The Single vs. Double Cheeseburger
I went home this past weekend to visit family and I stopped at McDonalds to get a quick meal. I was going to order a single cheeseburger before I arrived at my house, but when I looked at the menu the double cheeseburger was .19 cents cheaper than the single. As I placed my order I asked if the pricing on the menu was correct. The cashier answered yes, so obviously I went ahead and ordered the double cheeseburger for the “better deal”.
As I was driving off I wondered why McDonalds or anyone for that matter would sell a larger amount of goods for a cheaper price. The only difference between the two burgers was the double cheeseburger had one extra patty and one extra slice of cheese. Why would the double cheeseburger be cheaper? The rest of the ride to my house I thought about this question, and I came up with three explanations. The reasons I believe that the double cheeseburger is cheaper than the single cheeseburger is that some people are willing to pay more to eat less food, the actual cost for McDonalds to produce the double cheeseburger is actually cheaper than the single cheeseburger, and people are more busy these days and the single cheeseburger is in higher demand because it makes a better snack on the go.
The cheeseburger has 300 calories, where as the double cheeseburger has 440. People are willing to pay the extra .19 cents for a smaller burger to have that extra 140 calories taken away. I know that McDonalds is not the ideal place to go when on a rigorous diet, but every little bit counts. McDonalds knows that the consumers will substitute price for health, and that is one possibility why the single cheeseburger is more expensive than the double. People are willing to pay more to eat less.
Another possible reason the single is a cheaper burger is that the actual cost ratio to produce a single cheeseburger is higher than a double over time. This would be true if the buns cost more than the burger meat. For example, three single cheeseburgers use three burgers and six buns, whereas three double cheeseburgers use six burgers and six buns. This makes the double cheeseburger a better deal. So instead of people buying two single cheeseburgers and using four buns, they can purchase one double cheeseburger and feel just as satisfied and consume only two buns. This saves McDonalds money on the cost of buns and therefore that is why they price the single cheeseburger higher than the double.
Finally, my last reason for why the single cheeseburger is more expensive is a result of a higher demand for the single due to it being a better snack. Consumers today are always on the run and they need a quick snack in between meetings or jobs. The single cheeseburger serves as a more desirable snack than the double cheeseburger, which is quite filling. This makes the demand for the single cheeseburger rise, which then raises the price.
People paying more to eat healthier, the double cheeseburger is cheaper to produce in higher quantities, and the single cheeseburger acting as an ideal snack all are possibilities for why the single cheeseburger costs more than the double cheeseburger. I am sure that there are many other reasons and possibilities for why the single cheeseburger is cheaper, but these three reasons are the ones that came to my mind. People make economical decisions in their everyday life without even knowing it. I was not willing to substitute cost for eating healthier, so in return I chose the “better deal” and I took the punishment of not being able to finish all of my mother’s delicious homemade dinner because I was full from a double cheeseburger.
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