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Why we cook at home rule
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this post was submitted on 11 Feb 2024
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This seems like a bad example, there is a good video by modern MBA on taco bells value menu that mentions McDonald's losing money with the dollar menu
I find it hard to believe McDonald's was losing money on the dollar menu items. Considering they owned the entire process from factory, shipping, to restaurant. Back in the 90's even I know the fountain drinks alone were insanely profitable.
If I recall correctly, taco bell started the value menu war but they made items that were designed to be priced at one dollar. Burger King, Wendys, and McDonald's discounted existing items that cut into their previous prices in response.