October 20, 2016

CBS News on ADB and Operator Survey

“We are discounting almost everything,” said one respondent to the Nomura survey 
whose name wasn’t disclosed. “It is all about top-line sales, not running profitable 
restaurants. That’s why operators need several restaurants today, as the return on 
their investment dwindles.”

What McDonald's needs: A follow-up to all-day breakfast - CBS News

October 18, 2016

More Coverage of Operator Survey

Lots of Operator quotes in these articles.

McDonald’s Operators: Focus on Our Core - ╬▓urger╬▓usiness

Franchisees: McDonald’s same-store sales slowing - NRN

McDonald's Franchisees Are In A Funk — Like Its Stock - IBD

McDonald's Turnaround Needs a New All-Day Push

From the article:
"And then there is the 1,000-pound gorilla in the space: The new guy leading the 
all-important U.S. business has a giant hole in his resume. Chris Kempczinski, who 
will take over Jan. 1 as head of McDonald's U.S. from retiring Mike Andres (who 
was the architect of the U.S. turnaround), has never held an executive position at 
a restaurant prior to joining McDonald's. It's unclear from his LinkedIn profile if 
he has worked in a restaurant at all during his career."

McDonald's Turnaround Needs a New All-Day Push - TheStreet

October 17, 2016

OPNAD at Two Percent ?

From time to time we like to have some fun arguing about whether McDonald's Operators 
are obligated to belong to OPNAD and if the pledge card is a real contract or just a 50 year 
old bluff.

Now I hear a rumor that during September's meeting OPNAD discussed increasing the 2017
contribution rate to 2.00%. 

First, congratulations to OPNAD on keeping the rate at 1.60%. But, as I understand it, 2017 
is the second year of the current pledge period.

If the OPNAD pledge card is a "contract" signed by individual McDonald's Operators how
can a group of their peers even discuss changing the terms of that contract? Wouldn't that require all new pledge cards with new terms?

Of course, I haven't seen an OPNAD pledge card in a few years. Do the 2016/2017 pledge 
cards say "as OPNAD will determine from time to time" in reference to the percentage 
of sales pledged?

McDonald's Operator Comment of the Day

Anonymous has left a new comment on your post "WSJ: Karen King "Retiring"": 

"MCD has never explained what they want to be or look like after all of these changes have

been completed. We know that technology will play a much larger role at the store level and 
in Chicago. But, no one knows what that means in terms of cost and operations. I hate to see 
Karen King leave but downsizing in general is a good thing, IMO. MCD has become too fat 
and sloppy and the employee's have been running the company more for the benefit of the 
employee's for far too long. Refranchising 4000 stores will make a huge difference. Many of 
those stores will require massive reinvestment. However, at some point the system needs to
become focused on selling our food and not just making changes. When I say selling food 
I'm not talking about selling discounted food. I understand that regional managers will begin 
meeting with individual operators to ask for support for the beverage program against co-op 
leadership recommendations. The co-ops need to stay united. "

WSJ Covers Oak Brook "Retirements"

McDonald's Faces More Executive Departures -- WSJ - NASDAQ.com

McDonald's Operator Survey

Thanks to those Operators who participated in our latest survey - CNBC reports

October 15, 2016

How Much Did Your Favorite Burger Cost 30 Years Ago?

                                          Analysis from www.eater.com

MCD Takes $130 Million Charge To Sell 4,000 Stores

Back in the good old days selling McOpCos was a profit center for the company.
More details to be released Oct 21.

McDonald's to book $130 million restructuring charge - MarketWatch

October 12, 2016

Famous Dave’s Names One of Their Franchisees as CEO

Famous Dave’s of America Appoints Restaurant Industry Veteran Michael W. Lister as CEO

Only One in Five Millennials Has Ever Tried the Big Mac?

This is rubbish. Four out of five millennials have NEVER eaten a Big Mac? 

A complete fabrication.

I have two millennial children in their mid-20s and over the years they've been my in-house focus group on everything from Happy Meals, McCafe, Angus, etc. In the process they've 
eaten many, many Big Macs. During his football years my son ate Big Macs two at a time. 
If she could, my daughter would put Big Mac sauce on every sandwich.

When we feed groups of their millennial friends it's either pizza or multiple bags of Big Macs.

I'm sure there are millennial food snobs in New York City or Chicago who have never eaten
a Big Mac but I'd bet the ratio is the reverse. Maybe one in five millennials have never eaten
a Big Mac, but not the majority. 

Most of what we hear about marketing to millennials is distorted because - well - it's written
or spoken by millennials.

Why the McDonald's Big Mac is America's burger - Business Insider