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
It’s the same as sending coupons to every house except it easier to use them. They are still making money on those deals, but the customer gets to feel like they are getting a bargain and is more likely to come back. I have a bunch of fast food apps on my phone. When I’m too tired to make a meal and I open the food tab on my phone I’m going to open the app with the best deals first. Same with loyalty points. People feel like they’ve earned those deals and want to use them like it’s burning a hole in their pocket.
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