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Old 05-13-2019, 07:12 AM
 
Location: East Coast of the United States
16,882 posts, read 19,267,357 times
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Quote:
Originally Posted by MinivanDriver View Post
Ever been to the McDonald's in Times Square?
I went there and had to stand in a long line for 20 minutes to use the restroom.

But what about it?
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Old 05-13-2019, 07:16 AM
 
147 posts, read 49,131 times
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Lots of the HCOL McDonalds are working on massive volume to stay afloat. I've never been to the McDonalds in Times Square, but I've been in the HQ store in Oak Brook, IL. It's two stories and absolutely huge. I'd love to have one day's receipts from that store!
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Old 05-13-2019, 09:51 AM
 
5,231 posts, read 2,171,361 times
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Quote:
Originally Posted by BigCityDreamer View Post
I went there and had to stand in a long line for 20 minutes to use the restroom.

But what about it?

It's operating on the volume model. In other words, sheer numbers of people coming through there to justify the higher operating costs.
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Old 05-13-2019, 10:04 AM
 
1,140 posts, read 1,023,090 times
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Quote:
Originally Posted by GoodHombre View Post
I checked Chipotle price online(Los Angeles vs Tulsa), the prices seemed to be the same.
A steak burrito bowl locally is $8.00. In NY it's $9.95.
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Old 05-13-2019, 10:07 AM
 
Location: Aurora Denveralis
7,263 posts, read 2,538,270 times
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Quote:
Originally Posted by MinivanDriver View Post
It's operating on the volume model. In other words, sheer numbers of people coming through there to justify the higher operating costs.
You also have to consider the value of flagship stores, that carry and promote the brand even if they are zero profit or even run somewhat in the red. The Times Square store is probably profitable (think about rents and property tax alone, though...) but would be invaluable even if it cost a net $20M a year to run.

Many of the early Starbucks were run on this premise.
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Old 05-13-2019, 10:11 AM
 
Location: Shawnee-on-Delaware, PA
3,853 posts, read 3,520,316 times
Reputation: 7065
Quote:
Originally Posted by GoodHombre View Post
I'm not exactly sure whether Chick fil A/McDonald's charge exactly the same price in the high cost of living areas like Manhattan or SoCal, but at least they seem to charge similar prices?

Does that mean their profits in the high cost of living areas lower?

First of all, McDonald's in Manhattan charge way higher prices than in other areas.


Second, in these high COL areas you're going to get very large volumes of customers compared to other more sparsely populated areas so there's almost never a slow time. All or most of your cash registers are always active.


Third, no landscaping, no parking lot to maintain or plow, no drive-up window, so none of the expense associated with that stuff.
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Old 05-13-2019, 10:15 AM
 
Location: Aurora Denveralis
7,263 posts, read 2,538,270 times
Reputation: 11192
Quote:
Originally Posted by jtab4994 View Post
Third, no landscaping, no parking lot to maintain or plow, no drive-up window, so none of the expense associated with that stuff.
Right. Just 50,000+ square feet of corner retail frontage in one of the most expensive business zones on earth.
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Old 05-13-2019, 11:02 AM
 
Location: Lower East Side, NYC
2,093 posts, read 1,340,865 times
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Err, it's McDonalds, not really great food. I only go to the one near me or in Chinatown for $1 smoothies or coffee. It was roughly the same price at the one in Shibuya, Tokyo that was 3 stories and you could smoke in. Prices don't seem different in the ones in Naperville that I used to go to when I worked in Woodridge, IL oh so long ago. I'll take a closer look.

Aside from that, when did Red Robin get so expensive?! $20 per burger basically tax and tip included in Aurora, IL. I don't recall ever spending more than $10 or so when I was younger.
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Old 05-13-2019, 11:06 AM
 
Location: Aurora Denveralis
7,263 posts, read 2,538,270 times
Reputation: 11192
Quote:
Originally Posted by Javawood View Post
Err, it's McDonalds, not really great food.
Right. I took a picture of the quaintly styled McD's in Dusseldorf and then went into a bierstube across the street. Tourists...

OTOH, the times I spent a week or two in Manhattan on business, after about four days of white-linen meals I just had to stop for a Wendy's burger to cleanse my palate.

Quote:
Aside from that, when did Red Robin get so expensive?!
They've been slowly repositioning themselves upscale from "McDonald's with table service" to the Red Olive Lobster Garden tier.

Also, beef has shot through the roof. Look at Outback's pathetic offerings these days as they try to hold the line on expected cost. You could put some of those steaks on a sandwich, two if you wanted a full meal.
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Old 05-13-2019, 11:11 AM
 
Location: Vallejo
13,897 posts, read 15,878,573 times
Reputation: 12528
Quote:
Originally Posted by Quietude View Post
Right. Just 50,000+ square feet of corner retail frontage in one of the most expensive business zones on earth.
Parking lot in a cornfield is more expensive because I hate cars.
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