In the long-run, profits equal zero, and for McDonald’s, the end maybe sooner than later. In my opinion, their demise started with the dollar menu bonanza and ended with the 24 hour breakfast menu. When a company starts changing that means their current outlook doesn’t look good, so changes are made to maintain the desired profit margins. McDonald’s continues to rebrand itself in international markets to cater to local tastes, shrimp in Chinese locations etc. But in the US, revenue and customers have peaked, and for the past ten years, the innovator of fast food has struggled to meet the curent expectations set by their competitors and demanded from their shrinking, older customer base.
Despite whatever McDonald’s brass thinks, they are not Starbucks, Chikfila, or Five Guys and they never will. Apple didn’t try to be IBM, Amazon didn’t try to be Walmart, and so on. Newcomers innovate, that’s what changes the balance of power in markets. McDonald’s is failing to innovate, they’ve been playing catchup for over a decade, and it’s beginning to show. I see them quickly turning into a food tech/information company, and that’s a huge decline from the golden arch fastfood institution with the fun movie and toy promotions we all grew up not being able to live without.
People went to McDonald’s for everything but the food, maybe the fries, now there’s nothing left but the food and it’s no longer a dollar or two; that is unless you give them all your information and let them track you with their new app, then most of your food is free. If anyone bothered going to McDonald’s anymore, I’d suggest you notice next time you’re in the not-so-busy drive thru, few people pay anymore, they just get their app scanned. Not sure how well that business model looks moving forward. Sell and short Mickey D’s until further notice, be awhile before I’m back.
The reason McDonald’s went to the 24 hour breakfast is because that’s where they make their money. But its not the breakfast food, its the breakfast time. I don’t think I’ve seen a McDonald’s around 7AM without a line of cars all the way around the building
So the breakfast items were only popular because it coincidentally was the food being sold during peak business hours? I always thought most of their breakfast appeal was from the limited serving hours lol people want what they can’t get. Now that there are no time constraints, there isn’t the same appeal. I’m not sure if they do indeed make more money on their breakfast items, but try ordering 2 egg mcmuffins at 10pm vs 2 big macs, the wait time difference is considerable, which means there’s a break in their preparation efficiency which used to be their greatest asset in addition to their movie/toy promotions.
I don’t think they necessarily make a higher margin on breakfast items so much as they just have more business at breakfast from people on their way to work
Another interesting thing is the app payments, they offer steep discounts on food for using the app because it means they don’t need a cashier to take your order and payment. Its a cost cutting measure for them, which allowed them to post 10% higher profits on 8% less revenue for 2017 over 2016. McDonald’s is trying to trim the fat and actually seems to be doing a good job of it
Its another example of how “fight for 15” minimum wage laws are resulting in a race to 0 for low skill workers
They still have cashiers at the drive through windows right? They have had the touchscreen menus inside for a while, I refuse to use them, it’s alot quicker just telling another human 10 words. Can you pay on those big digital menus with your app?
Yeah you still need someone in the drive through to verify your app payment, but it takes less time than a “traditional” payment, meaning the person is freed up to pull double duty on another role, so the restaurant can operate with fewer people
Ditto to the kiosks, if even half the people use them that means you only need half as many cashiers. I don’t think you can pay with the app from the kiosks, simply because the app is simply a remote kiosk on your phone, you order and pay through your phone so you don’t need to step up to the kiosk at all. The kiosks do take Apple Pay, Google Wallet, and Samsung Pay though, so you can with NFC on your phone
Surprised more e-wallets haven’t caught on, I guess it’s natural for the people that created a hardware triopoly to do the same with software currency. I did not know you paid for your food and ordered it through the mcds app, I notice people handing window cashier’s their phone and scanning what I assumed was a UPC.
Yeah, its a QR code that confirms your order and payment, so I can’t just go up and say I’m Bob Smith and pick up Bob’s food that he paid for
I just recently started using Samsung Pay, because I switched from using my debit card (from a bank which doesn’t support e-wallets yet) to using my Chase Rewards cards, and I think its great.
A lot of people are concerned over the security of it, but the fact is its more secure. Your phone is locked down better than your wallet, and if you do lose your phone you can delete the card from your e-wallet remotely (can’t remotely remove your real card from your real wallet lol) and since it generate a virtual account number for your card you don’t even have to get a new card issued, you just re-add it to the e-wallet and it generate a new virtual account number
So you download a Samsung app, give Samsung all your financial info, then get the mcds app, give them all your Samsung info, then press a punch of laggy buttons, then go to the drive-thru, hand a stranger your phone, then they attempt to laser scan an lcd screen, then you get your cold food lol sounds much easier than paying cash!
If you are using the McDonald’s app you don’t need the e-wallet, and if you use the e-wallet you’re scanning at the kiosk inside, no need to hand anyone your phone.
If you want to try joining us in the 21st century you’d find that both are actually easier than cash
Oh, and if your phone is laggy buy one that isn’t a piece of junk
Yeah, join the century of no privacy and complete government control, it’s great! Only thing that makes it better is a $1200 phone that’s lucky to last a year. Why don’t we all just get chips implanted, that’s way more efficient than counting and talking.
What if you lose your phone?
Well no one can get in to my e-wallet without my fingerprint (my regular wallet opens for anyone) and I can also wipe my phone remotely
As for the e-cards, I’d just create new ones, with new account numbers, so even if someone could unlock my phone the e-wallet would be useless. Its basically the same as when your bank issues you a new credit card, except its instant and you don’t have to involve your bank and pay a fee to replace the card
Fingerprint i.d.’s are not as safe as you think.
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