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
More people on app ordering means less customer service needed taking orders, letting them potentially cut another worker.
Selling less items for more profit can give you the same margins (20 orders * $0.10 vs 5 orders * $0.40). You also potentially have less inventory, inventory management, and labor costs when selling at above absolutely bottom margin.
Apps are a good way of feeding direct notifications to your customers, getting direct marketing feedback on which types of sales and promotions directly drive purchases, and again removing a few minutes of customer service needed to take the order. They also are much less costly and cumbersome to roll out national campaigns, rather than running a bunch of commercials/ads AND doing full print campaigns for in store signage.
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