Nation's Restaurant News - January 5, 2009

on the margins — they were meant to be a short-term fix. Do whatever you have to do to get the traffic in.

“Now, with the sense that this will be a deeper and longer downturn, the emphasis is on a longer-term strategy. [Value menus] have to be developed with margin protection in mind. They also have to protect the company’s franchisees and its stakeholders.”

Kruse pointed to McDonald’s value menu as the gold standard, and cited the Oak Brook, Ill.-based chain’s recent strategic decision to remove the Double Cheeseburger from the value menu and replace it with the new McDouble, which contains one slice of cheese instead of two. It is estimated the move will save 6 cents per sandwich, boosting cash flow by $15,000 per restaurant per year.

Paul Macaluso, vice president of marketing for the Oklahoma City-based Sonic Corp., said executives of the 3,500-unit quick-service brand made the decision to develop a value menu after monitoring competitors and seeing how consumers responded. “Value menus have been driving the industry over the last several months,” he said.

Sonic also had positive results with its Happy Hour promotion, which offers half-priced drinks and slushes for a two-hour window during the day.

Sonic’s new Everyday Value Menu launched nationally Dec. 29 and contains 11 items — four entrées, three side items and four snacks and beverages, all priced at $1 each. All items are available all day.

Entrée selections are a Chicken Strip Sandwich; Junior Deluxe Burger with lettuce, tomato and mayonnaise; Junior Fritos Chili Cheese Wrap; and a Junior Breakfast Burrito.

Sides include smaller size offerings of Tots and fries and a fresh banana. The snacks and beverages are a small soft drink, a selection

of small slushes, a small vanilla cone, and a Junior Candy Sundae with a choice of candy offerings.

Macaluso said the value menu will be permanent.

Atlanta-based Popeyes Louisiana Kitchen also has value meals in test in Kansas City,

Arkansas and other areas, according to published reports. Called Popeyes $4You, the menu offers three selections for $4, including a Loaded Chicken Wrap, Louisiana Nuggets, a Chicken Biscuit, a Bonafide Leg or Thigh, a choice of side dishes and beverages, and

Cinnamon Apple Pie.

The chain also is testing the Variety Dinner $4You, which feeds a family of four for $4 per person.

KFC, a division of Louisville, Ky.-based Yum! Brands Inc., said it plans to launch a value menu this year. The menu will feature

nine items priced between 99 cents and $1.99 each. The menu will include 99-cent KFC Snackers, a toasted wrap for $1.49, and snack boxes of popcorn chicken or three hot wings for $1.99. ■

pfrumkin@nrn.com

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