When you thought fast food prices were already cheap
Posted by: Curtis Stevens on December 14th, 2009

Are you a fast food lover?  There seems to be good news for you during a tough economy.  Some national chains are reducing their already low prices to encourage consumers to keep coming through the door and making the cash register ring.   For example, McDonalds is rolling out a dollar breakfast menu early next year and Burger King has already been advertising a $1 double cheeseburger.  These sort of items have been the dollar price range for over a decade or longer.   Honestly, I’m a little surprised as I thought their margins were already tight.  I assume they are hoping customers will buy other menu items that cost more and will make up for the slim profit margins.   If you are a fast food restaurant owner and are considering this approach, be sure to keep in mind all of your costs, including credit card processing fees. They can turn into a big percentage when dealing with very small purchase amounts. The bad thing is most consumers have no idea how much the restaurant is paying and if they did, I’m sure they would change their habits in some form or fashion.  It is probably because I work in this industry and know all to well what merchants pay, but I have always personally been a cash paying customer when paying small dollar amounts.

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