Newsgroups: rec.food.veg
Subject: Veggie Burgers / McDonald's
From: Geert K. Marien <GKMLC@CUNYVM.BITNET>
Date: Friday, 1 Jan 1993 14:18:25 EST

Hello All,

   Let  me first  state that  I am  not a  vegetarian.  I  do cook  many
vegetarian dishes, especially those of Indian origin.

   I have  had many veggie burgers  (and sandwiches) and I  find most of
them good, some  bad, but no more  than with any other kind  of food.  I
like the idea of a fast  food restaurant serving vegetarian cuisine, but
I think that there is also a more realistic side to the situation.

   Some time ago, when the  price of meat started skyrocketing (remember
that?) McDonald's (I think) came out with a soya-burger.  To be sure, as
I recall, this meant that there were soy(a)-beans mixed in with the meat
to cut  the cost.  It  was ok, but never  really caught on.   Since then
(barring well-publicized mouse-burgers /  McMouse in the tabloid press),
they have used 100% beef.

   Here is the  point (humor aside): A restaurant has  three choices: it
can  provide a  product nationally,  regionally,  or not  at all.   When
looking at an idea, they have to start from the point of view that there
must be a VERY  good reason or they won't do it.   In other words, there
must not only be  a market for the product, but it also  must be able to
be produced  at a  reasonable cost, so  people can afford  it, and  in a
sufficient quantity.

   Fast food restaurants are fast because  products can be made ahead of
time, so that when you walk in, they are almost instantly available.  If
not,  it is  not fast-food.   This means  that if  the shelf  life of  a
particular item is 10-minutes (keeping  it warm without reheating), then
they must be able to sell that product within that time limit or it must
be thrown  away.  In addition, there  are also hygienic rules  (which is
why when you  bring something back, even if they  forgot something minor
like a pickle or two, they must give you a totally new sandwich).

   So, not to  get too far off  the subject, there must be  a market for
the product.  Nationally,  the vegetarian market is not so  large in the
comparative sense,  but, it  can be  expected that  some non-vegetarians
will buy  the products as  well.  It  is probably impossible  to measure
this number exactly.  In addition, just because the market may be large,
the question  is "how many  people will  actually buy the  product?" ...
which means that even if there is  a 50% market, in terms of population,
for a product, if only 10% of  that 50% (or 5% overall) buy the product,
that is not much of a market, in reality.

   The bottom  line is  that it  is not just  the potential  market that
counts, but how many people are expected to be in the actual market!

   Another major  concern is the  space required for  special equipment.
While a  regular meat  product can  probably just  be added  to existing
equipment, in terms  of higher utilization of the  existing equipment, a
product,  such  as  a  vegetarian item  will  almost  certainly  require
specialized equipment which can't be used for non-vegetarian items.

   Veggie burgers can't be made on the  same grill as meat ones, I would
assume, nor the same friers used for veggie items and those which may be
non-veg (like those fried in oil with some animal fats present).

   The bottom line is always cost.   The costs include not just those in
acquiring the  product ingredients,  but also  in preparing  the product
(will it  need special equipment?) and  specific labor (will there  be a
need  for  one more  crew  member  to  make  just those  products?)  and
advertizing.

   When weighing these costs, we must also consider the benefits such as
more sales, more  customers who will presumably also  buy other products
while visiting (like Soda, perhaps).  Also, there is the question of the
publicity to  be gained from being  the first with such  a program.  The
pioneers always lose the  most - it's the people who  jump in later once
the  market is  established  who  have the  biggest  profit margins.   A
company like  McDonald's will most likely  be able to trade  on its name
and keep a large share of the market it creates.

   Ok, that's  just a summary  of what goes  into the thinking  behind a
product.

   Now, my thoughts...

   I would  LOVE to see  these products,  but, it doesn't  seem feasible
just yet.   This may change some  day, especially as people  become more
health conscious.

   Almost all vegetarians I know cook  at home, even taking lunches with
them to  work.  So, I would  be very skeptical  of how many would  go to
McDonald's on  a regular basis  - and  that is the  key.  If there  is a
momentary rush, that is fine, but  what happens when the market retracts
after the rush and settles down?  That's the market they need to be sure
will be there, else they will lose money on the product.  Businesses are
not charities.  If they became so, they wouldn't be in business for very
long!

   Anyway, that's it for now ...

   Happy new year!

** ------------------------------------------------------------------ **
**  Geert K. Marien  :  GKMLC@CUNYVM.CUNY.EDU (Bitnet: GKMLC@CUNYVM)  **
**        ListOwner: AIRLINE, RAILROAD, STAMPS, The INDIA List        **
**    (All contents are my own opinions - unless otherwise stated)    **
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Newsgroups: rec.food.veg