Marginal Profits
May 25, 2009
In response to the economic downturn, large fast-food companies are trying to lure consumers with new lower prices. While this is attractive to the consumer, the franchise owners, who bear the costs of these promotions, are struggling to make a profit. Subway offers $5 footlong subs, McDonald’s has the dollar menu, and Baskin-Robbins offers 31-cent scoops – all a great deal for the customer. However, the owner of your local McDonalds earns only six cents on the double cheeseburger and Baskin-Robbins franchises lose $1.45 per scoop when conducting an annual charity event. Therefore, retailers are trusting that you will buy some of their high-margin items like fountain sodas.
With the economy down food chains are dealing
They’re cutting profit on food that’s appealing
But owners complain
‘Cause they feel the pain
And for the consumer it is almost like stealing
Tags: Baskin-Robbins, consumer, dollar menu, double cheeseburger, franchisee, McDonalds, NVFC National Junior Firefighter Program, Subway
Posted on: May 25, 2009
Filed under: Other
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1 Comment
DBT
May 27th, 2009 at 5:29 am
Catchy!
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