Tag Archives: fast food

a hamburger

The Value Proposition of Thinking in Round Numbers

Read More »

Today’s topic, the Dollar Menu. We see these are many fast food restaurants. But it turns out, it was a big mistake to create these. It was inevitable that inflation would make anything in this category as a losing proposition for the restaurant. We saw the serving size get smaller and smaller, but there is only so far that can take us. But the restaurants found themselves unable to change the menu to the “Dollar and ten cents menu.” The round number of the Dollar had created a strong mental schema of the value proposition that a dollar ten just couldn’t match…