> a meal for $7 McDonalds can sell them a meal + a mcflurry for $10. Why wouldn't they want to do this?
you're assuming the consumer has a marginal $3 to spend and wouldnt instead spend $7 on a (burger + mcflurry) vs (Burger, fries, soft drink). I would guess that the latter has a much higher margin. So for the same $7 spend you can make more profit if your icecream machine is down.
But, if DQ can do the deal for $7 then foot traffic may move to DQ, meaning McD's loses _both_ profitable options. So, the game is to dissuade the market from the preferred package (burger + icecream) towards the more profitable package (burger , fries, softdrink) .
I'd also add that they probably know that the marginal cost of driving to 2 locations means they're just gonna get what they can at 1 stop. That is few people would buy the burger at mcdonald's and then drive to DQ for the mcBlizzard.
Kinda feels like playing roller coaster tycoon all over again.