November 8, 2014

Restaurants Find Eliminating Discounts May Hurt Sales?

For the first 35 years of McDonald's history corporate leadership discouraged franchisees
from discounting because it cheapened the brand and was an addictive business tactic.
Now the entire quick service industry is addicted to discounting. 


Isn't this just a result of the industry being over-built and saturated?

That's part of the reason but it's also driven by the fact that most of the major players
are publicly held companies and have to satisfy their shareholder's obsession with same 

store sales increases, profitable or not.

Restaurants find eliminating discounts, coupons may hurt sales, traffic - NRN
.

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