The three major chains, Burger King, McDonald’s and Quick, regularly open new sites in Belgium and no longer just in the city… but many on the outskirts. Today there are more than 240 restaurants. But are burgers from the same brand sold at the same prices on these different sites? Well no, there are some differences. For what ?
When you see hamburger ads, it’s hard to resist. “When I have a free day, it’s nice from time to time”confides a customer. To the point of no longer paying attention to the asking price. “No, not necessarily because the prices are always the same”, assures a young woman. “No, it’s still the same price”, confirms with conviction a lady eating on a table a little further away.
So does a burger from the same brand but located on another site have the same price? Let’s do the test in a chain located in Walloon Brabant. The brand is located in an area outside the city, on the outskirts. In this restaurant, the burger is sold for 8.80 euros as a menu with fries and drink. Let’s try another restaurant located 25 km further, in the heart of the capital on one of the busiest streets. There, the same menu costs 8.70 euros, or 10 cents cheaper. But the biggest price difference is at Brussels Airport in Zaventem. To order the same menu, you will have to pay a little more, 10, 20 euros. Or 1.5 euros more than the previous price.
Location will impact price
How to explain this difference? We contacted the brand. “Approximately 80% of them are franchisees who have certain latitude in terms of price adjustments. That is to say, a maximum consumer selling price is recommended by the parent company, but the franchisee can adapt it”, explains Kevin Derycke, CEO of Quick.
This means that the restaurant is managed by independent owners who take into account several factors: the price of the rent but also the power of acceptance of customers. “The location will have an impact on the price, not necessarily on the cost. But certainly on the price since certain areas have greater purchasing powers, greater consumer traffic. Which will attract greater demand and effectively allow franchisees to increase its price”, indicates Pierre-Alexandre Billiet, economist and CEO of Gondola.
The location is strategic for the profitability of brands: why?
The location is therefore strategic for the profitability of brands. This is particularly the case with a fast-food restaurant established a few months ago on the outskirts of the city center of Tournai. “There is obviously the commercial offer nearby with the shopping center next door. There is a transit axis which is obviously interesting. So, we see that there is already an activity, there are businesses nearby . These are really things that are interesting for us.”underlines Florent Baudewijns, spokesperson for McDonald’s.
The flow of passage is decisive. This is the reason why for several years, these fast food restaurants have been increasingly setting up on the outskirts of large cities, to get closer to consumers. In Wallonia alone, there are around a hundred, or almost one site for 37,000 inhabitants.
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