Thursday, September 13, 2007
scribbled by anna katrina
7:32 PM | 0 comments
7:32 PM | 0 comments
The Economics of Gravy
...A tribute to none other than St. Levitt and St. Dubner (we canonized them saints, woohoo!) who forever changed the way I see sumo wrestlers and the Ku Klux Klan. All hail Freakonomics! I am not worthy...
Ok. So here's the thing: Noel, RJ and I were heading to Killerbee when we decided to stop by McDonalds, so we could munch on something while we were at the radio station. My order, of course, wouldn't be complete without fries. And eating the fries wouldn't be as pleasurable an experience if I didn't have gravy to go with it. So I asked the cashier if I could have some gravy to go. But she charged me EIGHT PESOS -- which was seriously troubling.
A question popped in my head: Why is it that when you eat inside McDonalds, you get free and unlimited gravy... but when you take out, you have to pay eight freakin pesos for a tiny cup?
It's easy to just say that the establishment is basically making up for what they spend for the customers. If the people who eat inside McDo could get free gravy, then they charge the people who take out. But why specifically those customers?
As a matter of fact, if you don't eat inside McDonalds, technically, you're not using the facilities of the place, you don't need the service of the employees and you're not using up electricity, water at the CR, etc. And they don't need to maintain the place just for you.
So isn't it much more logical if the customers inside McDo pay more (because they get more service from the establishment) than the customers who just take out? How then do you explain the gravy?
Throughout the 20 minute drive to the station, here's what I think: Advertising.
As we all know, establishments would spend huge amounts for advertising alone. That's how they capture markets and draw customers.
The people who stay inside McDonalds to eat there are technically ADVERTISING it. McDo has glass walls... the more people in the place, the better McDo looks. More visible customers would mean more people thinking McDo has good food. And because it seems that way, McDo can capture even more customers.
That's why the place is more than willing to shove a hundred cups of free gravy in the mouths of the customers. That's why the waiters try their best to give quality service. They're actually paying the customers (through good service) what it gets from the "free advertising."
Imagine this: 100 people sitting inside McDo eating their food. 100 people buying food from McDo and taking it out. Both groups are customers (technically, same income from both groups)- but the people who stay are helping McDo more. An empty McDo just doesn't seem right.
So what does McDo do? Give the customers a reason to stay inside McDo. Thus, colorful tables and chairs, free WiFi, cool waiters and yes, free gravy.
As for the customers who take out... who cares? McDonalds doesn't.
What do you think? Duh moment kaayo sa? =)
Ok. So here's the thing: Noel, RJ and I were heading to Killerbee when we decided to stop by McDonalds, so we could munch on something while we were at the radio station. My order, of course, wouldn't be complete without fries. And eating the fries wouldn't be as pleasurable an experience if I didn't have gravy to go with it. So I asked the cashier if I could have some gravy to go. But she charged me EIGHT PESOS -- which was seriously troubling.
A question popped in my head: Why is it that when you eat inside McDonalds, you get free and unlimited gravy... but when you take out, you have to pay eight freakin pesos for a tiny cup?
It's easy to just say that the establishment is basically making up for what they spend for the customers. If the people who eat inside McDo could get free gravy, then they charge the people who take out. But why specifically those customers?
As a matter of fact, if you don't eat inside McDonalds, technically, you're not using the facilities of the place, you don't need the service of the employees and you're not using up electricity, water at the CR, etc. And they don't need to maintain the place just for you.
So isn't it much more logical if the customers inside McDo pay more (because they get more service from the establishment) than the customers who just take out? How then do you explain the gravy?
Throughout the 20 minute drive to the station, here's what I think: Advertising.
As we all know, establishments would spend huge amounts for advertising alone. That's how they capture markets and draw customers.
The people who stay inside McDonalds to eat there are technically ADVERTISING it. McDo has glass walls... the more people in the place, the better McDo looks. More visible customers would mean more people thinking McDo has good food. And because it seems that way, McDo can capture even more customers.
That's why the place is more than willing to shove a hundred cups of free gravy in the mouths of the customers. That's why the waiters try their best to give quality service. They're actually paying the customers (through good service) what it gets from the "free advertising."
Imagine this: 100 people sitting inside McDo eating their food. 100 people buying food from McDo and taking it out. Both groups are customers (technically, same income from both groups)- but the people who stay are helping McDo more. An empty McDo just doesn't seem right.
So what does McDo do? Give the customers a reason to stay inside McDo. Thus, colorful tables and chairs, free WiFi, cool waiters and yes, free gravy.
As for the customers who take out... who cares? McDonalds doesn't.
What do you think? Duh moment kaayo sa? =)
