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McDonal's "seniors" Restaurant

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Introduction

Case title: McDonald's "seniors" Restaurant I. Statement of the Problem The perception of younger customers of McDonald's image and the current strategy regarding senior citizen customers . II. Definition of the Problem Suzanne Drolet is manager of a McDonald's restaurant in a city with many "seniors." She worries that with her growing senior citizen customers, the image of her restaurant would change and it will be known for being a non-fast-food restaurant because of the ambiance. If the seniors market will also continue to grow, there would be a crowding problem. She is also taking into consideration of the possibility catering more services to them because the seniors do use their facilities for a much longer time than the average customers. III. Factors Affecting the problem at least 5 factors with brief explanation a. ...read more.

Middle

e. Time- This is a factor because even if the amount her senior citizens spend is similar to the average customer's purchase-but the seniors do use the facilities for a much longer time. IV. Alternative solutions (at least 3 alternatives) 1. Offer bingo games 2. Encourage more senior citizens through senior citizen discounts 3. Offer new products that will surely draw average customers to the restaurant. V. Analysis Alternative 1- Offer bingo games as what Suzanne Drolet had mentioned, she is considering offering bingo games during the slow morning hours-9 AM to 11 AM because bingo is also popular with some seniors, and this could be a new revenue source beyond the extra food and drink purchases that probably would result. Alternative 2- Encourage more senior citizens through senior citizen discounts. Since senior citizens as we all know have pensions or retirement fees. ...read more.

Conclusion

and of course their opportunity cost when they choose seniors over average customers is that their restaurant will be perceived as an old people's place rather than a fast-food-chain. Suzanne's McDonald's might become more like a European -style restaurant where the customers are never rushed and feel very comfortable about lingering over coffee for an hour or two. Even if they choose seniors over average customers they will not really lost anything because seniors spend same amount as the average customers do when they dine in McDonald's. Then may even achieve product positioning with the seniors specifically heart positioning. They will establish loyalty among their senior citizen customers. I choose alternative 2 which is to encourage more senior citizens through senior citizen discounts because they had already established a bond or relationship with the seniors leading them to increase their seniors market rate due to their hospitality and warmth with their customers. ...read more.

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Response to the question

In summary, the report is OK. The report states a potential issue, and the student suggests three potential solutions. However these three solutions aren't explained or justified. For high marks, the student should ensure that the three suggestions have the ...

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Response to the question

In summary, the report is OK. The report states a potential issue, and the student suggests three potential solutions. However these three solutions aren't explained or justified. For high marks, the student should ensure that the three suggestions have the benefits/drawbacks to ensure it's a balanced report. The student has stated an issue within a fast-food chain, which senior members of the public take a longer time sitting at the table than the younger adults. This causes crowding, and could cause the business to loose sales. This is a valid issue, and the student understands the issue within the store.

Level of analysis

The three different alternatives are quite vague and there do not list the benefits/drawbacks of each one. This is needed to ensure that the report is balanced and fair. For example the report could include 'By offering new products, which should attract new customers, this could cause some consumers to become disloyal if there do not like the new product. This new product will need to be carefully choose to ensure that this appeals to the younger market and also that there are going to enjoy the new product'.

Quality of writing

The report within the conclusion states the term 'opportunity cost', however this ins't explained within the report. An opportunity coast, is the cost of forgoing a certain opportunity. For example the opportunity cost of a promotion might be the sales from paper leaflets handed out, which is sales lost. However the business may have decided that on-line advertising was the best method and would gain these sales instead. Thus, it's the cost of not undertaking a certain activity and selecting another which may be more effective. It's important that all technical terms are explained within the report, to ensure that the exmainer understands the report. Especially with technical terms which are difficult to understand, such as above.


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