4 ms·
> Ice cream @ a McD is a loss-leader (soft serve) or minor line item (McFlurrys) while it is the core product of DQ, despite their hot food offerrings. IMO thi
by notreallyserio 5y ago
> Ice cream @ a McD is a loss-leader (soft serve) or minor line item (McFlurrys) while it is the core product of DQ, despite their hot food offerrings.
IMO this is actually the point being made. There's no need to run a loss leader if the competition doesn't exist.
- gruez 5y ago1. if it's a loss leader that they don't want to continue, why not just... stop offering it? After all, you see "participating restaurant" disclaimers everywhere. Why can't a particular franchise just choose not to participate if it's not in DQ territory? 2. Regardless of whether it's a loss leader, I doubt the marginal cost of the ice cream is more than the $1 or whatever the discounted price is. They paid for the expensive ice cream machine and the counter space. They might as well use it.
- notreallyserio 5y agoAs the theory goes, they want to stop DQ from moving in more than they want to recover the counter space used by the offline ice cream machine.
- hackernewds 5y agobecause customers drive in to purchase the loss leader, and even when unavailable will purchase alternate items