The Value Menu goes Premium?

The Value Menu goes Premium?

            The three leading burger QSR’s have offered a new twist on how to create a “Premium” food experience at your basic “burger place” possibly in an attempt to lure market share away from their fast-casual competitors during an economically challenging time.  Whether any of these new menu offerings will stand the test of time at least some of them are currently offered as LTO’s perhaps to gauge the markets mood.

            First let’s review how we came to making the burger a premium item.  Independent operators (some fine dining) began the trend with ultimate premium burgers with ingredients such as Kobe or Waygu beef, seared foie gras, heirloom tomatoes, hydroponic lettuce on a toasted Brioche bun smeared with some variation of an aioli and even sprinkled with gold leaf.  In all their variations, across the globe, these items were offered for as little as $25 upwards of $1,000 or more.

            Once the shock and awe subsided this trend filtered down to the mainstream audience where Kobe was replaced by Angus Beef, the aioli by the house “special sauce” served on an egg-enhanced (or food-colored) bun.  This period was marked by using anything potentially perceived as premium by the target audience placed atop the burger to create an upscale experience.

            Now back to the new and LTO menu items gracing the value menus of McDonald’s, Burger King and Wendy’s to review how the premium trend has come to rest heavy upon the shoulders of the value tier of the menu.  Operators know they must offer some variation of a value menu during current economic conditions and especially as long as their competitors continue to do so.

            For our purposes let’s review these value menu items from the smallest number of items per menu to the largest;

Wendy’s:

            Offers two items that are currently LTO’s the Spicy Chipotle Jr. Cheeseburger and its’ foil the Spicy Chipotle Crispy Chicken Sandwich.  Both offer a slice of pepper-jack cheese, pickled sliced jalapenos and a spicy chipotle sauce.  Both offer the same toppings on the familiar platforms of the Jr. Cheeseburger and Crispy Chicken Sandwich respectively.

Burger King:

            Offers three items hailed as “new” to their King Deals menu to include the Rodeo Burger, Rodeo Chicken Sandwich and BBQ Rib Sandwich.  The first two offer a sweet and spicy barbecue and fried onion rings atop their value burger and fried chicken sandwich platform.  The rib sandwich is rib in name only as it is a ground pork patty topped with fresh cut onion rings, dill chips and the repetitive sweet and spicy barbecue sauce.

McDonald’s:

            Offers six premium versions of their basic burger and their McChicken sandwiches which we will address by protein;

• BBQ Ranch Burger – burger topped with white Cheddar cheese, tortilla strips and a zesty barbecue ranch sauce
• Bacon McDouble – basic McDouble topped with Applewood-smoked bacon, American cheese, chopped fresh onions and dill pickle chips
• Grilled Onion Cheddar Burger – burger topped with grilled onions and white Cheddar cheese
• Buffalo Ranch McChicken – a McChicken sandwich with the addition of Buffalo sauce and ranch dressing
• Bacon Ranch McChicken – a McChicken sandwich with the addition of Applewood - smoked bacon, Buffalo sauce and ranch dressing
• Bacon Cheddar McChicken – a McChicken sandwich topped with Applewood – smoked bacon, white Cheddar cheese and mayonnaise

Remarks:

            Time and market demand will demonstrate if these new “premium” versions of value offerings will move forward as a growth category.  Perhaps this is just the respective marketing and R & D departments’ continual efforts to maintain their brands as ‘top of mind’ for their core audience.  One thing is for sure while competitors attempt to push the value-menu envelope the QSR leader will continue their pursuits or otherwise loose out on dropping that additional income to a bottom line that is already being squeezed tighter than a buffalo-head nickel.