“The context is since October of last year, you’ve had lower grocery prices than restaurant prices. And when prices are cheaper at grocery stores, low-income households go there. When McDonald’s is cheaper, they go to McDonald’s,” Wedbush restaurants analyst Nick Setyan said.
But fast-food chains could see a boost early next year, he added. “Prices at the grocery store aren’t going to continue to deflate, and restaurants are going to figure out how to price their offerings the right way.”
So, they’re planning on not lowering prices but instead waiting until folks can’t buy groceries so they come back to where they can afford to eat. Most likely also collude with other brands so they also won’t lower their prices.
The blasé tone in which they describe a business strategy of ‘the poor will come back when they have nowhere else to go’ is horrendous.
Also, the soulless analyst’s name is Nick Satan, this existence can’t be real.
Death to Amerikkka
Remember, McDonalds Corp doesn’t make money off of the sale of a burger. They make money off of real estate and franchise licensining agrements.
I believe they also make a portion of each burger sale
The franchisee pays McDonalds for everything. McPatties? Gotta buy them from McDonalds Corp. McDrinkCups? Gotta pay Ronald his royalties. Uniforms, menus, etc etc.
But what is the most valuable part of this McSupplyChain? Its probably the franchisee agreement and the real estate.
Mcdonald’s is a real estate company. The New York Times is a gaming company. Delta, American, and Southwest airlines are credit card companies.
Soooo if their insurance premiums were to go up… that would really hit them where it hurts? Hold’s up bag of sugar over cement mixer
Wtf, fast food used to be cheaper than groceries in burger land?? Backwards ass country
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Groceries are expensive but the margin on groceries, the actual profit per product, is ridiculously low for the retailer. They make up for this low rate of profit, with volume, getting 1 to 3% profit on each cart of groceries is feasible when you’re serving thousands of customers a day.
Costco only has a 2.5% profit margin for example. And that is with lots of store brands, and very shrewd negotiating to get massive volume discounts.
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Amerikkkans be like:
❌ Boycott a company that supports genocide
✅ Boycott a company because their slop costs too much now
Iirc there was a report a while ago stating that the boycott did significantly affect McD’s revenue along with Starbucks at least. Wish it was more though, would’ve loved to see mass branch closures across the world like we’ve seen in the middle East.
Edit: the impact was less than I thought. The highest figure I’ve seen after a quick search is a 3.6% reduction in revenue in the US
Though that does at least sound like enough for shareholders to get concerned. Especially if their costs have t gone down accordingly.
I feel like anything 5-15% would be considered effective. With how treat-brained westoids are, 3.6% isn’t too bad.
I assume 3.6% of revenue is many millions of dollars, that ain’t nothing
napkin math $246 million over the last year
🎵 boycott McDonald’s they give free food to the iof 🎵
Anyone buying that slop is killing themselves slowly anyways
The key indication that the Burger Reich is falling.
No Burger, just Reich
Dialectical McTerialism
They charge way too much for they’re crappy food! Why would I spend $12 at McDonalds to get a crappy burger combo when I can spend $4 at the gas station for 2 equally crappy hotdogs and a big drink? Scoop Chinese and casual Mexican is all under $8 near me. Why would I ever eat McDonalds?
Also McDonalds food is just poor quality, so if I was going to waste money on fast food I would choose something that doesn’t taste like vomit and depression
McD burgers have always been shitty quality but nowadays they offer burgers that cost 8€ and even their cheapest burgers have gotten way too expensive.
I find it somewhat fascinating to witness fast food becoming a premium option.yeah one can pay a little more and eat a burger in a restaurant that doesn’t cause a sugar rush and stomach cramps. i don’t know who McDs is even selling to these days
I hated it as a kid but nowadays I’m more open to it. Sometimes a little trash hits just right.
I like itMy vomit and depression preference is taco bell.
Same. If I want to feel like shit after eating I at least want it to leavey body in the same hurry I shoveled it in with.
I preferred Burger King anyway, McDonalds burgers are dry and tasteless, its nuggets dont taste like chicken and the fries are mid. Where I lived Burger King was also cheaper since it suffered a huge scandal back in the day when it was revealed that workers were spitting in the food. So all the treatlers overran mcdonalds and burger king was cheap and empty and served better quality.
A response to grocery lol
The wheels are coming off folks
Capitalism is when no burger
I bet this has more to do with the popularity of delivery apps than anything lol
Though the cheap price was a big gimmick of fast food, the convenience of it was also a huge aspect.
With delivery apps making basically all restaurants as equally accessible, and when the price difference is so marginal now, especially when racking on fees, why the fuck are you gonna order mcd’s?
Also… a sit down restaurant is like the same price as fast food at this point lol. Even then, I’d rather have a chipotle bowl for the same price as a burger that makes me feel like shit the rest of the day.
This. I can get excellent Turkish food for less than I can get a combo at McDs. Why would I ever get that slop?
McDonalds makes most of its money from real estate speculation, the burgers are really just for paying property taxes. So if burger sales slump it doesn’t hurt them that much.
A curve is described where if you sell half the items at twice the price you make more money because you save overhead. They are just pushing the slider. If they can sell one burger for a million dollars they coudl save so much on costs.
:man-ray: “Are you, a fast food company?”
:patrick-yep: “Yep”
:man-ray: “And poor people are more likely to buy fast food, and the rich consume less, right?”
:patrick-yep: “You decided burger is worth more, forgoing your base. And if you want to have your sales back, you need to make your products cheaper as you cannot rely on rich people, who do not consume your product, right?”
:patrick-yep: “that makes sense to me.”
:man-ray: “Then stop raising prices”
:patrick-yep: “But I want money and the poor don’t mind!”
Huh. I just make a point of never going there because they treat their workers like shit, and never looked into it beyond that.
Also BDS
