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It would be interesting to know where McDonald's locations are being shut down, at least within the USA. I wonder if they are being shut down in the South. I live in the Atlanta area. I've seen cases where Chick-Fil-A(an Atlanta-based fast food chain) locations are more crowded than the McDonald's locations.
Cases? The rarity is when a CFA isn't more crowded than McD's..
Quote:
Originally Posted by jaypee
They make it up in volume.
If you lose 25 cents per burger.. You don't make anything up in volume. You just lose more and more money. 15 cents isn't enough to cover the ingredients. They're already buying 560 million pounds of beef a year.. So, they are pretty much at the lowest possible buying point.
If you lose 25 cents per burger.. You don't make anything up in volume. You just lose more and more money. 15 cents isn't enough to cover the ingredients. They're already buying 560 million pounds of beef a year.. So, they are pretty much at the lowest possible buying point.
Starbucks customers have more money than brains. No sign of that changing. MDs customers have typically been more value conscious. MD has been raising prices and other fast food joints now offer similar value. Not that they all aren't getting overpriced for a fast food lunch.
Not so much as cost as it is taste and perception. Even with costs in mind, what is the taste difference? To many people, the extra couple of dollars is not a big deal compared to the value they are getting from a place like Five Guys for example.
McDonalds is drifting into being a price conscious place to eat, not really what I think they want, but I do not sit on their board. It seems any attempt to break from this is met with failure. Those who only have a couple of dollars to spend will go there, while those who think nothing of dropping ten bucks on a burger and fries will go somewhere else. It was not like this before when McDonalds was the only game in town (or Burger King/Wendys).
That is why I go there. It's the dollar store of fast food. If I want a good burger and fries and pay $10-15 I'll go to a local place, Five Guys, heck even Applebees or something like that.
When I want to eat cheap and now, I go to McDonald's.
Starbucks customers have more money than brains. No sign of that changing. MDs customers have typically been more value conscious. MD has been raising prices and other fast food joints now offer similar value. Not that they all aren't getting overpriced for a fast food lunch.
Starbucks is doing great, profits are growing slightly beyond expectations.
In 2006-08 Starbucks streamlined and closed down a lot of their redundant stores. Since then they have killed it business-wise. They went a little bit too hippy-dippy with the "race together" thing, but their other stances have helped them. I have friends who purposely boycotted Chick-Fil-A and started patronizing Starbucks more just because of the gay marriage fight those two companies had.
I think if McDonald's pulled a Wal-Mart and raised their wages, just a little bit, it would do wonders for their PR and drive business.
It seems like ever since the gay marriage thing, Chick-Fil-A has been more crowded around here. The drive-thru line at lunch is so long I don't even try...
It was like that before the gay marriage thing. Chick-Fil-A doesn't have as many stores - and as others have said, they are a step up from your low-level fast food.
McDonald's has really lost their way. Many of their locations are dumpy and outdated. Unfortunately, they have been gravitating to the lowest common denominator. They would do better to close older locations and put-in double drive thru's and update the dine-in experience. The dollar menu food is too cheap to maintain any kind of quality - - maybe double the price and hit a reasonable balance? They wish they had the per-store volume of a Chick-Fil-A.
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