February 11, 2019

Why is McDelivery Just Like McCafe?

One of the McDelivery articles we posted last week discusses the advertising of McDelivery. 
CEO said, "McDonald’s typically won’t invest in any sort of national marketing campaign
until at least 70 percent of the U.S. system can offer what’s being advertised".

Why is that like McCafe?

OPNAD launched McCafe nationally in April of 2009 when a little more than 60% of U.S. stores had the product. Many major markets did not have McCafe until months after the national launch.

Millions of McDonald's customers were misled and disappointed.

Prior to McCafe 2009 was going pretty well. The year started off nicely with a 1st quarter same-store sales increase of 4.7%. The McCafe OPNAD campaign launched in April The 
2nd quarter of 2009 came in at + 3.5%, 3rd quarter +2.5%, and the 4th quarter was barely positive at + 0.1%.

In fact, the years 2003 thru 2012 were all positive same-store sales years but 2009 was the lowest full-year increase of all at +2.4%. No one can claim that OPNAD prematurely advertising McCafe built same store sames.

So advertising a poorly accepted product that was only available in a percentage of stores pretty much ruined sales momentum for 2009. Most of the money OPNAD spent that year 
was wasted.

If McDelivery goes on OPNAD U.S. Operators should expect soft or negative same-store 
sales for the duration of OPNAD advertising against McDelivery.

McDelivery is different than advertising a new product. It's a service, not a product. I don't recall a time when OPNAD advertised a service. Some markets will benefit, others won't. It makes sense that the New York City area would advertise the service. But, Sioux Falls? Albuquerque? Reno?

And keep in mind, one of the reasons McDonald's management pushes Operators to put something new on national television is to impress investors and analysts. Like McCafe, management has been hyping McDelivery with investors for several years. Once investors
see ads on T.V. it becomes successful in their minds and they raise their expectations for 
sales and earnings. All accomplished with McDonald's Operator money.
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Comments on the Town Hall?

February 7, 2019

Don't Miss This Operator Comment

Anonymous has left a new comment on your post "McCashin In - Chicago Style": 

Your gonna see board members bailing faster than a Crispy Crème Donut at a Weightwatchers meeting...

Remember. even the Costa Concordia was righted by the proper salvage company.

No one knows the MCD system better than its franchisee's.. as there is no one left in McDonaldLand with knowledge. The entire MCD Field Service in most areas has been vacated to BC's with two weeks HU training, a clipboard and a timing device.

Remember a Corporate structure with no history, is a Corporate Structure with no loyalty - even unto itself. They must now live with the monstrosity they created.

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Jimmy John's: We Will Never Use Third-Party Delivery

"According to the data, 35 percent of customers who have used third-party delivery say
they have experienced a problem with their orders. Seventy-six said the restaurant was, 
at least partially, to blame for the errors. Ninety-two percent said they expect food deliveries within 15–30 minutes of placing an order. 

Jimmy John’s added the largest delivery services average close to a 50-minute delivery time."

Jimmy John's: We Will Never Use Third-Party Delivery - QSR magazine
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