Saturday, March 7, 2009

Over Obsess Cost Optimizing ... KFC example

Today the line in KFC is longer than usual. I got bored and started analyzing the menu.



click here to view the spreedsheet


So the unit price gets lower the more quantity you buy. And the rate of getting cheaper is quite consistent. Which is good unlike Pizza Hut and Burger King.

The queue was still long, so I had to dig further ...



There you go ! Although the rate of unit price cut is quite steady, but there is a small dip when purchase 5 pieces of chicken !

Now its the tricky part, what does this mean and what can I do about it ?

I think what it is, is that if you were indecisive between 4 to 7 pieces, then its best to get 5 pieces.

Great ! I was just thinking 3 pieces were too few.

So I ended up buying 5 pieces, as analyzed.

Actually the queue wasn't that long, the whole order process was only 5 minutes. But then they don't have change for $50 and it took another 8 minutes for them to get the right change. So much about fast food huh ? They never promised fast change.

Anyway, it ended up only 4 pieces were consumed. The last piece turned out to be my late night supper. And since we are not suppose to sleep 2 hours after meal, I blog about my obsess calculative experience with KFC .... :)





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3 comments:

moreincome said...

Hah! Volume discounts seem to be everywhere, though I did not quite realise this. What I have never liked about KFC and McD is the bundling of the fizzy drinks.

Anonymous said...

Cute post, cute girls :)
I hate KFC. Too meaty

Michael Tsen said...

somehow in malaysia KFC is one of the few franchiser who is the most open in releasing franchisee locations, as a result, KFC is everywhere but McD is the opposite where they are quite strict. This volume strategy seems to work well here ... more ppl go to KFC than McD