I bought fast food for a group of people last night. The menu pricing was significantly higher than ordering through the app, which also allowed me to attach a digital coupon.
The pricing within the app is what I would expect to pay, or what I believe is “fair” or “reasonable” for chicken nuggets, French fries, and cheeseburgers.
On the other hand, I have cut my fast food consumption by at least half over the last few years because the published menu prices have skyrocketed.
What possible benefit would a fast food restaurant derive from publishing high prices to the casual customer and drastically reducing them within the app?
They have to be realizing a net loss of customers with this model, right?
In: Economics
Several ways.
1. They can access various user data and sell it.
2. Orders can be scheduled by their listed pick up time, reducing the amount of staff it takes it keep up with peak demand. Less employees the better.
3. You don’t have to dedicate an employee to taking orders, instead they can float back and handle drinks & drive through. Less employees the better.
4. Increased order accuracy and customer accountability for order inaccuracy. This means less free replacement food for errors.
5. Overstock management. It cost money to purchase & transport the food on the verge of expiring. And being thrown in the trash is a 100% loss. However you can simply offer a special deal to push increased sales.
6. They can generally afford selling it at those prices, but it cuts into profits and risk management if they do. Like Sonic’s half-price drinks, they cost pennies to supply but charge several dollars for each.
Latest Answers