Posted on 05/21/2024 6:53:00 PM PDT by Libloather
An independent group of McDonald's franchise owners have spoken out about the the chain's $5 meal bundle planned for this summer.
The US's biggest fast food chain is trying to lure back customers fed up with its price hikes.
Customers will get a total of four items - either a McDouble or McChicken sandwich, small fries, small soft drink and four McNuggets - for $5.
'The fact remains that in order to provide the consumer with more affordable options, they must be affordable for the owner/operators.
'McDonald's vast resources and financial investment are essential to any sustainable affordable strategy,' the board of the National Owners Association wrote in a letter to membership.
The letter says that McDonald's restaurants have small profit margins - of '10 to 15 per cent' - which makes it hard for them to run offers like the $5 meal bundle without help from head office.
'There simply is not enough profit to discount 30% for this model to be sustainable. It necessitates a financial contribution by McDonald's,' the letter says, according to CNBC.
DailyMail.com reported last week that not every restaurant will offer the deal - with those that have higher labor and rent costs opting out.
We also told how the deal will only last for a month from June 25 - rather than all summer.
Despite McDonald's making $14.5 billion profit last year, the deal is being subsidized by its drinks supplier Coca Cola and its franchisees, who run nine in ten restaurants.
(Excerpt) Read more at dailymail.co.uk ...
Yep. It can hardly be called a "family restaurant" anymore.
The internet is FULL of videos of violent fights breaking out in the lobbies, parking lots, between customers, customers and employees, etc. ALL from the usual suspects. What responsible parent would subject their children to that uncivilized jungle insanity?
Look up some of the nostalgia videos of McD's from the 70's and 80's, both marketing and real footage. The stores were white, peaceful, and pleasant.
Many people do not realize that. The McDonald's Corporation owns the land and buildings that the restaurants are built on. Most of their revenue is generated by collecting rent and franchise fees from the franchisers.
Ray Kroc spent most of the 1960s in a helicopter over the sprawling suburbs around major cities, observing traffic patterns and predicting where major intersections would be as the interstate highway system got built out. He scooped up prime parcels that were then dirt cheap as those areas were mostly still undeveloped.
For all Ray Kroc cared, the chain could have been selling tacos or donuts instead of hamburgers, fries and milk shakes. He happened to buy out the McDonald brothers only because he saw how many milkshake mixers they were buying for just a single location in San Benardino. (Kroc was originally a salesman for a milkshake mixer company.)
Ultimately, it becamse all about the real estate. The hamaburger chain was just an easy way to bring in franchiser/owners who would bear the burden of running the day-to-day operations of the restaurants. I believe the McDonalds Corporation does own and operate a certain percentage of restaurants which allows them to try out new concepts and products before pushing them out to the rest of the chain.
Ray Kroc did a lot of market research as to where to locate the businesses. The competitors like Wendy’s and Hardies would locate close to the Micky D’s. and didn’t have to expend all the costs of market research.
Two words: Red Lobster.
My son-in-law used to work for Coke and brought us the trial versions of Coke Spiced last winter-—hard pass.
I can go to a local restaurant and get a nice, big burger loaded with toppings and steak fries for $10 at lunch or $12 for dinner and get curb side service. Why would I spend that much for a see through MickeyD’s rendering of a hamburger.
If I am hard put and have to each fast food I prefer the Wendys $5 biggie bag.
i like wendy’s my investment in wendy, however, it loosing .....
mcdonalds , that i dislike immensely, however, have stocks price that consistently goes up.
i should’ve invested more in mcd.
McD’s has abandoned its core customer base, constituencies
1. families with children
(no more playlands, no more grub boxes with toys inside...)
2. people on limited budgets
(no more dollar menu...)
It is not clear whether they have any idea what customers they can attract in place of the above. Certainly not business people and not many workers with average incomes
are gonna wanna pay $15 for a little burger, fries, sodapop.
McD’s has abandoned its core customer base, constituencies
1. families with children
(no more playlands, no more grub boxes with toys inside...)
2. people on limited budgets
(no more dollar menu...)
It is not clear whether they have any idea what customers they can attract in place of the above. Certainly not business people and not many workers with average incomes
are gonna wanna pay $15 for a little burger, fries, sodapop.
not in California. I just tried a random California restaurant on their website and it was $8 for a basic biggie bag, no extras.
I remember my dad getting several bags of burgers 10 for $1 at Burger Chef on Tuesdays.
Fuck that !!! It’d the sodas and fries that make these “meals” so unhealthy!!!!
I accidently picked up some ZERO Coke last week. (It looked just like regular.)
One taste and SPIT!!! I’ll find a way to get rid of it.
In Central Europe and Asia, the McD’s are targeted at families with children - playgrounds, clean and neat.
But they aren’t cheap as in the USA.
They are ubiquitous and at really good locations, so they do quite well.
Strange how the McD’s have changed here
Friend went there got one TINY breakfast sandwich and coffee and fries, or rather a little hash brown wedgie of about bites .
Cost her about $13
And naturally she was still hungry since there was so little food with such small portions.
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