The two bullet points below from a just released update by Yum Brands explain all you need to know about the “magic” of half-off retail discounts.
- YUM BRANDS- IN CHINA, LIMITED-TIME “HALF PRICED” BUCKET PROMOTION YIELDED AN ABOUT 16% INCREASE IN KFC SAME-STORE SALES FOR FIRST 10 DAYS OF NOVEMBER
- YUM BRANDS – IN CHINA, KFC SAME-STORE SALES WERE DOWN APPROXIMATELY 8% FOR THE REMAINDER OF NOVEMBER
So, sales were up 16% for the 10 days in which margins were crushed, then down 8% for the remaining 20 regular margin days. And the net impact on the bottom line is…