MCDONALDS “SENIORS”

RESTAURANT
 FACTS
Suzanne Drolet is the manager of a McDonalds Restaurant
in a city with many seniors. These seniors are considered
as their regular patrons who are staying until 3pm. The
restaurant offered a meal with a free refill of coffee for
$1.99 and roughly 100-150 seniors avail the offer every
fourth of Monday. They are staying for about an hour or
more with their friends.
The employees seems to be nice with the seniors to the
point where the former visit the latter who have been
hospitalized. They treated each other as friends following
the McDo’s philosophy. The older customers are very
courteous, however, a problem arises. Suzzane is
 FACTS
worrying with the current image of her restaurant and it
might discourage younger one to avail their service. Even
though the seniors are staying for a long time, a problem
of overcrowding has not been encountered yet.
Suzanne is thinking, if the number of seniors continuously
grow, the image portrayed by McDo – that is customer are
expected to eat and run, might change the concept. She is
currently adapting the European style wherein customers
are likely to spend more time lingering over a cup of
coffee. One thing that she has noticed, seniors are
spending similar with the amount spent by other
customers, the only problem is they are staying for a much
 FACTS
longer time and leave before the lunch break. Suzanne is
also thinking of another possibility, considering that
BINGO is very popular among the seniors, she is planning
to organize a game as such during the slow hours (9 –
11am.). This could be another source of revenue due to an
increase in consumption for food and drink. $5 per person
will also be charged for those who will stay for the two
hour period served by the two underutilized employees.
The party room will be used as their venue accommodating
up to 150 persons.
VIEWPOINT TAKEN

SUZANNE DROLET
Manager
I. TIME CONTEXT
And SETTING
Not Given (in the case)

United States of America

 STATEMENT OF THE
PROBLEM

MAIN
An emerging need to change / retain McDo’s image.
SUB-PROBLEM
BINGO as an additional source of revenue.
 OBJECTIVES
SHORT-RUN
1. To generate an additional sales/revenue and utilize the
underutilized staff efficiently.
2. To avoid overcrowding during peak hours and invite
additional customers during slow hours.
LONG-RUN
1. To provide quality service to customers of all ages and
not only the seniors.
2. To generate /target not less than 40% of the entire
market.
 AREAS OF
CONSIDERATION
DEMOGRAPHIC
POPULATION: DEMOGRAPHICS
MALE to FEMALE
YOUNG to OLD

TREND: Coffee breaks in a coffee house, snack at a

convenient store, hard meals at the cafeteria, etc.
 AREAS OF
CONSIDERATION
DEMOGRAPHIC
PROFILE: Lower Class A and B, Whole Class C and D.

INDUSTRY PROFILE
COMPETITORS: Hardees, KFC, BK, A & W (Fast Food)
Starbucks, Seattle's Best,
ECONOMIC
Increase in GDP (OUTPUT), increase in Employment,
etc.
 AREAS OF
CONSIDERATION
SOCIO-CULTURAL BACKGROUND
Environmental Concerns, Hospitality, Giving
importance to the valued customers, part of daily
routine and not a leisure, more convenient way of
eating, family bonding, etc.
POLITICAL/GOVERNMENT
Federal. No Policies regarding the length of stay in a
restaurant.
TECHNOLOGY
Intensive use of it.
 AREAS OF
CONSIDERATION

STRENGHTS
1. Close relationship between the staff and the seniors.
2. Overcrowding has not been experienced yet.
3. The store has a very wide space with good facilities.
 AREAS OF
CONSIDERATION

WEAKNESSES
1. Lack of promotional tools thereby resulting to a
decline in the purchase of their meals.
2. There are underutilized staffs.
3. Known as senior’s restaurant.
 AREAS OF
CONSIDERATION
OPPORTUNITIES
1. Increase in awareness due to BINGO.
2. Tie-up with other companies to increase sales (e.g.
COKE, Major Sports Event, Movies from Disney etc.).
 AREAS OF
CONSIDERATION
THREATS
1. Other restaurant are providing chairs outside for
those who want to stay for an hour or more.
2. Seniors might be discouraged or offended if they
restrict the length of stay.
3. Extensive use of advertisements of the competitors.
4. A problem of overcrowding will create an impression
of a poor service.
 AREAS OF
CONSIDERATION

INTERNAL
1. McDo is under a market structure called as
monopolistic competition, pricing is purely based on
product differentiation, and an extensive use of
advertisement is a must to be on the top spot.
 ALTERNATIVE
COURSES OF ACTION

ALTERNATIVE A: Change the image and organize BINGO.

ALETRNATIVE B: Change the image and do not organize
BINGO.
ALTERNATIVE C: Retain the image and organize BINGO.
ALTERNATIVE D: Retain image and do not organize
BINGO
 CONCLUSION

CHOOSE: ALTERNATIVE C – RETAIN

THE IMAGE AND ORGANIZE
BINGO GAMES.

*US culture of gaming like Casino, Lotto, Bingo etc.

 RECOMMENDATION

Try to separate the BINGO area from the dining

area so that younger ones may have a chance to
eat.
 ACTION PLAN

1. Provide chairs outside for those who wants to

stay for more than an hour and a separate room
for BINGO area.
2. They also have to target younger ones through
advertisement and other promotional items.
3. Collect entrance fee for BINGO patrons and give
attractive prizes, etc.
Thank you…