March 4, 2013
The Law of Large Burger Chains
In the battle for "Share" we sometimes forget about the sad average volumes
at the two main competitors. Yet, on the occasions that one of the competitors reports a higher same store sales increase than McDonald's the press claims that they are "taking business from McDonald's".
But the law of large numbers makes it much more difficult for McDonald's USA to eke out a larger percentage sales increase than a competitor with an AUV of more than a million $$$ less from the start. If McDonald's USA gets a one percent increase in a month and Wendy's brings in a two percent increase McDonald's probably had the better month!
Thanks to BurgerBusiness.com for the chart. Here's the article.