Big, Cheap and Fatty: Fast Food Wars in Tough Times

Fast food chains are heavily marketing even cheaper food.

ByABC News
April 20, 2010, 10:52 PM

May 19, 2010&#151; <br/> NEW YORK -- I worked for an ad agency that had Burger King as a client and I've never been able to verify this story, but this is what I heard.

First, come closer to the computer. I don't want everyone to hear this -- just you.

The way I heard it, Burger King was doing some research in its company-owned stores (Burger King owns about 1,500 of its restaurants in the U.S.) and noticed a pattern of some consumers, looking at the menu board where each item was priced separately, but not approaching the counter. Upon further investigation they found these customers were trying to do mental calculations about what they could afford, adding the sandwich, fries and drink and then trying to calculate the tax so they wouldn't get up to the counter and be embarrassed. The BK fix was to bundle products into meals and make it easy for consumers to figure out the cost and see if they had enough money in their pockets.

Burger King's public relations team hasn't yet commented on the veracity of this value meal origin story. But be it urban legend or true, it makes sense -- and the research guy who told me the story is both literal and humorless, so I have no reason to doubt him.

The value meal was joined by the value menu (Wendy's is credited with this sales advancement) whereby items are value priced and put on an a la carte menu.

Now, in the wake of the worst recession since the Great Depression, fast food companies are lowering the prices of food and marketing more food for less money. Even as medical professionals across the country are breaking the glass and pulling the obesity alarm in communities everywhere, fast food companies are aggressively marketing cheaper food in a battle to maintain profit margins.