ABSTRACT
Fast-food restaurants have found premiums to be an effective means of attracting impulse buyers for over a generation; however, the late 1980s brought a new wrinkle to the practice toys, particularly those of the stuffed variety. The phenomenon seemed attributable to several interrelated factors: the market was saturated with hamburger chains, low inflation had put a ceiling on price increases, and the health conscious thirty something generation had begun to shy away from fat-and-sodium laden fast-food fare. The final impetus was provided by the chains' marketing departments; they found that kids account for much of their sales. Many industry observers felt that toy giveaways would ultimately prove to be a negative force. Richard Simon, an analyst for Goldman, Sachs, considered it detrimental to long-term customer loyalty. According to Newsweek, Selling about 40 million California Raisins helped boost Hardee's revenues to an expected $3.3 billion, up from about $2.7 in 1986.
