McDonalds prices around the world

[hk blues]

16 hours ago, Lieutenant Dan said:

Based on this analogy, I always wondered how so many locals can afford to eat at McD’s, BK, KFC, Jollibee’s or any similar place in the Phil’s.  

Are they OFW’s, being supported by an OFW in the family, or are they saving up money for weeks (or months) at a time for the rare visit to one of these eateries 

I suppose in a population of around 115m there will be a sufficient number of people who can afford the prices.  Plenty of those 115m people earn enough to afford a weekly treat but plenty don't.  

We could ask the same question about stuff such as Nike's - for some it's the equivalent of 2 weeks wages to buy a pair but I see plenty of folk wearing them.  I guess I/we are not actually exposed to a cross-section of the population and tend to mix with the better-off part.

[Gas]

12 hours ago, JJReyes said:

McDonalds caters to a very specific demographic profile.  It's relative a young crowd below the age of 25 years.  Because the price is high compared to salaries and allowances (students), it is considered as a special treat.  In the Philippines, a visit to McDonalds is a status statement rather than going to a restaurant offering cheap meals.  Those in the lower income brackets won't go to a Western franchise establishment.  To answer Lieutenant Dan, many locals can afford to eat as a special treat like a birthday, but not as a regular occurrence.

Not sure how you have come to your conclusions but it’s obviously not from visiting McDonald’s in the Philippines. 
I was in there on Friday morning for their excuse for a breakfast and there wasn’t a sole under 25 eating. 
Also I doubt anybody there was eating as a status statement. 
Just my boots on the ground observation. 

[Gator]

1 hour ago, Gas said:

Not sure how you have come to your conclusions but it’s obviously not from visiting McDonald’s in the Philippines. 
I was in there on Friday morning for their excuse for a breakfast and there wasn’t a sole under 25 eating. 
Also I doubt anybody there was eating as a status statement. 
Just my boots on the ground observation. 

I think it depends in part on the location of the McDo’s and what’s in the area. In the one in Moalboal, where I’ve taken my asawa and extended family (it’s a treat for them), I’ve noticed a mix of ppl; both older and young …… there is a university campus just across the road and of course you have foreign tourists.
 

 In Clark there is a cafe I like to frequent next to the McDonald’s. At that one I tend to see mostly younger ppl, but it’s close to the factories and call centers, so that might explain the younger crowd. 

[JJReyes]

3 hours ago, Gas said:

Not sure how you have come to your conclusions but it’s obviously not from visiting McDonald’s in the Philippines. 
I was in there on Friday morning for their excuse for a breakfast and there wasn’t a sole under 25 eating. 
Also I doubt anybody there was eating as a status statement. 
Just my boots on the ground observation. 

Maybe the younger population are late risers so they skip breakfast.  I recall McGeorge Corp., the McDonalds Philippines holding company owned by George Yang and his family, wanted the first outlet to be located either in Makati or Greenhills.  The franchisor said, "No."  They wanted the first location at the university belt because students are their target market.  Everyone is welcomed and the advertising is directed to appeal to families in all age groups.  But a significant portion of their revenues are derived from a specific demographic.

An interesting footnote is the expected crowds for the grand opening required flying in from Hong Kong an experienced, well trained crew.  After a two weeks period, they were replaced by Filipinos.  Opening day was a mad house.  There were chartered buses arriving from Clarke and Subic Bay.  The passengers were buying burgers and fries not just for themselves, but also for family and friends left behind at the (then) US military bases.

In addition to visiting McDonalds in the Philippines, we also try outlets in other locations.  The franchise industry prides itself on uniformity, but there are slight variations.  For example, France offers wine.  It was discovered that the oil used for French fries contains pork lard.  There were protests and threats of boycott in the Islamic countries.  The franchisor promised a change in their oil formula.  

[JJReyes]

9 hours ago, hk blues said:

We could ask the same question about stuff such as Nike's - for some it's the equivalent of 2 weeks wages to buy a pair but I see plenty of folk wearing them.  I guess I/we are not actually exposed to a cross-section of the population and tend to mix with the better-off part.

There are different buying sources for brands like Nike'.  The wealthy may go to a sports retail store at a fashion mall and pay premium prices.  Others may go to places like Divisoria to purchase the same at a lower price or Seconds.  Seconds are products found by the manufacturer's quality control with minor imperfections.  Another possibility is "colorum" or unlicensed manufacturing.  

Something similar in the United States.  A logo store at a shopping mall wanted $250.00 plus tax for a pair of New Balance.  Checking online, identical shoes sold for between $120 to $150.  I eventually purchased them at a wholesale outlet for about $70.00.  Same shoes, but different price points.  

[Joey G]

1 hour ago, JJReyes said:

A logo store at a shopping mall wanted $250.00 plus tax for a pair of New Balance.  Checking online, identical shoes sold for between $120 to $150.  I eventually purchased them at a wholesale outlet for about $70.00.  Same shoes, but different price points.  

I bought mine in Hong Kong for $25!!!!!   threw in a Nike t-shirt for $5!!!! 

[Dave Hounddriver]

4 hours ago, JJReyes said:

Maybe the younger population are late risers so they skip breakfast.

It must really depend on the location.  There is a McD's close to Crown Regency in Cebu that is always crowded at breakfast and none that I see (unless I look in a mirror) are over 25.  I think they are either students or just working near there.  I don't ask.

[JJReyes]

3 hours ago, Joey G said:

I bought mine in Hong Kong for $25!!!!!   threw in a Nike t-shirt for $5!!!! 

You have to ask yourself, "What is the nuclear cost?" meaning, "What does it actually cost the manufacturer to produce the product?"  The suggested retail price could be astronomically huge allowing multiple times to discount and still allow everyone to make a profit.  At $25.00, someone is probably making money.

[Mike J]

14 hours ago, JJReyes said:

Maybe the younger population are late risers so they skip breakfast.

I have never heard of a Filipino skipping a meal.  

[hk blues]

15 hours ago, JJReyes said:

There are different buying sources for brands like Nike'.  The wealthy may go to a sports retail store at a fashion mall and pay premium prices.  Others may go to places like Divisoria to purchase the same at a lower price or Seconds.  Seconds are products found by the manufacturer's quality control with minor imperfections.  Another possibility is "colorum" or unlicensed manufacturing.  

Something similar in the United States.  A logo store at a shopping mall wanted $250.00 plus tax for a pair of New Balance.  Checking online, identical shoes sold for between $120 to $150.  I eventually purchased them at a wholesale outlet for about $70.00.  Same shoes, but different price points.  

I'm very, very familiar with the brand - my 1st wife is an R&D Director for Nike based in Portland ,Oregon.

The fact that brands such as Nike and Adidas have actual independent stores here, as well as outlets in all the major stores in the malls confirms there is a market for such a product and that there are sufficient numbers of customers willing, and able, to pay the prices at such outlets.  

The point is that in a country of 115m people there will be a sufficient number able to buy more expensive items regardless of the average wage being so low.