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Mc Donald's "Senior" Restaurant

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Business situation McDonald’s is facing a possible dilemma in its evolving brand image. The restaurant manager, Lisa Aham is experiencing an increase in the restaurant’s senior market, who utilizes the restaurant, for hours, nontraditional to fast food. The restaurant stay of the senior customers ranges from one to four hours during non-peak morning hours. The current situation must be reevaluated because the senior customers bring in equivalent amounts of profit as the non-senior market, which utilizes the restaurant for a short-period. Aham believes the changing image of the restaurant will discourage younger customers from patronage. As a result of the changing market, Lisa Aham wants to implement special activities, appealing to seniors, during the hours of 9:00 a.m.– 11:00 a.m. to cater to seniors and draw more revenue. Solution Providing activities that are appealing to seniors during the hours of 9:00 a.m. -11:00 a.m. will cater directly to the seniors. These activities will provide a comfortable environment for socialization and dining. Constricting the activities to the restaurant’s meeting room will reserve the other areas of the restaurant for non-senior, fast food, patrons and therefore, provide adequate space for customers. Charging a small, one-time entry, fee will also provide Mrs. Aham with additional profits, otherwise not available. Providing restaurant coupons as prizes will encourage spending among the senior age group. “Many seniors are relying on incomes that are fixed, whether it is an annuity, a pension, Social Security, or a combination of these fixed income sources” (Rasku, n.d.), which can make discounts and product coupons an attractive incentive. Because the nontraditional senior patrons depart the restaurant prior to the arrival of the fast-food lunch crowd, the younger crowd will not be deterred from visiting the restaurant because of a senior type environment. Finally, requiring underutilized employees to oversee the senior activities will avoid the incurrence of additional costs because there will be no change in pay or the need for additional employees.

Benefits Encouraging senior patronage can be very beneficial to Mrs. Aham and the McDonald’s restaurant. “Businesses can garner loyalty, gain repeat customers and boost their sales by giving seniors a break on the items they buy every day” (Conrad, 2012). Providing the meeting room for senior activities provides Mrs. Aham with the ability to provide activities to 150 seniors. Charging a one-time entry fee of $5 per person permits Mrs. Aham the opportunity to gain revenues of $750 per day in addition to sales prompted by coupons distributed during the activities. Implementing senior activities will require no additional training or human capital. The restaurant normally generates between $199 -$298.50 per day. Offering the senior activities will provide the restaurant with an additional $500-$750 per day in revenues. Conclusion Companies looking to remain or become profitable in the long-run incorporate many strategies for growth. To determine the appropriate strategy for growth, companies must determine which strategies best aid them in meeting the needs of its consumers. Realizing that brand image is not solely dependent on the age-range of the customers but more about how the company uses its resources to accommodate the changing market environment will equip McDonald’s with a strategic direction for success. Although there are many tools, techniques, and best practices available; ultimately, focusing on strategy, people, process, structure, and culture aids businesses in achieving sustainable profitable growth. Works Cited Conrad, B. (2012). Tax Advantages of Providing Senior Discounts. Retrieved July 23, 2012 Rasku, W. (n.d.). Fixed Income Solutions for Senior Citizens. Ezine Articles, 1.

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