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Does race affect Mcdonalds’ Customer Base?

by on May 17, 2012

Fast food, and more specifically McDonalds, is purchased more by certain races. Let us go into detail as to why that may be.

An Oxford study showed that the majority of people eating fast food do so within 1 mile of home. The same study showed that the percentage of  McDonalds built in low-income neighborhoods was significantly higher than in high income areas. Suburban areas with more white collar workers with higher incomes have less fast food places simply because they can afford better food (this shows that McDonalds’ food is an inferior good). Whereas in low income areas, often with a majority of black or latino residents, people need cheaper food; there are so many McDonalds packed into one area these minorities gravitate towards it for a cheap meal.

Hispanics, African Americans, and whites make up a very large portion of McDonalds customers. These races (especially hispanic and African American) also dominate many inner-city, low income areas where McDonalds thrives. While McDonalds is not tailored to appeal to a specific race, a large percentage of its customers are young, poor minorities. Because of this, McDonalds has began shifting its advertising to appeal to minorities. In addition, McDonalds recently began accepting food stamps (EBT); minorities make up the majority of the recipients of this kind of welfare.

Poor education among minorities contributes to the presence of  low incomes among minorities. Many of these low income citizens will work at McDonalds, and most likely eat at McDonalds, because of the low prices. This creates a positive feedback loop where poorly educated minorities work and eat at the same place; this gives money from the employees right back to McDonalds. The more employees, the more fast food bought, and the more profit for McDonalds. This is why one will see many of these restaurants in urban areas — because corporation executives know that there is a demand for both jobs and food, and they can supply both. This is a win-lose situation as the cycle of poverty is fueled by the presence of this food chain, and by McDonalds’ lust for profit.

Would McDonalds Still Thrive in a Communistic Society? Why or Why Not?

“American Journal of Epidemiology.” Fast-Food Consumption, Diet Quality, and Neighborhood Exposure to Fast Food. Web. 16 May 2012. <http://aje.oxfordjournals.org/content/170/1/29.full&gt;.
“Fast Food Chains Getting Into the Food Stamp Act.” ABC News. ABC News Network. Web. 16 May 2012. <http://abcnews.go.com/blogs/business/2011/09/fast-food-chains-getting-into-the-food-stamp-act/&gt;.
McDonald’s. “McDonalds Restaurants Statistics – Countries Compared.” NationMaster.com. NationMaster. Web. 16 May 2012. <http://www.nationmaster.com/graph/foo_mcd_res-food-mcdonalds-restaurants&gt;.
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One Comment
  1. msmuntz permalink

    9.5 Non price factors indeed.

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