Question

How does having a menu that is uniform around the country provide McDonald's with economies of...

How does having a menu that is uniform around the country provide McDonald's with economies of scale? How is menu planning made more complex by expanding into other countries?

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Answer #1

If the menu of food is uniform, then it can be mentioned that there would be economies of scale in play and this is because of the fact that the fixed cost per unit actually gets to decrease and this leads to decrease in the average cost of production per unit as the sales volume keeps on increasing and with this the company gets to have cost benefit and this leads to having economies of scale. However, the menu planning becomes complex in expanding to other countries as the preferences and cultural norms are actually different from that of each other and for instance, in India beaf is banned and therefore, menu must be made a cording to that etc.

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