Coalition of Franchisee Associations

July 6, 2019

Are QSR Prices Too High?

Burger prices are climbing amid demand for premium revamps, report finds


Anonymous said...

First, Id ask every franchise operator to research and understand - what is the total menu items in a McDonald's restaurant? Second, what percentage of those items are currently discounted or on sale - right now?


You'll find nearly every menu item is currently discounted! The Global Mobile App, mailers, the price fixed $1.00 Soft Drink, and $2.00 McCafe. You cant even add a new flavor without discounting or price pointing - slushies, World Wide Favorites are examples.

What's worse, you'll find deals like BOGO $0.01 on Medium and Large McCafe - so employees cant even UPSELL (remember that word). Employees DOWNSELL to our customers. Don't worry - we'll make our money on FRIES and DRINKS. Nope, not with $1 Drink - and a coupon for a FREE FRY when you buy the QPC!

Let's not forget FREE FRY FRIDAYS, or National FREE (FILL IN THE BLANK) Day (there's at least one item a week).

I don't know about you - but the only stores I see that uses a 100% clearance items strategy are GOING OUT OF BUSINESS sales! The fixed pricing strategy not only hurts remote markets and other high cost areas. It cheapens our products! Remember, the change to PREMIUM COFFEE - then lets give it away for $1.00. Ever wonder why people still go to Starbucks and pay $5 for a cup of coffee?

The system fixed prices and it destroyed the Extra Value Meal (EVM) - just like we allowed corporate patriots to destroy the SUPER-SIZE. Operators allowed it to happen, without a fight, they resigned themselves to placated strategies thought up in boardroom.

Anonymous said...

Remember, Local Store Marketing (LSM) - the ability to go head-to-head with competition in a market. It's gone! Replaced with the "it takes a Village!" philosophy that has sunk so many of MCD competition in the past.

Use Deloitte pricing, its the deal! They don't even have local competitor pricing for most markets; except some taco bells. No Burger King, No Sonic, No Wendy's, No Arby's - nothing. When asked, Deloitte said they use a THIRD PARTY that sweeps the INTERNET for pricing and that data isn't available. I'm like, hell I can walk across the street and know the pricing - why pay these people to guess?

Anonymous said...

Is the franchise operator better off today, then last year? Are you less afraid of speaking openly, then your were last year? NOPE!

Operators invested an average of over $500,000 per restaurant with a major focus on their LOBBY. While every NATIONAL EFFORT AND CONTEST today is focused on your DRIVE-THRU! How ridiculous is that! Imagine the nil ROI one was getting before on EOTF - now being crushed with a national effort that says, " we invested BILLIONS in our lobby's, so come visit our DRIVE-THRU today!"

Our overwhelmed production areas, using the oversaturated MFY system, got a breathe of fresh air - with the removal of SCR (sarcasm). OEPE and KVS continues to rise, while MENU SIMPLIFICATION continues to get more complicated everyday! The solution, another $250-300,000 modification to make a already complicated process of making a hamburger - more complicated and labor intensive.

But...but.. we bought this technology company to solve that. Remember, NEWPOS - can you update menu prices in REAL TIME? Yeah, McDonald's and Technology = higher fee's and cost with zero real-time solutions. Tens of thousands of added cost, per restaurant, every year.

What do I hear, Operator approved.... all operator approved.

Funny, I never remember getting a field vote on that.

Anonymous said...

Now, you’re gonna be evaluated on your VALUE STARTEGY and if its effective. How do they acquire THAT data - sweeping the Internet too? Local zones don't even have the competitor reporting data used 5 years ago (PMO, etc) - how are stores and markets gonna be evaluated based on COMPETITION? Only the wizard knows....

Anonymous said...

QSR prices aren't too high. They are reflective of cost associated with rising wages, food cost and these reinvestments. QSRs are fighting TRADITIONAL RESTAURANTS that pay reduced wages due to tips, have reduced menus and maybe run a single daily special. You know, real restaurant tactics.

Perhaps one day, QSRs will get smart and target traditional restaurants with EQUAL WAGE requirements to level the playing field.

Anonymous said...

When we charge the same price for coffee that dirty convenience stores charge where you make it yourself, it's no wonder why people look down on our coffee and we now CANT charge more.

Some of the convenience stores do in all honesty run very clean stores with more variety than we have but you still have to do it all for yourself and stand in line to be chased out by the only two employees in the whole place behind people picking lottery numbers.

Why can't we charge a premium for quality, fast service by a full crew (when I can them!) and convenience? Why play against the bottom players?

Anonymous said...

The current MCD management team is destroying us for their own benefits

Anonymous said...

Rising prices make Stock Price Steve and Clueless Chris's VERY happy. They collect fees and rents on the rising top line number that we charge customers so the money they collect goes UP while our customer counts go DOWN

It's a great business strategy, for THEM. They cash out before the roof falls in. It's no wonder that the stock price is breaking record highs almost every day this month.

When will anyone start to care about the restaurants actually making money?

Anyone? Bueller?

Anonymous said...

I remember a memo from MCD legal once that stressed the inability to fix prices as it was illegal - and now, its all about fixing prices. I used that new pricing tool - it had some of my competition. Showed I was priced nearly 300% lower than my competition on drink pricing. How's that for rising QSR prices?

You will know when MCD corporate officers are about to bail - they will sacrifice their $1 strategy for the last Quarter sales increase, and final moment stock bump. That time is nearing fast. Its their golden parachute..

Anonymous said...

East Coast, West Coast everyone states they said NO... OPNAD FIELD VOTE PASSED. SMH

Anonymous said...

Corporate greed at its finest. Capitalism run amok, unchecked. These cheap Charlie’s who come in for the cheap food, give us th most problems. Homeless people are attracted to us. Let these switchers go. Keep the loyalists with fair pricing and nice service.

Anonymous said...

I agree very much with the above comment. That being, our current customers are more willing to open their wallets to us, then attracting other "customers."

alignment with mcd corp has been lacking. Franchisees need stock options. that's the only way to mitigate this discount mindset. It's similar to marketing fees going from 4% to 3.2%.... the margin is supposed to help us stomach BBV2020... Even though it's really embedded in Promo and Discount.

Give us stock options and we can stomach this BS one size fits all. I can take a loss for a period of time, assuming we are taking market share and will eventually put someone out of business.

I'm a capitalist, but to be a corporate executive at McDonald's and make Millions in stock options is ludicrous. Because there are so many hard working individuals owning and operating restaurants, it's essentially on auto pilot. we have a major investment in the brand's success. Is it too much to align ALL interests?

Anonymous said...

One other comment, google "Donald Trump McDonald's"

He did a commercial in 2002 for McDonald's -- advertising a Big and Tasty for $1. AND a McChicken for $1!!!

Ironically, we're still on McChicken for $1. If, at a minimum, we were to create a McChicken tied to inflation -- it should be priced at $1.42 today. I mean, really??!!??!! in 2002, we were selling a McChicken for a dollar...... this was before the iPhone, before Tom Brady, before Chris K was 34.

Either we were making an absolute killing in 2002 or the quality is dog crap today. I'm not sure what to make of this. Other than someone fits the bill.. and it seems to be the shortest leg of the stool.

Anonymous said...

Tom Brady won his first Super Bowl at the beginning of 2002....

Anonymous said...

okay... a McChicken was still $1 seventeen years ago.

Anonymous said...

Chris K needs to go back to business school and leave running actual businesses to the grown ups.