Latest news with #AlBernardin
Mint
27-04-2025
- Business
- Mint
When math mistakes cost more than money
Picture this, a flashy "limited-time" offer, a crowd rushing in, and almost nobody stopping to do the math. That's the power—and peril—of missing basic numeracy. In a world flooded with flashy deals and fine print, basic numeracy—the ability to understand and work with numbers—is more important than ever. Yet time and again, people fall for offers that don't add up, misunderstand financial terms, or overlook critical details that could save (or cost) them real money. Two stories—one from fast-food history and another from my experience in the world of microfinance—illustrate the profound consequences of innumeracy. Also read: Investing in mutual funds does not start and end with just SIPs In 1971, Al Bernardin, a franchise owner of McDonald's introduced the Quarter Pounder in Fremont, California. Its profound popularity soon made the burger a part of the American fast food landscape. In fact, the name 'quarter pounder" reflected the amount of meat (4 ounces) in the burger patty (since 1/4th of a 16-ounce pound). To challenge McD, A&W (another fast-food chain) launched the third-of-a-pound Burger at the same price, offering a heftier 5.33-ounce patty (1/3rd of a pound). Taste tests and focus groups favoured A&W's burger. Victory seemed imminent. But the A&W third-of-a-pound burger failed. Nobody bought it! And the reason, as bizarre as it may sound, lay in something that A&W hadn't thought of even in their wildest dreams- FRACTIONS! Consumers mistakenly believed that a quarter pounder i.e. a 1/4 of a pound was more than third pounder i.e. 1/3 of a pound, because 4 is great than 3! The property that although 4>3, reverses when put into reciprocal form i.e. 1/3 > 1/4 or 33.33% > 25%, was lost to masses! This seemingly light-hearted tale of burger bewilderment carries a far more serious echo in the real-world struggles of individuals navigating the complexities of personal finance, as my experience in 2010 revealed. In 2010, as a credit officer with a public sector bank, I assessed microfinance portfolios lending to women's self-help groups (SHGs). During a routine pre-lending meeting with one beneficiary, I met a vegetable vendor in rural India who relied on a local moneylender to fund her small business. She borrowed ₹ 1,000 for seven days, completing three to four working capital cycles weekly—buying vegetables, selling them, and earning a ₹ 100 profit per cycle. At week's end, she repaid the ₹ 1,000 principal along with a ₹ 100 fee to her lender, pocketing ₹ 300 in profit each week. Over four weeks, she earned ₹ 1,200—a substantial boost for her rural household. But beneath the surface, the math told a different story. The ₹ 100 charge on a ₹ 1,000 loan amounted to a steep 10% weekly interest rate. Compounded over a month, it ballooned to 40%; annualized, it skyrocketed to 480%. Unaware of the true cost, the vendor was carefully managing her cash flow—while unknowingly sliding into a dangerous debt trap. The above stories are not isolated incidents. They highlight a broader societal challenge where innumeracy leaves individuals vulnerable and susceptible to financial exploitation and poor decision-making. In today's world of rising household debt and ' buy now, pay later " schemes, such oversights can amplify financial vulnerability. Consider our own context. How many well-intentioned government schemes or financial products struggle to gain traction simply because the common person finds the underlying calculations or comparisons confusing? How many families might be missing out on better savings options or falling into debt traps because they lack the numerical literacy to make informed choices? Also read: Managing finances across borders? Finding the right collaborators is crucial. How many investors are missing out on better opportunities—and locking themselves into rigid defaults—simply because they struggle to navigate the complex math of returns, assets, and choices, risking an underfunded retirement? The ability to recognise that 0.5%, 0.005, and 5/1000 all represent the same value may seem basic, but it underscores a fundamental gap that fuels innumeracy and undermines financial literacy. Without this core understanding, concepts like interest rates, loans, or investment returns become daunting, leaving individuals vulnerable to exploitation and poor financial choices. From Michael Lewis's The Big Short , which exposed how widespread misunderstanding of complex instruments triggered the 2008 crisis, to everyday pitfalls like teaser rates and misleading investment returns, the real-world consequences of innumeracy are profound and far-reaching. Financial systems, schools, and policymakers must focus on simplifying financial information and prioritising practical numeracy education, especially basic arithmetic and financial skills for adults and the workforce. Building a culture where basic math is seen as a tool for empowerment rather than an academic obstacle is crucial—not just for protecting individuals from exploitation, but also for strengthening the broader economy. The author is employed with Pension Fund Regulatory and Development Authority (PFRDA), New Delhi. The views expressed are personal and do not reflect the official position of the authority.
Yahoo
31-01-2025
- Business
- Yahoo
What's The Difference Between McDonald's Quarter Pounder And The Deluxe Version?
Clever fast food experts have come up with creative ways to improve their meals, like the simple bun hack that will upgrade any McDonald's sandwich or ordering McDonald's secret menu items. To upgrade a McDonald's Quarter Pounder, however, all you need to do is order from the menu. The Quarter Pounder Deluxe has all the features of the original burger — a quarter pound of beef topped with onions, pickles, ketchup, mustard, and cheese on a sesame seed bun — with the addition of shredded lettuce, three Roma tomatoes, and creamy mayo. The additional ingredients slightly increase the price and the calorie count of the fan favorite burger. While other McDonald's burgers use frozen patties, for both the Quarter Pounder and the Deluxe version, the patties are cooked fresh on the grill when you order them. It stands to reason that non-frozen burger patties are generally juicer and fresher tasting than flash frozen patties that have been sitting in the freezer for a couple of weeks. If you haven't tried every Mickey D's sandwich yet, do yourself a favor and check out every McDonald's burger ranked worst to best. Read more: Every McDonald's Burger, Ranked Worst To Best In 1971, McDonald's franchise owner Al Bernardin (who owned multiple restaurants in Fremont, California) created the Quarter Pounder, named for the weight of its precooked burger patty. He felt there was a need for a burger that had more meat than bun, and it turns out he was right. The quarter pound burger was highly successful and became a trademarked menu item sold at McDonald's around the world. In 2018, in an effort to compete with other fast food restaurants (like Wendy's) who were using fresh burger patties, Mickey D's switched from frozen to fresh patties cooked to order, but not for all its burgers. Interestingly enough, the Quarter Pounder is the only McDonald's burger that isn't cooked from frozen. After making the change, the fast food giant sold 40 million more Quarter Pounders in the first quarter of 2019 than it did during the previous year's first quarter (per Business Insider). In 2019, the Quarter Pounder Deluxe was introduced along with the Bacon Quarter Pounder. In September and October 2024, the freshly made burgers took a hit when an E. Coli outbreak affected McDonald's Quarter Pounders, a result of contaminated slivered onions on the burgers. After temporarily removing the burgers from the menu, McDonald's has since added them back and stopped using onions from the facility where the E. Coli was discovered. Read the original article on Chowhound.
