Burger King once sold 10 chicken nuggets for about a dollar. Now its president is explaining why the fast-food chain doesn’t want to repeat that strategy.
Tom Curtis, president of Burger King U.S. and Canada, says those deeply discounted nuggets came with an unexpected problem: Customers questioned whether the food was any good.
“Because if it’s a 99-cent order of nuggets, what could actually be in that bag?” Curtis said at a November restaurant industry conference in Las Vegas, according to Franchise Times.
“So, no more 99-cent nuggets,” he added.
Miami-based Burger King offered 10 chicken nuggets for $1 in 2018, part of an era when fast-food chains competed aggressively on ultra-low prices.
But Curtis’ remarks weren’t an announcement of a new price increase. Instead, they offered a window into how Burger King is rethinking discounts as it tries to improve food quality while keeping customers who are watching their spending.
The comments highlight a growing tension across the fast-food industry: How low can chains price their food without hurting restaurant owners’ profits or making customers question the quality?
Burger King’s answer increasingly involves improving its food rather than relying on the lowest possible price. The chain introduced upgraded nuggets in September while continuing to offer value meals aimed at budget-conscious diners.
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Why Burger King is moving away from 99-cent nuggets
Curtis said Burger King wants to deliver better food while keeping prices consistent, rather than relying on unusually cheap promotions that can be difficult for franchisees to sustain.
The chain is still willing to offer aggressive discounts, but Curtis described using them for brief periods to introduce customers to products Burger King believes are worth trying.
Those offers might last seven or 10 days, he said, rather than becoming prices customers expect indefinitely.
“You can’t sustain that because of the franchise P&L for very long,” Curtis said, according to Franchise Times.
Burger King isn’t abandoning discounts, though. Parent company Restaurant Brands International highlighted the chain’s $5 Duos and $7 Trios during its Oct. 29 earnings call, saying the offers continue to attract value-focused customers.
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The distinction is between offering an affordable meal and using an extremely low price that may be difficult to maintain.
Burger King introduced revamped chicken nuggets in September, emphasizing 100% white-meat chicken, crispier breading and new dipping sauces.
During the company’s third-quarter earnings call, CEO Josh Kobza said average restaurant sales of nuggets had increased more than 35% year over year.
As TheStreet previously reported, rising beef costs have also put pressure on Burger King franchisees and complicated restaurant remodeling efforts.
That makes the economics of promotions especially important. Deep discounts may attract customers, but they also need to make financial sense for restaurant operators.
McDonald’s also rethinking its value strategy
Burger King isn’t the only fast-food giant reconsidering how it uses discounts.
McDonald’s has also been shifting its approach to value, emphasizing bundled meals and targeted digital promotions rather than relying solely on the lowest possible prices.
As TheStreet previously reported, McDonald’s pulled back on digital discounts and eliminated its Buy One, Add One for $1 promotion as it invested in other value offerings.
The chain is now preparing another round of value bundles for early 2027 after U.S. same-store sales declined 0.2% in the third quarter.
McDonald’s is testing mix-and-match and fixed-price combinations at about 1,900 restaurants. One possible offer would pair a McChicken sandwich with small fries for $3.50, according to The Associated Press.
Both chains are trying to convince customers they’re getting enough food for their money without relying on discounts that are difficult to sustain.
Related: Amazon Prime makes a change to its food delivery perk
