Day 045 - 03 Nov 94 - Page 50


     
     1        well; one might be with a chicken sandwich, there might be
     2        one with a salad.  But usually they are combinations of
     3        things.  In the majority, the combinations are a hamburger
     4        sandwich or french fry and drink.  They are called "combos"
     5        because they are, essentially, advertised in that way.
     6
     7   Q.   Advertised in that way -- sorry -- did you say?
     8        A.  Yes, advertised in that way.
     9
    10   Q.   It goes on to say: "Most combo meals include the large
    11        sandwich variety...."  Is that right?
    12        A.  Yes.
    13
    14   Q.   Is that something that you advertise, or you aim
    15        advertising at, as well?
    16        A.  We do have advertising against combinations, and the
    17        majority of them are large sandwiches.
    18
    19   MR. JUSTICE BELL:  The price of the combination tends to cost
    20        less than the total price of the individual components?
    21        A.  Yes.  Again, it is a la carte versus a combination
    22        meal.
    23
    24   MS. STEEL:  On page 209 it says:
    25
    26        "Based on the trended results of this research study, the
    27        1991 story is not as positive as that from previous years.
    28        McDonald's does have reason for concern regarding growth of
    29        its customer base.
    30
    31        "Overall, per capita usage is down compared to the mid/late
    32        80's.  In addition, heavy usage of McDonald's has
    33        declined."
    34
    35        Is that something that McDonald's is particularly concerned
    36        about, that heavy usage has declined?
    37        A.  Again, from the perspective that I understand that,
    38        that indicates the competitive nature of the industry; and,
    39        yes, we would be concerned that our competition was getting
    40        a higher share.
    41
    42   Q.   Do you know whether that is the case, or do you know
    43        whether it might be that people are using fast-food
    44        restaurants less?
    45        A.  No.  I believe that it is the case that it is
    46        competition.  All the numbers that I have substantiate
    47        that, yes.
    48
    49   Q.   Where have you seen those numbers?
    50        A.  When you look at market share numbers for the 
    51        competition, you see that our competition---- 
    52 
    53   Q.   It is increasing?
    54        A.  ----has grown.
    55
    56   MR. JUSTICE BELL:  It says there: "Salads, which were added in
    57        1987, have low penetration and this year have lost even
    58        more attraction."
    59        A.  Yes.
    60

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