The existing rivalry between fast food giants, McDonald’s Corporation (NYSE:MCD) and Taco Bell Corp has just been taken up a notch. McDonalds is giving free food to Taco Bell customers through some of its branches.
The McDonald’s branches of Northern Pennsylvania that are carrying out the customer pulling project will give free egg muffin sandwiches to Taco Bell customers who come with a breakfast receipt from Taco Bell. The promo is currently in effect until April 17.
The offer is only limited to one individual, meaning one Taco Bell breakfast receipt can only be redeemed by one person. The offer is currently available in Pennsylvania. There is no news as to whether the promotion will expand to other states or regions, but there is speculation that it probably will.
The company has not made any official statements about the program. The fight for market share has concentrated mostly on breakfast foods. The Taco Bell move is the latest from McDonald’s, since the announcement of serving breakfast meals throughout the day. Recent surveys also revealed that spending on breakfast foods went up by 7% since February. The breakfast statistics exceed those of dinner and lunch.
According to a capital markets authority known as Mark Kalinowski, the offer by McDonald’s is an indication that the company is concerned about the stiff competition. It is clear that other fast food companies are quickly encroaching on the market that was previously dominated by McDonald’s. It is also proof that the company’s rivals are also offering very competitive and good quality foods.
The fast food giant has had a comfortable past with its popular foods and widely known brand. However, the reality now is that it faces competition that threatens its market share. McDonald’s Corporation (NYSE:MCD) is thus introducing creative projects that are aimed at maintaining a big market share. The competitive approach is working. This is evident by the all-day breakfast strategy that has reported a 6% improvement.
