real advantage for us. People don’t have the disposable income they used to, but they know they can find a good value at McDonald’s no matter what they have in their pockets. ”
On any McDonald’s drivethrough menu board, you’’ll find the famous Big Mac jingle: Two all beef patties, special sauce, lettuce, cheese, pickles, onions on a sesame seed bun. But the most popular sandwich on the menu — due in significant part to the slumping national economy — is quickly becoming the double cheeseburger.
According to a report published at Forbes. com, the double cheeseburger has become so popular — because it’s large and inexpensive — that McDonald’s is considering raising the price from $ 1 to $ 1. 19. Even with the Dollar Menu and deals like the double cheeseburger, some residents say they are not eating out as much as they had.
“ We don’t go out but one time a week anymore, ” said Andrew Noponen, who shared a meal with his wife, Sherry, at the McDonald’s at U. S. Highway 71 and Benton County Road 40 on Friday. “ We used to go out more, but that changed about a year ago. It’s getting tough. But one thing I can say for McDonald’s is I can find something in my budget, especially when gas was up around $ 4 per gallon. ”
The Mathews brothers track the sales of their restaurants closely, so they’ve seen the trends. And they’ve seen enough to know the majority of what they’re seeing — even the positives — are economy related.
“ A lot of what we’re seeing depends on the time of month, ” Bill Mathews said. “ People generally have more money at the beginning of a month. We see people buying more regular menu items at the beginning of the month, but when you get to the end of a month the Dollar Menu sales go way up.
“ The other big thing for us has been gas prices, ” Mathews continued. “ The gas price coming down significantly of late has really helped. We held steady even when gas was high, but those prices dropping has put more disposable income in our customers’ pockets. It might not be a lot, but it helps a little. ”
The general manager of a popular sit-down restaurant in Benton County told the Daily Record he has seen a significant dip in traffic over the past year and attributes it to the economy. He said the restaurant is simply focused on “ surviving” these turbulent economic times. On Friday, he found himself stopping by the McDonald’s on the Bentonville-Bella Vista line for a Dollar Menu double cheeseburger of his own.
Another area that’s helped position McDonald’s for success during the continued economic downturn has been the rolling out of its Mc-Cafe concept, which offers a wide selection gourmet coffees at a lower price than many of the leading java chains.
“ It ended up being great timing for our specialty coffee line to roll out, ” Mathews said. “ When you’re used to paying $ 4 for a coffee somewhere else, and now McDonald’s has great coffees for less, it’s a big advantage. We already had the locations. It was just a matter of adding the equipment and a great quality product. People have less in their pockets, so they’re turning to us.
“ Northwest Arkansas is blessed in so many ways because of its employment base, but when I talk to people in the community there are still people who say they’re having to cut back. People tell me they’re not using the dinner-house restaurants like they used to use them. A lot of people are staying home and a lot of people are coming to us more often. ”
FEEDBACK:
Something to say about this topic? Submit a Letter to the Editor online
