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Joined 3 years ago
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Cake day: June 14th, 2023

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  • Unironically. I’ve watched so many businesses fall into this trap.

    Places used to make money on volume. That was the entire point of early McDonald’s. Extremely small menu served instantly. Low profit per customer, but constantly busy.

    Now one of the biggest corpo metrics is “ARPU”, average revenue per user. And when they do raise prices the immediate effect is more profit, nearly every time.

    People rarely look at the price and walk out. What’s more likely is that they just never come back again. Clearly management made a great change with the price increases; it must be something else driving customers away six months later. It takes time for high prices to hurt your business.

    In the 90s you could get a bucket of chicken for about $10 and feed your family of five. Inflation calculator says that should be $21 now.

    Screenshot of popeyes menu showing a family meal for $38.

    No wonder most of them are mostly empty.