this post was submitted on 22 May 2024
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[–] [email protected] 13 points 4 months ago* (last edited 4 months ago) (3 children)

Hmm. I'd think that that'd make sense if people were just lingering and sipping sodas and they were trying to decongest the restaurant, but the article says that the opposite is true:

Still, the company announced earlier this year that foot traffic to its restaurants had slowed as inflation increased.

EDIT: Hmm. This recent article says that apparently Burger King is running off with their value customers:

https://www.restaurantbusinessonline.com/financing/it-loses-customers-rivals-mcdonalds-shifts-its-focus-value

As it loses customers to rivals, McDonald's shifts its focus to value

The fast-food giant appears to be losing the battle for customers looking for lower prices to Burger King and Domino’s. McDonald’s wants a national value offer to change that.

By Jonathan Maze on Apr. 30, 2024

McDonald’s appears to be losing some customers to rivals like Burger King and Domino’s as inflation-weary consumers cut back on their dining and focus more on value offers.

That has the Chicago-based fast-food giant working to develop a national value offer that will resonate more with customers than its current batch of local and digital deals.

“It’s a street fight,” CFO Ian Borden told analysts on Tuesday. “Everybody is fighting for fewer consumers. We have to make sure we have that street fighting capability.”

The company is working to develop a national value platform that will be “net neutral” to franchisee profitability.

But executives also said that store profits have returned to pre-pandemic levels, which should give the company the ability to offer that kind of value.

“We’re in a strong position,” CEO Chris Kempczinski said. “Franchisee cash flow is at the second highest levels ever.”

McDonald’s has been signaling a more concerted value focus for months, particularly since February when Kempczinski suggested the brand was losing lower-income customers to grocery stores.

Maybe they're trying to figure out what they can do to cut prices to bring back customers, and they're looking at shaving off perks or services that presently exist to see what they can do to get their prices down.

[–] [email protected] 6 points 4 months ago

Still, the company announced earlier this year that foot traffic to its restaurants had slowed as inflation increased.

It's not just foot traffic I'm sure. That's what happens when a business sees a temporary 9% inflation bump as a good time to increase all prices 30%+ across the board. McDonald's is nearly as expensive as Five Guys in my area now. They forgot what market niche they were filling when they got greedy. What used to be a $3 meal off the dollar menu is now $8 for the same items, and the "deals" all suck unless you want those specific 3 options or a discount equivalent to the sales tax.

[–] [email protected] 4 points 4 months ago

LOL that's a sure way to increase foot traffic /s

[–] [email protected] 0 points 3 months ago (1 children)

I see the franchise wars are starting a bit earlier than planned.

[–] [email protected] 1 points 3 months ago* (last edited 3 months ago) (1 children)

Fun fact: In later editions of the movie, Demolition Man, references to Taco Bell were replaced with ~~KFC~~ Pizza Hut. Thanks @[email protected] for the correction.

[–] [email protected] 2 points 3 months ago (1 children)

Are you sure it wasn’t Pizza Hut? That was the international cut(outside the US). Never heard about a cut using KFC.

[–] [email protected] 1 points 3 months ago* (last edited 3 months ago)

I think you're right. I got those fast food brands confused.