As a result of the recent economy, fast food chains have been trying to compete on price as a way to get people to come into their stores. Though this isn't apparently what most customers want. Most customers would prefer new selection rather than cheaper prices. The article points out a lot of the new items introduced have pretty much any profitability cut out from them with all the discounts and coupons given to promote them. McDonald's has its Dollar Menu, Taco Bell has its $1 Crave Menu, Wendy's has its "Right Price Right Size" menu with items from $.99-$1.29 and many Subway consumers started getting $3 6 inch subs apposed to $5 foot longs. A lot of the extreme discounting is a result of sales comparison to past performance. Do you think it is indicative of how well a store is doing if you are comparing it to a time when sales were abnormally good? What other benchmark could be used for determining how a company is doing?
http://finance.yahoo.com/blogs/the-exchange/value-menu-too-cheap-174100489.html
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