The most expensive thing in a happy meal is the toy, and McDonald's has always competed on price. For the last fifty years that has worked very well, but now we are in deflation (credit deflation.) McDonald's sales are sliding, and there is nothing they can do.
They can't lower prices, because the ingredients they buy are based on ZIRP interest rate land, growing subsidized product that has maxxed out demand world wide. Production cannot widen from maximum, land cannot be bought cheaper, demand will not slacken when the more you subsidize, the more you sell, you cannot cut labor when 98 million workers are unemployed and collecting benefits.
McD cannot go up-market because the infrastructure of McD is designed for cheapest fastest. No possible way the owned stores can cover the component cost of financing the means of production, pay their bonds, with the revenue of lower sales at higher prices. The strategy of the last forty years has trapped them.
When McD's raises prices clientelle will comparison shop and prefer the smaller, better. This leaves the customers who do not care about price, the 48 million who pay by EBT cards, (on in seven Americans) become a bigger concentration of McD clientele, leading to a downward spiral for Mcd's. Ironic that, welfare queen McD's is failing because its welfare-subsidized customers won't work for McD.
Cut corporate welfare first, and watch the real-economy small businesses rush in to fill the need. they will hire the most will to get off EBT first, for a smooth transition from fascism to free markets.
Feel free to forward this by email to three of your friends.
The company said its sales in stores open at least a year fell by a startling 4 percent in the United States and by 1.7 percent globally.
“Consumer needs and preferences have changed, and McDonald’s current performance reflects the urgent need to evolve with today’s consumers, reset strategic priorities and restore business momentum,” the companysaid in a statement.
They can't lower prices, because the ingredients they buy are based on ZIRP interest rate land, growing subsidized product that has maxxed out demand world wide. Production cannot widen from maximum, land cannot be bought cheaper, demand will not slacken when the more you subsidize, the more you sell, you cannot cut labor when 98 million workers are unemployed and collecting benefits.
McD cannot go up-market because the infrastructure of McD is designed for cheapest fastest. No possible way the owned stores can cover the component cost of financing the means of production, pay their bonds, with the revenue of lower sales at higher prices. The strategy of the last forty years has trapped them.
When McD's raises prices clientelle will comparison shop and prefer the smaller, better. This leaves the customers who do not care about price, the 48 million who pay by EBT cards, (on in seven Americans) become a bigger concentration of McD clientele, leading to a downward spiral for Mcd's. Ironic that, welfare queen McD's is failing because its welfare-subsidized customers won't work for McD.
Cut corporate welfare first, and watch the real-economy small businesses rush in to fill the need. they will hire the most will to get off EBT first, for a smooth transition from fascism to free markets.
Feel free to forward this by email to three of your friends.
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