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

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