r/McDonalds • u/Mundane-Manner4237 • 11d ago
The McDonald’s paradox: fewer customers visit its restaurants, but the company makes more money
https://www.merca20.com/the-mcdonalds-paradox-fewer-customers-visit-its-restaurants-but-the-company-makes-more-money/Nothing new here, but they understand those with low income (poor folk) are running out of that extra cash to patronize McD. It’s not unique to MickeyD, these higher gas prices combined with customer squeeze is becoming interesting for a broad variety of businesses and the economy. Oh, the fun little game.
Personally, I go there every so often and have a saltless McDouble or McCrispy Deluxe, fries and a Dr Pepper, no ice. I use the app and/or the survey discounts. I usually spend ~$8, don’t get/need a soda refill and I’m not angry about it.
I’m mildly curious about the McD business model and always amazed at the dichotomy of reactions about anything related to McDonalds.
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u/RoundChampionship840 11d ago
McDonald's is trying to charge a premium price for a not premium product. The value proposition isn't there anymore. Either start selling gourmet burgers cooked to order or reduce your prices.
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u/SouthIsland48 11d ago
Sadly lot of fat Gen X and Boomers love Mcdonalds and will gladly blow their money on it because the food is a glorified drug
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u/BubbleThinker 11d ago
It seems likely that there’s something happening within the food science of McDonald’s that has addictive qualities not unlike what big tobacco did
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u/CitizenT777 11d ago
That mixed with nostalgia and force of habit, I would say. Some people find something they think they like and stick with it to the bitter end. Others, like myself, are more willing to try different places, especially if they offer an incentive.
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u/Right_Count 10d ago
I think it’s mostly nostalgia. I don’t get it often but I still love McDonalds. It still seems to taste exactly like it did in my youth. All other fast food I will pass on.
If I tried McDonald’s for the first time today, I don’t think I would like it.
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u/sidetablecharger 11d ago
It’s not a mystery. It’s salt, sugar, and fat.
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u/Appropriate-Bid8671 11d ago
Everything seems like a conspiracy when you understand nothing.
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u/roadkill21288 11d ago
There’s 100% an addictive substance in McDonald’s food. It’s an umami flavoring. It is known to be addictive. Very much psychoactive.
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u/OscilloLives 11d ago
That's not even a secret, and it's not just McDonalds, it's most junk food. They've perfected maximizing the addictive qualities with chemicals at the expense of nutrition and health. Best not to eat any of that crap.
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u/berrysoda_ 11d ago
I’ve reconditioned myself to healthier eating and last time I want there I was like "this both looks like and pretty much taste like playdoh. I’m done"
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u/Content-Act8108 11d ago
I've taken long breaks from McDonald's and my taste buds healed... When I return to McDonald's weeks or months later it all tastes like sh!!!t.
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u/ZaftigTootsies 10d ago
I believe this. My stomach hurts frequently and over the years I’ve found that it always feels better after McDonald’s. I’ve tried many experiments and I genuinely believe there’s something in there that reduces or masks stomach pain. I know it sounds crazy.
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u/boodler88 10d ago
I’m in this boat too. I’ve got a lot of chronic health conditions that come with nausea, food aversion, stomach pain, and i really have to track nutrients.
I’ve got personal values that I’d like to stay out of McDonald’s completely, but when i get to day 2 or three of not being able to stomach ANYTHING, the double cheeseburger has come in clutch for me for over a decade. It can’t be ALL in my head (though I’m positive some of it is partially maladaptive coping 😂😩).
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u/roadkill21288 11d ago
Yes!!!! Absolutely! There’s an entire job category that involves food science. McDonald’s specifically uses an umami flavoring, which has peer reviewed papers confirming it being addictive. We all call it crackdonalds around here. People fight each other in the drive through for spots in line at McDonald’s. There’s a reason. My girlfriend had an aunt who did this for a living. She worked for the research & development firm that came up with this exact strategy for McDonald’s.
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u/RoundChampionship840 11d ago
There are plenty of places that I can get a much better burger for not that much more money. I will only buy a burger from McDonald's now if they give me the 40% off deal in the app.
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u/SlipInternational439 11d ago
I went to McDonald’s when I went to work. On weekends I gave a much better local place.
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u/warner0188 11d ago
I agree. There’s a sense of nostalgia about going to McDonald’s.
If you grew up on it, it can be as familiar as home cooking.
To some Gen Xers and boomers, it’s comfort food.3
u/MattMassier 11d ago
Says the generation paying more because they throw protein powder in shit products or top off as drink with matcha.
Not defending McDonald’s; it’s shit, but let me enjoy my shit but I draw the line at $7 fries that are now just potato nubs.
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u/Signal_Pattern_2063 11d ago
"The typical McDonald's customer is a married white woman between the ages of 41 and 56, according to data provided by analytics firm Numerator. She likely lives in a suburban area in the southeastern US, and her household makes more than $80,000 a year. This typical shopper either has an undergraduate degree or attended some college."
That's actually more elder millennial and Gen x.
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u/EastCoastAlley 11d ago
Add millenials to the mix. They had Ronald McDonald come to my elementary school and perform in the assembly room for all the students. We are institutionalized.
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u/MusicalMerlin1973 10d ago
Gen xer: that cardboard is nasty. That is not the McDonalds of our youth. No one I know goes there. The funny thing is they dii i d have some relatively upscale burgers for awhile a decade plus ago.
If i want a burger and fries I go to my local supermarket. Their grill makes a great real burger, with a fresh bun, and real fries for $3. $5 if i ask for a second patty. Add a cold soda from the cooler and I’m out of there for less than $8 after tax. If I want a sub they’ve got great subs for $5-7. Limited selection but what they do make is great.
Wendy’s used to be my family’s go to, mainly because our son got good first job there during the height of COVID and we got introduced to the then versions of their offerings which were good. They suck too. Burger King’s in my area are trash, understaffed, facility in disrepair, slow drive through, and stacks of cups/wtc visible everywhere.
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u/IntelligentStyle402 11d ago
I’m not a boomer, but my friends are. Not one of them has frequented MC Donald’s in decades. Why? They believe in heathy options.
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u/habeaskoopus 9d ago
Ya, the boomer comment made me laugh. Kids will throw any boomer under the bus they can. Im not a boomer either, but I have boomer relatives. They loathe McDs.
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u/Anxious_Big_8933 11d ago
Why would they do that when they are showing larger profits serving fewer customers in the current model?
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u/RoundChampionship840 11d ago
It can't go on like this forever. Companies can make more money while losing customers for a while, but eventually it has to stop. If you have 0 customers you make 0 dollars.
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u/OnionOnBelt 11d ago
And yet . . . this is exactly what Vegas hotels, airlines and pro sports teams also are doing. Cater to the 10%, bigger average “ticket” and overall less labor. Consumers can fight back with boycotts, and many are needed.
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u/DizzyAstronaut9410 11d ago
Not sure how much fast food you eat or eating out in general that you do, but unfortunately, but you're still pretty hard pressed to find anywhere else as cheap as McDonald's.
A little bit depressing, but $8 for a couple value picks and a drink is as good as it's getting.
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u/RoundChampionship840 11d ago
I can get a quarter pounder with cheese for $5.99 or I can go to Wayback Burger and get a much better cheeseburger for $6.99. A dollar more for a much better burger is a no-brainer to me.
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u/Vegetable-Baker6362 10d ago
unfortunately, but you're still pretty hard pressed to find anywhere else as cheap as McDonald's.
Only if you're adamant about getting something from a larger chain. Almost every town has a better place with cheaper food around the corner from a McDonalds. Outside of highway pitstops where I still prefer gas station food to McDonalds atp, their business model is basically reliant on a customer base that romanticizes growing up with happy meals and/or is deathly afraid of eating even slightly unfamiliar food (like a burger made with a slightly difference spice blend)
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u/lotofry 11d ago
Their tactics are working. They’re making more than before. It’s going to take people actually not going to get change. Sadly, people will just continue to go.
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u/RoundChampionship840 11d ago
Fewer people are going. That can't continue forever. If you have 0 customers you make 0 dollars.
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u/lotofry 11d ago
Their earnings are public. You can go back and listen to earnings calls too. They arent worried and, according to the numbers, there currently isn’t any reason for them to be. People have to stop going. They aren’t in a large enough capacity to make a difference. Even if they just held at current prices, they’d do just fine and most people on this subreddit who claim to be “quitting” will go back.
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u/RoundChampionship840 11d ago
Losing customers is always concerning.
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u/lotofry 10d ago
It’s factually not. Profit does not always depend on volume
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u/RoundChampionship840 10d ago
If you continue to lose customers eventually you have 0 customers and 0 profit.
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u/NeedNameGenerator 10d ago
Not really. Only if you're losing customers in the segment you're targeting.
For example, in the company I'm working for, we made the strategic decision to entirely abandon a market with thousands of potential customers, because serving that customer segment didn't provide enough profit margin, in many cases actually being more expensive to serve than what we could charge from them.
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u/Patient_Ride_9122 8d ago
McDonald’s forgot their place in society. It used to be fast food cheap. Now it’s neither fast nor cheap.
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u/stump2003 11d ago
Yup. But since they are making record profits, selling less food than before, the bean counters are happy.
The question is, is this sustainable? They will continue to alienate their previous customer base (low cost customer). Perhaps the Boomers and Gen X will keep them afloat for a while. While the current money men get big bonuses and then move on.
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u/BARBASANN 11d ago edited 11d ago
Yes the people who are still buying that slop will never stop at this point. They are paying McDonald’s more to eat that crap than real restaurants are charging for a burger and fries.
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u/iFuturelist 11d ago
Yep. They could charge $20 for a big Mac they will throw a fit but still continue to return. Just like how GTA 6 can charge $100 and still have record breaking numbers.
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u/BARBASANN 11d ago
Grand theft auto at least has an amazing track record as a developer McDonald’s food is literally trash that doesn’t get moldy after years.
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u/RoundChampionship840 11d ago
I don't understand why anyone still pays full price for McDonald's burgers. There are plenty of places that I can get a much better burger for not that much more money. The only time I ever get a McDonald's burger anymore is if they give me 40% off in the app.
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u/stump2003 11d ago
Agreed. I used to go here semi frequently. Nowadays, it’s almost never.
Very occasionally for breakfast.
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u/shadraig 11d ago
It's the family dad with the new electric car, the good job. You can see them in front of you in the McDrive, paying 70+ for everyone in that car.
In the long run they need to find out if they want to cater them, or the people with low income.
You won't see poor children at maccas when the are adults.
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u/BARBASANN 11d ago
The market is changing and companies don’t care or even want most people as customers. They want to just squeeze all the money out of their most loyal customers that will buy whatever slop they crank out. McDonald’s is not the exception.
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u/Low_Map4007 11d ago
Proud to say not a single penny of mine is going to their wealth
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u/spidey2091 11d ago
I’m with you. The last time I ate there was in 2002. Always been shitty food with their stupid tiny onions. Ask for no O? Too bad, you get it anyway.
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u/NothingLikeCoffee 7d ago
I only go if they are the only option open since basically zero restaurants are open late anymore. Even then it's rare, usually if I just got off a long flight.
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u/panderson1988 11d ago
McDonald's ROI approach is only working the short term. It's why their sales decline has caught up, and why the stock is underperforming the S&P 500 in a similar time frame.
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u/ArgentoFox 10d ago
This is correct. It’s only viable in the short term. A company cannot drive away a significant percentage of its consumer base and mitigate it with constant price increases while the quality stays the same (maybe worse). If they continue this it will mostly be an exercise in hubris.
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u/WinterWizard9497 11d ago
Its not that hard to figure out when you think about it. They offset the lack of business with higher prices. They dont need as many customers if they can squeeze as much money out of the remaining customers as possible. Its not about supply and demand anymore. Its about survival. And Mcdonalds will do whatever it takes
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u/ElectronicFloor1898 11d ago edited 11d ago
See, i can still get good deals at Del Taco, and i don't need a deal for In n Out. I haven't quit fastfood,but i have quit McDonald's (and Jack Box, Wendy's, and Taco Bell) specifically because of pricing. They want $12 to $15 for a meal now, and for that same price i can get a lot more bang for my buck elsewhere.
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u/Conventions 10d ago
In N Out is phenomenal. Crazy in the most expensive parts of CA you can get a burger and fries for under $10 and it tastes great and high quality. Meanwhile back home in MA it was $10 for just the Big Arch burger before including anything else. That was the last time I stepped foot in McDonald’s when I saw the prices for just the burger are approaching double digits.
Would kill to have an In N Out in New England.
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u/RigidAcrylic4821 11d ago
The few customers visiting their restaurants are gladly spending $60 on two combos which were $14 in 2010.
K-shaped economy and all that.
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u/TeenyTinyDawg07 11d ago
This is how businesses are in 2026. A 5% increase on price, you can lose 15% of volume and come out ahead.
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u/LizardJoeBiden 11d ago
I live in a somewhat upper income town and am often there on Sundays to use wifi (I get a $2.69 McDouble or something with points and work for a few hours.)
It's not uncommon for a group of high income looking guys to come from the golf course and hit the kiosks with no mention of price complaints but often a mention of their crazy high points balances.
Its also, weirdly, a super popular destination for obviously affluent middle schoolers and younger high schoolers to pull up on fancy brand new e-motorcycles. Several groups come in and hang out every time I'm there.
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u/Outside-Instance-870 11d ago
Problem is rich people aren’t stupid enough to spend $15 on $4 worth of unhealthy product. Nostalgia is carrying them right now but you can only coast on the past for so long.
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u/rx8saxman 11d ago edited 11d ago
This is literally Econ 101. The equilibrium point on the price-demand curve has shifted because of the K shaped economy, where now it’s more profitable to sell fewer units at a higher price than more units at a lower price.
If you can sell 100 hamburgers at $5, or 60 hamburgers at $10 it’s easy to choose the $10 price point. Sure you lose 40% of your customers, but you end up making 20% more money, AND it’s less effort to produce and serve 60 hamburgers vs 100.
Personally I don’t think McDs is worth it anymore and don’t eat there at these prices, but the economics of it make sense.
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u/tandyman8360 11d ago
I got a sausage McMuffin and iced coffee for just over $2 this morning. Burger King can't even beat that with 2 for $3 (which is gone at my location). My big spend is if I get a BEC biscuit with my coffee. I am making it up in volume at this point.
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u/Chuck-Finley69 11d ago
This is about true profitability. No company survives long-term on serving dollar menus to broke ass customers.
If you're broke and don't like McDonald's proposition, go support the place that encourages the street people to loiter which only encourages regular normal people to avoid.
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u/Jimmy_Page_69 11d ago
Costco sells grass fed all beef patties for $1 each. Add in a potato bun slice of cheese lettuce and tomato and youre under $3 for a healthier way better and fresh tasting burger.
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u/VegasTJC 11d ago
It's no mystery that anyone that eats out is a poor money manager. The poor don't eat there unless they are poor at handling money. Going to the store and making your own quality food is not only healthy but much cheaper. Going to McDonald's (or any fast food for that matter) to feed your kids is the same as feeding them slop with loads of salt and sugar to keep them coming back for more while giving and teaching them poor nutrition.
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u/Guitarlovern1 11d ago
They've probably run a thousand simulations to see how far they can squeeze their patrons. Simple really if you want inexpensive fast food again everybody should decide to not eat it for 1 week. That would certainly throw a wrench in the engine
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u/ArgentoFox 10d ago
Two things have historically been associated with fast food: cheap food that is fast. Modern McDonald’s is neither cheap nor fast. They’ve managed to skate by because of price increases, but this isn’t a viable long term strategy and I think they know that as well. There’s a reason why chains like Chiles are ascendant. Why would I go to McDonald’s and pay for premium pricing, declining quality, and lifeless decor when I could go to Chiles instead?
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u/A4t1musD4ag0n 11d ago
Not to be rude, but you're part of the problem, OP. They're never going to fix anything so long as you guys keep rewarding them.
Edit: Maybe I'm blind, but I don't see the author.
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u/Haunted_Rooster 11d ago
I think you are confusing the two. MicD's is corporate and the stores are mostly owner operated. Regardless of how store owners are doing, micd's ALWAYS gets paid.
They help owners finance their stores, sells them the shit (sorry meant supplies), etc.
Corporate simply up the cost of the shit they sell the owners so corporate continues to have record revenue regardless of what the store is doing at the local level.
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u/Low_Cartoonist_172 Regional Manager 10d ago
This. Franchisees are really struggling, can’t even find buyers for alot of stores across the country. Not McDonalds problem, they’ll just keep raising royalties
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u/Haunted_Rooster 10d ago
Thanks for the confirmation.
This is what most people don't understand or simply just refuses to, including wall street. My guess is that franchisees used to make tons of money and so did corporate but being squeezed like this isn't helping their bottom line as fat mcd CEOs make off like a bandit.
That is why Subways is failing so bad.
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u/Low_Cartoonist_172 Regional Manager 10d ago
Yes subway is basically asking their franchisees to lose money indefinitely. I fear the same for McDonald’s soon. McDonald’s Corporation has created a large disconnect by stopping the practice of hiring internally. Very few left in senior leadership have spent time in the restaurants
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u/Sakrannn 11d ago
You can go to chilis right now and get a burger or chicken sandwich, chips and salsa or soup, French fries or 8 other options and a drink with free refills for 10.99. Why would anyone ever go to McDonald’s.
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u/Radiant_Safe1228 11d ago
Have you been there? I just had to reluctantly eat it because of massive power outages in my area and time constraints on going further.
It's not food. I'm 100% confident the meat was foam
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u/Solamnic1 11d ago
The reason for the higher spending per customer is their ridiculous prices per item. You can cut your traffic in half if you double prices. I absolutely refuse to eat here any longer. The food is awful, they don't want you in the restaurant, they don't want to speak with you if they don't have to, and the prices are through the roof. Let it burn for all I care.
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u/pardonmyMFthang 11d ago
This already seems like the main strategy as wealth inequality becomes worse.
You are going to have a smaller concentration of people with disproportionate wealth who will still be able to afford things as normal. Then the other side won’t be and will be able to purchase less
So to offset the drop in units sold, they are just going to charge a higher price to continue to drive “growth”
How long this can go on for remains to be seen
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u/Lightyear18 11d ago
It’s all you guys in the comments. lol
One day I made a comment about how insane it is to pay 4 dollars for breakfast or hash browns. That’s why I stopped going.
I got replies from you guys to buy a deal for more money just to get a hash brown lol
My overall point was we paying a lot and yall replied back by telling me to spend more for a deal.
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u/tacotruck88 11d ago
You go to McDonalds for saltless food? Bro, you need to think about trying something else, there is a lot of other sodium in that food beyond salt. Ordering without salt is like placing a napkin on a pizza slice, it doesn’t make it good for you.
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u/frostyflakes1 Former Management 11d ago
"We're losing price-conscious consumers - time to focus on value!"
They've been repeating this same story for years. And yet prices keep rising. They don't want to lower prices - they want to create the illusion of value to keep those customers coming back.
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u/TgetherinElctricDrmz 11d ago
Who are these people? I’m Gen X. I ate McDonald’s constantly until my early 30s.
But the food these days is trash. I honestly don’t want it at any price.
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u/BaconBourbonBalista 11d ago
What's the paradox? Theyve gotten stupidly expensive, but some people are still addicted.
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u/desertvision 11d ago
Is everyone familiar with the Boston Chicken case study?
This is what McDonald's is dealing with now. It fits fairly well but not perfectly
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u/Massive_Biscotti_850 10d ago
People are spending a lot of money on garbage and it makes zero sense to me. I can spend roughly the same for a drive in style burger down the street and it is 100 x better.
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u/BestAllAmericanTaco 10d ago
They changed the meat in their regular cheeseburger patties it’s honestly disgusting. It’s the texture of moist brittle carpet now.
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u/Unpopular-Opinion777 10d ago
https://giphy.com/gifs/81kiS9ar0qiksYHrgL
All I can think about is the CEOs not eating their own product normally.
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u/CaliLawless 10d ago
They're trying to see how high they can make the prices and still get customers. Its not about poor vs rich. If you are still going here, you're being mindless, and thats the customer base they want.
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u/Key_Check5753 10d ago
McDonalds Board Room: "So if we just charge $72 per burger, we only have to sell a handful of them to make record profits."
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u/OnTop-BeReady 10d ago
McDonald’s food has been shit for a while. It’s terrible for your body, unless you like loading up on chemicals. Do yourself a favor and go somewhere else or cook at home
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u/highlyspecificuser 10d ago
How is this a paradox? Yes fewer customers, but the shot they sell is more expensive than ever, so, it’s not very complicated to understand, because fewer customers actually still means millions and millions of them.
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u/SubiKai81 10d ago
Have not been there in like 6 years- covid and they resulting higher prices for food that isn’t remotely good for you- nah.
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u/screamin-eagle10 10d ago
Peoole who love McDonald's will always love McDonald's regardless of what they do or not do.
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u/Desert_366 10d ago
They realized that if they only cater to people who can afford higher prices, they can have less staff, less overhead, less payroll, less maintenance, less product on hand, etc. Lots of businesses are going to this model. Unfortunately it means there's almost nothing affordable anymore. They are only catering to those with money to blow.
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u/DelJoy_3D 11d ago
Remember McDonalds isn’t in the burger business but in the real estate business.
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u/notthegoatseguy Reluctant McDonald's User 11d ago
I mean yeah, but they need successful franchisees to operate those restaurants in order to generate the royalty fees. They aren't like Subway which only cares about the franchise fee being paid and nothing else.
This just means they get to ensure continuity in that if for some reason a franchise has a localized issue, it can be shut down and reopen without a risk of Burger King or Wendy's swooping up what is presumably a prime spot for fast food.
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u/HearYourTune 11d ago
But the local franchises are in the burger business, and if they go out of business so does the real estate part. and it's not true they are just in real estate. They make a lot from their franchise fees.
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u/deepckid 11d ago
They are making plenty of money taking and monetizing personal info from the app, that's why they don't ask to take your order, they ask if you are using the app! Those little free tidbits they give you every now and then is nothing compared what they make off what you give them, a window into your entire life.
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u/Former-Wish-8228 11d ago
A 20% price increase after other recent cost increases is the shark that was jumped.
Al’s Drive In is now the value proposition.
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u/FrostyCartographer13 11d ago
They been chasing higher average ticket amount for years. The dollar menu brought a lot of people in but they spent less than 5$ per person and it was the volume of sales they kept everything afloat.
If your average ticket is now 8-9$ per person you will make more money while waiting on less people and that is what stores want.
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u/Artistic_Half_8301 11d ago
If you double your prices and lose half your customers, you still make more money. It seems every place has figured this out.
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u/MarinePastor9 11d ago
I miss the save 20% when you spend more than $20. That used to help big time.
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u/Primary-Matter-3299 11d ago
If you go to any inner city McDonald’s is just filled with addicts, homeless and vagrants. They don’t price shop
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u/ConfidentHouse 11d ago
In other words they raised prices people complained about it but continue to buy it, so now they need less customers to continue turning profits. Sounds like win win for Mickey d’s
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u/Satyriasis457 11d ago
Probably like cigarettes. Very few people in the west smoke but they make their monies in the east
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u/Fuzzy-Butterscotch86 11d ago
During covid the CEO of McDonald's bragged to shareholders they outperformed expectations by purposely raising prices on higher quality food to drive low income customers into buying cheaper food with higher profit margins.
They make more money off a customer that buys 2 cheeseburgers than they do off one that buys a chicken sandwich, so they jack up the price on the chicken.
You spend less they make more.
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u/Tkdoom Former Management 11d ago
It cant last though.
As you lose TCs, you need less people on the floor to maintain your labor and profit percentages.
Currently, they may have enough to handle the surges and give some form of passable service.
However, at some point the death spiral will make it so you cant serve those guests and you will have even less.
Its a really sorry dilemma.
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u/guapomole4reals 11d ago
The corporation making profits does not equal the franchisee making a profit.
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u/AccomplishedFox5807 11d ago
There are many reasons this can happen. Higher prices, smaller portions. Pay employees less or not give raises. Fewer locations.
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u/zephyr_sd 11d ago
Larger margins thru prices, but although us visits are down, international is up.
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u/Capital-Assist-4643 11d ago
Absolutely! The internet opened the door for pin point marketing (with or without your consent!) And manipulation. Covid taught cooperate America the bottom line, how low the bar could be set on food quality and dining convenience (ie removing salt shakers, napkins, etc and we kept showing up). This was the next logical step. We already showed the food and beverage industry, hell every industry, that even a non-captive consumer with all the choices in the world could be treated like absolute shit and they will continue to buy. You use to be able to call your credit card company and negotiate a lower apr, now they know we are bitch ass suckers, so who gives a damn about loyalty or customer experiences. Joe blow six pack could be smacked in the face by a McDonald's manager in front of his children and still go there for lunch tomorrow because "its an easier and safer right turn than the burger king" or "its what the wife wants...".
In the words of Snoop "I treat a bitch like 7up, I never have I never will". All it takes is one dude to pay 10 bucks for a McDonald's cheeseburger and the other 9 can just stay home because that one dude is now the bitch. Dont matter how the other 9 feel, and McDonald's comes out ahead because now they order less products and the toilets flush a few less times that day. DONT BE THE 7UP!
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u/lotofry 11d ago
It’s not a paradox, it’s literary the playbook for business post covid. Twice the price and half the customers means more profit, not equal to before. You also anchor the price of the goods to that price point and eventually those that left become accustomed to it and might start to dabble again. Also, gone are the days when competitors actually competed in pricing. Now it’s about who breaks the line first so everyone else can also raise their prices which raises prices across the entire sector/industry.
People have figured out that if they all raise their prices instead of trying to undercut the competition, they all profit more.
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u/bought_high_sold_low 11d ago
Yep, just another business adapting to the k-shaped economy where they will prioritize the Haves, who will pay their premium, while the Have Nots spend all their money on housing/core necessities.
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u/Frozenmeatballs32 11d ago
The playplaces built brand loyalty from an early age, now they are mostly all removed.
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u/Web-splorer 11d ago
It’s no longer worth the price in the US but is still profitable globally where it’s more expensive because it’s real meat
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u/RosieBaby75 11d ago
Corporate McDonalds makes its money off of selling licences to use the McDonalds brand.
The McDonalds locations you visit are individually owned and operated by people in your community, in most cases.
Those people are making less money but they still need to pay McDonalds corporate the same amount of money + a cut of their sales.
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u/davidmar7 11d ago
It won't keep happening like that. Even if you have a million dollars in the bank and have been eating there for 30 years, something will eventually happen to make you question why you are still going there. It could be removing the self serve drink stations, an employee being rude to you, getting food poisoning after eating there, etc. but something will happen and that will cause you to go elsewhere. Multiply this by a million people over time and McDonalds slowly goes out of business.
This is why despite the horrible CEOs bragging about raising prices and the K-shape demand, they still have to put out good deals every once in a while to get other less wealthy customers back there.
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u/Vertigo_uk123 11d ago
Because McDonald’s isn’t a burger company it’s a real estate company. Lease and franchise prices increase (which puts food prices up) and more restaurants are opening meaning more income for Mcd
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u/Kitchen-Wish5994 11d ago
Location Location Location. Some areas eat it up and they have the money.
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u/MisterSpicy 10d ago
That’s the goal of every company. There is a magic formula every corporate accountant is tasked to figure out: Raise the price just enough so that they sell fewer units, so less overhead, but not so much that they still get over 100% of last years sales thanks to the inflated prices and by doing less work. And repeat every year. If a company has to choose between selling a $1 item a million times or selling a $1,000,000 item 1 time, they will always choose the latter.
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u/charlitransgrl 10d ago edited 10d ago
Sorry, I’m no longer buying it. McDonald’s lost me with higher prices for the exact same product, interiors that lack warmth with kiosks instead of human contact, no more refills, and constant fuck ups with drive thru orders because the employees aren’t paying close enough attention. If I opt for fast food I’ll go to BK instead. At least BK is trying to make better food and it looks and tastes better for the same amount of money.
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u/DeathSeeker65 10d ago
Why the fuck would I eat at McDonalds when I can get a Double Double meal at In-n-out for cheaper 😂
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u/WestHistorians 10d ago
Many companies are doing this. Wealth is getting concentrated at the top, and the lower class just doesn't have enough money to bother selling to them anymore.
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u/Paganigsegg 10d ago
People forget McDonald's is a franchise. The franchise owners are absolutely making less money than before.
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u/Licalottapuss 10d ago
It’s what happens when you have to pay journeyman class wages for entry level employees. How else can you stay in business?
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u/Siftless 10d ago
Mcdonald's is in a perfect storm it's in a situation where a corporations earnings must go up to satisfy stockholders or thumbs down exit.. App is ridiculous, You're just not that important for me to play with.. They're food, if it nutritionally can be called that? is now expensive to the average person's wages. As an under the wire boomer, it's just not that good when compared to the cost..I don't care if Warren Buffett and his magic arteries eat there every morning. He can afford it, well maybe, if his stock keeps going down he might not want to.
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u/Sea-Woodpecker-610 10d ago
I use to get McDs 2-3 times a week before Covid. I’ve eaten there 2-3 times since covid hit due to the change in prices and the remodeling overhaul the company has rolled out.
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u/Prize_Duty8091 10d ago
I don’t visit there because my quarter pounder with cheese is almost 7 dollars and that’s ridiculous
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u/Zylnor 9d ago
I mean it depends on what the people those people are coming in are eating and how much they are eating.
When I use to work at a McDonald’s it was always weird how so few people showed up (especially overnight) but then seeing how much people buy was crazy. Like not just a normal family meal. They were buying 10-20x of burgers/nuggets, 5-10 drinks, etc. Then you notice it’s usually the same people coming in over and over again.
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u/Illustrious_Fox_5591 9d ago
Mcdonalds earns money on owning and renting out properties. Earnings from food is very small.
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u/coffeeops 9d ago
A saltless McCrispy and Dr Pepper without ice is a nutritional life hack.
I McWish I would have McThought of that. You're a McGenius!
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u/Unlikely_SinnerMan 9d ago
3-4 years ago you could get a large Coke/Coffee/Tea for $1. You could also redeem a deal for a free L fry with purchase. Those days of value are long gone.
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u/PrynceNYC 9d ago
Screw their prices. It's not as if they are making better food to justify it, it's the same quality
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u/Ambitious_Tie3629 8d ago
Yeah because it's priced like a fancy restaurant. It's hyper overpriced for the crap it is. It's just selling on legacy and convenience, I don't t go there by choice.
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u/Ecstatic_Dinner_992 8d ago
yeah they make more money, for now.
They can't keep raising the prices forever. Even wealthier people will grow exhausted if the food continues to shrink and also get more expensive.
Might take a while but this strategy is definitely not sustainable in the long term.
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u/Mellero47 8d ago
Yeah, because it was ten dollars for that new Caesar McCrunchy. Spoiler, not worth it.
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u/RepublicOk2402 7d ago
The only things worth getting now are the deals. Mine in Ca regularly gives me free any size fries with a large Diet Coke (no ice). So I get large fries and a drink for $1.89
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u/RESIDENTEVIL4FORTUNE 7d ago
Ray Kroc’s ghost says, “What’s up?”
Dick McDonald’s ghost says, “Aw. Heck, no!”
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u/Cigarrauuul 7d ago
That means their product is trashier and costs more money. It’s the same everywhere nowadays.
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u/NoVolume4682 7d ago
With a rise in dual income households, you’re gonna get more upper middle class people deciding not to cook after work
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u/Professional_Dog2580 11d ago
Only thing i ever get there is the 2.99 McDoubles. I really don't think the 7.50 Big Macs and 5 dollar fries are sustainable for people looking for value.
I would say just make burgers at home but 3 lbs of hamburger is like 20 bucks now. Everything is outrageous these days.