It always takes a year or two for the business to really feel it. First, it takes consumers awhile to visit and realize the prices are so high. Most people aren’t going to McDonald’s every week. And sometimes it takes a few visits before they really notice the sting.
Eventually, the place just gets a reputation for being pricey, and people slowly stop going. But it’s a frog in a boiling pot thing, and of course the executives search for any other reason besides their own pricing decisions from 18 months ago.
Have you ever noticed in those surveys they always ask “what can we do better?” And the answers usually don’t include “be cheaper”.
you also have to consider the point of being “the only option”. I live in a major city and here there’s a central transit hub downtown, very large, trains and buses and subways coming in and out. The place has a decently sized food court, opens at 5am and that’s when the first batch of morning commuters start coming in. So naturally they want their coffee and breakfast. Out of ALL the food options there’s only ONE place that’s open. McDonald’s. So the line ups in the morning are long because it’s the ONLY place to get a coffee and a sandwich.
At night the station closes at 230am. Most of the food places close around 10pm. The station is next door to a major sports/events arena. So every now and again you have people in the station late at night waiting for trains and buses to take them home after a sporting event or concert. What’s the only place that’s still open at that time of night? McDonald’s.
for those two periods of time the place does well. during the day when other, cheaper, options are open next to them they don’t, it’s dead. there’s no lineups and the staff are twiddling their thumbs. But for those two periods in the day when they’re the only option in the area? they kill it.
Another reason it “can’t be pricing”. Look, these locations are doing fine. What’s wrong with yours? Clearly the problem lies with local management and, clearly, vitally, not with executive decisions.
It always takes a year or two for the business to really feel it. First, it takes consumers awhile to visit and realize the prices are so high. Most people aren’t going to McDonald’s every week. And sometimes it takes a few visits before they really notice the sting.
Eventually, the place just gets a reputation for being pricey, and people slowly stop going. But it’s a frog in a boiling pot thing, and of course the executives search for any other reason besides their own pricing decisions from 18 months ago.
Have you ever noticed in those surveys they always ask “what can we do better?” And the answers usually don’t include “be cheaper”.
you also have to consider the point of being “the only option”. I live in a major city and here there’s a central transit hub downtown, very large, trains and buses and subways coming in and out. The place has a decently sized food court, opens at 5am and that’s when the first batch of morning commuters start coming in. So naturally they want their coffee and breakfast. Out of ALL the food options there’s only ONE place that’s open. McDonald’s. So the line ups in the morning are long because it’s the ONLY place to get a coffee and a sandwich.
At night the station closes at 230am. Most of the food places close around 10pm. The station is next door to a major sports/events arena. So every now and again you have people in the station late at night waiting for trains and buses to take them home after a sporting event or concert. What’s the only place that’s still open at that time of night? McDonald’s.
for those two periods of time the place does well. during the day when other, cheaper, options are open next to them they don’t, it’s dead. there’s no lineups and the staff are twiddling their thumbs. But for those two periods in the day when they’re the only option in the area? they kill it.
Another reason it “can’t be pricing”. Look, these locations are doing fine. What’s wrong with yours? Clearly the problem lies with local management and, clearly, vitally, not with executive decisions.