CASE TITLE: MC DONALD’S “SENIORS” RESTAURANT

CASE STUDY METHOD

OBJECTIVES:
1. To enhance socialization and quality decision making.
2. To advance the student’s learning in the national world of business operation.

BY:
MARY KRISTINE S. TORRECAMPO
LC 3

I. STATEMENT OF THE PROBLEM 1. What is the effect of the increasing seniors’ population to the image of Suzanne’s Mc Donald’s Restaurant? 2. What services should Suzanne’s Mc Donald’s Restaurant could offer to attract more young customers to avail the facilities longer than the seniors?
II. DEFINITION OF THE PROBLEM The Mc Donald’s Restaurant is open to the public especially to the young ones, but unfortunately, the main customers under Suzanne’s management are said to be “seniors.” If the senior customers continue to grow in the fast-food restaurant, there are two possible outcomes that may happen, both an advantage and a disadvantage. The advantage is – for the management perspective – there is nothing to worry in terms of the restaurant sales and gaining of profits because even they are seniors, they are still customers that are willing to avail the services being offered. However, the disadvantage is, if the seniors’ population continue to grow, in availing the services in which supposed to be for young people as the main targets, their presence will monopolize the place as being the main customers and withhold the young ones. Young customers might feel uncomfortable to stay a little bit longer in a place surrounded by the old ones. In that case, there is no rapport from the environment in which may lead to bore the young customers and prefer to leave and find another place that can entertain them with an adequate atmosphere. Mc Donald’s Restaurant must accommodate more young customers than the older ones because of its notable services being offered worldwide, such as affordable meal price, comfortable and convenient place, playground area for children, safe and healthy foods, and performs complete sanitation process. But under Suzanne’s management, it did not happen as being expected. In fact, the least expected target of the business became the main customers. Well, they did not spoil the business in general, because they are also customers to be considered. It’s a matter of age; the two kinds of customer differ in each other. It is better to have them as customers than to have nothing at all. However, to view things in general based in the situation, running this business was efficient but not effective to its main target market. It didn’t comply what it really aim for. The management must create a strategy to attract more young customers to avail the services often and at the same time retain the seniors’ satisfaction upon continue availing the services and facilities being offered.
III. FACTORS AFFECTING THE PROBLEM 1. Misconception of Customers As young people perceived the place of Mc Donald’s full of senior people everyday than the average customers, they might think it’s a place exclusively for the seniors and not preferably for the young people. Visiting a place, having you surrounded by old people, creates an awkward feeling towards your own self and to the environment. That maybe because people of the old age dominate the place and the people of young age will be out-of-place. 2. Personal Involvement to Customers Personal involvement to customers is advisable to have a strong and mutual relationship between customers and employees. It can help operating the business smoothly and with lesser troubles. A good interaction of employees towards their clients can establish a harmonious relationship that may lead later on to trusting each other. But too much involvement especially on personal matters, if abused, can affect the business which may lead to its own downfall. Establishing a good relationship among customers is one of the effective ways to have a good business, but of course, there’s always a limitation in every personal connection towards them. 3. High Expectation to the Business Setting goals and achieve them are necessary to attain success in the business world. It is alright to set expectations beyond your capacity but make sure to strive hard in order to succeed. A low expectation bring lesser challenges and if succeeds, brings lesser satisfaction. Unlike having higher expectations which brings more challenges and if succeeds, greater satisfaction can be felt. However, there are times that higher expectations can result to a greatest and most painful decline of the business. In setting expectation, high or low, extra careful is necessary and good decision is expected not only for one’s common good but for all who is part of the business. 4. Gradual Tolerance of the Management Mc Donald’s is a fast-food restaurant in which people are expected to eat and run or buy and run. But in this case, seniors stay for about 4 hours or more in a place having coffee or eating meals. Maybe because the management forgot to let them understand what Mc Donald’s Restaurant supposed to be. It is not a waiting area nor a coffee shop but a fast-food restaurant open for the public. Since there’s no note from the management that it’s not okay to stay there the whole morning or afternoon, seniors might think and assume it is okay to spend their slowly hours at Mc Donald’s doing nothing but overusing their facilities.

5. Crowding and Unavailable Facilities If the customers’ population continues to grow, crowding is the number one problem in that matter. To avoid it, there should be an additional space provided for the customers because the wider the place, the more customers to be accommodated. There should also be additional facilities enough to avail by the customers in order to provide convenience and satisfying services.
IV. ALTERNATIVE SOLUTIONS
Alternative #1: Lower the value meal price by making it more affordable enough to the budget of young customers and increase the production of the most demand products.
Alternative #2: Introduce a new “happy meal” product for children and eliminate bingo games strategy.
Alternative #3: Eliminate the idea of charging customer’s stay at Mc Donald’s but instead introduce the giving of big prizes by availing coupons through purchasing products worth P300. An additional P100 to the worth of purchase has an additional coupon. The more coupons you have, the greater chances of winning.
V. ANALYSIS Lowering the product’s price is an effective way of attracting customers. As you lower the price make sure to increase the production from its normal average number. However, if marking down products still won’t work to persuade the customers to stop and avail you services, it’s time to better think a new strategy or else the business will decline. Introducing and promoting a new attractive and affordable happy meal for children can help increase the young customers’ population. Consider that parent must also be attracted to the new presented products so that they will persuade to buy one or two for their children. If the parents are not satisfied to the quality of the product, it will become useless in the eyes of the consumers. Bingo games must not be implemented because it will only attract more seniors and not young customers. This idea will not fit beautifully for the image of Mc Donald’s Restaurant. Extra charging of customer’s stay is not a better strategy because it’s too obvious to show that the management won’t permit customers to standby in the area. It is not a nice way to express new managerial rule of the business. It is better to charge on foods they eat; at least it’s not obvious that you’re charging for a longer stay at the place than charging obviously about the place they overused. Instead of charging, introduce the promotion of giving out big prizes, especially of human’s basic needs, by purchasing worth P300 and avail a coupon for a chance to win in the raffle draw. The additional of P100 to the worth of purchased will receive an additional coupon. Persuade customers to avail this promo and convince them to have many coupons as possible because the more coupons you have have the greater chances of winning big prizes.
VI. CONCLUSION AND RECOMMENDATION Mc Donald’s Restaurant under the management of Suzanne Drolet must lower the price of its products. Make it more affordable and accessible to the customers especially to the young ones enough to their budget like for the students like me. Today, there are a lot of practical – minded persons who choose less expensive products with the same quality as the expensive ones and avail it right away. The main rival of Mc Donald’s here in the Philippines is the Jollibee Corporation. As we all know, Jollibee products were based on Filipinos’ taste and priced accordingly. The qualities of their products are quite the same, but in terms of pricing, Mc Donald’s is seemed to be more expensive compared to Jollibee. If Mc Donald’s would mark down its products pricing and level to the average budget of the Filipino, consumers will have two options to choose from, and its up to them to where they will satisfied their needs and wants among the two. If the two of them combined their forces, they will together as one partnership, it is a better plan so that people won’t find hard time in choosing where to go because there are people who wants to eat Jolly fries and at the same time wants a Mc Do cheese burger. Sometimes Filipinos want Jolly spaghetti and at the same time a wants to eat Mc Do’s sundae ice cream. But I think it’s impossible to happen due to their major and acceptable reasons. Mc Donald’s Restaurant is a very nice and convenient place to stay for. But due to its 100% convenience and good quality provide expensive price rates which made the people think unaffordable although all the facilities are available. A good location is not enough to make people attracted but it is purely depends on many factors – such as price, promotion and product – to be practical nowadays. I’m not saying that Mc Donald’s will reduce its convenience but instead minimize imported materials that also contributed to make an expensive product. Food restaurants grow fast in the market as the population continues to increase and the supply of demand also increases. So production must be estimated to the extent of consumers’ availability to avoid used up products and wasteful resources and materials. Mc Donald’s is a strong company. A it survives the begrimed competition in the market, it will continue surviving on the days forward because in the world of business only the strongest and toughest among all will stand out.