How McDonald's Makes Billions

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So Johnny The Kid, after a tough victory playing basketball like a $&@^%* hawk in his fly Airwalks, drives his Sweeet Ride to McDonald's, feeling hungry, wanting some affordable 99 cent McD's burgers that he saw on the commercials.

Johnny drives up to the drive-through window, when BAM, the McD's sales representative starts taking his order:

  • M: Hi. May I take your order?
  • J: Yo! Let me get three 99 cent cheeseburgers.
  • M: Would you like something to drink?
  • J: Alright. Let me get a large Coke.
  • M: Would you like to add some fries to your order?
  • J: Alright. Fries sound good.

And more:

  • M: There's also a special on our McSalads today. Would you like to add that too?
  • J: Okay.
  • M: You can also get some fresh apples for your salad as well. Would you like that too?
  • J: Okay. That sounds good.

And one more:

  • M: And what about our special caramel sauce for your apples?
  • J: Nah. I'm good!
  • M: Okay, your order is $783614747252884.99. Please drive up to the first window. Thank you.
  • J: Dangggggggg son. Okay.

What just happened?

Golden rule in fast food restaurants:

  • Keep selling something until they say No.

You can't build a sustainable business off .99 cent burgers; but you can use those loss leaders to bring in customers and upsell them with more profitable items.

Senior management knows the percentage of getting a sales WIN every time a representative pitches X; and they pile up their leading batters (i.e., pitches with the highest chances of selling) toward the top to keep the chain of customer yes's going as long as possible.

  • Your chances of selling X is 0 if you don't pitch it.
  • Your chances of selling X is >>>>> 0 if you do pitch it.

Pitching a $5 item, for example, that has a 20% chance of selling means you make $1 every time you pitch it.

  • Not pitching it? $0 = lost opportunities forever, and ever.

The fast food winning approach from the biggies:

  1. Attract customers with loss leaders ($.99 meals)
  2. Upsell on profitable items.
  3. Keep selling more items until they say No.

Then serve them with great food,  and maybe a pitch of another tasty new item in the bag (using the premise of you can't sell anything if you don't pitch it), to keep them coming back.

The string of pitches.

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Posted on December 23

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