Day 042 - 31 Oct 94 - Page 09
1
2 Q. Just on that subject, to get it out of the way: if
3 somebody is publicising McDonald's, that would not come
4 under the budget of national office or even the local
5 store; that would be just on a mutual agreement; it would
6 not be costed?
7 A. Well, it may be costed and we would agree as to who
8 pays what: who pays their part of the promotion, who pays
9 our part of the promotion. Then if that has been done at
10 local level, then the local restaurant would pay for that.
11 If it was being done at national level, then it can either
12 be paid for out of the five per cent or it could be charged
13 back to the restaurants again.
14
15 MR. JUSTICE BELL: But, one way or another, you are saying that
16 any costs involved on the McDonald's side in the promotion
17 is part of the one per cent or the five per cent?
18 A. Correct. Yes, that is correct, my Lord.
19
20 Q. It is not additional to that, you are saying?
21 A. That is correct.
22
23 MR. MORRIS: I am a bit confused. McDonald's gets a lot of
24 publicity one way or the other in the press and through
25 various events, local events or national events; is that
26 correct?
27 A. Yes.
28
29 Q. Some of that publicity is not specifically paid for by
30 strict contract; it happens by some kind of mutual
31 agreement. Do you see what I am saying? I am trying to
32 find out what kinds of things-----
33 A. It depends what kind-----
34
35 MR. JUSTICE BELL: Give an example of the card shop. What
36 happens there?
37 A. Okay. So-----
38
39 Q. Just quite shortly, so we can understand what is
40 happening.
41 A. Okay. Supposing, for Mother's Day, a local restaurant
42 and a local card shop decide that it is mutually beneficial
43 if the card shop can advertise for the child to take their
44 mother out to McDonald's for Mother's Day, for instance,
45 and the other way around, and maybe we put some kind of
46 coupon with the purchase of a Mother's Day card at that
47 card shop, or they wish to advertise Mother's Day in our
48 restaurant, as we are doing this. Basically, we are both
49 trying to encourage, during that Mother's Day period,
50 mothers and children to come to our establishments. So
51 let's run some kind of promotion that does both. Let us
52 say, for example, that we agree that whatever the joint
53 cost of that is, that they pay 50 per cent and we pay 50
54 per cent.
55
56 MR. MORRIS: Presumably, in that case, there will not actually
57 be much cost, because it would just be like a barter
58 arrangement, would it not: "You do this and we do that,
59 and it will help both of us"?
60 A. Typically, we would pay our costs and they would pay
