Question
Some of the most profitable products for McDonald's are its soda and coffee products. McDonald's uses various strategies to upsell these items. For instance, it often offers combo meals where a drink is included with a burger and fries, encouraging customers to purchase a drink. Additionally, McDonald's also promotes its drinks heavily in its advertising and in-store promotions. It's also worth noting that McDonald's adapts its product offerings to the local tastes and preferences in different regions, which can also contribute to its profitability.
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In order for McDonald's to stay in business in so many countries around the world, it uses a "think global, act local" approach. The company's global HQ sets pricing parameters with specific guidelines and tactics for each region. Each region has its own pricing determined by demand, cost, and local competitor offerings in that region. McDonald's will even adopt the products it offers to whatever country it's in. It will serve rice and fried chicken in the Philippines, Beetroot burgers in Australia and poutines in Canada, to name a few. Even still, McDonald's soda and coffee products are some of its most profitable, so its goal is to upsell drinks to customers.
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