The Golden Arches want more $$$$$$$$$$$$$$$$$

[mighty_tiger_79]

McDonald's is lifting prices in poorer suburbsArticle from: Font size: Decrease Increase Email article: Email Print article: Print Submit comment: Submit comment Frances Stewart
February 25, 2009 11:25pm
McDONALD'S is lifting prices in poorer suburbs because it believes consumers in these areas are more likely to accept the higher charges.

The cost of menu items was previously based on restaurant overheads and ingredient prices.

But the multinational fast-food chain is now using socio-economic factors to determine charges under a new "demand-based pricing" scheme.

Corporate documents obtained by The Advertiser reveal McDonald's Australia has identified an "opportunity to introduce more aggressive price increases" at 13 of South Australia's 47 outlets.

McDonald's, which yesterday confirmed the new pricing strategy, says the price "refinement takes into consideration individual factors that relate to each store. . ."

The stores to charge the highest prices are at Arndale, Camden Park, Collinswood, Elizabeth, Enfield, Fulham Gardens, Hollywood Plaza, both outlets at Marion, Paralowie, Port Lincoln, Salisbury and West Tce in the city.

A McDonald's franchisee, who asked to remain anonymous, said the biggest price rises were concentrated in low-income areas.

"In general, the poorer suburbs will pay more," the franchisee said.

"In essence, areas that the franchisor thinks will pay more for our products, will have to."

The document says the new system's objective is for individual stores "to maximise the potential for a price rise" while minimising the risk consumers will go elsewhere or choose a cheaper meal.

The biggest price rise will be for children's Happy Meals, which will increase by 16.5 per cent from $4.25 to $4.95, at all locations.

Other items will rise in two stages by between 1.8 per cent and 3.3 per cent, depending on the location of the restaurant.

The first stage has already been implemented at most stores, while the second stage will occur in May.

McDonald's corporate communications manager Bronwyn Stubbs developed prices according to "established research techniques" and these were recommended for company-owned restaurants. The most recent "refinement", which considered price factors relating to each store, was to align with the company's "global practice".

The new system means McDonald's three city locations – all within 1.5km of each other – will have three pricing structures.

West Tce will have higher prices than Hindley St, while Rundle Mall's prices will be lowest.

At the Rundle Mall outlet yesterday, Lucy Russell, 18, of Beaumont, did not know the price of meals varied.

"I just assumed they were all the same price," she said.

"I think it's actually a bit dodgy to have different prices in different places."

Choice spokesman Christopher Zinn said it was a "fascinating insight" int McDonald's corporate culture that "they believe they can get unpalatable price rises through by doing it in two stages".

Mr Zinn said families looking for cheap meals should consider alternatives to fast food.


"The least well off are not always the most price conscious," he said. "But fast-food meals are not necessarily a cheap option."


The price rise comes as McDonald's enjoys growing profits and market share. Asia-Pacific revenue rose 10.2 per cent in 2008, and 39 new stores are set to open in Australia this year

[Jimmy_041]

They will probably put pokies in next

[Choccies]

And possibly serve 'food'...

[Jimmy_041]

And possibly serve 'food'...

[Rik E Boy]

Finally, a corporation that cares. By increasing their prices for those that can least afford them, McDonalds is finally taking responsibility for creating an epidemic in childhood obesity. Perhaps now some poorer families might discover how to serve and cook vegetables.

regards,

REB

[silicone skyline]

Dreaming REB.

[Dogwatcher]

No surprises in any of this.
From what I understand the McDonalds in Renmark charges more than the one in Mildura (only 150 kays away).
Both owned by the same franchisee as far as I'm aware.

[Jimmy_041]

Finally, a corporation that cares. By increasing their prices for those that can least afford them, McDonalds is finally taking responsibility for creating an epidemic in childhood obesity. Perhaps now some poorer families might discover how to serve and cook vegetables.

regards,

REB

We should make the slots wider in pokies so they can their lose money faster as well

[Jimmy_041]

No surprises in any of this.
From what I understand the McDonalds in Renmark charges more than the one in Mildura (only 150 kays away).
Both owned by the same franchisee as far as I'm aware.

Yeah........but one's in SA and the other in Victoria so different currency

[Choccies]

The lower socio-economic areas are an easy market for these companies..... A mate of mine owns 2 Subway stores in WA, both in poorer areas and he is raking it in purely because some of these people dont have the sense to spend their $10 on some bread, meat, salad to make lunches for 5 days... instead they go to subway, blow it all on a footlong and a coke and go back again the next day... so for Maccas to increase prices in those areas means they know the unsuspecting victims will be none the wiser with what they pay for their 'daily lunch'....

[Dogwatcher]

No surprises in any of this.
From what I understand the McDonalds in Renmark charges more than the one in Mildura (only 150 kays away).
Both owned by the same franchisee as far as I'm aware.

Yeah........but one's in SA and the other in Victoria so different currency

Pesos?

[Rik E Boy]

Dreaming REB.

Dangit Clifford, GET YOUR SARCASM DETECTOR FIXED. Not the first time I've told you about this either!

regards,

REB

[Jimmy_041]

He is in Dreamdam (Amsterdam)

[Footy Chick]

Dreaming REB.

Dangit Clifford, GET YOUR SARCASM DETECTOR FIXED. Not the first time I've told you about this either!

regards,

REB

Dont worry SS, mine's never worked that well either

[Browny25]

Who cares about Maccas.. I just want bloody KFC to bring the TOWER burger to SA!!!

[silicone skyline]

Dreaming REB.

Dangit Clifford, GET YOUR SARCASM DETECTOR FIXED. Not the first time I've told you about this either!

regards,

REB

Dont worry SS, mine's never worked that well either

Gee, that's comforting.

[whatcha got there?]

Who cares about Maccas.. I just want bloody KFC to bring the TOWER burger to SA!!!

omg they were awesome. even if id inevitably vomit within a 6 hour period of consuming one. my fragile body cant handle that much grease, but i love them!

[bayman]

i mentioned this months ago with 'hash browns' being $1.00 at most places yet the one at croydon was $1.25......now they're all around $1.30

[Leaping Lindner]

What? A company that puts juniors on "work experience" for three months and then doesn't pay them is messing around with its prices??? You can't be serious.