Does McDonald's/Domino's/Pizza Hut etc. Make a Profit from Discount Deals?

I only ever buy Domino's or Pizza hut with at least 50% off which works out to around $5-$7.5 per pizza and for McDs only ever buy those small burger meals with extra cheeseburger on my app which is usually around $5-$6.99. With the price of everything going up, I'm curious to know if anyone who is working in the industry able to tell me if these companies actually make a profit on these types of orders?

Related Stores

Pizza Hut
Pizza Hut
Domino's
Domino's
McDonald's
McDonald's

Comments

  • +3

    Yes. Just not as much as full price items obviously and the losers that pay full price are merely offsetting the bargain buyers.

    Source: a friend used to manage a McD restaurant.

    • +1

      How much salary would the dude make

      • +8

        Well he's not on ozbargain so definitely less than $200k

      • Mcd managers salary:

        https://www.news.com.au/finance/money/shock-200000-salary-of…

        Not sure how much franchise owners make though.

        • I doubt he was a normal manager - most likely store manager (or above) and a well paid one too.

          Friend of mine was a manager back in 2013 and was on 45k. I'd take a guess and say normal managers are on between 60 and 70k at the moment, maybe slightly more.

  • the head office yes but not sure the franchisees

  • +2

    They likely make a profit on the variable costs. But if they only sold discount meals they wouldn't be able to function in the long run but it's still better than selling nothing.

    They're paying their staff anyway, they're paying for rent and lights, it's only really the cost of the food and the electricity to cook it (which isn't a huge amount). It is a balancing act for them though, they need to keep the full price customers coming too. Thus why you wind up with things like 24 nuggets being cheap but 20 nuggets getting monopoly things, it's all about the mind games.

  • It costs hungry jacks 7c to produce a large coke. That includes cup, straw, ice and mixture. They aren't missing out…..

    • Source? I find that hard to believe.

      • Area manager. To be fair this was 2 years ago.

        • I was told exactly this amount 20 years ago
          I'm guessing it's gone up a bit, but still a piddly amount

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