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NEWS > EVERYONE ELSE > MCDONALD’S CATERING TO HIGHER END CLIENTELE WITH DOLLAR MENU PRICE INCREASE
MCDONALD’S CATERING TO HIGHER END CLIENTELE WITH DOLLAR MENU PRICE INCREASE
September 10 2010
San Francisco, CA – The core concept of McDonald’s, right from the very beginning, was quick and easy food at affordable prices designed for regular people. In an era of growing middle class prosperity, McDonald’s was an alternative for working class 
people who could not afford the luxuries that many were suddenly enjoying. Eventually the brand grew and as the middle class started to decline, McDonald’s became the place to go for quick and cheap meals. Eventually their innovations would change the way people around the world ate forever.
McDonald’s has never changed the philosophy either. True, they have attempted to introduce higher class food on occasion and began moving from their core meals with products like salad, but the heart of the business has remained as it always was; Fries and a burger. That combination has made the company billions of dollars and, despite many competitors, the king of fast food. Still the company has to adapt to the modern age and rising labour and materials costs inevitably lead to higher prices at the counter. That has caused a great deal of friction amongst restaurant goers particularly in San Francisco where much of the population is in an uproar over fifty cent increases in the very popular dollar menu.
“Yeah man, it ... sucks. I eat less. I have to get more money. If I don't have a dollar and I want food, I just end up going to a trash can. I mean we could buy the hamburger which is still only a dollar but I’d rather save my money and get something more filling,” said Haight street regular Nicholas Newhart.
“The speculation as to why I no longer offer menu items for $1 in this location is absolutely false. This was a business decision based on a number of contributing factors. And while these items are no longer available at $1, they are still available at what I believe to be a good, everyday value,” said franchise owner Natalie Gonzalez in response to criticism that the restaurant was trying to drive away regulars in favour of wealthier clientele.
“In this economy it doesn’t really make sense for any business to want to drive away any business but I can certainly see the logic. Volume has its benefits and the 
company has certainly done well using that model but what we are seeing in this economic turmoil is a decrease in the middle class and a limiting of disposable funds. That makes going after high end clientele much more appealing,” said Scrape TV Business analyst Ken Green. “By gaining that audience you can increase your margins while at the same time reducing your workforce which means real bottom line dollars. The trick is drawing the right people and enough of them with the kind of frequency that keeps revenue flowing. I doubt we will see McDonald’s becoming The Four Seasons or Le Cirque but you never know.”
There are currently no plans to raise the price of the 99 cent burger.
“Corporations are like everything else in this economy, they are undergoing a fundamental change in the way they do business. For any corporation to survive there has to be a kind of paradigm shift in the way they think about their business model and that may be where McDonald’s is going,” continued Green. “One day we may very well see $20 chicken nuggets and $50 Big Macs. That is just the changing reality of business in America. As for the rest of the people, well they still have the garbage cans to dig through.”
Newhart is apparently resolved to start eating healthier by stealing food from the markets along the famous street.
William Ashford, Business Correspondent
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