Day 247 - 10 May 96 - Page 42
1
2 "In 1993, 25 million customer transactions were completed.
3 (Each transaction accounts on average for 2 meals) with an
4 average spend of £2.89 per customer."
5
6 Relating back to what you were saying earlier, it is the
7 average purchase of two meals as opposed to two drinks, or
8 a drink, or whatever?
9 A. No, it is what I said earlier. For me, lunch today,
10 the meal was a bottle of orange juice and 2 bananas. This
11 evening it will be something different at home.
12
13 In terms of McDonald's, if I come in and make a purchase
14 and I buy for myself, typically I will be purchasing for
15 one other person at the same time. At the same time, I may
16 buy a cup of coffee for myself and a sandwich, a drink and
17 a Fry and an apple pie for the other person, but what we
18 are talking about that is that for every transaction, for
19 every time a sale is completed, 2 people are fed something
20 in a McDonald's restaurant. It could be one item; it could
21 be a large meal. It could be almost anything. It should
22 not get confused by the term "meal" of itself.
23
24 Q. So, McDonald's uses the word "meal" in a different way to
25 what most people conceive it to be?
26 A. Well, I use it as the way I explained it, and that is
27 what it meant when they go through the numbers here.
28 Everything ties back to our sales for the year's
29 transactions; it makes logical sense. I have no way of
30 knowing when someone comes in to buy something if the one
31 sandwich, 2 fries, 2 milkshakes are going to be for them or
32 for another person individually.
33
34 Over a time we have done much research on this and we know
35 that for every time a sale is completed, two people have
36 something to eat or drink. As it says there, the average
37 spend at this point in time per transaction or per customer
38 was £2.89.
39
40 Q. If you turn over to page 12 under "General Facts" it says:
41 "McDonald's total marketing spend for 1993 was £41m". Do
42 you know what it is now?
43 A. What will it be this year? On advertising, our spend
44 this year will be about five per cent of total sales, so
45 that will work out to be something like £46m or £47m,
46 I think, on advertising.
47
48 Q. Right. That is for the UK?
49 A. For the UK, yes.
50
51 Q. The figure of £41m in 1993, it says: "This was
52 predominantly spent on TV and radio with five million spent
53 on local store marketing and 2 million on national and
54 community projects such as McDonald's Child of Achievement
55 Awards and the McDonald's Young Athlete Club".
56
57 The project such as the Child Achievement Award and the
58 Young Athlete Club come out of the advertising budget or
59 the advertising money?
60 A. They come out of sales.
