McDonalds lifting prices in working-class areas

McDonalds lifting prices in working-class areas

www.news.com.au

McDONALD'S will charge more for Happy Meals and at "high-demand" stores, including at the Royal Children's Hospital.

Most of the outlets where prices will rise are in the city and working class suburbs, because McDonalds believes those consumers are more likely to accept the higher charges, while diners in more affluent areas would complain.

(visit the link for the full news article)


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Is it just me or is this just very wrong.
McDonalds is meant to be universally priced, but if anything it is the more affluent areas that would be able to afford it.

This is just another situation where the poor get ripped off. Just like banks charges overdraw fees when it is those that cannot afford it that go over thier limits.

This is just big business greed at its best, and totally uncalled for especially since thier profits are still going up. See here

www.news.com.au
(visit the link for the full news article)

So the poor need to prove them wrong and start brown bagging it. Show them hey won't take it. I for one would not take it if prices at places i eat in my poor part of town went up because i'm just supposed to take it. Screw them, all the poor folk in the world need to boycott them so the go out of business

Then, when the rich few an't keep them going, they will be no more. Viva le mcdonalds revolution!!!!!!!!!!!!!!!






PS: Vikings are AWESOME!!!!

[edit on 2/25/2009 by Finn1916]

Things are always more expensive in the ghetto. Take this case in point.

Palo Alto, California
East Palo Alto, California

Separated by oh 200 yeards and a freeway.

One city: EPA has a median home price of 276,000
www.locallinks.com...

The other Palo Alto has a price of $1,691,148. www.altosresearch.com...

Both have a MCDonalds (In fact EPA has two) Which is more expensive? Yep, the one in the lower income level. It goes a bit beyond the fact that rish people complain more. You also have to look into the cost of doing business in an area with high crime, theft, and vandalism rates. WHich EPA has in droves (It was the murder capital of the US a decade or so ago)

[edit on 2/25/09 by FredT]

reply to post by Finn1916


Yes, that is it. it's were a person spends his/her money. The only thing corporate america understand is the bottom line. Quit buying and see them pay attention or ask for a government bail out.

Uh-oh, Mickey D's greed may end up backfiring on them.

The ONE THING that has kept them profiting in these hard economic times WAS their affordability....

If they start jacking prices up, they are going to join the rest of the chains with losses, as people's frugality isn't a choice anymore. They are playing with fire on this one...

They can charge what they want, no way would i eat that crap even if they paid me to take it... not fit for dog food.

what does it matter

i'm sure no-one on ats is actually stupid enough to eat there?!!?

let them lift the prices, just dont eat there because you wont be able to lift ur kids if they eat that cr*p, they'll be too heavy

McDonalds' are franchises, so it is up to the franchisee to set prices- within corporate guidelines. The cost of doing business in the ghetto is significantly higher than in affluent areas. There's higher insurance, more crime, vandalism, employee theft. There's also the cost of hiring a security guard.
Years and years ago, I was on my way to Windsor, Ontario, and decided I'd stop at MCds to grab some breakfast, as I didn't have any loonies, and didn't want to stop at the duty free annex to exchange currency. To my shock, there was plexiglass between the customers and employees, and a revolving window where customers put in money, and the employees put the orders in. Doing business in the ghetto just costs more.
Besides, people in inner cities suffer from elevated rates of coronary disease, so shouldn't be eating fast food anyhow.

[edit on 25-2-2009 by stevegmu]

i mean THERE is a conspiracy in itself...
big mac rhymes with heart attack

reply to post by VIKINGANT

This is just another situation where the poor get ripped off. Just like banks charges overdraw fees when it is those that cannot afford it that go over thier limits.

Yes, the poor are getting ripped off. The reason they charge more in lower income areas is very simple- they have a captive audience. Many of the poor in lower income neighborhoods do not own a car, and cannot drive to other areas. Not only does McDonald's understand that, but virtually every franchise understands that. It is NOT due to labor costs, because they tend to hire people from the poor neighborhoods, and actually PAY them LESS than those in more affluent areas, again, because the workers are a captive work force, many of them do not own cars either. The second reason that the poor pay more in such areas is because there is less competition in low income areas.
Another area where prices for franchise food chains are MUCH higher is on limited-access toll roads. Again, the two factors - 1.) captive audience and 2.) limited or no competition are the reasons. In such franchises, prices may be DOUBLE the prices at the chain's surburban stores. Furthermore, such stores usually do not have "dollar menus", again, because of the above factors. Why serve a patron a dollar hamburger, when you can sell them a $4 burger, and if they're hungry, and there are no other food outlets for the next 50 miles of toll road, it's either eat or keep driving, when you run into the next outlet with the $4 burger.

reply to post by ProfEmeritus


I know for a fact there are grocery stores in ghettos. Perhaps these poor people with no cars and few fine dining establishments could make themselves a healthy sandwich, and save some money to boot.

I know for a fact there are grocery stores in ghettos. Perhaps these poor people with no cars and few fine dining establishments could make themselves a healthy sandwich, and save some money to boot.

Ah, you've hit another situation where the poor are also getting the shaft- the ghetto grocery stores.
In fact, there have been many studies on this. Large chains shy away from ghetto areas, and thus, the grocery stores that do go into ghetto areas, cannot compete with large chains in prices. It is not so much that the smaller stores are trying to soak the poor, but they cannot compete price-wise with the large chains because of lack of purchasing power, and thus have to charge more.

I do agree with you, though, from both a health view, and a cost concern, that they would be better at the local grocery store, buying healthy food, such as fresh produce or fruit.
However, this thread is about McDonald's pricing strategy, so I responded to the actual OP.

Originally posted by severdsoul
They can charge what they want, no way would i eat that crap even if they paid me to take it... not fit for dog food.

Here, here! You know, I actually did an experiment with a McDonald's burger. Neither my dog or my cat ate even a bite. From that point forward I never ate that crap again.

If your own pets won't eat it(And my cat like to eat everything including plastic, my dog is a trash compactor on 4 legs) you know you probably shouldn't either.

I have washed my hands of both KFC and McDonalds for some time, because of the attrocious animal holocost occurring in their animal processing factories. I know a lot of people, especially conservative types hate PETA, but this link shows peta's battle with McCruelty. People need to know. blog.peta.org...

reply to post by simonecharisse


oh no, thats going too far...
kfc (and subway for that matter) actually make nice food that doesnt taste like paper mache, and leave you hungry 10 mins later

It's just simple thinking. Why hate on McDonald's? Every place does this, probably. Go to Times Square. No complaints there . Brilliant business tactics. No wonder their business experienced an 80% profit rise in 2008.




[edit on 25-2-2009 by they see ALL]

I love KFC's biscuits and the breading that is --on-- the chicken. All they need to do, is exclude that lousy overgreasy chickenmeat, poisoned full of stress hormones from the pain of the factory demons cutting off their beaks, for starters. Subway is deliscious and nutritious.
There IS something terribly wrng with MC'D.'s beef. Everytime I used to taste it, it kept making me think of Hannibal Lecter, because I wondered if it was human meat. Never tasted anything like it before, is why. (Courtesy of China's prisons?)

reply to post by FredT


It's simple economics.

In affluent areas competition requires them to drop price to drum up demand.

In less affluent areas, where fewer choices are available, the competition is less and demand is strong.


[edit on 25-2-2009 by loam]