In-N-Out Burger

Double-Double Meal
Pricing Project

Increasing Profit Through

Price Customization

Tom Charron
Dennis Cheung
Kelly Lu
Nick Suh May 8, 2010
Project Objective
Determine ways that In-N-Out can increase profit

Form hypotheses Test hypotheses

• In-N-Out is in high demand during • Determine fast food dining
peak meal times so there is preferences through an on-line
customer value in a premium survey including conjoint analysis
product that reduces wait time measuring drivers of choice

• In-N-Out’s strong brand can be • Employ statistical regression

leveraged to raise prices without analysis of collected data to
negatively affecting market share validate/discredit hypotheses

2
About In-N-Out Burger
Founded in 1948 Invented first drive through

Regional chain with 240 locations in CA, NV, AZ, and UT. All within a
day’s drive from the central distribution center in Baldwin Park, CA

Intensely privately owned, with no plans to go public or franchise

Treats employees like family. Pays employees more than minimum wage

Food is made per order – always fresh

“Give customers the freshest,

highest quality foods you can
buy and provide them with
friendly service in a sparkling
clean environment.”
- Harry Snyder
3
 In-N-Out Business Base
Business Case Descriptions/Qualifications

Sizing of Opportunity • $19.4 Billion1 (fast food in CA/NV/AZ/UT)

Target Customers • Fast food diners

Value Proposition • Fresh, high quality ingredients

• Friendly service
• Sparkling clean environment
Positioning • Specialized focus on delivering the highest quality
fast food burger meal experience
MP BS FS DS BMS
Revenue Model R   Meals   Burgers   Fries   Drinks   Branded _ Merchandis e
i 1 j 1 k 1 l 1 m 1

MS = Number of meals sold

BS = Number of a la carte burgers sold
FS = Number of a la carte fries sold
DS = Number of a la carte drinks sold
1
http://www.hoovers.com/fast-food-and-quickservice-restaurants/--ID__269--/free-ind-fr-profile-basic.xhtml
BMS = Number of branded merchandise (e.g. t-shirts) sold
Competitive Landscape

Brand & Product

Service Wait Time

Price
Ratings based on overall survey results
Key
Outstanding
Good
Satisfactory
In-N-Out boasts a strong brand
Poor
with a cult following for their
product, but the made-to-order
policy increases service wait times
5
Research Plan
1 Conduct survey
Determine key features/attributes that drive fast food consumer purchasing
decisions. Create survey using conjoint analysis to reveal their utility values.

2 Analyze initial survey results

Perform regression analysis to validate statistical relevance of collected data.

3 Cluster data
Use SPSS to group respondents into customer clusters and identify unique behavioral
traits for price customization opportunities.

4 Analyze cluster data and generate recommendations

Calculate utility values for the highest priority features and produce
customization/pricing recommendations based on those inputs.

6
Additional Research

7
Value Meal Attributes for Conjoint Analysis
Brand & Product Service Wait Time Availability
Under 2 minutes Before 11:30am
2-5 minutes 11:30am - 1:30pm
In-N-Out 5+ minutes After 1:30pm
Double-Double Meal
Price Organic Ingredients
$4.99 Conventional
Jack In The Box $5.49 Organic
Bonus Jack Meal
$5.99
$6.99

McDonald’s Big Mac

Extra Value Meal

8
 Data Analysis Overview
1 Conduct survey
73 completed surveys.

2 Analyze initial survey results

While the coefficients of the features for all the participants seemed to head in the
right direction, the R-square was very low. Clustering is needed to enhance data.

3 Cluster data
Used SPSS to create 4 data clusters. Cluster 1 had 17 members, Cluster 2 had 16
members, Cluster 3 had 22 members, and Cluster 4 had 21 members.

4 Analyze cluster data and generate recommendations

Cluster 2 and Cluster 3 had high R-square values, indicating that they are significant.
The coefficients showed interesting trends, and were studied for recommendations.

Full information available in Appendix.

9
Cluster 2: “Busy People”
“Married… With Children” Behavioral characteristics
• Wealthier than the general • Very time sensitive – they will not
population (88% >$125K) change their meal time, and they
do not want to wait.
• Highly educated (100% university
degrees, 75% with a master’s or
higher)

• More likely to be married with at

least one child in their household
than our overall survey population

“I want my Double-Double
Meal RIGHT NOW!!!”
10
Cluster 2: Express Service Option

+$1.50 +$1.50

Order placed: 12:05pm 12:04pm 12:03pm 12:02pm 12:01pm

Food arrives: 12:13pm 12:12pm 12:10pm 12:08pm 12:06pm

Additional $1.50 fee for

premium service to get
Customization by product your meal faster
11
Cluster 2: Value Appropriation
Utility (Brand & Price) Assumptions:
Current • 27 million Double-
1.91
1.75 Double meals sold per
1.56 Target
year.
• Unit cost: $3.84
1.14 • Minimal loss of
goodwill by overall
customer base
• See Appendix:
Calculations
Price $4.99 $5.49 $5.99 $6.99
Market Share 51% 49% 47% 39%
Profit $7M $9M $12M $14M

U = 4.742 – 1.141(McDonald's) – 0.875(Jack in the Box) –

0.211(Wait <2 min.) - 1.023(Wait >5 min.) + 0.273(Organic Yes) + $6.99 is the optimal
0.156(Price $4.99) – 0.188(Price $5.99) – 0.609(Price $6.99) -
2.250(Time Before 11:30am) – 1.016(Time After 1:30pm) tested price
12
Cluster 3: “In-N-Out Fanatics”
“Married… Without Children” Behavioral characteristics
• Slightly less wealthy than Cluster 2 • Strongly prefers In-N-Out over
(59% >$125K) McDonald’s or Jack-in-the-Box

• Slightly younger than Cluster 2
(82% between 25 & 38)
• Highly educated (100% university
degrees, 59% with a master’s or
higher)
• They are less price sensitive, will
tolerate long wait times and may
even modify their schedule to get
those delicious Double-Doubles

• More likely to be married than our

overall survey population

“In-N-Out or bust!”
13
Cluster 3: Souvenir Bundles Option

+$1.50
Double-Double Collectible Customer Reward
Meal Cup Stamp Cards

Prize 15x 35x 200x 250,000x

Redemption
Chart

Branded collectible souvenir

and redeemable reward
Customization by product points for larger prizes
14
Cluster 3: Value Appropriation
Utility (Brand & Price) Assumptions:
• 27 million Double-
4.44
Current Double meals sold per
year.
4.15
• Unit cost: $4.00 due to
3.98 Target additional cost of
3.78 branded collectible.
• See Appendix:
Calculations

Price $4.99 $5.49 $5.99 $6.99

Market Share 69% 64% 62% 59%
Profit $8M $12M $14M $20M

U = 5.551 – 3.080(McDonald's) – 3.784(Jack in the Box) +

0.097(Wait <2 min.) - 0.403(Wait >5 min.) – 0.017(Organic Yes) + $6.99 is the optimal
0.295(Price $4.99) - 0.170(Price $5.99) – 0.364(Price $6.99) -
0.335(Time Before 11:30am) – 0.108(Time After 1:30pm) tested price
15
Organic Ingredients?
Would customizing the product to offer organic ingredients improve
profitability?
Although organic food is one of the fastest-growing categories in the food
industry, our 4 clusters did not show statistically relevant results that signified a
positive utility for fast food restaurants.
Punchline
1 In-N-Out’s brand is very strong among our survey respondents
Strong enough that prices can be raised considerably!

2 We found two statistically significant customer clusters

• Busy people who are sensitive to wait time
• Brand loyalists who strongly prefer In-N-Out over other burger chains

3 Two product customization options to increase profits

• Offer a higher priced option for faster service for Busy People cluster - $5M
additional profit!
• Offer a higher priced branded collectible option for In-N-Out Fanatics
cluster - $8M additional profit!

17
 Appendix

18
Calculations
• Data points: $1.94MM per store, per year*, 240 In-N-Out locations **
– Assumption: 32% of revenue from Double-Double meals (80% from all meals, 40%
of meals sold are Double-Double meals)
– At $5.49 unit price, that’s 113,000 Double-Double meals per store, per year
– 113,000 x 240 stores = 27MM DD meals sold annually
• Data point: McDonald’s average gross margin = 24% ***
– Assumption: In-N-Out has higher (30%) margin due to lower marketing spend
– Based on a price of $5.49, cost = $3.84 per Double-Double meal (+$0.16 for the
collectible)
• Cluster 2 represents 21% of the population, or 5.7MM meals
• Cluster 3 represents 29% of the population, or 7.8MM meals
• Market share determined by varying the offered price of the Double-Double
meal while keeping the price of the competing products at $4.99
* http://www.dailyfinance.com/story/company-news/in-n-out-burgers-six-secrets-for-out-and-out-success/1553815/
** http://en.wikipedia.org/wiki/In-N-Out_Burger
*** http://www.everyjoe.com/articles/mcdonalds-gross-margin-at-a-10-year-high-heres-why/

19
Survey Design: Sample Screenshot
• Used reduction software to create 16 cards

Sample screenshot of 3 of the “cards”

• 6 additional demographics questions

20
Survey Design: 16 Cards
Card Brand Wait Time Ingredients Price Availability
1 McDonald's Big Mac Extra Value Meal Less than 2 minutes Organic $4.99 Before 11:30am
2 Jack in the Box Bonus Jack Meal 2-5 minutes Organic $5.99 Between 11:30am-1:30pm
3 In-N-Out Double-Double Meal 2-5 minutes Organic $6.99 After 1:30pm
4 Jack in the Box Bonus Jack Meal 5+ minutes Organic $5.49 Between 11:30am-1:30pm
5 Jack in the Box Bonus Jack Meal 2-5 minutes Conventional $5.49 Before 11:30am
6 McDonald's Big Mac Extra Value Meal 5+ minutes Conventional $6.99 Between 11:30am-1:30pm
7 Jack in the Box Bonus Jack Meal Less than 2 minutes Conventional $5.99 After 1:30pm
8 In-N-Out Double-Double Meal 2-5 minutes Conventional $4.99 Between 11:30am-1:30pm
9 In-N-Out Double-Double Meal 5+ minutes Organic $5.99 Before 11:30am
10 Jack in the Box Bonus Jack Meal 2-5 minutes Organic $4.99 Between 11:30am-1:30pm
11 McDonald's Big Mac Extra Value Meal 2-5 minutes Organic $5.49 After 1:30pm
12 Jack in the Box Bonus Jack Meal Less than 2 minutes Organic $6.99 Between 11:30am-1:30pm
13 Jack in the Box Bonus Jack Meal 2-5 minutes Conventional $6.99 Before 11:30am
14 In-N-Out Double-Double Meal Less than 2 minutes Conventional $5.49 Between 11:30am-1:30pm
15 Jack in the Box Bonus Jack Meal 5+ minutes Conventional $4.99 After 1:30pm
16 McDonald's Big Mac Extra Value Meal 2-5 minutes Conventional $5.99 Between 11:30am-1:30pm

21
Regression Analysis: All
SUMMARY OUTPUT - No Clustering - 76 Participants

Regression Statistics
Mul ti pl e R 0.443
R Square 0.196
Adjus ted R Square 0.189
Standa rd Error 1.705
Obs ervati ons 1,216.000

ANOVA
df SS MS F Significance F
Regres s i on 11.000 854.171 77.652 26.706 0.000
Resi dual 1,204.000 3,500.799 2.908
Total 1,215.000 4,354.970

Coeffi cients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 4.290 0.204 21.072 0.000 3.891 4.689 3.891 4.689
Bra nd: McDona l d's (1.526) 0.138 (11.036) 0.000 (1.798) (1.255) (1.798) (1.255)
Bra nd: Jack-i n-the-Box (1.668) 0.120 (13.924) 0.000 (1.903) (1.433) (1.903) (1.433)
Wa it ti me: Under 2 mi n (0.002) 0.120 (0.014) 0.989 (0.237) 0.233 (0.237) 0.233
Wa it ti me: Over 5 mi n (0.498) 0.120 (4.161) 0.000 (0.733) (0.263) (0.733) (0.263)
Organic: Yes 0.212 0.109 1.943 0.052 (0.002) 0.426 (0.002) 0.426
Pri ce: $4.99 0.201 0.138 1.451 0.147 (0.071) 0.472 (0.071) 0.472
Pri ce: $5.99 (0.171) 0.138 (1.237) 0.216 (0.442) 0.100 (0.442) 0.100
Pri ce: $6.99 (0.299) 0.138 (2.164) 0.031 (0.571) (0.028) (0.571) (0.028)
Ti me: Before 11:30a m (0.813) 0.122 (6.658) 0.000 (1.053) (0.574) (1.053) (0.574)
Ti me: After 1:30pm (0.227) 0.120 (1.895) 0.058 (0.462) 0.008 (0.462) 0.008

Low R-square indicates that

clustering is necessary.
22
 Demographics Analysis: All
How often do you eat at a fast food restaurant? Are you married?
1 - Les s than once per yea r 3% 1 - Yes 62%
2 - Les s than once a month 33% 2 - No 38%
3 - Once a month 30%
4 - Weekl y 29% How many children do you have?
5 - Dai l y 5% 1-0 63%
2-1 21%
What is your age? 3-2 14%
1 - < 18 1% 4 - 3+ 1%
2 - 18-24 5%
3 - 25-31 38%
4 - 32-38 43%
5 - 39-45 11%
6 - 46-51 1%

What is your annual household income?

1 - < $25k 9%
2 - $25k-$50k 5%
3 - $50k-$75k 4%
4 - $75k-$100k 8%
5 - $100k-$125k 14%
6 - $125k-$150k 5%
7 - $150k-$175k 13%
8 - $175k-$225k 21%
9 - $225k-$275k 12%
10 - > $275k 8%

What is your highest level of education?

1 - Some hi gh s chool 1% Demographics are Haas-
2 - Hi gh School
3 - Undergra dua te
1%
32%
student centric. May not be
4 - Graduate/Profes s i onal Degree 66% representative of the real
world.
23
Regression Analysis: Cluster 1
SUMMARY OUTPUT - Cluster 1 - 17 Participants

Regression Statistics
Mul ti pl e R 0.377
R Square 0.142
Adjus ted R Square 0.109
Standa rd Error 0.923
Obs ervati ons 272.000

ANOVA
df SS MS F Significance F
Regres s i on 10.000 36.904 3.690 4.332 0.000
Resi dual 261.000 222.331 0.852
Total 271.000 259.235

Coeffi cients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 1.757 0.177 9.930 0.000 1.409 2.106 1.409 2.106
Bra nd: McDona l d's (0.647) 0.158 (4.088) 0.000 (0.959) (0.335) (0.959) (0.335)
Bra nd: Jack-i n-the-Box (0.676) 0.137 (4.935) 0.000 (0.946) (0.407) (0.946) (0.407)
Wa it ti me: Under 2 mi n (0.096) 0.137 (0.697) 0.486 (0.366) 0.174 (0.366) 0.174
Wa it ti me: Over 5 mi n (0.346) 0.137 (2.521) 0.012 (0.616) (0.076) (0.616) (0.076)
Organic: Yes 0.118 0.112 1.051 0.294 (0.103) 0.338 (0.103) 0.338
Pri ce: $4.99 0.441 0.158 2.787 0.006 0.129 0.753 0.129 0.753
Pri ce: $5.99 0.103 0.158 0.650 0.516 (0.209) 0.415 (0.209) 0.415
Pri ce: $6.99 0.103 0.158 0.650 0.516 (0.209) 0.415 (0.209) 0.415
Ti me: Before 11:30a m (0.044) 0.137 (0.322) 0.748 (0.314) 0.226 (0.314) 0.226
Ti me: After 1:30pm 0.044 0.137 0.322 0.748 (0.226) 0.314 (0.226) 0.314

Cluster 1 is not interesting to

study due to low R-square.
24
 Demographics Analysis: Cluster 1
How often do you eat at a fast food restaurant? Are you married?
1 - Les s than once per yea r 6% 1 - Yes 53%
2 - Les s than once a month 47% 2 - No 47%
3 - Once a month 24%
4 - Weekl y 18% How many children do you have?
5 - Dai l y 6% 1-0 71%
2-1 24%
What is your age? 3-2 6%
1 - < 18 6% 4 - 3+ 0%
2 - 18-24 12%
3 - 25-31 29%
4 - 32-38 47%
5 - 39-45 6%
6 - 46-51 0%

What is your annual household income?

1 - < $25k 18%
2 - $25k-$50k 0%
3 - $50k-$75k 0%
4 - $75k-$100k 18%
5 - $100k-$125k 24%
6 - $125k-$150k 0%
7 - $150k-$175k 0%
8 - $175k-$225k 29%
9 - $225k-$275k 6%
10 - > $275k 6%

What is your highest level of education?

1 - Some hi gh s chool 6%
2 - Hi gh School 0%
3 - Undergra dua te 18%
4 - Graduate/Profes s i onal Degree 76%

25
Regression Analysis: Cluster 2
SUMMARY OUTPUT - Cluster 2 - 16 Participants

Regression Statistics
Mul ti pl e R 0.636
R Square 0.404
Adjus ted R Square 0.380
Standa rd Error 1.426
Obs ervati ons 256.000

ANOVA
df SS MS F Significance F
Regres s i on 10.000 338.262 33.826 16.625 0.000
Resi dual 245.000 498.484 2.035
Total 255.000 836.746

Coeffi cients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 4.742 0.282 16.821 0.000 4.187 5.297 4.187 5.297
Bra nd: McDona l d's (1.141) 0.252 (4.524) 0.000 (1.637) (0.644) (1.637) (0.644)
Bra nd: Jack-i n-the-Box (0.875) 0.218 (4.007) 0.000 (1.305) (0.445) (1.305) (0.445)
Wa it ti me: Under 2 mi n (0.211) 0.218 (0.966) 0.335 (0.641) 0.219 (0.641) 0.219
Wa it ti me: Over 5 mi n (1.023) 0.218 (4.687) 0.000 (1.454) (0.593) (1.454) (0.593)
Organic: Yes 0.273 0.178 1.534 0.126 (0.078) 0.625 (0.078) 0.625
Pri ce: $4.99 0.156 0.252 0.620 0.536 (0.340) 0.653 (0.340) 0.653
Pri ce: $5.99 (0.188) 0.252 (0.744) 0.458 (0.684) 0.309 (0.684) 0.309
Pri ce: $6.99 (0.609) 0.252 (2.417) 0.016 (1.106) (0.113) (1.106) (0.113)
Ti me: Before 11:30a m (2.250) 0.218 (10.303) 0.000 (2.680) (1.820) (2.680) (1.820)
Ti me: After 1:30pm (1.016) 0.218 (4.651) 0.000 (1.446) (0.585) (1.446) (0.585)

Cluster 2 is interesting to study

due to higher R-square.
26
 Demographics Analysis: Cluster 2
How often do you eat at a fast food restaurant? Are you married?
1 - Les s than once per yea r 6% 1 - Yes 75%
2 - Les s than once a month 31% 2 - No 25%
3 - Once a month 31%
4 - Weekl y 25% How many children do you have?
5 - Dai l y 6% 1-0 44%
2-1 31%
What is your age? 3-2 19%
1 - < 18 0% 4 - 3+ 6%
2 - 18-24 0%
3 - 25-31 38%
4 - 32-38 50%
5 - 39-45 13%
6 - 46-51 0%

What is your annual household income?

1 - < $25k 6%
2 - $25k-$50k 6%
3 - $50k-$75k 0%
4 - $75k-$100k 0%
5 - $100k-$125k 0%
6 - $125k-$150k 19%
7 - $150k-$175k 19%
8 - $175k-$225k 19%
9 - $225k-$275k 19%
10 - > $275k 13%

What is your highest level of education?

1 - Some hi gh s chool 0%
2 - Hi gh School 0%
3 - Undergra dua te 25%
4 - Graduate/Profes s i onal Degree 75%

27
Regression Analysis: Cluster 3
SUMMARY OUTPUT - Cluster 3 - 22 Participants

Regression Statistics
Mul ti pl e R 0.790
R Square 0.625
Adjus ted R Square 0.614
Standa rd Error 1.259
Obs ervati ons 352.000

ANOVA
df SS MS F Significance F
Regres s i on 10.000 900.844 90.084 56.794 0.000
Resi dual 341.000 540.881 1.586
Total 351.000 1,441.724

Coeffi cients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 5.551 0.212 26.150 0.000 5.134 5.969 5.134 5.969
Bra nd: McDona l d's (3.080) 0.190 (16.220) 0.000 (3.453) (2.706) (3.453) (2.706)
Bra nd: Jack-i n-the-Box (3.784) 0.164 (23.014) 0.000 (4.108) (3.461) (4.108) (3.461)
Wa it ti me: Under 2 mi n 0.097 0.164 0.587 0.557 (0.227) 0.420 (0.227) 0.420
Wa it ti me: Over 5 mi n (0.403) 0.164 (2.453) 0.015 (0.727) (0.080) (0.727) (0.080)
Organic: Yes (0.017) 0.134 (0.127) 0.899 (0.281) 0.247 (0.281) 0.247
Pri ce: $4.99 0.295 0.190 1.556 0.121 (0.078) 0.669 (0.078) 0.669
Pri ce: $5.99 (0.170) 0.190 (0.898) 0.370 (0.544) 0.203 (0.544) 0.203
Pri ce: $6.99 (0.364) 0.190 (1.915) 0.056 (0.737) 0.010 (0.737) 0.010
Ti me: Before 11:30a m (0.335) 0.164 (2.039) 0.042 (0.659) (0.012) (0.659) (0.012)
Ti me: After 1:30pm (0.108) 0.164 (0.657) 0.512 (0.431) 0.215 (0.431) 0.215

Cluster 3 is interesting to study

due to higher R-square.
28
 Demographics Analysis: Cluster 3
How often do you eat at a fast food restaurant? Are you married?
1 - Les s than once per yea r 0% 1 - Yes 73%
2 - Les s than once a month 36% 2 - No 27%
3 - Once a month 32%
4 - Weekl y 27% How many children do you have?
5 - Dai l y 5% 1-0 68%
2-1 23%
What is your age? 3-2 9%
1 - < 18 0% 4 - 3+ 0%
2 - 18-24 0%
3 - 25-31 41%
4 - 32-38 41%
5 - 39-45 14%
6 - 46-51 5%

What is your annual household income?

1 - < $25k 0%
2 - $25k-$50k 0%
3 - $50k-$75k 9%
4 - $75k-$100k 5%
5 - $100k-$125k 27%
6 - $125k-$150k 0%
7 - $150k-$175k 9%
8 - $175k-$225k 32%
9 - $225k-$275k 18%
10 - > $275k 0%

What is your highest level of education?

1 - Some hi gh s chool 0%
2 - Hi gh School 0%
3 - Undergra dua te 41%
4 - Graduate/Profes s i onal Degree 59%

29
Regression Analysis: Cluster 4
SUMMARY OUTPUT - Cluster 4 - 21 Participants

Regression Statistics
Mul ti pl e R 0.439
R Square 0.193
Adjus ted R Square 0.168
Standa rd Error 1.294
Obs ervati ons 336.000

ANOVA
df SS MS F Significance F
Regres s i on 10.000 129.935 12.993 7.760 0.000
Resi dual 325.000 544.208 1.674
Total 335.000 674.143

Coeffi cients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 5.048 0.223 22.611 0.000 4.608 5.487 4.608 5.487
Bra nd: McDona l d's (0.905) 0.200 (4.531) 0.000 (1.298) (0.512) (1.298) (0.512)
Bra nd: Jack-i n-the-Box (0.857) 0.173 (4.957) 0.000 (1.197) (0.517) (1.197) (0.517)
Wa it ti me: Under 2 mi n 0.131 0.173 0.757 0.449 (0.209) 0.471 (0.209) 0.471
Wa it ti me: Over 5 mi n (0.321) 0.173 (1.859) 0.064 (0.662) 0.019 (0.662) 0.019
Organic: Yes 0.345 0.141 2.445 0.015 0.067 0.623 0.067 0.623
Pri ce: $4.99 (0.060) 0.200 (0.298) 0.766 (0.452) 0.333 (0.452) 0.333
Pri ce: $5.99 (0.381) 0.200 (1.908) 0.057 (0.774) 0.012 (0.774) 0.012
Pri ce: $6.99 (0.321) 0.200 (1.610) 0.108 (0.714) 0.071 (0.714) 0.071
Ti me: Before 11:30a m (0.911) 0.173 (5.267) 0.000 (1.251) (0.571) (1.251) (0.571)
Ti me: After 1:30pm 0.030 0.173 0.172 0.863 (0.310) 0.370 (0.310) 0.370

Cluster 4 is not interesting to

study due to low R-square.
30
 Demographics Analysis: Cluster 4
How often do you eat at a fast food restaurant? Are you married?
1 - Les s than once per yea r 0% 1 - Yes 48%
2 - Les s than once a month 19% 2 - No 52%
3 - Once a month 33%
4 - Weekl y 43% How many children do you have?
5 - Dai l y 5% 1-0 67%
2-1 10%
What is your age? 3-2 24%
1 - < 18 0% 4 - 3+ 0%
2 - 18-24 10%
3 - 25-31 43%
4 - 32-38 38%
5 - 39-45 10%
6 - 46-51 0%

What is your annual household income?

1 - < $25k 14%
2 - $25k-$50k 14%
3 - $50k-$75k 5%
4 - $75k-$100k 10%
5 - $100k-$125k 5%
6 - $125k-$150k 5%
7 - $150k-$175k 24%
8 - $175k-$225k 5%
9 - $225k-$275k 5%
10 - > $275k 14%

What is your highest level of education?

1 - Some hi gh s chool 0%
2 - Hi gh School 5%
3 - Undergra dua te 38%
4 - Graduate/Profes s i onal Degree 57%

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