McDonald's franchisees stage a revolt, forming 400-member group
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October 17, 2018
October 16, 2018
From One of MCD Corporate Internet Trolls
$MCD just let franchisees push the ETOF remodel for their restaurants by 1 year (into 2020) if their restaurant was recently remodeled. Let’s operators get 1 more year out of a location which decor may only be 2 yrs old (& still may be paying off that CAPEX). Great move https://twitter.com/mcd_truth/status/1038075035557212160 …
October 15, 2018
October 11, 2018
Best Line of the Day
"One (1) email generated a response from 400 operators to come to the meeting. Operators from all over the country flew through a hurricane to get to Tampa.
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October 10, 2018
October 9, 2018
This Is The McDonald's Fred Turner Warned Us About
If you've taken my advice to read John Love's book "McDonald's: Behind The Arches"
you'll remember the last several pages of the original book focuses on Fred's dream of
having McDonald's Operators and suppliers own a large chunk of McDonald's stock.
At the 1986 Worldwide Fred told the convention, "I own some of your store, now I want
you to own some of mine".
The book says this effort was about making the company more entrepreneurial. Maybe
it was but there's a back story.
McDonald's was a darling of Wall Street and management was concerned that outside
investor groups or hostile entities would someday control enough shares to have a major influence on how the company operated. Putting 20/30/40% of the shares in the control
of McDonald's Operators, suppliers, and company employees could prevent that from happening.
The three-legged stool would be able to protect the company.
Protect it from what? Investors who didn't understand the culture of the system. Greedy investors who wanted to take excessive cash out of the company. Shareholders who didn't understand the need for solid, productive franchisees.
But now, five years after his passing, Fred's fears have been realized. It happened from
the inside, not by outside robber barons.
The company and the Operators have been stripped mined to return cash to MCD shareholders. The culture has been changed or erased by individuals who don't know
what made the system successful. Franchisees are considered liabilities not an asset.
The McDonald's board of directors was once peppered with executives from some of the
major system suppliers. Those folks are gone and the board is made up people with no
history with, or connection to McDonald's.
Only McDonald's Operators can fix McDonald's because they are the only people left who remember how McDonald's is supposed to work.
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you'll remember the last several pages of the original book focuses on Fred's dream of
having McDonald's Operators and suppliers own a large chunk of McDonald's stock.
At the 1986 Worldwide Fred told the convention, "I own some of your store, now I want
you to own some of mine".
The book says this effort was about making the company more entrepreneurial. Maybe
it was but there's a back story.
McDonald's was a darling of Wall Street and management was concerned that outside
investor groups or hostile entities would someday control enough shares to have a major influence on how the company operated. Putting 20/30/40% of the shares in the control
of McDonald's Operators, suppliers, and company employees could prevent that from happening.
The three-legged stool would be able to protect the company.
Protect it from what? Investors who didn't understand the culture of the system. Greedy investors who wanted to take excessive cash out of the company. Shareholders who didn't understand the need for solid, productive franchisees.
But now, five years after his passing, Fred's fears have been realized. It happened from
the inside, not by outside robber barons.
The company and the Operators have been stripped mined to return cash to MCD shareholders. The culture has been changed or erased by individuals who don't know
what made the system successful. Franchisees are considered liabilities not an asset.
The McDonald's board of directors was once peppered with executives from some of the
major system suppliers. Those folks are gone and the board is made up people with no
history with, or connection to McDonald's.
Only McDonald's Operators can fix McDonald's because they are the only people left who remember how McDonald's is supposed to work.
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October 8, 2018
Three Examples of Franchising Done Right
"If you want your brand to thrive, make sure your operators can make money."
What a concept!
Jonathan Maze reports- RB
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What a concept!
Jonathan Maze reports- RB
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October 4, 2018
JIB Relies on Buzzy LTOs to Drive Sales.
"As the major quick-service players continue to compete heavily with value menus, bundled pricing, and discounts, Jack in the Box has worked to avoid going too far and threatening franchisee margins."
Is it Time for Resturants to Ditch the Discounts? - QSR magazine
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Is it Time for Resturants to Ditch the Discounts? - QSR magazine
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October 3, 2018
So Why is All This Discounting Necessary?
Higher income adults eat more fast food
More than 1 in 3 Americans eat fast food on a typical day, and we eat it all day long - LATimes
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McDonald's Age Discrimination Lawsuit - Update
Article says: "Unlike some other franchisees, the return on investment looks dicey. That’s because Lentini turned 81 years old in August."
I say: From what I hear the ROI on EOTF and BV2020 looks dicey if you're 41 years old.
‘Things have changed’ as 50-year operator fights rebuild rule - Franchise Times
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I say: From what I hear the ROI on EOTF and BV2020 looks dicey if you're 41 years old.
‘Things have changed’ as 50-year operator fights rebuild rule - Franchise Times
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