Recession's Fast Food: 99-Cent Specials

February 12, 2008

Fast food companies, looking for a way to attract budget-conscious customers and keep them spending, are increasingly offering more food for less money.

Jeffrey Davis, president of restaurant research firm Sandelman &Associates, said adding bigger, higher-quality sandwiches to dollar menus allows fast food restaurants to give people the premium sandwiches they want at a price they can afford.

But with commodity prices rising, lowering the prices of fast food sandwiches could squeeze margins, especially if it doesn't lead to better traffic and sales. The chains say the drawbacks don't outweigh the benefit of offering more value to customers dealing with rising prices and a weak economy.

Perhaps the most noticeable example of the more-food-for-less strategy is the appearance on more dollar menus of the double cheeseburger, long a staple of the regular menu and combination meals.

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