restaurants

McDonald's Rolls Out Premium Burgers

McDonalds angus burgers Today marks the official national rollout of McDonald's new, $4 Angus Third Pounder burger line -- the first burger launch for the chain since its introduction of the Big 'N Tasty in 2001.

The new burgers have been in testing for more than two years in markets including Southern California, New York and Columbus, Ohio, but McDonald's kept the line's national launch date under wraps.

The line will be available nationally for the next several months, according to a spokesperson. At this time, "the decision has not been made to add the Angus Burger to the national core menu;" however, it will "play a future role on McDonald's menu," she stated. This would appear to mean that the burgers may be "promotional" items that show up on the menu and are promoted on a periodic basis.

The new burgers are made with a third of a pound of 100% Angus beef and a choice of fresh ingredients, and served on a toasted, bakery-style sesame seed roll. They come in three varieties: Deluxe (topped with mayonnaise, yellow mustard, a slice of tomato, lettuce, red onion rings, sliced dill pickles and American cheese slices); Bacon & Cheese (topped with ketchup, yellow mustard, red onion rings, sliced dill pickles, three bacon slices and American cheese slices); and Mushroom & Swiss (topped with mayonnaise, sautéed mushrooms and Swiss cheese slices).

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A fully integrated marketing campaign for the line that celebrates the chain's "burger roots" will launch in August, according to McDonald's USA marketing director Marta Fearon.

The new line will demonstrate McDonald's "unique ability to deliver on premium quality and superior value" at a time when consumers are seeking that combination more than ever, and "serve as another great example of how McDonald's continues to strike the marketing balance between new and core menu items to connect with our customers in fun and relevant ways," Fearon said in a statement supplied in response to Marketing Daily queries.

McDonald's has been strategically focused on chicken, beverages, breakfast and drive-through service in recent times, and has upgraded in all of these areas. Meanwhile, its core burger business has seen growing competition from a proliferating number of smaller-format fast-casual chains offering premium burgers, such as Smashburger and Five Guys, points out Darren Tristano, EVP for food service industry consultants Technomic, Inc. In addition, Burger King and other key competitors already have premium burger offerings.

McDonald's reportedly planned the Angus launch for last fall, but delayed it because of concerns about the timing in the wake of the economic crisis. However, focusing on whether it makes sense to introduce a $4 burger during this severe recession misses the point, which is to cover all of the bases, says Tristano.

QSR strategies now call for tiered offerings that seek to ensure appealing to as many consumer price levels and tastes as possible. "If you have gaps in your menu, some consumers will go elsewhere," he points out. Quick-serves "aren't focused on the performance of one item; they're focused on overall strategy and the market basket dollars being generated."

McDonald's has three tiers: its 99-cent value menu, its signature items such as the Big Mac, and the premium tier that includes items such as fresh salads, and now the Angus burgers, Tristano notes. With the Angus burgers, however, he believes that McDonald's could end up cannibalizing more sales from its own Big Macs and Quarter Pounders than from the growing premium-burger, fast-casual chains.

3 comments about "McDonald's Rolls Out Premium Burgers ".
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  1. Monica Bower from TERiX Computer Service, July 2, 2009 at 11:33 a.m.

    Their angus burgers are easily the best thing on the menu, but to be honest, McDonalds menu is something of a crazy shambles with their ever-changing, rarely-edible salads, fifteen kinds of chicken sandwiches with all the same toppings (does nothing come without bacon any more?) and their traditional big mac and quarter pounders now a puny elderly parent. I didn't realize they hadn't rolled them out two years ago - turns out I'm in the test market :) But its still hard to beat a whopper with cheese for a big burger or white castle for a little one.

  2. Melissa Pollak from National Science Foundation, July 2, 2009 at 5:37 p.m.

    Why would anyone who lives in Southern California, etc. buy a burger at McDonald's when you have In-N-Out?

  3. Nina Lentini from MediaPost Communications, July 3, 2009 at 6:44 p.m.

    You have a point, Melissa. I live in New England and only once have I had the pleasure, the extreme pleasure, of dining at In 'n Out -- during an OMMA/Hollywood conference. It was out of this world. I wish they were closer!!

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