evolution of dollar menu

Executive Summary
In early 1990, Wendy's introduced a mini-menu of "super value" items costing less than $1 and so did Burger King, as well as a host of other restaurants like Taco Bell, Pizza Hut, and Kentucky Fried Chicken. Late in 1990, McDonald's, the world's largest fast-food chain, was forced to respond and decided to mark down several of its menu items to well below $1 in a desperate effort to win back customers that it lost to competitors because of their lower prices. The move intensified an already brutal price war in the industry.
While demand continues to grow, so does competition, and a shakeout in the fast-food industry is in the making with only the big chains probably surviving. Increased competition and lower profit margins at home are also driving the large fast-food chains to expand abroad, where competition is weaker and profit margins are higher.
Free market condition is continuous with McDonalds, Wendy’s and Burger King. For these restaur...