Day 046 - 04 Nov 94 - Page 60


     
     1   MS. STEEL:  Again later on it talks about:  "We continue to
     2        penetrate existing markets and create new markets through
     3        non-traditional locations such as small towns, food
     4        courts, hospitals and tollways".  That means
     5        non-traditional location for quick service restaurants?
     6        A.  Yes, it is certainly non-traditional from what you
     7        would call a free-standing, that is what we call a
     8        restaurant, which is the usual restaurant where you are
     9        able to drive up.
    10
    11   Q.   Going to page 55 under "Marketing" it says:  "McDonald's is
    12        one of the most advertised brands in the world.  This
    13        position, coupled with a $1 billion marketing budget,
    14        ensures high levels of awareness for our products."
    15        A.  Yes, I believe the one billion is talking about
    16        worldwide.
    17
    18   Q.   That is right, is it, what is written there?
    19        A.  Yes, I believe it is talking about the worldwide
    20        budget.
    21
    22   Q.   Yes?
    23        A.  It is talking about advertised brands in the world.
    24
    25   Q.   Turn to page 87.
    26
    27   MR. JUSTICE BELL:  If you look back at page 55 under
    28        "Competition" after statements which are broadly the same
    29        as the ones that you have already mentioned:  "In the US,
    30        about 376,000 restaurants generate about $180 billion in
    31        annual sales".  Those are quick service restaurants and
    32        other restaurants including ---
    33        A.  Yes, I believe.
    34
    35   Q.   -- white table cloth restaurants?
    36        A.  I believe that is the total number of restaurants,
    37        because I remember eating and drinking is about that $180
    38        billion, so, yes, it would be of restaurants.
    39
    40   Q.   "About two per cent of those restaurants account for seven
    41        per cent of sales, and they are McDonald's restaurants.
    42        That leaves 93 per cent, or about $186 billion, to target
    43        for market share increase"?
    44        A.  That is correct.
    45
    46   Q.   But you say they have not been targeted, the white table
    47        cloth sector or whatever?
    48        A.  No, we have not targeted them directly.
    49
    50   MR. JUSTICE BELL:  What was the page? 
    51 
    52   MS. STEEL:  Page 87. 
    53        A.  Yes, I have it.
    54
    55   Q.   The first column, the one that starts:  "The McDonald's
    56        System is the largest foodservice organisation in the
    57        world"?
    58        A.  Yes.
    59
    60   Q.   About halfway down that first paragraph it says:

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