Author Credibility: Yu-kai Chou

Yu-kai Chou created the Octalysis Framework after studying gamification since 2003 — years before the term entered mainstream vocabulary. As a Human-Systems Architect & Behavioral Designer, his framework has been applied by LEGO, Microsoft, Porsche, Coca-Cola, Salesforce, and MrBeast, impacting over 1.5 Billion Users.
Chou has taught the Octalysis methodology at Harvard, Stanford, Yale, Tesla, Google, BCG, and IDEO.
His work has been cited by Harvard, Stanford, MIT, Forbes, Wall Street Journal, Wired, US Department of Energy, NIST, NSF, NCBI, US Department of Education, ClinicalTrials.gov, and Google Scholar — with 3,700+ more academic publications. Explore his books here.
The Law of Scarcity
The Law of Scarcity states that when a person perceives something they want is in limited quantity, the perceived value of that thing increases dramatically.
To understand this, consider Nike Air Jordans.

Often the most sought-after pairs of shoes when released, the Nike Air Jordan brand was fueled not only by an iconic brand in Michael Jordan, but by a marketing strategy built to drive demand.
Rather than produce pairs based on market demand, Nike often produces a set number of Air Jordans. Regardless of demand, Nike brands Air Jordans as “get them while you can” products.
No matter the outcry and consumer demand, the scarcity and difficulty in acquiring a pair of Air Jordans is what makes them so appealing.
Circle back to McDonald’s and we see the same effect. McDonald’s may sell more by extending breakfast hours, but just as Air Jordans branded themselves as the exclusive shoe for basketball enthusiasts, McDonald’s became the go-to fast food destination for breakfast.
How To Create Market Demand For Your Product
You may not have an Egg McMuffin or a fresh pair of Jordans, but there are plenty of ways to create demand for your product.
1. Create an Emotional Connection
The best marketing creates an emotional reaction.
TOMS Shoes built an entire brand on this:

With Every Pair You Purchase, TOMS Will Help a Person in Need. One for One.
TOMS pulls at the emotional strings of consumers by tying purchases with goodwill. There is always a story to tell with your product. From how people use it to how it helps do good, sometimes the key is just to dig a little.
2. Build Hype Before Launch
One of the most effective strategies in creating demand is to build hype before a product even launches.
Just as car brands provide “sneak peeks” of new models, consider “teasing” new products and ideas to your community to generate buzz and interest.
3. Be Original
The concept is simple, but getting there can be much harder.
Going back to our example: most fast food chains have the same standard breakfast items, but only McDonald’s has the Egg McMuffin and Big Breakfast.
Look at your competitors and see what they’re doing. What separates you from the rest, and creates demand for your product, is how it stands out among the competition.
4. Limit the Opportunity
Another lesson from McDonald’s: the McRib.

Comprised of a pork patty, barbecue sauce, onions, and pickles served on a roll, the McRib became a cult favorite. Served just once a year, McDonald’s took this once-dying menu item and created demand by introducing campaigns like the “Farewell McRib Tour.”
Limiting the opportunity of a new product or feature is a powerful way to create urgency.
The Octalysis Behind McDonald’s Breakfast Scarcity
(Analysis by Yu-kai Chou)
Joseph’s article does a great job explaining the marketing strategy. Now let me add the Octalysis lens to show which Core Drives make this work at a psychological level.
Core Drive 6: Scarcity & Impatience
This is the obvious one, and Joseph nailed it.
The 10:30 AM cutoff creates a hard constraint. You can’t have the Egg McMuffin whenever you want. That time limit transforms a $4 sandwich into something you have to earn by waking up early enough.
In my Octalysis Framework, I call this an Appointment Dynamic, a fixed time window that forces action. Scarcity & Impatience is most powerful when the constraint feels natural rather than artificial. McDonald’s breakfast hours feel natural because “breakfast is a morning thing.” That makes the scarcity legitimate rather than manipulative.
Compare this to a website that says “Only 3 left in stock!” when they have 3,000 in the warehouse. That’s artificial scarcity, and people see through it.
Core Drive 7: Unpredictability & Curiosity
Here’s one most people miss.
If you’re running late and it’s 10:15 AM, there’s a genuine moment of unpredictability: “Am I going to make it? Will they still be serving breakfast when I get there?”
That uncertainty creates a mini-adventure. You’re racing the clock, checking the time, hoping you’ll arrive before the cutoff. It transforms a routine food purchase into a game with actual stakes.
I’ve seen this pattern in countless successful products. Anytime you create a “will I make it?” moment, you’re activating Core Drive 7. That emotional investment makes the reward feel far more satisfying when you get it.
Core Drive 4: Ownership & Possession
Over time, regular McDonald’s breakfast customers develop a ritual. “I go to McDonald’s every Saturday morning for my Egg McMuffin and coffee.”
That’s Core Drive 4: Ownership & Possession at work. The breakfast routine becomes “MY thing.” It’s part of your identity, your weekly rhythm.
When something becomes “mine” — even a routine — I’m motivated to protect it, maintain it, and feel loss if it’s disrupted. This is why McDonald’s breakfast fans were so vocal about wanting all-day breakfast, and also why the all-day option paradoxically reduced the emotional attachment.
When everyone can have it anytime, it stops being “my special Saturday morning ritual.” It’s just another menu item.
Core Drive 8: Loss & Avoidance
This is the dark engine behind the 10:30 AM cutoff.
Once you decide you want a McDonald’s breakfast, a countdown begins. Every red light, every slow driver, every extra minute in the shower chips away at your window. You’re not just trying to GET breakfast. You’re trying to NOT LOSE it.
That’s a different psychological experience. According to Kahneman and Tversky’s prospect theory research, humans feel losses about twice as intensely as equivalent gains. Losing the chance at an Egg McMuffin hurts more than getting one feels good.
This is why people who arrive at 10:32 AM and get told “sorry, we switched to the lunch menu” feel genuinely upset. It’s not about the food. It’s about the loss. They had it within reach, and it slipped away.
Core Drive 8 pairs with Core Drive 6 to create a powerful one-two punch: scarcity sets the constraint, and loss avoidance makes you feel the constraint emotionally. Together, they turn a casual food preference into urgent action.
Scarcity, Unpredictability, and Loss & Avoidance sit at the bottom of the Octalysis octagon — the “Black Hat” Core Drives that create urgency.
What Happened When McDonald’s Killed Scarcity
(Updated analysis by Yu-kai Chou)
In October 2015, McDonald’s finally caved to years of consumer demand and launched All Day Breakfast nationwide in the United States.
The initial results were strong. Same-store sales jumped in Q4 2015, and McDonald’s credited the all-day menu as a key driver.
But something interesting happened over time. The “magic” faded.
When you could get an Egg McMuffin at 3 PM on a Tuesday, it stopped feeling special. The scarcity was gone, and with it, much of the emotional pull. All four Core Drives I described above — Scarcity, Unpredictability, Ownership, and Loss — were neutralized in one decision.
No time pressure. No race against the clock. No “my Saturday ritual.” No fear of missing out.
Just a sandwich. Available whenever. To anyone.
Then in March 2020, COVID-19 hit. McDonald’s pulled all-day breakfast to simplify kitchen operations. They never brought it back at most locations.
Here’s the telling part: McDonald’s didn’t fight to restore it. They had the data. They saw that giving customers exactly what they asked for had diluted the brand’s most emotionally charged menu. The breakfast menu is more valuable because you can’t always have it.
This is one of the best real-world case studies in behavioral design. Joseph called it in 2012, three years before McDonald’s proved him right.
What Marketers Can Learn from McDonald’s Breakfast Strategy
Scarcity must feel natural. The most effective constraints don’t feel like marketing tricks. They feel like inherent limitations of the product or service. Breakfast is a morning meal. That’s just how food works. (Even though, technically, eggs cook the same at 2 PM.)
Removing scarcity can backfire. The all-day breakfast experiment proved that giving people what they ask for isn’t always good strategy. Sometimes the desire IS the product. When McDonald’s made breakfast available all day, they satisfied the request but lost the magic.
Let your customers “earn” the experience. Waking up early enough for McDonald’s breakfast is a small investment of effort. But that effort, even though it’s tiny, transforms the customer from a passive consumer into an active participant. They didn’t just buy breakfast. They made it happen.
Create rituals, not transactions. The most valuable customer behavior isn’t a one-time purchase. It’s a repeated ritual that becomes part of someone’s identity. McDonald’s breakfast, weekend coffee runs, the annual McRib return. These are rituals people look forward to and protect.
Time-based scarcity beats quantity-based scarcity. “Only available until 10:30 AM” is more powerful than “Only 100 available” because the time constraint resets daily. Every morning is a new chance to participate. Quantity-based scarcity ends once it’s gone.
Context changes everything. An Egg McMuffin at 7 AM tastes exactly the same as one at 2 PM. The ingredients don’t change. The cooking process doesn’t change. But the EXPERIENCE changes because the context is different. Morning breakfast is a ritual. Afternoon breakfast is just a meal.
Don’t always give customers what they ask for. For years, customers demanded all-day breakfast. McDonald’s gave it to them. Satisfaction went up briefly, then the magic disappeared. Sometimes what customers want and what keeps them engaged are two different things. The best gamification marketing strategies understand this tension.
The Ritual Factor: Why Morning Routines Are Stickier Than Afternoon Impulses
There’s something else at play with McDonald’s breakfast that goes beyond standard scarcity mechanics.
Morning routines are among the most psychologically “sticky” behaviors humans have. Your morning coffee order, your breakfast spot, your commute routine. These behaviors become embedded because they happen at the same time, in the same context, every single day.
When McDonald’s breakfast is part of your morning routine, it’s not just a food purchase. It’s a ritual. And rituals are far harder to break than habits because they carry emotional and identity-level significance.
This is why the all-day breakfast experiment quietly failed. A 2 PM Egg McMuffin isn’t a ritual. It’s just a sandwich. The time constraint wasn’t just creating scarcity. It was creating the conditions for ritual formation.
Compare this to Starbucks. Your morning Starbucks run is a ritual. An afternoon Starbucks is an impulse buy. The morning version drives repeat visits, brand loyalty, and identity attachment (“I’m a Starbucks person”). The afternoon version drives one sale.
McDonald’s accidentally discovered this principle decades ago, and the all-day breakfast experiment proved it empirically.
Just like McDonald’s and their breakfast menu, turning simple products into high-demand experiences is all about strategy and behavioral design. The best marketers don’t just sell products. They design experiences that tap into the Core Drives of human motivation.
Related Reading
- The Octalysis Framework for Gamification & Behavioral Design
- Core Drive 6: Scarcity & Impatience
- Core Drive 4: Ownership & Possession
- Top 10 Marketing Gamification Cases
- Core Drive 7: Unpredictability & Curiosity
- Core Drive 8: Loss & Avoidance
- What is Gamification?
Editor’s Note (2026): Joseph Yi wrote this guest post in 2012, arguing that McDonald’s should never serve breakfast all day. He was right. In October 2015, McDonald’s launched All Day Breakfast nationwide. It worked at first. Then the magic faded. In March 2020, COVID gave McDonald’s the excuse to pull it. They never brought it back. Below is Joseph’s original analysis, followed by my Octalysis breakdown of why scarcity made the breakfast menu iconic, and why removing it proved the point. —Yu-kai Chou

(This is a guest post written by Joseph Yi. Additional Octalysis analysis by Yu-kai Chou.)
For food lovers, the McDonald’s Breakfast Menu is the equivalent of diamonds. Everyone wants it, but not everyone can have it.
Hard to come by and unique, those lucky enough to wake up for it savor each bite. Those who aren’t so lucky ask the question: “Why not serve it all day?”
Starting with the Egg McMuffin in 1972, McDonald’s pioneered breakfast fast food by providing a quick and easy way for consumers to have the “most important meal of the day.”
In the United States, most McDonald’s locations stopped serving the McMuffin and their breakfast menu at 10:30 AM, with a few stopping at 11:00 AM on weekends.
While many fast food and QSR chains expanded their breakfast menu hours to run all day (most notably Jack in the Box), McDonald’s remained one of the few chain restaurants to serve breakfast only during morning hours.
And for good reason.
- Frequently Asked Questions
- Why doesn’t McDonald’s serve breakfast all day?
- How does scarcity marketing work in the fast food industry?
- What happened when McDonald’s introduced all-day breakfast?
- What can marketers learn from McDonald’s breakfast strategy?
- About Yu-kai Chou
- The Law of Scarcity
- How To Create Market Demand For Your Product
- 1. Create an Emotional Connection
- 2. Build Hype Before Launch
- 3. Be Original
- 4. Limit the Opportunity
- The Octalysis Behind McDonald’s Breakfast Scarcity
- Core Drive 6: Scarcity & Impatience
- Core Drive 7: Unpredictability & Curiosity
- Core Drive 4: Ownership & Possession
- Core Drive 8: Loss & Avoidance
- What Happened When McDonald’s Killed Scarcity
- What Marketers Can Learn from McDonald’s Breakfast Strategy
- The Ritual Factor: Why Morning Routines Are Stickier Than Afternoon Impulses
- Related Reading
Frequently Asked Questions
Why doesn’t McDonald’s serve breakfast all day?
McDonald’s strategically limits breakfast hours to leverage Core Drive 6 (Scarcity & Impatience) from the Octalysis Framework. By making the Egg McMuffin available only before 10:30 AM, McDonald’s creates artificial scarcity that increases perceived value. When McDonald’s tested all-day breakfast in 2015-2020, it initially boosted sales but eventually cannibalized lunch revenue and diluted the ‘special’ feeling that time-limited breakfast created.
How does scarcity marketing work in the fast food industry?
Scarcity marketing works by triggering Core Drive 6 (Scarcity & Impatience): people want things more when they can’t easily have them. McDonald’s breakfast, Nike Air Jordan limited releases, and seasonal products like the McRib all use the same principle. The key insight is that unlimited availability actually decreases desire. When customers know they can get something anytime, the urgency to act disappears, and so does the emotional attachment.
What happened when McDonald’s introduced all-day breakfast?
When McDonald’s launched all-day breakfast in October 2015, it initially drove a sales bump as customers rushed to try breakfast items at lunch. But over time, the novelty wore off. By removing the scarcity that made breakfast special, McDonald’s inadvertently weakened Core Drive 6 (Scarcity & Impatience) and Core Drive 8 (Loss & Avoidance). McDonald’s eventually scaled back all-day breakfast, effectively acknowledging that scarcity was more valuable than availability.
What can marketers learn from McDonald’s breakfast strategy?
Four key lessons: (1) Create an emotional connection with your product that goes beyond utility. (2) Build anticipation before launches; hype activates Core Drive 7 (Unpredictability & Curiosity). (3) Be original so your product can’t be easily substituted. (4) Limit the opportunity window. When everything is available all the time, nothing feels special. The most powerful marketing creates both desire and a reason to act now.




