Mcdonalds Restaurant Case Study free essay sample

Nawani is manager of a McDonald’s restaurant in a city with many seniors. She has noticed some senior citizens have become not just regular patrons- but patrons who come for breakfast and stay on until about 3 pm. Many of these older customers were attracted initially by a monthly breakfast special for people aged 55years and older. The meal costs $1. 99 and refill of coffee free. Every fourth Monday, between 100 and 150 seniors jam Siddhi’s McDonald for the special offer. But now almost as many of them are coming everyday- turning the fst food restaurant into a meeting place. They sit for hours with a cup of coffee, chatting with friends. On most days, as many as 100 will stay from one to four hours. Siddhi,s employees have been very friendly the seniors, calling by their first names and visiting with them each day. In fact, Siddhi’s restaurant is a happy place- with her employees developing close relationship with the seniors. We will write a custom essay sample on Mcdonalds Restaurant Case Study or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Some employees have even visited customers who have been hospitalized. â€Å"You know† , Siddhi says, â€Å"I really get attached to the customers. They are like my family. I really care about these people†. They are all â€Å"friends† and it is part of McDonald’s corporate philosophy ( as reflected in its website, www. mcdonalds. com) to be friendly with its customers and to give back to the communities it serves. The older customers are an orderly group and friendly to anyone who comes in. Further, they are neater than most customers and clean up heir tables before they leave. Nevertheless, Siddhi is beginning to wonder if anything should be done over her growing â€Å"non-fast food† clientele. There is no crowding problem yet, during the time when the seniors like to come. But if the size of the senior citizens group continues to grow , crowding could become a problem. Further, Siddhi is concerned that her restaurant might come to be known as an â€Å"old people’s† restaurant-which might discourage some younger customers. And if customers felt the restaurant was crowded, some might feel that they wouldn’t get fast service. On the other hand, a place that seen as busy might be seen as â€Å" a good place to go† and a â€Å"friendly place†. Siddhi also worries about the image she is projecting. McDonald’s is a fast-food restaurant 9 there are over 45,000 of them in 121 countries) and normally customers are expected to eat and run. Will allowing people t stay and visit change the whole concept? In the extreme, Siddhi’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!. Siddhi knows that the amount her seniors spend is similar to the average customer’s purchase- but the seniors do use the facilities for much longer time. However, most of the older customers leave McDonald by 11:30, before the noon crowd comes in. Siddhi is also concerned about another possibility. If catering to seniors is OK, then should she do even more with this age group?. In particular, she is considering offering bingo games during the slow morning hours- 9AM to 11AM. Bingo is popular with some seniors, and this could be new revenue source- beyond the extra food and drink purchases that probably would result. She figures she could charge $5 per person for the two-hour period and run with two underutilized employees. The prizes would be coupons for purchases at her stores (to keep it legal) and would amount to about two-thirds of bingo receipts (at retail prices). Evaluate Siddhi’s current strategy regarding senior citizens. Does this strategy improve this McDonald’s image? What should she to do about the senior citizen market- that is, should she encourage, ignore, or discourage her seniors? What should she do about the bingo idea?