So something occurred to me the other day, flipping the channels: Macdonalds has two advertising campaigns running right now - $1 drinks and the other talking about their new coffee. Both are centred around drinks, add-ons to their main offering. Why is that?
1. Both carbonated beverages and coffee have very cheap per unit costs so even offered at a perceived inexpensive price, there is still significant proift available, per unit. Is this a way to offset rising food costs in other areas such as grain?
Side note: About a year ago now, there were a number of stories published predicting a food shortage and skyrocketing costs. But then the economic crisis happened and haven't really seen any since. Did it disappear?
2. Is it a way to rebrand, pull customers in the beverages and upsell them the food?
Either way, with a multimillion dollar TV advertising campaign, it has to be worthwhile.
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