Coalition of Franchisee Associations

May 12, 2023

Are Chains Being Honest About Prices and Traffic?

Wendy's sees no major resistance to prices - Yahoo  

Most QSR chains are telling investors that the price increases they've taken haven't hurt traffic. That contradicts common sense and the word on the street says if it hasn't hurt yet, it soon will.

From friends, neighbors, reporters, analysts, to extended family, it seems to me that everyone outside the offices of QSR corporate headquarters is complaining about prices at quick-service restaurants. Part of the problem? Most chains are run by new generations of executives who have no background in the business of value.

When customer contraction begins to hurt sales the only answer will be an increase in deep discounting or the good old "burger wars".


Anonymous said...

Traffic hasn't declined because while the menu prices have increased, huge discounts. and free food are pushed out through the digital apps.

This week you could get a FREE McCrispy with no purchase required!

That certainly drove traffic.

Anonymous said...

Our fault for the app. Discounts bu empowering these people. This has got to stop.

Richard Adams said...

That all means your customer profile is going to move younger as the % of young people who use all of the functions of their phones is very high, but not so high among older populations.

So in the 1980s and '90s, MCD Operators were discouraged from couponing, etc. because "the customer will wait until the next coupon drop to go to McDonald's".
I guess that now applies to the App.

If you want to follow the saga of a business built on discounting, check out the latest on Bed, Bath, and Beyond (BBBYQ).

Anonymous said...

Good point, but Corp is using the app to circumvent operator pricing. They believe operators make too much money.

Not sure my CEO salary matches MCD Corp CEO pay... but then again in their eyes, we are merely burger flippers.

Anonymous said...

Most stupid is the National giveaways and discounts. However, these are coupled with COOP giveaways and discounts AND added 123DM menu board discounting.

When they scratch their heads when people think MCD food is third rate.

Anonymous said...

How about delivery.. do providers even know?