The give them fries they come for the burger business model is a strategy where a company offers a low-margin or even loss-leading product as a means to attract customers.
The primary product, often sold at a discounted or inexpensive price, acts as a “hook” to draw customers in. Once customers are engaged and interested, the company generates profits by upselling or cross-selling complementary or higher-margin products.The concept behind this business model is that by offering an appealing or enticing product at an attractive price point, customers are more likely to make a purchase and establish a connection with the brand. Once they are invested or loyal, the company can leverage that relationship to sell additional products or services at higher profit margins.
A initial low-margin product (fries) serves as a way to attract customers
The analogy of “give them fries they come for the burger” refers to the idea that the initial low-margin product (fries) serves as a way to attract customers, and once they are in, they are more likely to purchase the main, higher-margin product (burger) and potentially other items.This model relies on the understanding that customers tend to be more willing to spend additional money after they have already made a purchase or are engaged with a brand. It capitalizes on the concept of customer lifetime value, aiming to maximize the long-term profitability of each customer relationship.
Companies implementing this strategy carefully analyze their product offerings to identify the optimal combination of low-margin and high-margin products that will drive customer acquisition, retention, and profitability. By effectively executing this business model, companies can generate increased sales, customer loyalty, and ultimately, improved profitability.
Fast food chains like McDonald’s are a good example of companies that use the business model “give them fries; they come for the burger.” In this model, customers are enticed to the establishment by the promise of additional side items. McDonald’s provides customers with the opportunity to purchase value meals, which include a burger, fries, and a drink, all for a bundled price that is frequently set at an attractive price point. The burger is the primary offering, while the fries are more of an accessory item to go along with the meal. McDonald’s encourages customers to make a purchase and develop a relationship with their brand by including an incentive in the form of a discounted or low-margin bundle of goods.