Have we hit peak Federal interest rates?

[Stonksonlygoup]

To avoid being landfilled, I think the fed interest rate increases have left the dollar menu as symbolic only. Everything is like two fifty.

#BadopbupbupbaInflation

[JonnyD1]

the dollar menu? I haven’t seen that in years. Living in NYC sucks

[EC99]

That’s not NYC. McDonald’s killed the dollar menu in 2013.

[kekirius]

Fed just hike the rates again yesterday, any thoughts on how would it affect MF next month?

[EC99]

Negatively. Make a lease a bit more expensive

[giveleaseplease]

If only we had a crystal ball to figure out what will happen to interest rates when interest rates go up

[GOAT]

Jeff Bezoz feeling it the most

[jeisensc]

@kekirius

Fed just hike the rates again yesterday, any thoughts on how would it affect MF next month

Nobody has a crystal ball, but it’s unlikely that they all go up immediately. The likely trend over the next quarter will be up — except for OEMs that subvent the MF to move more cars.

Captives aren’t borrowing from the Fed at the discount window, they have a capital pool from which to lend. As that is drawn down and they need more, any additional that they raise may be at higher rates.

[dukez]

There were surprisingly a lot of locations in the flyover states (Midwest, south, mountain west) who were still running it even last year. At least, they still had $1 items on their “dollar and more” or “value” menus. Perks of living in places nobody wants to live is that they’re the last to get hit with changes.

[EC99]

Not sure about specific franchises but they still have the $1, $2, $3 menu. So almost all franchises still have four or five items that are a dollar. But nothing since the dollar menu has resonated with consumers in the same way. The dollar menu was a cultural touchpoint - here we are talking about it ten years later. Just like Subway’s five dollar footlongs.

Of course both of these ideas pretty quickly became unpopular with franchisees as they are great for creating revenue (on which royalty payments are calculated) but bad for creating a profitable franchise.

Not really on topic but I find the dollar menu/five dollar footlong fascinating after talking to a friend of mine who basically took a business school class on them. How do you replicate creating such a culturally known sales campaign.

[jeisensc]

@EC99

But nothing since the dollar menu has resonated with consumers in the same way. The dollar menu was a cultural touchpoint - here we are talking about it ten years later. Just like

The McDonald’s Menu Song (second item: McDLT)

[dukez]

A lot it has to do with simplicity of the offering and the ability to consistently fulfill it over a long stretch of time to build brand advocacy. I do quite a bit of consulting in this area with brands and companies who have their sights on similar goals.

It just makes it that much harder when the offerings inevitably die or “evolve” (degrade). It’s for the best, though - at least for me . My body had way too many dollar menu items in the early 2000s.

[jeisensc]

@jeisensc

Bank failures are about the most normal thing in our society, in the past 80+ years. While we haven’t had one since 2020, we’ve had plenty in normal times

Another bank failure, all tidied-up before most people heard about it

FDIC: Failed Bank Information for Heartland Tri-State Bank, Elkhart, KS

[Alex]

Add 50 basis points for non SFR. Add another 50 basis points for less than 20% down

[IAC]

So we’re back to where rates really should have stayed except our money is now worth 1/3 as much as it was then (real talk)

At least we’ll be able to make arts and crafts with it in a few years.

[M3WC]

@IAC

So we’re back to where rates really should have stayed except our money is now worth 1/3 as much as it was then (real talk)

At least we’ll be able to make arts and crafts with it in a few years.

Someone should tell my grocery store, at best they think my money is now worth 50% as much.