- McDonald's -
Sorry, but I have nothing to learn from you on this subject, my friend !
Posted by: Gill ( Northern Ireland ) on January 20, 1999 at 11:53:21:
In Reply to: basic economics posted by Tim on January 17, 1999 at 15:27:25:
. Errrr, did anyone ever explain basic economics to you? Or maths, for that matter?
Yes, many years ago. Actually, it all came in very handy when I was a Store Manager for 5 years, especially when I had to analyse the food cost percentage and try to come up with ways to reduce it ! The con starts to become apparent when you look at the food cost for the items. The items with the lowest food cost and highest profit margin are fries and drinks. So, if they can be sold separately (to go with that "free" mac) that is how the cost of the promotion is recouped. The profit shows up when the month end accounts ard processed. I can't believe that customers fall for it - there is nothing free in life. I'm sure all the crew had a little script on the back of their till toppers, prompting them to offer fries and drinks with the free mac. What I find so amusing is that customers actually believe McD's are doing them some big favour. There is a motive behind everything - it's never as simple as "our birthday present to you". It goes along the lines of building customer loyalty (not that many of them will be attracted back into the stores after queueing for so long !) , strengthening the brand, boosting the usual appalling January sales figures, trying to stay one step ahead of the competition. Sure, the promotion got publicity, but not the intended way. It made the marketing department of McD's out to be a bunch of tossers. And then the crawly arselick apology in the press. ooh, the great british public - they'll stick by us - won't they ? Yeah. As long as they are getting something for nothing. Hell, they'll join a 45 minute drive thru queue for it - if it's "free".