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the problem is food cost is more often than not the least expensive cost of a restaurant. especially a fast food restaurant. So giving you a large Fri vs small. is so small for them it’s not even noticeable from their cost. their loss comes from two things the sizes and price difference are only their to get you to buy the one with the beter profit margin. small and medium are only there to make you feel like you got value from buying the large. it cost more for the card stock Fri container than it does for the Fries.
also a big thing was the rapid openings of malls in the 80s and 90s. honestly they opened too many of them then just kind of limped along as it was too hard to close and Sears kinda funded them till their death.