Have you ever sat in a McDonald's Corporation (NYSE:MCD) outlet around lunchtime on a weekend and just watched? Chances are you'll see a family or two, and chances are, the young children will be in possession of a hamburger Happy Meal. And if the family you're watching is anything like mine, or my colleague's, you'll see a pregnant mom (that's me) or dad, with an empty Quarter Pounder wrapper, hungrily eyeing the last bites of the child's burger.Maybe it was a sight like that that prompted franchisee Scott Frisbee, whose family owns 17 McDonald's restaurants in and around Anaheim, California, to develop the idea that McDonald's needed a premium burger. Maybe it was those ubiquitous commercials for the "six dollar burger" at rival Carl's Jr., a unit of CKE Restaurants, Inc. (NYSE:CKR), and the fact that his menu had no competitive item. Maybe he was just hungry. Either way, the progress of McDonald's Third Pounder from concept to its appearance on California menus is remarkable for its speed -- not to mention its success.
At $3.99, the burger is the most expensive sandwich the company has ever offered -- seemingly counter to McDonald's place in the country's subconscious as the cheapest place to get a family meal. At 720 to 840 calories depending on options, the sandwich seems contrary to America's hopeless striving to become healthier. And after a string of less-than-stellar new menu items in the 80s and 90s, the fast food chain had slowed to focus on its menu standards -- so however did this come to fruition so quickly and to such obvious acclaim?
Neither McDonald's or Frisbee care to explain the answer to most of the obvious questions, how this burger can exist in a world that wants to use healthier oils and reduce its waistline. It is, after all, a few decades since "Hungry Man" was all the rage. But when you look a little closer, when you start getting out your game theory boards and watching the ping-pong of products in the burger marketplace, you realize: this was meant to be. It had to be.The burger, which uses Angus beef and a denser bun ("more of a roll flavor," says Scott), is the very opposite of your concept of a fast-food burger -- small, no-frills, almost slider-esque. But that's really the point. McDonald's is losing customers to places like Carl's Jr. and the Jack in the Box, where premium burgers are being positioned as category killers. In another market, casual dining restaurants are siphoning off the customers who "graduate" to more beefy -- and expensive -- options.
And, who are McDonald's two target markets? One of them is the teenager and young adult market, the kind who are hanging out in McDonald's at 4 p.m. and at 4 a.m. This burger is for those in the demographic who are about to graduate to Red Robin or Chili's, but I don't think that's the major focus. The other market -- and far more important to McDonald's success -- is the young family market. The ones who don't go to Red Robin because the kids won't sit still, and who wants to pay $5.95 plus tip for your three-year-old to suddenly declare he HATES mayonnaise and won't touch any of his burger? The ones who are watching the commercials that attempt to make them feel good about their choice -- made because they're too busy, or broke, or stressed out to go anywhere nicer or cook at home. You've seen the ads, the ones which position McDonald's as a way to spend quality time with your kids. (Subliminal: not only should you not feel guilty for going to McDonald's, you should feel great! You're creating memories!)
In a word, this burger is for the dads. (And, in my case, the pregnant mamas, although I don't think that was really the reason the top brass in McDonald's board room put their rubber stamp on the concept.) They're hungry, and they're driving. You might be appealing to mom's guilt, but dad? Let's go straight to his belly. It's a strategy that's a few thousand years old, and it's still going to work.











Reader Comments (Page 1 of 1)
3-12-2007 @ 8:53AM
Hal Somervill said...
If you believe this newest marketing ploy, you should be required to watch "Supersize Me" 20 times! This is a "documentary" where the subject is advised, by his doctor, after three weeks of only McDonalds fare, to quit this experiment, lest he DIE!!!!! And you wonder why so many Americans are FAT! And it's not only McDonalds. Try the newest 4 decker Burger King sandwich. Just look at the picture and feel your arteries clogging and your gut bulging. Then, after eating a couple pounds og fat and sodium, slug down a supersized 96 ounce soda.
After such a nutricious meal, go take a nap because you're too full to move. Then, complain about clothing manufacturer's making the sizes smaller, and the skinny models on TV (which you watch all the time)not truely depicting the Americam anatomy. DUH!
3-12-2007 @ 1:11PM
Bob Cohen said...
People such as myself appreciate it when there is something out there that is more than just the average hamburger. I enjoy a good burger once in a while and when I make one at home it is usally a half pounder. So, a 1/3 pounder in the fast food market is quite a welcome site, even if I am not much of a McDonald's person because there regular burgers are just a bit too cardboard tasting to me. An Angus burger will be a definite welcome change and I just might have to see if my local McDonald's has this one.
3-13-2007 @ 9:24AM
Brad said...
Hal, how about you exercise some self-control and don't supersize you meal or order a salad. Instead of blaming fast food for you weight problem, try some personal responsibility. Nobody is putting a gun to your head and making you order that half gallon soft drink!
3-12-2007 @ 1:02PM
Renee said...
I don't know what is going on. Since hurricane Katrina damaged so much in this area, the people working at our local McDonalds have gone to the dogs. You go in only to find that workers are perched away in a corner or in the lobby or restroom using cell phones. It takes forever to place your order and another forever to get it. When you finally get your food it is never right. Does anyone working there care at all? Last night I went out McDonalds because it is the only restuarant open after 9pm only to see a worker receive her small children (2) while working and usher them to the rear of the store. A few moments later the child was pushing buttons on the deep fryer and being ignored by coworkers as she repeatedly asked, "where's my mommie"? Many of the items on the menu was not available so basically everyone placing an order settled for something else, waited forever to get it and it was not what they ordered. What is really going on? Instead of making a bigger burger, McDonalds should be investing in training and demanding acceptable work standards from their employees. I am sick of McDonalds..............
3-12-2007 @ 12:02PM
Mark said...
Why not add this to the menu, everytime I go to a sit down type restaurant I am paying BIG bucks for a Hamburger. This way I can get some meat with my burger not have the fries and still have a meal a meal and stay with in a 2000 calorie diet, and go thru drive thru and take it home and make a salad to go with it.
Wake up America you are already doing this.
3-12-2007 @ 12:14PM
cbylatte said...
I have tried it twice. Like anything else a huge company tries..it was just OK, pretty overcooked, not nearly as good as a carls jr.
3-12-2007 @ 12:30PM
Ann said...
the problem with people who shove things like "Supersize Me" at others is that they place the blame in the wrong place. We can ask our restaurants and fast food outlets to use healthier ingredients, but the final decision of what to eat is ours. There is nothing wrong with a 1/3 pound burger per se -- anymore than steak, desert, fruit juice, granola, coucous, or veggies -- it is the total intake that is important as well as the other activities of the patron. I am royally tired of all of those who want to look into My refrigerator, my closet, and my fast food left overs -- how about if everyone makes their own food decisions and leave others alone? You are not my keeper. Do something positive- work for Habitat for Hunanity - volunteer at the local school - collect food for the poor.
3-12-2007 @ 1:02PM
Cliff Sneyers said...
I just love getting mouth around a huge burger - this is great lets spread it around. Get it over here in New Joisey!
3-12-2007 @ 2:02PM
pat cochran said...
We have to remember that Mac Donald's and ALL mega companies are in it for profit. They don't care about you or your family's health. They care about PROFIT. Look at our country's obesity problem. We are the fattest country in the world. Look at our children. Its not their fault. The blame lies with the parents. We have to show them how to eat the right things and make good choices. Shame on MacDonalds. I'll take my children and grandchilren to eat somewhere that makes a conscious effort at good nutrition. People are weak and make bad choices. And MacDonalds is cashing in on that. I won't be part of their profit plan anymore and I hope a lot of other families feel the same. Wake up people there are plenty of places to eat besides MacDonald's.
3-12-2007 @ 2:04PM
VICTORIA GRODEMAN said...
I HAVE TO AGREE WITH RENEE. WHY WOULD YOU WANT TO PUT ALL OF YOUR TIME AND ENERGY INTO A BIGGER BURGER TO GET A COMPETITIVE ITEM IN YOUR MCDONALDS MARKET. WHEN YOUR PROBLEM IS NOT WHAT YOU HAVE ITS WHOM YOU HAVE WORKING FOR YOU. USE YOUR MONEY TO INVEST IN RESPONSIBLE EMPLYERS. MEANING PAY BETTER WAGES, GET BETTER PEOPLE TO WORK FOR YOU. WE DON'T GO TO OUR LOCAL MCDONALDS ANYMORE BECAUSE OF THE SAME SITUATION WITH RENEE. THEY ARE A BUNCH OF YOUNG ADULTS WITH A TENDANCY TO BE MORE FOCUSED ON THEIR FRIENDS THAN ON THE CUSTOMER AT HAND. NEVER BEEN RIGHT WITH ANY ORDER WE HAVE EVER GOTTEN. SO BY MAKING THIS BURGER ALMOST $4 YOU SHOULD PROFIT VERY WELL WITH ALL THE PEOPLE THAT DON'T GET WHAT THEY PAID FOR ANYWAY. I HAVE CALLED AND COMPLAINED MANY TIMES ONLY TO HEAR THESE WORDS EACH TIME "THEY ARE YOUNG, THEY ARE NEVER HERE VERY LONG FOR US TO BEABLE TO TRAIN THEM WELL". YOUR $4.00 BURGER WON'T GET YOU THE BUSINESS YOU NEED, BECAUSE MOST PEOPLE WILL GO WHERE THEY GET GOOD SERVICE, NOT WHERE THE LARGER BURGER IS.
3-12-2007 @ 2:15PM
Jimmy said...
Why don't you fast-food lovers GET OFF the habit, learn to prepare a few simple healthy meals at home, and stop making fat corporate America even fatter? My Mom did it with FOUR kids, no problem. You all need a little discipline and some motivation to eat better and be healthier. To HELL with fast food! STAY AWAY FROM IT !
3-12-2007 @ 4:02PM
Carly said...
Ummmm, Yes, McDonald's is in it for profit, what company is not in business for profit? I generally eat very well, watch my calories, my fats, salts and so forth. But there are times, I need (WANT) a BIG, JUICY BURGER with all the trimmings and extra mac sauce to boot. McDonald's should have on their menu whatever sells. People are supposed to be RESPONSIBLE for what they do, whether choosing to eat right or abide by the laws of our land! Let's put the responsibility back on ourselves! A big burger once a month WILL NOT KILL ANYONE!
3-14-2007 @ 6:48AM
Mary said...
McDonald's does not make people fat; their food choices are their responsibility and should be balanced. Any business is out to grab more market share and that is probably what the 1/3 pound burger is hoping to do. Variety is a good thing.
3-19-2007 @ 10:45AM
Donna said...
I never took my five kids to McDonalds and I haven't eaten their food since the 70's. My kids are grown up now and have kids of their own...they don't take their kids to McDonalds. It doesn't take a PHD to understand that eating in places like McDonald's has cheapened family values. A meal is more than toss it down go. And the proper nutrition isn't there when you look at the food. It doesn't taste like the food you cook at home...it's low quality and it's questionable about how many people have touched it in the process before being served out a window. If you don't have time to cook a good meal for your kids, then you need to make changes. Their lives do depend on it. In my case, it has trickled down to my grandchildren and I am very proud of that.
3-19-2007 @ 12:30PM
Walt Serth said...
This constant attack on Mc Donald's is a joke. Their menu is no different, healthwise, than any other fast food restaurant. In fact you can go to a regular restaurant and order a large hamburger, a large fry and soda and the calories and bad fats and oils will be the same. If you eat too much, that's your fault. All restaurants try to serve healthy food. They can only serve what's available. If the food is made unhealthy in processing before it reaches the restaurant, that's not their fault. Remember...mother nature didn't make any food that was bad for you, it only gets bad when we mess with it. Learn about the 'nutrition revolution' that is quietly going on. Independent food and nutrition researchers are 180 degrees opposite from food company nutritionist on fats and oils. They finally got them to admit transfats were bad. Vegetable oils will be next, cause their all over 50% Omega 6 and some (canola) are over 80% Omega 6. That's the stuff that clogs your arteries.
3-19-2007 @ 2:06PM
altsys1 said...
America is fat and this is one of the causes.
At 200lbs to lose 1.3lbs a week you need to consume between 1300-1700 calories plus exercise. This burger with the quoted calories of "between 720-840" plus fries, a sode and maybe desert is your one meal a day!
The bigger concern about this article though is "bringing your kids". Kids should not be eating this junk. "Sit still" heck, kids can't sit still because they need good food, "without all the sugar!!!" and lots of exercise. Why do people take time out of there day to "run" their dog but the kids are allowed to play video games, watch TV and eat junk. Please pregnant lady get grip before its too late for your kids.
3-19-2007 @ 2:37PM
mike said...
SUPER SIZE ME??? What about PERSONAL RESPONSIBILITY?? and PARENTAL GUIDANCE???? Why blame McDonald's, Carls, or Jack in the Box for the
health problems of those in America... when , it all falls on personal choice... like smoking and drinking alcohol... and the choice to get up off your ASS AND EXERCISE!!!