Popular among gamers and bloggers at one time is the McDonald's spartan breakfast of a McMuffin with Coffee (or Tea) at just S$2.00. This was bred out of the last downturn in Singapore, possibly to a government call for responsible, community-oriented, businesses like McDonald's to offer an everyday low price item on their menu. I don't know if this was either part of their management's plan to create a loss leader (unlikely as this is a "meal" by itself without any quota to purchase) or because it had an inflationary measure impact on a basket of goods used by some statistical body to keep the figures looking attractive. Either way, Kenneth Chan who had run McDonald's operations in Singapore was famed for his price-related promotions to keep his transaction numbers up, and just last week, it was announced that he will head up McDonald's China which is definitely a promotion in recognition of his work and commitment at the Golden Arches.
Perhaps, he kept the prices down until so far, and now that he's gone the full impact of inflation has come to fore with the price of the McMuffin and Coffee combination (available only until 11 am weekdays, with unlimited refills of beverage) up by a hefty 25% to S$2.50 (that means a 50 cent increase).
Of course no one is going to complain; except if the quality of tea and coffee is going to be consistent and not diluted like it is. I suspect that the stores have been advised to cut back on quality on the standard coffee and tea which have become more dilute than ever before. The question therefore is this: is McDonald's Restaurant quality really consistent or with the inflationary/recessionary factors at play, necessary for them to play with their quality even if consumers are prepared to pay the price on the menu?
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