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
Tbh in my experience it’s been the opposite. For example there is no way to get the “buy one get one for a dollar” menu for McDonald’s if ordering through postmates or Doordash.
I’ve also seen inflated regular menu prices.
My advertising lower prices in an app you might actually purchase it. You have lots of options still so they want to give the best price possible. It’s like if you if they say they give free delivery they probably just jack up all the prices.
If you’re in the store you’re a captive audience they don’t need to give you any deals you’re there to eat if you had deals you brought them with you if not pay the full price.
They are collecting user data for one thing, that’s worth more than you think. That’s how social media companies make all their money when their service is free to users
I assume you mean in-store menu pricing, yes?
If that’s the case here’s how it works:
1. If you’re already in the store, you’re very likely to purchase there anyway – it’s a hassle to have to go to an app and do it there when there’s a giant touch screen right there (or a person taking your order), and your food being prioritized over deliveries or pickups. So they get more money off you anyway.
2. When you use the app, they lose a little on the margins, but gain so much more as a result – you are now much more likely to be a repeat customer.
Consider this: you go to a store, see that the prices are really high, you eat and try not to eat there again because it’s expensive.
You go to the app, see the prices are reasonable, and you even get discounts! Now you feel like you’re not getting ripped off and maybe you’ll have another meal from them next time.
What’s a $15 meal sold once when they can get at least five $10 meals from you?
3. The app means they can “talk” to you. Armed with the illusion of affordability, they can now keep reminding you of these deals with your notifications.
“TGIF, have a treat with us, use this deal.” Then maybe you invite yo it work friends for a quick fast food snack. They win.
“It’s your birthday! Have a free soft serve on us!” Well, you’re already in the app and you don’t want some poor dude to ride all the way to your apartment to deliver one melted ice cream and tip him for basically nothing, so you grab a burger as well. They win.
“15% off on all chicken sandwiches this week!” And you think, well I do plan to have a chicken sandwich this week, might as well take advantage of this promo. They win.
4. Apps are easier. In today’s world everything is just a click away. An app takes away that friction of having to go to a store and talk to a person and sit and wait just to get food. Especially these days when there are a lot of people who go grew up on instant messaging and the internet and have anxiety talking to people or find the existence of in-store touch screens weird and anachronistic. Instant access to food means they are at a better top of mind position among their customers.
It is so Mcdonalds can target multiple demographics at the same time. Oh your poor and can’t afford our menu items? Check out the app and see what deals we have! A lot of bother won’t bother getting the app and will order at regular menu prices. To recoup costs, they sell/use the data they collect on you.
Presumably app users are repeat customers. The restaurant wants to encourage and reward repeat business.
Not only does it reduce their labor costs, but by forcing consumers to use their apps, merchants of all sorts are able to scrape your data and sell it. That consumer data is worth more than anything they might lose in lower prices.
What you do is charge your friends for the menu price. Then use the app to get the discount and boom modern crony capitalism.
If you have their app installed they will sell your data.
It’s a second revenue stream they can get from you.
Because you have to give all your details to join the app. They then sell that info which is worth WAY more than a lifetime of Big Macs.
Remember, YOURE the product.
They should be paying you.
Latest Answers