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Fast-food chains are locked in a fierce battle that has them practically giving food away. McDonaldÃ¢â‚¬â„¢s, WendyÃ¢â‚¬â„¢s, Burger King, and others are constantly trying to lure customers at the low end of the price spectrum with tempting menu options that can serve as a snack or a meal. Although this technique is nothing new, itÃ¢â‚¬â„¢s more popular today than ever. The tactic has even found its way into full-service restaurant chains such as Olive Garden.
After viewing the video, read the articles, then thoroughly answer the following questions:
Video: (Links to an external site.)
Read: As Fast Food Price Wars Heat up, New Menu Items Set the Tone (Links to an external site.)
Read: Wendy’s Margins Squeezed as Fast-Food Price War Continues (Links to an external site.)
Read: Pizza Hut Enters the Fast-Food Price War With $5 Menu (Links to an external site.)
Read: American Chain Restaurants Had a Tough Year and 2019 Looks Worse (Links to an external site.)
1. Why are restaurant chains employing a discount menu as a pricing option?
2. What are the possible negative outcomes of employing a discount menu strategy?
3. Are bargain-basement options a sustainable path for restaurant chains? Thoroughly explain and support your response.
This assignment should be completed on a Microsoft Word document and submitted within the week 7 Module. Paragraph headings should be included to clearly show the question you are responding to and your corresponding response. For example, for question one you could use the following:
Discount Menu Pricing Option
Start typing your response to question one.
The paper should be at least two full pages (double-spaced), and written in your own words (to avoid plagiarism). This assignment is worth 50 points.
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