Many
coffee shops including those large chains, such as Starbucks, Costa,
provide their consumers with free Wi-Fi, and many analysts argue that
this policy has significantly boosted these coffee shops' consumer
numbers and revenues. Similarly, fast food chain McDonald's also starts
to provide their customers with free Wi-Fi, but their customer number
has not been boosted up significantly. This is because of the
differences between the sectors' key businesses.
Without
Wi-Fi, a significantly larger proportion of McDonald's consumers choose
to sit in McDonald's comparing with coffee shop consumers, because
McDonald's sell proper meals (even though it is fast food) and coffee
shop consumers buy drink and their willingness to sit down and drink coffee is much less. Therefore, when providing free Wi-Fi,
coffee shops give their customers more incentives to sit in their shops
and this will increase the likelihood of their customers to order more
coffee while they are sitting in the coffee shops. In addition, the
customer groups for McDonald's and coffee shops are different. In
general, coffee is more expensive than fast food, so coffee shop
customers should have higher incomes than fast food chain customers on
average. In addition, it takes longer to drink coffee than to eat fast
food, as coffee is hot, especially for those who sit in.
Overall, the key reason is that Wi-Fi is a complementary good for coffee to greater degree.
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