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McDonalds is financially quite healthy. They've never been the cheapest nor the best quality. McDonalds excels in having food at the right place at the right

McDonalds is financially quite healthy. They've never been the cheapest nor the best quality. McDonalds excels in having food at the right place at the right time and a minimal effort to transact. If you are traveling at any random place in the US, and you are in a hurry and want something you are familiar with, McDonalds is the most likely thing you will come across first. There is a huge cognitive anchoring this has.

observationist 2y ago
Don't forget consistency - you can get chicken nuggets and barbecue sauce and french fries that taste recognizably the same at any of their 42,000 restaurants. The food preparation and storage, shipping logistics, and other underpinnings of their consistency trick are admirable, even if the other issues with fast food detract from the overall picture.
- euroderf 2y ago
  Back before teh interwebz consistency was the key to other successful nationwide chains like Howard Johnson's and Holiday Inn.
- sabbaticaldev 2y ago
  my friend, people just recently died for eating mcdonalds.
- kube-system 2y ago
  That's what I was hinting at "something you are familiar with" and "effort to transact". People hopping off the highway for a quick stop with their family don't want to mull over SlopBowl's menu for 10 minutes, even if it's better quality... they know if they roll into a McD, they can grab a happy meal and the kid won't complain.
- namibj 2y ago
  But a strawberry shake in the US tastes horrible to those used to the DE version.
ethbr1 2y ago
Taco Bell: Te parezco un chiste?
- kube-system 2y ago
  Taco bell has significantly fewer locations, it's less likely that your next exit has one.
  - ethbr1 2y ago
    Out of curiosity, apparently US totals are Subway 20k, Starbucks 15k, McD's 13k, Dunkin 9k, Taco Bell / Burger King 7k, Dominos / Pizza Hut / Wendy's 6k, then others.
    - kube-system 2y ago
      Subway is a good reminder that location matters too. While they have a lot of locations, they are not nearly as selective in where they go.
      - ethbr1 2y ago
        Subway is also an optimization in franchise virality and typically doesn't own its own real estate. I.e. they will let you open a Subway franchise today and me another one across the street tomorrow.
        ghaff 2y ago
        Also something of an exercise in my experience of how bad sandwich franchises can be.
        ethbr1 2y ago
        It's interesting watching the cycle of startup -> optimization for customer value -> brand buyout -> optimization for profit. F.ex. Blimpie (MTY 2016), Jimmy Johns (Roark 2016), Firehouse Sub (RBI 2021), Subway (Roark 2023), Jersey Mike's (Blackstone 2024)
yodsanklai 2y ago
> If you are traveling at any random place in the US And not only in the US. McDonald's is big in some European countries like France. In small towns, McDonald's may be the only option available past a certain hour. My relationship with the company has evolved though. When we were teenagers, we loved McDonald's. It was also not available everywhere and quite novel, so we would sometimes drive a long way with my mom just to go there. Nowadays, I'm much more concern about my health so it's really one of the last option I'd consider. It feels they have become dirtier than what they used to be though, but maybe that's subjective.
ghaff 2y ago
I basically never eat at McDonald's personally but I expect a lot of people just default to it as the predictable option that isn't too bad for their tastes and doesn't cost too much.
- scruple 2y ago
  We end up there maybe 6 times a year now that we have kids. It's the correct option when we're on a road trip. Like another commenter said, it's consistency is a huge selling point and kids will never say no to a Happy Meal.
  - ghaff 2y ago
    You don't have a lot of options at interstate service plazas. Yeah, I'll grab some fries at a McDonalds or a Burger King maybe a few times a year if I'm driving and hungry. Depending upon where I am I may go to a more local place I know but it takes more time.
margalabargala 2y ago
They're rapidly burning part of their core value proposition for finances. They are increasing transaction friction, via much higher store prices and requirement to use their app, forcing use of touchscreen ordering, etc. Boeing appeared quite financially healthy in summer 2018 as well.
- lazyasciiart 2y ago
  I'm not sure that having a franchise fall out of the sky would be so harmful to McDonalds though.
- kQq9oHeAz6wLLS 2y ago
  At all the McDonald's I've been to recently, you can still walk in with cash, give your order to a human, and walk out with a bag of food. You don't have to use the app. You don't have to use the touchscreens.
  - antifa 2y ago
    But you often have to wait 10 minutes for someone to show up at the cash register or to let you beg for a refill https://www.cnn.com/2023/09/12/business/mcdonalds-self-serve-soda-machines/index.html https://www.cnn.com/2023/09/12/business/mcdonalds-self-serve...
ProfessorLayton 2y ago
Perhaps, but a lot of these arguments have been used for Starbucks, where it seems like their relentless streamlining and price increases have been catching up with them. McD's has been on a similar path, and have reintroduced $5 meal deals in an attempt to bring customers that have been priced out back.
- Neonlicht 2y ago
  In my country just a hamburger is 5 euro. Poor people cook their own food- it's the supermarket that operates at a 2-3% margin.

observationist 2y ago

Don't forget consistency - you can get chicken nuggets and barbecue sauce and french fries that taste recognizably the same at any of their 42,000 restaurants. The food preparation and storage, shipping logistics, and other underpinnings of their consistency trick are admirable, even if the other issues with fast food detract from the overall picture.

euroderf 2y ago
Back before teh interwebz consistency was the key to other successful nationwide chains like Howard Johnson's and Holiday Inn.
sabbaticaldev 2y ago
my friend, people just recently died for eating mcdonalds.
kube-system 2y ago
That's what I was hinting at "something you are familiar with" and "effort to transact". People hopping off the highway for a quick stop with their family don't want to mull over SlopBowl's menu for 10 minutes, even if it's better quality... they know if they roll into a McD, they can grab a happy meal and the kid won't complain.
namibj 2y ago
But a strawberry shake in the US tastes horrible to those used to the DE version.

ethbr1 2y ago

Taco Bell: Te parezco un chiste?

kube-system 2y ago
Taco bell has significantly fewer locations, it's less likely that your next exit has one.
- ethbr1 2y ago
  Out of curiosity, apparently US totals are Subway 20k, Starbucks 15k, McD's 13k, Dunkin 9k, Taco Bell / Burger King 7k, Dominos / Pizza Hut / Wendy's 6k, then others.
  - kube-system 2y ago
    Subway is a good reminder that location matters too. While they have a lot of locations, they are not nearly as selective in where they go.
    - ethbr1 2y ago
      Subway is also an optimization in franchise virality and typically doesn't own its own real estate. I.e. they will let you open a Subway franchise today and me another one across the street tomorrow.
      - ghaff 2y ago
        Also something of an exercise in my experience of how bad sandwich franchises can be.
        ethbr1 2y ago
        It's interesting watching the cycle of startup -> optimization for customer value -> brand buyout -> optimization for profit. F.ex. Blimpie (MTY 2016), Jimmy Johns (Roark 2016), Firehouse Sub (RBI 2021), Subway (Roark 2023), Jersey Mike's (Blackstone 2024)

yodsanklai 2y ago

> If you are traveling at any random place in the US And not only in the US. McDonald's is big in some European countries like France. In small towns, McDonald's may be the only option available past a certain hour. My relationship with the company has evolved though. When we were teenagers, we loved McDonald's. It was also not available everywhere and quite novel, so we would sometimes drive a long way with my mom just to go there. Nowadays, I'm much more concern about my health so it's really one of the last option I'd consider. It feels they have become dirtier than what they used to be though, but maybe that's subjective.

ghaff 2y ago

I basically never eat at McDonald's personally but I expect a lot of people just default to it as the predictable option that isn't too bad for their tastes and doesn't cost too much.

scruple 2y ago
We end up there maybe 6 times a year now that we have kids. It's the correct option when we're on a road trip. Like another commenter said, it's consistency is a huge selling point and kids will never say no to a Happy Meal.
- ghaff 2y ago
  You don't have a lot of options at interstate service plazas. Yeah, I'll grab some fries at a McDonalds or a Burger King maybe a few times a year if I'm driving and hungry. Depending upon where I am I may go to a more local place I know but it takes more time.

margalabargala 2y ago

They're rapidly burning part of their core value proposition for finances. They are increasing transaction friction, via much higher store prices and requirement to use their app, forcing use of touchscreen ordering, etc. Boeing appeared quite financially healthy in summer 2018 as well.

lazyasciiart 2y ago
I'm not sure that having a franchise fall out of the sky would be so harmful to McDonalds though.
kQq9oHeAz6wLLS 2y ago
At all the McDonald's I've been to recently, you can still walk in with cash, give your order to a human, and walk out with a bag of food. You don't have to use the app. You don't have to use the touchscreens.
- antifa 2y ago
  But you often have to wait 10 minutes for someone to show up at the cash register or to let you beg for a refill https://www.cnn.com/2023/09/12/business/mcdonalds-self-serve-soda-machines/index.html https://www.cnn.com/2023/09/12/business/mcdonalds-self-serve...

ProfessorLayton 2y ago

Perhaps, but a lot of these arguments have been used for Starbucks, where it seems like their relentless streamlining and price increases have been catching up with them. McD's has been on a similar path, and have reintroduced $5 meal deals in an attempt to bring customers that have been priced out back.

Neonlicht 2y ago
In my country just a hamburger is 5 euro. Poor people cook their own food- it's the supermarket that operates at a 2-3% margin.