Gouging the poor the Micky D’s way
McDonald’s to charge more in poorer suburbs
McDONALD’S is lifting prices in poorer suburbs where it believes consumers are more likely to accept higher charges without complaint.
Costs were previously based on restaurant overheads and ingredient prices.
But the multi-national fast-food chain is using socio-economic factors to determine charges under a new “demand-based pricing” scheme.
Corporate documents obtained by The Courier-Mail show McDonald’s Australia has identified an “opportunity to introduce more aggressive price increases” in 73 Queensland outlets.
McDonald’s, which yesterday confirmed the pricing strategy, says the price “refinement takes into consideration individual factors that relate to each store … “.
A McDonald’s franchisee, who asked to remain anonymous, said the biggest price rises were concentrated in low-income areas.
“In general, the poorer suburbs will pay more,” the franchisee said.</em>
This of course is nothing new- the poor always pay more for everything, simply because the ones setting the costs know the poor have fewer options- they are trapped by bus lines and geography. I lived in East Atlanta for several years, and saw that milk, gas, even cigarettes cost 20% more than they did 2 miles down the road. I owned a car, so I could travel the extra distance not to be ripped off, but the elderly or the poor in the area? Stuck. So McDonalds is simply the latest to prey on the poor. Why not? They are always there, they have no power, and they don’t have many options other than eating your shitty food. Kudos, excellent business model.