Day 257 - 06 Jun 96 - Page 44
1 MR. JUSTICE BELL: I have got it at 203 as well.
2
3 MR. RAMPTON: Yes, but heavy is between one and 3 times a week.
4 The definition are consistent in that document.
5 A. To further clarify, though it my seem confusing, there
6 is a logic behind that, quite simply as a function of
7 number of restaurants, or restaurant penetration within a
8 market place, the number of visits by customers increases
9 almost proportionately with the number of restaurants we
10 have in a market place. Therefore, as market places become
11 more mature, definitions of heavy users shift further down
12 the frequency mix. Hence, why the UK would have a
13 different frequency definition and, say, Portugal and why
14 the US would have a different usage definition than the UK.
15
16 MR. MORRIS: Right. I was going to come to a document later on
17 which was from the operations manual, but you can take my
18 word for it on page 636 of the operations manual it says
19 -- and I presume they mean America -- at McDonald's heavy
20 users make up about 27 per cent of our customers yet the
21 small group generates about 77 per cent of all visits.
22 A. That relates to the UK, but it also relates to a much
23 more general business principle called the 80.20 rule where
24 virtually any business, 80 per cent of your business comes
25 from 20 per cent of your customers.
26
27 MS. STEEL: You said it relates to the UK?
28 A. That relates to the US; to the US.
29
30 MR. MORRIS: Would the UK be similar to the US in that respect?
31 A. Yes, broadly similar, yes.
32
33 Q. Right.
34 A. But that is not really much of a revelation, it is
35 generally held business principle.
36
37 Q. Unless someone says it in the witness box we cannot rely on
38 it?
39 A. Sure, yes.
40
41 Q. It is probably in a document somewhere. I thought that
42 referred to it, but that apparently is the American usage
43 providing information to you. It is a bit confusing?
44 A. It is, yes. It has not been rewritten in a UK version,
45 that manual.
46
47 Q. We will see if there is any more in that document. In that
48 document it says frequency, near the top?
49 A. Sorry?
50
51 Q. In 4 weeks?
52 A. Yes.
53
54 Q. It says, you know, round the 2.4, 2.5 mark?
55 A. Sorry, can you just refer me back to the correct?
56
57 Q. Sorry, it was in page 1 of AF2?
58 A. OK. I have it.
59
60 Q. So, in that document it seems to indicate that people are
