[Mr Murray]

Originally Posted by COTW

Fast food doesn't do loss leaders, that's grocery store marketing.

Eh?

Never heard of the "Burger Wars" then?

McDonald's plans to take a big bite Big Bite out of the Big Mac's price.

If the majority of the company's franchisees approve the new promotion today, prices of Big Macs and several other sandwiches could drop to 55 cents each for anyone who buys any size fries and a drink, too.

That could spark a price war among fast-food chains, reminiscent of the feeding frenzy caused by Taco Bell's introduction of its low-pricing menu in the late 1980s.

Although fries and drinks have higher profit margins that will offset the loss leader, a high sales volume is critical.