December 13, 2009
It was recently announced that McDonald’s will be adding more items to their breakfast dollar menu. Historically, inexpensive fast food places, like McDonalds, do quite well in bad economies. However, with unemployment numbers high, there are less people with a morning commute. Therefore they are not eating out. The restaurant giant is hoping that this, in addition to their new coffee (McCafe) line up, will have people leaving their homes.
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October 23, 2009
It has been a tough month for restaurants in the Dakotas as they battle costly pranks. In Bismarck, ND, a KFC suffered $2,500 in damage after a prank caller convinced an assistant manager to set off the fire suppression system. The caller informed the manager that the system had been shut off by the central computer and warned that police and fire would be called unless the system was reset. The manager obediently pulled the pin on the system and the resulting mess caused the KFC to be closed until a proper clean up was made. A similar call was placed to a McDonald’s in Pierre, SD but the prank was not successful.
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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.
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May 7, 2009
McDonald’s is trying to capture market share from gourmet coffee seller Starbucks with their new line of McCafe coffees. Each company is launching national campaigns this week. McDonald’s touts that they are less expensive while Starbucks contends they provide superior quality. McDonald’s is committing over $100 million in promotional funds making this the biggest product launch in their history.
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