Check out this interesting article about how McDonald's sales actually increased during the recession. How can this be? Aren't we all about eating healthy? Didn't we all watch "Supersize Me"? Feel free to share your own McDonald's experiences. Are you a closet "Big Mac junkie"?Can you think of any other businesses that did well as consumers stopped spending?
40 comments:
Most likely the reason why people started buying more McDonald's during the recession was because they thought it would be cheaper to eat out on the dollar menu than it would be to spend money on food that would not only take longer to cook but would also last longer. Not to mention the "comfort" of the greasy goop McDonald's calls food. When I was in 9th grade, I saw Super Size me. That was enough to make me stop eating McDonald's for a few months. Then in 11th grade I read and watched Fast Food Nation. That was enough to make me never want to eat there againg! I have yet to return to McDonald's since that book/movie. I have also created a standard that if I cannot shred the chicken apart bit by bit and can tell that it is real, then I do not eat it. I also NEVER eat hamburgers from anywhere except from my own backyard. :)
As stated in the article, the reason McDonald's did so well during the recession was because when people wanted to eat out, they would go for something cheap, i.e. McDonald's. There is also their new coffee line. While it is not as fantastic as StarBucks, it was inexpensive enough to keep consumers going for it. Granted that people are becoming more health conscoius, the lure of McDonald's is a strong one. I never saw Supersize Me, but I did read Fast Food Nation. I stayed away from fast food for a few months after that book, but somehow I ended up eating it anyway. Americans are hooked on fast food; most of them aren't going to be able to give it up cold turkey. As for other businesses surviving the recession, I belive any restaurants like McDonald's with Dollar Menus and cheap food will have done well (Jack in the Box, Sonic, etc).
There is no argument that the majority of Americans will eat fast food at least once a week. As a result of the recession people will hardly find to sit down and enjoy a meal with family, but rather, constant movement to either get a job or, just plain, keep your job. Recessions do not slow people down; instead, it quickens the pace of life as people fight to survive in rough times. McDonalds efficiently provides meals for those caught up in the frenzy to keep provide for themselves and their families. Quick service, accompanied by relatively low prices, are hard to ignore and people choose the seemingly easiest way in complete disregard for what we know. We all know how fattening each french fry is and the amount of grease packed in each patty; however, this doesn't come into account when we are hungry and there is no time.
Tony Phewklieng
In the article it states that “McDonald’s success can be chalked up to a combination of luck-which is the residue of smart planning – and savvy moves”. The article mentions also that during a recession people tend to eat out less and if not, are frequently found eating at places which are relatively cheaper. The article proclaims that “McDonald's is so cheap, efficient, pervasive, and convenient that it was a viable alternative to casual restaurants like Ruby Tuesday and to cooking at home” also mentioning that McDonald's in other nations is considered to be “an aspirational brand, identified with middle-class, Westernized consumerism” If you think about it we aren’t necessarily eating healthy I mean come on. Imagine all the calories in a Mcflurry or in a burger! Despite that fact people still eat it since its “fast-food” something that they can eat instead of cooking(lazy). Watching the movie broadened my knowledge of just how unhealthy fast food restaurants can be.I found it interesting that the McDonald’s sign and Ronald McDonald their mascot is just as recognized as some of the Disney characters found in a statistic. As a child my family wasn’t as well off as we are now today. McDonald’s would be one American food which we enjoyed eating when we had extra money in our pockets so I can completely understand how McDonalds has become a booming industry, since it caters to all classes and is relatively cheap. I’m not much of what you call a closet “Big Mac junkie” I don’t really tend to eat junk food since there’s always food ready at home. Other businesses that did well as consumers stopped spending would have to be the dollar stores and what not, also other chain restaurant similar to McDonalds such as burger king, subway, and pizza hut.
Karen Pasay-An >.<
2nd Period
McDonald’s did a good job in terms of growth during the recession because it is a place where one can obtain cheap, efficient, and most importantly, delicious fast food. When the recession hit, people stopped going out to fancier restaurants such as “Ruby Tuesdays,” as stated in the article. And like the article explains, during a recession, if people will want to go out to eat in the first place, they will go somewhere that provides cheaper food, such as McDonald’s. Also, during the recession, many people are working in between many jobs to try and feed their families and pay the bills, and have little to no time to cook. Thus, they most likely will head to McDonald’s, where they can get cheap and good food. Although people are about eating healthy, and being healthy is the new craze, during a recession, being healthy is not the number one concern on people’s minds. If people are hungry, they are not going to care about how many calories they are consuming. Personally, I love McDonald’s and their dollar menu, it’s amazing.
The reason McDonald's is outperforming the market stems from the types of customers it caters to. As less people felt rich, and lost the financial capability to eat out at a casual diner, they turned to McDonald's as it is cheap and inexpensive. When I'm on the run, I eat out at places like Quiznos, however, if I had lost a job or had a wage cut, I would probably replace those restaurants with McDonald's or some other fast food franchise. As consumers stopped spending, I would imagine places such as Walmart and Ross would have benefited due to their low prices
Mcdonalds is cheap so people will eat there when they dont have much money. To me those anti-mcdonalds movies and books only made me want to eat there more. So not everyone is health conscious. Also other cheap places like taco bell might have done well during the recession as well as grocery stores bc more and more people eat at home to save money
Although Super Size me and Fast Food Nation throw hints at Americans to stop eating fast food, people still buy McDonalds by the bundle. I think there are probably countless reasons why people continue to buy McDonalds, but the number one reason I think that people buy McDonalds is because of price. With their dollar menu and tasty fatty foods, McDonalds has the right bait to reel in millions of customers. I however do not eat McDonalds because of athletics. I felt that if I were to continue eating it I would not be able to perform at my peak. Another company I think that may have seen almost or as much success as McDonalds is apple. They continue to make innovative technology that appeals to a wide variety of consumers.
This concept makes perfect sense to me. Despite the published works such as Fast Food Nation and Supersize Me, when the economy took a down turn McDonald's kept on going. When money is of short supply people want to save. What better way to save then stopping by at the McDonalds(one of the five you pass on your way home)to get a cheap meal rather than going out. Also people are turning to McDonalds because of their new deals and surprisingly good coffee line up. Clearly, health concerns are more or less discarded when the food is "cheap, efficient, pervasive, and convenient". I can proudly say I am NOT a Big Mac junky. After reading Fast Food Nation last year, the appeal has pretty much vanished. Not to mention the way you feel having eaten McDonalds(which my friend calls "McBackUp"). I assume that local grocery stores would have done well also because if you stock up you will more likely stay home for supper. Me and McDonalds have our issues, but one thing is clear;McDonalds came through in the recession.
The main reason that McDonald's sales increased during the recession is simple: McDonald's is cheap. During a recession, people have less money to spend, and the first things to go are luxuries. Instead of buying ingredients to cook their own meals (time is money) or spending a lot of money on a night out at a fancy restaurant, many people took the easy way out and bought some cheap, fast good at McDonald's.
the most likely reason that people have been eating more at mcdonalds is the cheaper price. it is easier to get cheap food then going out to a real restraunt. also people take comfort in fast food, which is why people eat it more when times are hard. so i watched super siez me and read fast food nation, but it just made me hungery. mcdonalds is my favorite place in the whoooolllleeee world! :) i think it the happiest place ever made and i will prob die when im 30 from being a fatty but ill be happy! plus its my goal to eat everything on the menu at least once before i graduate! haha
McDonalds continues to prosper while other companies don't during the recession time because of its cheap prices and conveniency. Although people may strive for healthy eating habits, eating well gets flavorless, and McDonalds is quick and especially delicious to those who are trying to eat healthy. I've watched "Supersize Me" and it grossed me out for a few days, but eventually the idea worn out. I also read Fast Food Nation, which made me stay away from fast food for a little bit. I am not a real big fan of McDonalds but, if i want quick cheap food, I would go there. Some other business that might have done well during the recession are other fast food restaurants.
McDonalds is cheap, eating healthy isnt. There is always going to be a demand for food, not matter how bad the economy is, and McDonalds offers ready made food at extremely low prices.For some reason healthy and organic food is more expensive then heavily processed foods even though they use less ingredients to make healthy foods. i went to HEB yesterday and i opted to pick light mayonnaise over regular. The light one was almost $5 so it was half the fat and double the price. when i got home i squeezed it on to my $4+ package of organic spinach and enjoyed my light snack. Now from the standpoint of a family thats trying to save money my light snack would have been a feast for the whole family if they had taken $9 to McDonalds. when hit hard by a recession we abandon all the luxuries we once enjoyed, like food thats actually good for you and adopt new eating habits. Theres no more time to snobbishly look down on the dollar menu consumers when you need to feed your family and a shrinking amount of money.
We still want to eat healthy, but what we do is perform some "mental gymnastics" to fool ourselves that eating "this one time" at Mcdonald's won't hurt, or that by getting the smaller size, we are being healthy. As for "Supersize Me," the initial shock value of the movie did deter us from engaging in the purchse of Mcdonald's, but once the happenings of the movie faded from our memory, we find that only a few people have lasting effects. I've personally never had a problem with Mcdonalds. Food is food, some are better, others not. Mcdonald's is easy, inexpensive, and tastes decent enough to me that I'm fine with eating from there. I can go without it though. As for other companies that have done well during the recession, movie and game rental companies (i.e. Netflicks, Gamefly) have thrived due to a change in entertainment styles. It is cheaper to rent a movie (and have it delivered to you) than go to the movies, and it is cheaper to rent games as opposed to purchasing them.
Personally, I enjoy a big mac with extra special sauce now and then. Many people dont know, but McDonalds' menu is actually much more healthy than it was in the past and is now ranked as one of the healthiest fast food chains in America. But just like the article says, in a recession, everyone downgrades. People in lower and regular middle class start to spend as would someone in a lower class. When there is not enough money, people do away with the luxury of quality and buy what they can to keep their tummy happy. As for the coffee, once again, McDonalds is just creating a cheaper alternative for those who don't want to give up their morning mocha but realize they can't spend $5 a day on it.
I have to say, it still astounds me that McDonalds is a worldwide success. Why grease and fake beef appeals to the world as a whole, I will never understand. I grew out of my McDonalds phase when they stopped giving me toys with my meal. I mean, come on. Some unhealthy foods, I understand, but McDonalds is simple not WORTH the heart attack. It does not even taste very good! I think that the success of McDonalds is solely due to the brainwashing of advertising. If everyone else in the world wasn't talking so much about McDonalds as a world wide... phenomenon, I guarantee you that McDonalds would NOT be as successful as it is. Just saying.
To be completely honest, it's no surprise that McDonalds did so well throughout the recession. Two words... Dollar Menu. According to Eric Schlosser, their best customers aren't upper class customers, rather they the lower class who are probably less educated and need a quick, LOW COST, fix throughout the week. So is it really any surprise that once the economy took a turn for the worst that MORE Americans jumped on the band wagon of the lower class to save money instead of eating at fancy sit-down restaurants? Perhaps families did cook more, but when they didn't, they more than likely weren't going to Perry's steakhouse every week. And let's face it, being a health conscious eater isn't cheap; just compare the prices of organic products to their preservative filled copy cats. So naturally when the purse strings get tighter, eating healthy doesn't seem as important as eating at all. Personally, I'm a Chik-fil-a kind of fast food junkie, but I still love those Mcdonalds fries and any day is a good day for a Sonic happy hour slush. The books and the documentaries can't change what I've been enjoying for years. I'm sure any other company that boasted lower prices during the recession did well; such as Wal-Mart, other popular fast food chains, and even resale stores.
Mcdonalds broke the rule of Quality and Quantity making there burgers for so cheap and there so small compared to many other places where you could get a burger twice the size for the same price its like the cigarette buisness there made for less than a penny aqnd sold for a dollar. i hadnt eaten Mcdonalds in years but recently i decided to see if there was a change and there was.. it had reduced in quality greatly the only thing that mask this is the glorious oozing delicious fat juices yum :) so thats where there profits came from a good advertasing campaign and cheaply made food at high prices
The recession caused people to move towards cheaper ways of living during the economic hardship. This is the greatest cause why McDonalds would prosper in the recession with its cheap and easily attainable foods. I watched "supersize me" and have not driven through a McDonalds since. I am in no way a closet "Big Mac Junkie" because i have eaten a total of one in my life.
I personally don't care for McDonald's but the fact that it the company did well in the recession comes as no suprise to me. The truth is that eating healthy is expensive. As much as we would all rather grab a salad, or shop at whole foods, it simply is a luxury we cannot afford. It's incredibly easier to just stop at McDonald's on the way home because it's inexpensive and fast. Also a factor that should be considered is gas prices. There's been plenty of times when I'm driving somewhere and I'm hungry and then suddenly I have to stop and get gas. Now I'm at the gas pump and my stomach is grumbling but my tank is empty. I have to make the decision whether to eat or put gas in my car. Once I put gas in my cat I'm usually only left with $2 which is only enough for something off a value menu. McDonald's isn't the only food chain doing well during this recession. I recently read an article that said Chipolte Mexican Grill is doing better than ever. As a matter of fact I'm on my way there now :).
How can this be?
It makes sense that McDonalds' sales increased during the recession because consumers are trying to save money and eat inexpensively. Also, because of the recession, the average American employee may be facing more pressure to work harder in their jobs, and will have less time to provide their family with homecooked meals. Unfortunately, the health risks of eating at mcdonalds are risks that people have to face in the long-term, and, as a result, seem less threatening than financial pressures.
I have never really liked McDonalds, so, no, im not a "closet Big Mac Junkie."
Other businesses that could have done well because of the recession: Secondhand stores and places like Marshalls, TJ Maxx, and Ross
Tran Le
Period 2
In a recession, one's goal is to spend less and save more. As stated in the article, people are always going to want to go for the cheaper things when in a recession. Fortunately for them, McDonald's seems to be the the perfect thing to eat at a time like this. I find it funny that people will still manage to slip in a small McDouble or a Quarter Pounder even though so many health consequences are present. I have read Eric Schlosser's book Fast Food Nation in 11th grade. The facts inside impacted me in a such a way that I personally stopped eating McDonald's. Overall, I guess people will do anything to spend what little they can. Eating fast food is no exception. McDonald's low pricing, as compared to other fast food restaurants like Jack in the Box, or Burger King, is the perfect meal during a recession. It is quick to obtain and cheap. During the past months I have even watched McDonald's stock go sky rocket on certain days. Ultimately, McDonald's proves to be the thriving winning during the recession.
-Stanley Verghese, 7th Period-
Not everyone cares about their health. That is why there's such a huge rise in obesity each year and everyone is making a big deal about it especially in hospitals and health magazines. From personal experience, when I watched Super Size Me and read Fast Food Nation, I actually wanted McDonalds more. Granted, the recession causes alot of money to be lost. However, because of the cause of lost money, the effect would be for an individual to save money, and fast food businesses are the prime spot for that with their dollar menus. As stated in the article, families usually eat out and visit a restraunt on average every week, but they also want to save considering their other expenses. Now that they don't have that much money to afford that $15 steak per person, they can save by switching to a $5 burger that can fill them up just as if eating the steak. As for if I'm a closet big mac junkie... OOHH yessssss, and whopper, and jumbo jacks, and whataburgers. Businesses that could have benefited along with McDonalds would be cheap places like almost all the fast food chains, especially taco bell which sells by the cent rather dollar. Probably Wal mart and other grocery stores benefited as well as people decided to make their own steak or "baby back ribs"
This may be and is due to a number of factors. One; because of the recession, people are short on money. Where else can one find a one dollar cheeseburger (or a piece of food that at least tastes like one). Another fact is that people still like to eat fast food at least once a week. I know I do. The other possibilty is that the effects of the novel Fast Food Nation and the movie Super size me have worn off, and peple have begun to go back to it.
I definitely agree with the others that the reason McDonald's did so well in the recession because it was a cheap option. I will say, though, one of my stocks on the project was in McDonald's and they weren't doing excessively well. They were going up, but they weren't skyrocketing. I never saw Supersize Me, and from what I've heard, I'm glad that I haven't. I did, however, read Fast Food Nation for junior english. Thankfully, they have added a slightly more nutritional side to their menu (i.e. salads, fruit parfaits, etc), which I think has cancelled out some of the sales lost from these educational movies and books. I was a huge fast food person before I read FFN, but the horrific things that go on in meat packing plants and the lack of sanitation in fast food restraunts sickened me out of my love for fast food. Even when I did eat fast food a couple times a week, I never really was a huge McDonald's fan. Now that I know, I almost never eat fast food. I'm not completely turned off by fast food, just how it gets there. I still like Taco Bell and McDonald's french fries just everyone else, but being educated about the abominable things definitely makes me more aware of what I'm eating.I can't exactly prove it, but based on the idea that people spent their money in places that have cheap goods and services, I would assume dollar stores and 99 cent stores are also doing well. I also know that Walmart did fairly well during the recession from playing the stockmarket. Their slogan says it all. They have "everyday low prices".
Mary Churay
7th period
McDonald's prospered during the recession while other restuarants struggled because of their unbeatable prices. When a person is tight on money they're going to cut back on expenses any way they can. Most people would agree spending $3-4 for a full meal beats cooking at home or eating out at somewhere more expensive. Even though Supersize Me and Fast Food Nation were pretty offputting, McDonald's now has many healthier options, like snack wraps that are still as cheap as the rest of their menu.
Adriane Joseph
2nd period
Eating healthy? Please. McDonalds prices are dirt cheap, and people take advantage of the dollar menu. Plus the the "fast food" appeals to people because time is money. Super Size me was interesting, but thats about it. Too some fastfoodaholics it was eye opening, but I don't usualy eat Mcdonalds and places like that. I do admit I'll grab a drink or apple pie every once in awhile, but its usually only once or twice a month. McDonalds isn't that great anyway, and the prices make up for it. For some people, thats what is important. Fast Food isn't that great, but you do get a quick meal. WhatABurger on the other hand...
As people struggle more and more with their income they are able to devote less of their available money toward food consumption. During times like this, the cheapeast place to eat will flourish while the more expensive places to eat will recess or even crumble. The people that always eat at McDonalds will continue to eat at McDonalds, but when the economy suffers, people who normally wouldn't eat at McDonalds will as well. People also eat at home to save money during recessions, but when they can't, they want a quick, cheap, meal. During these times, health consciousness diminishes for most, if their wallets are stretched far enough. Cheaper retail stores probably did fine during the recession because it was a cheap way to get the normalities of home. People are going to search for the best deals more than when their wallets aren't hurting. Personally, I don't eat at McDonalds except once maybe every other month, if that often.
McDonald's did a superb job through thriving through the recession. The reason is because people started saving money and bought food that was cheaper like McDonald's. Keeping a diet costs more than buying a Big Mac at McDonald's. I like McDonald's but I'm not addicted to fast-food everyday. Other fast-food restaurant chains may have survived the recession. Stores like Walmart may have also survived the recession due to their cheap goods.
McDonald's did well during the recession due to many reasons. First of all it's cheaper than many restaurants, and it became an alternative for people to eat. Many people also do not have much time to spare, and people can easily get food from McDonald's in very little time. McDonald's is literally everywhere, which makes it easy for people to find and buy. Last summmer, I went to Indonesia, and McDonald's was actually like a "hang-out" spot because it was the only place with free/decent wifi. Even though McDonald's is very unhealthy, some people just do not have time to make food. THe movie Super Size me made a good point, but i doubt many people would be eating McDonald's for 30 days straight as their breakfast, lunch, and dinner.
McDonalds stocks may haven gone up due to people feeding themselves for cheap, however, one must consider the onslaught of college students that don't have many options. It's cheap, its fast, its filling. Not many hungry college students care where it came from or how it got there. Actually, Fast Food Nation was published in 2002. That is almost 8 years ago, plus also consider the amount of time spent researching and then writing. Changes have been made, standards have been risen. It's not like you hear about McDonald's epidemics... I am not advocating it. Its just a little old to hate a fast food chain.
Jana Walters - Period 7
The reason that McDonald's thrives while other sales plummet is due to its price ranges.
During a recession, since the unemployment rates rise up, people are more worried about
gaining the income and tend to allot less time to societal trends such as health-consciousness. The trend of eating less fat, working out, and having a longer life has become the goal of every American; however, during recession, the pressures of the economy affect the everyday lifestyle and a person gradually tends to stop worrying about the minor details. Therefore, although the greasy and fattening items are not appealing to people during recovery time, their risks are not as emphasized during a frantic recession time. Along with McDonald's, many of the other cheap fast food franchises such as Wendy's and Burger King might've experienced success due to their low rates. High class places which involve a greater expense such as Chick-fil-a or Starbucks do not achieve as much success because of their high rates. So, during a recession, although people are worried about their health, they tend to overlook those worries and focus on the big picture instead: maintaining a steady income.
McDonald's did well during the recession because it provided people who were struggling to keep food on the table with a quick filling meal for cheap. Sure the food is unhealthy, but if one walked into any supermarket they would quickly realize that healthy food is much more expensive than unhealthy food. I am not a closet Big Mac junkie. I disliked McDonalds even before Supersize Me and Fast Food Nation. I rarely eat fast food, and it’s never from McDonalds.
McDonald's did well during the recession because it provided people who were struggling to keep food on the table with a quick filling meal for cheap. Sure the food is unhealthy, but if one walked into any supermarket they would quickly realize that healthy food is much more expensive than unhealthy food. I am not a closet Big Mac junkie. I disliked McDonalds even before Supersize Me and Fast Food Nation. I rarely eat fastfood, and its never from McDonalds.
It was no surprise to me that McDonalds' sales increased. Their food is cheap and everyobody loves cheap stuff. It is also very convenient for people on the run no matter what time of day. Not everybody in America is worried about their health and it is an advantage. Most people have seen those movies but it doesnt really affect them because they still love their big macs and mcflurrys. Personally i love all fast foods and its convenient for me.
Julie Hernandez
2nd Period :)
eating healthy cant happen when its way too expensive. mcdonald's is cheap and what can get better than the dollar menu? Even though i read fast food nation and watched supersize me about 5 times while in highschool, it didnt stop me from eating fast food, even if it wasnt mcdonalds i would eat taco bell and burger king alot. Other places that may have done well during the recession include other cheap stores such as taco bell and maybe even walmart.
McDonald's is an addiction. Like many people have said, the relatively cheaper prices draws in more business than, say, a higher-end restaurant that is many times more healthy. Because it is a large corporation, it can hire the best of the best analysts to decide what to do with the money McDonald's is making. They certainly succeeded this time around.
Eating fast food is convenient and fast (of course). But when people have money to spend, they tend to go toward nicer restaurants. Due to the recession, cash in people's pocket's disappeared so going to McDonald's is a cheap alternative. That or eating at home. Thus, during the long treacherous recession, McDonald's gained more service. Now I have seen Supersize me and have read Fast Food Nation but I still eat at McDonald's every once in a while. I'm sure a lot of people will still go there regardless of what health experts say or what has been read/seen about unhealthy fast foods. We all talk about being healthy, but do we actually do something about it?
Also, grocery stores seem like businesses that did well. Once again, while people have less money, they tend to eat at home. This means mores customers in the grocery stores.
Kelsey Schreiber
Period 7
During the recession many people couldn't afford going out to many places and eating for cheap. Mcdonalds a place for cheap for to sit in and eat served as a small alternative which ultimately grew into a thriving industry during a time of economic decline. At Mcdonalds you can buy alot of food which is decent to eat at rockbottom prices. Then eating healthy came at a very costly price, which made people turn to the cheaper and "fuller" alternative.
Edward Cruz
Period 2
people only started to eat at mcdonalds because it was cheaper to eat there. therefore, during a recession, mcdonalds does good because it is the only thing a lot of peoplecan afford.for examplle, look at the dollar menu. this menu can feed a whole family for less than 10$. even though a lot of americans are all about eating healthy, its the price that really matters
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