DATE: Thursday, February 27, 1997           TAG: 9702270457

SECTION: FRONT                   PAGE: A1   EDITION: FINAL 

SOURCE: BY AKWELI PARKER, STAFF WRITER 

                                            LENGTH:   82 lines

THE 55-CENT BIG MAC? SANDWICH MAY BECOME CHEAPER

Earl Vestal loves chowing down on a char-grilled, 99-cent double cheeseburger from Hardees. He's also adept at making short work of Burger King's flame-broiled, 99-cent Whopper. But, said the Norfolk construction worker, ``I've never been impressed with a McDonald's hamburger.''

It's thinking like Vestal's - and voracious competition - that have prompted McDonald's to unwrap its latest weapon: the 55-cent Big Mac.

For the pricing plan to go into effect in any given territory, a majority of store owners in the region must approve it. That hasn't happened here yet.

``Campaign 55,'' management's name for the marketing offensive, would reduce the cost of a Big Mac to 55 cents when a customer also ordered a drink and fries, the Wall Street Journal reported Wednesday. The sandwich now costs $1.89 in Hampton Roads.

McDonald's denied the Journal's report that customers would be promised their meals within 55 seconds or get a coupon for a special sandwich.

Nationally, some franchise owners have grumbled that a 55-cent sandwich would send profits through the floor. Licensees own close to 90 percent of McDonald's stores nationwide, according to Nation's Restaurant News.

But many area owners and managers were in the dark about the proposal Wednesday or referred questions to the corporate office.

Those who would speak found the proposal at least palatable, even if it pushed the envelope of practicality.

``I would have to say that with my experience with McDonald's, anything is possible for us,'' said one Hampton Boulevard store manager, who spoke on condition of anonymity.

Maria Monasterio, a McDonald's manager at 211 East Little Creek Road, said that the company could pull off Campaign 55 through sheer brawn.

``McDonald's has done so many changes,'' Monasterio said. ``If that's what it takes to get customers in the door, I don't have any problems with that.''

Neither does Norfolk resident Chantal Lockley, who was grabbing a quick bite at McDonald's with her daughter. Although Lockley thinks ``Wendy's is the best,'' she said she might visit Mickey D's more often for a 55-cent sandwich.

The 55-cent promo would rotate among the Big Mac, the Quarter Pounder, McRibs and the Arch Deluxe and could become permanent.

Not so ironically, the idea comes on the heels of a movement the company couldn't muscle through, the flopped Arch Deluxe campaign. McDonald's tried to woo older and presumably wealthier taste buds with the sandwich's ``special'' sauce and higher price - $2.09 - but industry watchers say the public didn't bite.

``Here is a sandwich that is supposedly targeting the grown-up baby boomer,'' said Bill Carlino, editor of Nation's Restaurant News.

``(But) nobody wants to go to a quick service and pay more than you would at an I-HOP.''

Wall Street found the 55-cent proposal a little hard to swallow Wednesday, with McDonald's shares falling 2 1/2 and ending at $44.89.

``C-55,'' as it's known within the company, is part of a broad corporate strategy to turn around the company's sagging fortunes. While total U.S. sales improved last year on the opening of 726 new stores, domestic operating earnings fell by $108.3 million, to $1.14 billion.

The company has more than 12,000 stores in the United States and 15,000 worldwide. There are nearly 50 in South Hampton Roads.

Despite its expansive reach, McDonald's has been beleaguered by inroads made by fast-food rivals Burger King and Wendy's. A dietary migration of baby boomers from fast food to more health-conscious fare hasn't helped the company's bottom line either.

And the rise of niche chains like Boston Market and ``eat-ertainment'' venues like Planet Hollywood have further eroded the dominance of McDonald's, according to Carlino.

``There are just more options for people to eat out these days,'' he said.

C-55 is only the latest shake-up at the company. After a management shuffle and the Deluxe debacle, the chain replaced Edward H. Rensi at the helm of the company in favor of Jack M. Greenberg.

A few weeks ago McDonald's slashed the price of its Chicken McNuggets, down to 99 cents for an order of six.

But don't expect an all-out burger war, Carlino said. Both Burger King and Wendy's announced they would not alter their prices.

Drawing a football analogy to McDonald's management, Carlino said, ``It's getting to `Hail Mary' time for them, especially domestically.'' ILLUSTRATION: Color photo

McDonald's Big Mac KEYWORDS: MCDONALD'S RESTAURANTS

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