Recently, McDonalds had a special pricing promotion that caused a 10% reduction in demand for fries. Allegedly, the drop in demand was the result of a 99-cent burger promotion. The promotion unintentionally incentivized consumers to switch from buying their usual combo meals that included fries and a drink at a bundled price. These combo meals are a traditional winner for franchises as customers who normally buy just the burger and a drink can opt to add fries at a discount versus purchasing all three items separately. They might even choose to “super-size” it with bigger drinks and fries at higher prices, adding more profit to the purchase. As a dad and now a granddad, I have fallen into that trap more than once!
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