Case Study 2: McDonald’s “Seniors” Restaurant
McDonald’s is one of the world’s leading fast food chains operating about 32,478
restaurants around the world restaurants (Business Week, March 8
, 2010). Fortune magazine
ranked McDonald's #1 for social responsibility in 2007’s list of Most Admired Food Service
Companies (Fortune, 2007) also # 1 in terms of people management in 2009 (Fortune, 2009) .
Quinn took number of steps in accordance with McDonald’s corporate philosophy of giving back
to the communities it serves.
. Every 4
Monday of the month, the restaurant offers breakfast specials for
people aged 55 and older. This includes $1.99 for meals and free coffee refills. Obviously, this
special promotion strategy is targeting the city’s huge senior population. Today’s seniors are
more prosperous than ever before (Perreault, Cannon, & McCarthy, 2009, p. 140). They have
considerable about of flexible time and most of them higher disposable income compared to their
predecessors. An interesting thing to note is that those people aged fifty-five through sixty-four
spend a per capita average of $1,164 per year on food away from home, while those sixty-five
and over spend about $801 annually (Knutson, Elsworth & Beck, 2006, p. 61).
In fact, these
people above 55 spend more per capita on food away from home than the national average
(Knutson, Elsworth & Beck, 2006, p. 61). This makes them an extremely lucrative market for
restaurateurs. One can say that Quinn’s current monthly promotion strategy is working very
effectively as about 100-150 seniors jam her McDonald’s not just every fourth Monday, but
almost every morning. Senior discounts and memberships are highly effective ways of reaching
the 55+ mature consumers (Moschis, Bellenger & Curasi, 2003, p. 16)
and Quinn has leveraged
this marketing tactic very effectively.