Day 015 - 21 Jul 94 - Page 56


     
     1
         MR. MORRIS:  Maybe we will go into this in more detail, but
     2        there is a quite a lot of detail on it.  It is called
              "Entree Sandwich Penetration" on page 221.  It says that
     3        roughly eight out of ten customers purchase an entree.  I
              will just try to find the chart -- if we go to page 218,
     4        20 of the documents, it has how often customers visit the
              stores in the States?
     5        A.  Yes.
 
     6   Q.   It has the total number of customers that are heavy users
              which is 72 per cent.
     7
         MR. JUSTICE BELL:  They are one to three times a week?
     8        A.  Yes.
 
     9   MR. MORRIS:  And super heavy 23 per cent, well, four or over
              five times a week?
    10        A.  Yes.
 
    11   MR. RAMPTON:  Mr. Morris should understand that the percentage
              are not percentages of customers; they are percentages of
    12        visits.
 
    13   MR. MORRIS:  Percentages of visits.
 
    14   MR. RAMPTON:  Yes.
 
    15   MR. MORRIS:  Anyway, a substantial amount of customers are
              eating four or over?
    16        A.  Well, I think you have to be very careful about the
              calculations.
    17
         MR. RAMPTON:  It is very important to be careful about this,
    18        because one can get most frightfully misled.  216 shows
              the visits and also in a parallel set of columns the
    19        percentage of customers.
 
    20   MR. JUSTICE BELL:  The point is that a very high proportion of
              the meals are eaten by a relatively, and I say relatively,
    21        small number of customers who eat a lot of meals.  I am
              not saying the number is objectively small.  I am not
    22        making that judgment, but I am saying relatively small.
 
    23   MR. RAMPTON:  One sees the relevant statement in principle at
              the top of page 216:  "Although only 22 per cent of
    24        McDonald's customer are heavy users, they generate roughly
              three-quarters of all visits".
    25
         MR. MORRIS:  If we look at that chart, the latest figure in 
    26        that chart on page 8 shows that super-heavy customers, if 
              you pardon the expression, are 11 per cent of the 
    27        customers in 1991, yes?
              A.  Yes.
    28
         Q.   11 per cent of something like 19 million people visit
    29        McDonald's -- anyway, it is a lot of people.  So the point
              about heavy use is that a considerable number of people,
    30        whether it is hundreds of thousand or millions, do consume
              a large amount of food from McDonald's, yes?

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