‘Twas climate change that killed the McDouble…With the commodities increase in the franchisee’s library!
Could climate change mean the death of the coveted “Dollar menu”?
The age of the Dollar Menu has come to an end, well sort of. The Dollar Menu will now be known as the Dollar Menu & More which will contain items that go as high as $2 dollars.
The change by McDonald’s is the result of an agreement struck by the company and its franchise holders as a result of rising commodities prices.
As a result of rising temperatures there have been an increase in the number of recorded droughts. These droughts have placed pressure on cattle farmers to reduce cattle herds (less cows) and pay more for feed (less pasture land to graze for cows).
As a result, less cattle and higher costs to feed them have pushed beef prices upward which translates into more costs to produce the McDouble.
The Dollar Menu was first introduced in the early 2000’s and even then it was a contentious maneuver between McDonald’s corporate and franchise owners as the low price point put pressure on franchise owners.
The McDouble is the most expensive item on the menu to produce. As a result of rising cost and the erosion of the marginal profit associated with the McDouble, franchise owners won a small victory in 2008 when corporate agreed to remove one slice of cheese from the McDouble in order to reduce the cost of producing the iconic burger.
But, due to the rising cost of commodities as a result of unseasonably warm and dry periods that have driven the price of beef ever higher, it seems the iconic $1 cheeseburger known as the McDouble has come to an end and will from here on out cost $1 and some change to $2.
Courtesy of Quartz
- What Does the Demise of the Dollar Menu Mean for Franchisees? (entrepreneur.com)
- McDonald’s Dollar Menu to Offer Items That Cost More than $1 (webpronews.com)
- Why McDonald’s Killed the Dollar Menu – in 1 Chart (theatlantic.com)