Date: Sat, 7 Jun 2008 18:10:23 -0700 (PDT)
From: Chuck Piper
Subject: Re: McD’s
“McDonalds and other multinational corporations don’t want to co-exist. Local business owners can decide to only go for a portion of the market, but publicly-traded companies don’t have that luxury. They are here only to make money for their shareholders, and they want – no, need – the entire market share.”
“McD’s and Wal-mart and these types of businesses have huge capital reserves, and they use them to eliminate the competition. They don’t care if the competition is a local business or a Target, they must be eliminated. It’s often done by losing money for several months to undercut prices, and when there is no other game in town (literally) they increase the prices and lower the wages to make money for their shareholders, where ever they may be. The kicker is that they can write off these unsavory business practices in the corporate tax structure. “
Oh my, the chatlist has gotten deep today. First, the vegetarian camp weighs in with reports about turkey and calf abuse, even though I don’t recall seeing turkey or veal on the menu any time recently at McD’s and now you’re saying they are out to destroy all the local restaurants by undercutting prices. If you do some research you will discover that low prices only work to some extent, especially in a service industry such as restaurants. A business that gives good service, such as S&Ts will be able to survive price competition with McD’s because price is probably a very small part of why people choose to go to S&Ts.
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