Mcdonalds Food?

I heard on the radio that McCdonalds is pretty much recession proof. They're still doing a brisk business, with no sign of it letting up.

Yes - the thing about it is when the economy is low, people cut out expensive things and go cheaper. So if you still want to go out eat or get take out, instead of going to the drive up Outback for take out, you go to McDonalds or you get pizza.

I'd like to know how they do it. After the cost of the newspaper/dog treats/tea, that big breakfast is in effect free. I can't replicate that at home.

Just as you've said, they said it's the medium to high priced joints that are hurting.

As long as it's a bargain, people will always buy the product.

Wait, I missed something in your post-- they give you the paper and dog treats too?

Yup - always get dog treats - plus the BIG paper with weekend breakfasts.

Actually my favorite fast food place is Boston Market. I believe Boston Market is owned by McDonalds?

You can get a really good meal though - rotisserie chicken, veggies, fruit etc. for little more than you would spend on a Big Mac, fries, and drink at McDonalds.

I'd say their doing that is a loss leader.

Probably person or people with the big breakfast buyer doesn't get a paper/treats as well.

Plus, look at the volume they do...

What's in a BB again? 2 eggs, hash brown, toast & jelly, and they charge $2.50, minus $1.50 paper?

Just looked at the USDA website, and the average wholesale price over 2007 came to $1.05 a dozen, .09 an egg.

So.....18 for eggs, .15 for hash brown, .10 for bread, .02 for jelly, .05 for tea bag...that leave 50 cents for dog treats.

Well, plus the 3 minimum wage workers and the total of 3 minutes it took to put the average breakfast together.

Many companies don't make a penny off their basics.

I worked at a car wash as a cashier at one time. On the managers computer it tracked the average cost of the washes. The average wash....this was 12 years ago, cost I think $5.00...the water, soap, labor, overhead of the building, machinery....The basic wash at the time cost like 8 or 9 dollars...not much profit per car. But, adding the wax that was applied in the car wash, not a hand wax, armour all, wheel cleaner, all of which did not increase labor, added, what? 2 dollars a pop for each extra? They charged a buck or two for 2 or 3 squirts of some car freshener, which they had by the gallon.

McDonalds, same thing. They don't make anything off the .99 cent double crapburger, but that not all most people get, or what other people in their party will get.

I like Boston Market too.

I use them a lot to cater business lunches for 10 to 15 people. They deliver and set up for an extra $10.

Well worth it, and everyone's happy.

oh, it's clearly used to get people in - though not something people seem to actually order much.

$2.50 minus $1.50 paper minus the $2.00 jumbo tea (average cost at most coffee shops here), and about $0.25 in dog treats.

I started going there on my own - so no one else in the car for them to make money on. Now we usually get one breakfast, bring extra toast and a beverage along. It's a good deal.

But your $2 jumbo tea doesn't cost the coffe shop $2

I buy gyokuro green tea at a good price of $69 a pound off the internet...it comes to .35 a cup....70 cents for a jumbo cup I'm guessing. Their best black tea would come out at .50 for a jumbo cup. At the price the coffee shop gets, and depending on the tea, I'll bet it doesn't cost them more than .25 to .50 a cup. Plus, they charge the same $2.00 whether their cost is .25 or .50....plus the labor and all that.

Yeah, they don't make money on people like you or me, but, everyone can't have the pleasure of being us.

i doubt that mcd has to pay the full price of the newspaper - IF anything at all .

it's like shopping at "shopper's drugs " on senior thursday . we get 20% off or 20x the points (which is like getting 27% off ) and if we buy more than $50 worth we usually get a $10 coupon for gas , chicken dinner or similar .
so that's like getting a 47% discount - even on their sales prices !
i'm quite sure the $10 coupon is not being paid in full by shopper's .
coming thurday we'll be "looting" shopper's again !!!- can't wait - making list already .
hbg

also just rec'd a "twofer" from our favourite restaurant - the "rivermill" by the rideau river - be thinking of you when we are looking out over the river while enjoying our meal .

That is brilliant marketing. Dog treats, amazingly smart. The big Sunday paper, they know what they're doing.

but that's what they charge me if I treat myself to a tea away from home or the office

the paper would cost me $1.50 + tax, the tea would cost me $2.00 + tax (jumbo coffee closer to $3.00 + tax), the dog treats about $0.25 + tax, then the actual eggs/toast/jam/hash brown

at $2.49 (no tax as it's food, not a snack as the coffee/tea alone is considered here), it's quite a deal

not everyone plays 2 sides against the middle as some of us take the time to do. For $2.50, it's a fabulous weekend treat.

Your original question I was addressing was...

I'd like to know how they do it. After the cost of the newspaper/dog treats/tea, that big breakfast is in effect free. I can't replicate that at home.

The answer is it doesn't cost as much as it costs you. If you could get the same prices from vendors as they do, you could do it at home too.

I can't get the same prices from vendors that they do.
The newspaper and dog treats alone would be $2.oo inclusive of tax.
I can't make the tea/eggs/toast/jam/butter/condiments/hashbrowns for $0.49.
I'm a good shopper but that's just too much of a push.

Sometimes the best deal isn't making things at home.

I know you cant....and I never said you could....

you specifically asked "I'd like to know how they do that"

Not to sound like TTH, but that's exactly what I answered.

Eh. People should eat where it works for them, where they enjoy being there, or it is efficient to be there. I'm a food enthusiast - have been long before food became trendy in the US - I just liked living in a city with dozens and dozens of types of 'ethnic' food - but not really a snot. On the other side of the coin, if I like a place, and I like a lot of kinds of places, I don't care if other people don't, with the exception that I might hope the owner/cook can stay in business.

I did knock McDonalds for the bath of salty grease/sugar that has proliferated over the landscape, but my resentment has more to do with that it - and other places like it - had for a long time cornered the fast food market. Of course a lot of the market cornering was not only from capable marketing but also people enjoyed going there. Going up highway 5 in California, the speediest way north from Los Angeles, one is unlikely to find any food at all besides the biggest national chain fast food places such as McD, BKing, and a few others, for hundreds of miles. No choice, m'lady. (Although.... I haven't taken 5 in about 5 years. Who knows, maybe there is some resurgence of old fashioned coffee shops, or even, gadzooks, an actual non chain cafe/bistro.)

Now that there are more choices beginning to show up - at least off highway 5 - I'm less irritated with McD existing.

Somewhat off topic...newspapers charge for ads based on their circulation. Most if not all newspapers print and distribute extra papers for free to stores, colleges, etc (maybe even McDonald's, I don't know) for two reasons: one, they may actually get a paying subscriber out of it if someone picks it up and enjoys it, and, two, because it boosts their circulation number and therefore what they can charge for ad space.

Never in my life have I eaten at Mcdonalds. I understand it is junk food.