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Coca-Cola is indeed highly profitable, but American consumers have indicated time and again that they want some real bread and beef to go with that Coca-Cola. T
by kijin 3y ago
Coca-Cola is indeed highly profitable, but American consumers have indicated time and again that they want some real bread and beef to go with that Coca-Cola. They want to feel reasonably full, and they can't come back 6 times a day no matter what, because they have to work in order to pay for your burger.
You're not going to make a large profit if you diverge too far from this social norm. Don't think like a startup, because we're talking about traditional multinational businesses here.
- kragen 3y agoi don't think it's a question of social norms. if people were adhering to pre-mcdonalds social norms, they wouldn't be going somewhere besides their house (a restaurant, but one without waiters) and sitting on brightly colored plastic benches eating mechanically separated chicken glued together with modified food starch cut with texturized soy protein people's appetite is evidently for calories, and they commonly regulate their caloric intake or metabolic rate to within 0.5% in order to maintain their level of obesity. social norms are not capable of that kind of precision consider, if you gain only 5 kg in ten years, which many obese mcdonalds eaters in the usa do, that's a caloric excess of 5 kcal per day. half a gram of fat per day. that's 0.3% of a metabolic rate of 1666 kcal per day or 0.2% of 2500 kcal/day. if they were to eat 0.3% less calories than they were burning instead of 0.3% more, they'd be losing 5 kg every ten years, not gaining it so the homeostatic feedback mechanism is almost working. it's clearly not completely broken. its error is well under 1%. but it does evidently have a systematic error across the population. and fast-food optimization for profit by itself is an insufficient explanation for that