Tuesday, May 2, 2017

Why Is McDonald's Flagging?

Why are McDonald's profits slowing? The answer is simple. One word, two syllables.

Subway.

Subway is the upstart, the old upstart, that promised years ago that it would surpass McDonald's in number of restaurants nationwide. So how did subway win?

First of all, location. McDonald's are much easier to get to, but Subways are more economical. They are parked at free, open, well-lit locations that sort of lead you to the library, or lead you to work. It something to do on your way to do something else.

McDonald's, on the other hand, leads you to a cul-de-sac parking lot and a death trap eating area, full of cumbersome immovable furniture.

What else is there? Subway is the restaurant of the Proletariat, whereas McDonald's mainly targets the Steve Easterbrooks of the world as customers. What? Subway's cheaper. Not only that. Subway is cheaper, more filling, arguably better tasting, healthier and provides more energy.

If you go to Subway for breakfast, you can get the best-tasting, most filling and almost most affordable sub they have (Spicy Italian) for just $8.12, which includes a fountain drink that you can mix yourself. Suicides, anybody?

What does McDonald's have? Well, if you're going for the breakfast menu, you can get two Sausage McMuffins with Egg and a soda (no mixing allowed) for $8.60. That's an extra $14.88 per month in taxes.

But isn't two better than one?

Not exactly. Those two sausage McMuffins with egg are the size of doughnut holes and you'll be hungry within the next fifteen minutes again.   

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