Burger wars: McDonald's, Burger King cut prices
McDonald's CEO Omri Padan cites fall in its costs; Burger King counters with its own reductions.
After a number of price rises McDonald's Israel, which boasts about 150 branches, yesterday announced reductions in the prices of many of the combination meals as well as more options.
The price of the least expensive Big Mac combo meal was cut by 6.5%, from NIS 32 to NIS 29.90. A meal of Chicken Select and Chicken Nuggets was super-sized by 33% (for the chicken) and sliced from NIS 38 to NIS 37.50. A Super Premium meal that would have set you back NIS 48 until now will cost only NIS 41.50 now, representing a 13.5% discount. The fast-food chain will also offer adult/child combo meals for less than NIS 50.
McDonald's Israel has raised its prices a number of times in the past 18 months, after having held prices steady for the previous 18 months.
In April 2007, the local chain announced it was raising the prices on most of its offerings by one shekel. Five months later, in September 2007, prices were rounded up by 10 agorot or NIS 1.10. The new price rollbacks brings back the odd prices that will put 10-agorot coins back into circulation.
McDonald's CEO and owner Omri Padan said in a statement: "At the time we were forced to raise prices due to the increased costs of beef and of energy, as well as the rise in the minimum wage. In light of the drop in meat and energy prices there's no reason not to reverse some of the price increases. Our aim is to offer customers the best, most inviting and most satisfying restaurants at the lowest cost possible. Today a parent and child can come to our restaurants and fill up for just NIS 50."
Burger King and Burger Ranch yesterday presented a united front, announcing price cuts and a new budget menu with a variety of items for NIS 10 each that goes into effect at the branches of both chains next week. They put a war-effort spin on the new strategy, saying it was aimed at "helping the army reservists in the south as well as families from the south that have moved north."