You love to see it

Word on the street is that McDonald’s is finally feeling the heat from consumers for charging high menu prices. I am very happy to see that I am not the only one around here who is immensely price elastic when it comes to outside food. Ever since a simple meal at the local McDonald’s crossed over the rubicon of $10, I’ve been largely abstaining from the Golden Arches. The only time I go now is during free fries Fridays on the McDonald’s app - spend $1, get medium fries for free. I buy a soda.

I am also very happy to see the supply-demand economic see-saw is alive and well. Capitalism and the free market is not dead! Restaurants can’t keep hiking the prices forever. Though honestly I am a bit surprised at how quickly consumers have pulled back on spending vis-a-vis high menu prices. It’s way too easy to put things on a credit card, isn’t it? What’s $20 here and there when it’s the future you that have to pay for it. I’ve certainly been young, dumb, and friviolous with spending before.

If cost of goods sold remains high into the foreseeable future, I don’t see how much McDonald’s can reduce its prices. Especially here in California, where the government saw fit to implement a $20 per hour minimum wage for fast food workers. Forcing a salary floor is a hugely anti-free market move, an undue burden on the entrepreneur. California McDonald’s franchisees will be stuck between rock and a hard place: corporate rolls out new value menus, but their high labor cost leaves a very thin operating margin.

The way I see it, I don’t see outside food getting less expensive - back to pre-pandemic times - again. I’m going to be like my friend who lives in Switzerland. Eating out over there is tremendously expensive, so she mostly doesn’t. That’s going to me. We’ve got food at home, baby!

Would you like some fries?

Is anyone eating at McDonald’s these days? Prices there have become absurd. A cursory check on the McDonald’s app shows (for San Francisco, California) that you cannot get a meal - a sandwich, a drink, and fries - for less than $13. For the same kind of money, I rather go to In-N-Out for a much fresher burger. The last time I actually ate at McDonald’s was when they were giving out free fries.

Inflation is inflation, right? Cost of goods sold has gone up, and so has cost of labor. Here in California the minimum wage for fast food workers is scheduled to go up to $20-per-hour in a few months. McDonalds (and other restaurants) have already signaled they are going to raise menu prices in response. When a meal is already at least $13, who the heck is willing to pay even more?

It’s basic economics: you can only raise the prices so much before customer demand goes down. I understand McDonald’s want to protect their margins, but it can only go so far. I have to think we’re already at that critical juncture of price vis a vis demand. If my middle-class income is cutting back on McDonalds due to cost, people making less are certainly doing the same.

The high prices won’t change until these fast food places feel the squeeze of less demand. It looks like it still hasn’t happened yet, despite my not so herculean efforts. Revenue and net-income for McDonalds beat expectations due to menu price increases. This is just pure greed, hiding behind the facade of inflation.

Up and up

Word on the street is that Netflix is once again raising its prices. For 4K top quality Netflix, folks are now looking at $22.99 per month. Is it just me or is that dangerously close to basic cable pricing? Include the other streaming services a person is likely to also subscribe to, then it is basic cable TV costs. We’ve cut the cord, but the money is still flowing out.

Fortunate for me, I don’t subscribe to Netflix. But I am not delusional to think that other streaming services - the ones I do subscribe to - won’t hike their monthly fees soon enough. Imitation is the sincerest form of making money. Remember a few months back when Netflix effectively banned password-sharing? It seems to be a surprise revenue increaser for the company. So of course Disney Plus has begun doing the same thing. Our neighbors up north in Canada will receive the initial brunt of the crackdown. It’s just a matter of time for us here in the States.

My friends who are sharing my account (would this be incriminating?) will have to find other ways to watch Disney programming. Legal or otherwise.

Prices for everything keep going up and up, way too rapidly. A good way to combat this, at least for McDonalds, is to use its app. The deals offered on the McDonalds app really blunts the hefty prices. Yesterday there was a buy-one-get-one-free deal on the double cheeseburger. Two sandwiches for less than five dollars is a win these days. Also, the more you use the app, the more points you earn towards free food.

Not to say you should make McDonalds a constant staple of your diet…

Sunset Night Market

It’s National Cheeseburger Day! I hope you all went to your local McDonald’s and got a double-cheeseburger for only 50-cent (apparently, the original price for one when it first debut on the menu). A single day promotion only available on the McDonald’s app. I saw a kid trying to order from the counter and got declined. They really want to harvest your data!

I made the mistake of going to McDonald’s after work. Thanks to the promotion, it was absolutely packed with people ordering the $0.50 double-cheeseburger. Especially in these inflationary times, who can say no to a sub-dollar sandwich (with cheese)? Nutritional value be damned, we just want to save a buck or two. Regular price for a double-cheeseburger (San Francisco, mind you) is $4.19. I’ll take the nutritional deficit hit, thank you.

The first ever Sunset Night Market this past Friday was also absolutely packed with people. The local district supervisor had visited Taiwan and drew inspiration from the famous night markets there. The somewhat quixotic attempt to replicate it here in San Francisco (we can’t have nice things) was a rousing success… if you only count the sheer number of visitors. It was so packed that one could not see what a booth was selling without being right next to it. I haven’t been in such a dense crowd since rush hour subway in Guangzhou, China.

Prolific crowd number aside, there’s much to improve upon if the Sunset Night Market wants permanent staying power. Firstly there needs to be way more food vendors. The draw of the night markets in Taiwan is numerous food stands. By my count, the amount of food vendors at the Sunset Night Market was less than ten. This in turn worsened the experience of getting food, because the lines -for the vendors that were there - were super long.

The organizers didn’t allocate enough space for the lines (they’ve closed down only three blocks) so it was a mess of people in line blocking the general flow of the crowd. They need more space for everything. The next night market should close down at least six blocks for the same amount of vendors. Sadly, plans for the next one won’t be until Spring 2024!? I am rooting for its continued success, though.

Weekend routine

Saturday mornings are the best. I wake up well-rested because I got to sleep in. Mind you that means waking up at around 8:00AM instead of the usual 6:30. Even if I wanted to, my body won’t allow me to sleep deep into the morning like before. Unless of course I absolutely had a very late night on Friday, but I can’t remember the last time I’ve gone out on a Friday. What with the pandemic and everything.

Upon waking up, I head straight for the iPhone. Not to browse twitter, because I’ve deleted that app from my phone (it’s the only New Year’s resolution I have). Instead, it’s the McDonals app. I’m ordering breakfast before I take the leisure stroll to the mall that’s three blocks away. Buy one get one free of the breakfast sandwich is always a good deal.

The walk is super lovely. Blues skies, early sunshine, and breaths of fresh air. There’s not a worry in the world. Because it’s Saturday; the Sunday evening panic won’t arrive for another earthly rotation. So I’m the calmest I can be over the two days of the weekend. Errands can be done later. My friends are still in bed at such an early hour. The Saturday morning is sacred, and mine alone.

I see grocery shoppers heading into Trader Joe’s. A silent high-five to fellow early risers. As I grab my order from McDonalds, I notice a woman also getting breakfast to go. However, she’s not heading home, but rather she’s off to work. McDonalds is the reward, a treat for herself before she has to face the arduous work day. I silently wish her well, and count myself lucky to have a job with proper weekends off.

So I can have these Saturday mornings.

Healy Chen

Blog

You love to see it

Would you like some fries?

Up and up

Sunset Night Market

Weekend routine