How McDonald make money with coupon app?

I have the McDonald App and the coupons are pretty unbelievable. For example, just today I got a free medium McCafe (worth $3) by buying a $1.25 McDouble. The other day I got free fries and you can get a buy 1 get one free sandwich.

Now I was just thinking, the cost to make a McDouble is maybe $0.90. And the cost to make a medium McCafe is maybe $2.50. So how do they make money?

Also, I noticed the workers don't like it when you use coupons. The lady serving me today was looking with such hatred in her eyes! Is it because they feel you are cheating the company? Because in a way, you are!

 
Best Response

I doubt a $3.00 McCafe costs $2.50 to make. Its probably much higher margin than that.

Part of the equation in advertising and coupons is to establish buying patterns and habits. They want you to enjoy what you got at a discount to create a habit to respond to future cravings of food by frequenting their establishment.

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee
 

Because all they care about is dollar per ticket to grow revenue. This allows them to pull both levers at once.

In your case, they got a single guy to go to McDonalds (more tickets). In the case of many, the coupons can be used only once, so a family will go and get one thing for free (more tickets and dollars).

Its all about the marginal customer coming to the store.

I bet you go to McDonalds three more time in the next six weeks. How long has it been since you went to McDonalds four times? Three years?

 

I go to MacDonalds almost every day now. Today I got a 10 piece chicken nugget for $1.50. I also get a cup of water, but fill it with Coke. They don't check, and even if they do, I've never had a worker confront me about it.

 

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