Need To Be Who You Are

When one thinks of businesses that are perpetual mainstays on the landscape, McDonald’s must at least be near the top of the list. Even things that seem ubiquitous, however, must adapt to the times or run the risk of going the way of Kodak.

This week has seen the fast-food giant reintroduce Extra Value Meals to battle the perception that the restaurant has become too expensive. Of course, in this realm “expensive” is a relative term because we can think of many places to go eat that will cost multiples of what you pay at McDonald’s. Inflation, though, has pushed the cost of a fast-food meal close to that of a casual sit-down restaurant like Applebee’s or Chili’s, so its relative value seems to have shifted.

When you step back and look at the size of the differences here, we are talking a few dollars on either side of the scale. If a McDonald’s burger is only $2 less than Applebee’s, is that too close? Will we think it’s worth it at $3? Does it need to go all the way to $5? Any more than that starts to seem to be quite a gulf to me, though.

Heck, another view can even swoop in and say that if the price keeps you from eating 10 less McDonald’s burgers per year, then that’s just good for you.

The truth, though, is that this isn’t really a serious equation that consumers are going through. Such purchases tend to be quickly done for either craving or convenience. What rules there is the perception that McDonald’s can satisfy such things and remain a value.

As a business, it’s important to keep in mind what customers expect to receive from you. A fancy restaurant can charge much more for their products because of everything they provide along with it – the atmosphere, the service, etc. You don’t expect such things from McDonald’s, but you do expect to feel like it didn’t affect your wallet that much and that is why the company remains committed to providing ‘value,’ which essentially is like sticking to its own core values. There is a lesson in there for anyone making their own way through the business world. Know who you are and make sure your customers feel it.

Warmly,

Josh Bousquet
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