McDonald's is bringing back one of its most expensive failures with one major difference

Posted by Tandra Barner on Saturday, August 17, 2024

McDonald's is testing a new take on a high-profile flop.

The fast-food chain recently began a test of Archburgers made with fresh beef at a handful of restaurants, McDonald's confirmed to Business Insider. A note from the Nomura analyst Mark Kalinowski says it's testing the fresh-beef burger at seven locations in Oklahoma and Texas.

With the test, it appears the chain's Arch Sauce, a mustard-mayo combination, has returned to the menu. The sauce debuted in 1996 a topping for the Arch Deluxe, a sandwich aimed at more sophisticated and "adult" customers.

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McDonald's spent an estimated $150 million to $200 million advertising the Arch Deluxe's rollout — at the time the most expensive promotional campaign in fast-food history, The New York Times reported.

Though the fast-food chain's executives had predicted it would bring in $1 billion in sales in 1996, the burger — which at $2.09 to $2.49 was on par with or pricier than typical McDonald's fare — failed to win over customers and was discontinued in the late '90s.

Now, McDonald's is once again trying to use Arch Sauce to appeal to more gourmet-minded customers, pairing it with fresh beef in the Archburger. But this time, an Archburger with cheese, pickles, onions, and the sauce is cheaper, starting at $2.19. For comparison, a Big Mac costs about $4.

"We are continuing to raise the bar for our customers with new menu items and ways to experience our brand," said Becca Hary, a McDonald's representative.

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