Thursday, February 26, 2009

Macca's is going to jack up prices in low-income demographic areas

Because they think that the low-income people won't whinge.
A confidential corporate document obtained by The Daily Telegraph reveals that McDonald's Australia has identified an "opportunity to introduce more aggressive price increases" at dozens of stores across NSW, including Campbelltown, Doonside, Engadine, Epping, Fairfield, Gosford, Greenacre, Hurlstone Park and Liverpool.

A McDonald's franchisee said the biggest price hikes were concentrated in lower income areas around Australia.
Part of the "beauty" of Macca's is that everything is the same and the prices are the same no matter where you go.

I recall up here for a while Hash Browns at Kenmore Maccas were only 85c, but the ones at Jindalee were $1.


Anonymous said...

I'm surprised people think it's unusual.
We, who travel to different suburbs every day are well aware of this practice.
The prices in the low income areas are substantially higher in every shopping centre, not only in supermarkets but other shops as well.

mythusmage said...

Who's fault is that? You can bet certain parties will blame the corporations, yet such action is enabled by a customer base who won't act to address the problem. The poor stay poor because they are willing to put up with crap. No initiative, no willingness to take measures to address problems or improve their lot.

Oh they'll bitch, but take steps? Those few who do end up moving out of the ghetto because their neighbors have made their lives hell. Despair and envy acting to keep people down, and to destroy any effort to improve matters. Who do we ultimately blame for poverty anywhere? As Pogo Possum once said, "We have met the enemy, and he is us."

kae said...


I haven't noticed that with the big two supermarkets it’s been more the opposite.

Someone at Chatswood Woolies or Coles would certainly be paying more for their groceries than someone at, say, Bankstown or Liverpool.

In the country and outer areas because these two biggies have the duopoly in many cases (or the smaller outlets have monopolies), the prices are higher.
For many years one town had a Coles and then within the past five or six years an IGA as well, the next town had a 4 Square and another supermarket, at different times the labels of these two stores changed to 4 Square, Spar, IGA, Spar, etc, and they became more expensive than the Coles in the next town, sometimes by as much as 40 or 50 cents, and even on some products a dollar or more. They used to always match the big duopoly shops' catalogue/junk-mail specials. For about the past six to eight years the prices have risen and the duopoly specials no longer are matched in these small independent shops.

About four years ago we got a Woolies out on the highway which we thought would stimulate more competition. I doesn't seem to have stimulated much. This year we got an Aldi in the same town as the Coles, where there is also an IGA which has been pretty competitive in the meat section.

You're right, Mythus. Everyone complains, but that's all they do. I would't call these poorer demographic areas "ghettos", Mythus. They're just working class, blue collar worker areas.

Anonymous said...

I'm talking here from Melbourne, and guarantee you that if you go to Broadmedows, which is a working class area, (mostly moslems now) you will pay more for your groceries. Or Epping, the same.
When I'm late starting work and sometimes skip brekky, I buy a beacon-egg sandwich on the run, it costs me at least $2.00 more in the poorer suburbs.

Aldi, I like, their prices are the same no matter where they are.

Just an example of taking advantage of the poorer, but happy to spend population!!

Where do you think Telstra, Optus and Foxtel started hanging out the cables for cable TV first??
You can look it up if you haven't noticed it at the time.

kae said...

Hi Orion
I remember years ago there was a stink in Sydney because the supermarkets on the north side were charging more than the western suburbs ones, some north side supermarkets were cheaper and when the locals found out they changed to shop at the cheaper supermarkets.
Perhaps things have changed?

kae said...

I haven't lived in Sydney since 1986 and I haven't lived in Melbourne (St Albans!) since 1992.