Day 045 - 03 Nov 94 - Page 47


     
     1        population.  Unless I really look at the figures, I am not
     2        exactly sure what is meant.  I know breakfast is a more
     3        habitual time period for heavy users.
     4
     5   MR. JUSTICE BELL:  That may be what "strongest following" means,
     6        in that those heavy users who do go into breakfast are
     7        habitually going into McDonald's for breakfast?
     8        A.  Yes, if they like it.
     9
    10   Q.   But that leaves you with the position that the lunch
    11        daypart contains the largest percentage of any users for
    12        any daypart.  If the meaning I have attributed to the
    13        breakfast entry is correct, they are not necessarily
    14        inconsistent.
    15        A.  I think that you may have explained one way to look at
    16        the data.
    17
    18   Q.   But you do not know?
    19        A.  I do not know for sure exactly what was meant.  I can
    20        only look at the information and the tables at the end to
    21        get some implication.
    22
    23   Q.   If this really is not your province, tell me, but do
    24        you see any consistency between a McDonald's publication
    25        which stresses balance, moderation and variety on the one
    26        hand, and the marketing angle that "we must get heavy users
    27        and super heavy users coming to us more often if we can"?
    28        A.  No.  I think that, in fact, there are 21 meals a week
    29        or whatever, if you want to look at meal occasions, and
    30        I think it is very consistent that you can balance your
    31        meal occasions at McDonald's with other meal occasions.
    32        Even the heaviest users of McDonald's, if you look on a
    33        very heavy category, probably do not come more than four,
    34        five or six times a week, in which case they can balance it
    35        with other time periods.
    36
    37        Again, from our perspective, the target really is those who
    38        are -- the major target is those who are out in the quick
    39        service restaurants category already.
    40
    41   MS. STEEL:   Under the fourth dot or by the fourth dot, it
    42        says:
    43
    44        "Unfortunately, for every daypart there has been a
    45        decrease of heavy usage of McDonald's.  There are fewer
    46        heavy users of McDonalds in 1991 for breakfast, lunch, and
    47        dinner, following several years of slight growth.
    48
    49        "Equally disturbing is the increased number of customers
    50        reporting that they never visit McDonalds for a main meal 
    51        i.e. Breakfast, Lunch or Dinner." 
    52        A.  Yes.  I think this is indicative of the significant 
    53        increase in competition during these dayparts.
    54
    55        During 1989, 1990 and 1991, there was a significant
    56        increase in the number of quick service restaurants in the
    57        United States.  While the market itself had not grown very
    58        much, the number of restaurants had grown significantly.
    59        So, we got ourselves -- and continue to be -- in what
    60        I would call "going after share".  It is not necessarily

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