June 17, 2018

Does McDonald's Have a Plan or Just Following BK?

Aside from a click-bait headline this short article does a good job of summarizing 
what's going on in McDonald's. 

Reporters often write about the McDonald's "turn around plan". Sure there's a "plan" 
but it's modeled after what Burger King (Restaurant Brands International) has been 
doing since 2015.

* Refranchisng

* Larger franchisee organizations

* Stripping corporate overhead to the bone (downsizing).

* Maximum cash returned to shareholders

The McDonald's plan is fancier, has more McSpin, but is the same financial engineering.

There's little new here. Wall Street likes what Burger King has been doing so McDonald's 
must do the same.

McDonald's Discovers Employees Get in the Way of Profits

June 13, 2018

Jonathan Maze on Quiznos’

"... there are lessons to be learned here for the restaurant business. And the biggest one is this: Make sure your franchisees can make money"

A brief history of Quiznos’ collapse

June 11, 2018

Field First?

Here's the place for McDonald's Operators to make anonymous comments about the "Running the Play" 
memo and Tuesday's Town Hall.

June 9, 2018

Kalinowski Upgrades McDonald’s

And yet, because Mark publishes reports with McDonald's Operator comments, McDonald's HQ labels him a "McDonald's hater".

Why Did Kalinowski Upgrade McDonald’s? - Market Realist

June 5, 2018

Waiting For A Clue

Continuing with our theory that McDonald's management doesn't know what's going on 
in the restaurants - here's another example.

On Monday a CNBC host attended the opening of the new Chicago office building. During 
an interview with the McDonald's CEO, CNBC's Jim Cramer popped in with a question 
from their studios in NYC. His question, or complaint, was about the slowing speed of 
service at quick serve restaurants.

The response was pathetic. It was all about the new gimmicks to speed up customer ordering. Nothing about what's going on in the kitchen. Nothing about operational complexities.

Speaking as one with decades of operations experience, and now a frequent McDonald's customer, the problem isn't about the ordering process. The problem is how long I have 
to wait for my food after I order.

If all management intends to do is fiddle with the ordering process then things are only 
going to get worse and working at McDonald's will only become more difficult.

As one person put it on twitter, "Thanks McDonald's for the more comfortable furniture. 
It gives us a place to sit while we wait for our food".

It's going to be tough to fix an operations problem when so few of the people in charge 
know anything about operations.

The service question and the weak response is at the six-minute point in this video.

McDonald's CEO: We are evolving the business in a meaningful way:

June 4, 2018

Waiting On A QPC

Feedback from McDonald's Operators, my experience during visits to McDonald's, and chatter on the internet confirm that service times at McDonald's have slowed since the introduction of HOTG. That's understandable during a major operational change. 
Hopefully McDonald's Operators will work the bugs out of the program and service 
will improve.

But in the middle of this change Oak Brook comes up with the idea of deep discounting 
QPCs? An operational change is screwing up service times so Oak Brook wants to vastly multiply the number of HOTGs sold or given away?

Congratulations to OPNAD for rejecting the idea.

It becomes more obvious every day that the lack of real restaurant experience among 
those in upper management has potential to do great harm to the McDonald's system.

McDonald's corporate employees should be encouraged to visit some real McDonald's restaurants. Time some customers, wait for some product, stand around waiting with real McDonald's customers.

According to the mapping function on mcdonalds.com there are 14 McDonald's locations within five miles of Oak Brook. And, about the same number can be visited on a leisurely
walk from the new Chicago headquarters to Navy Pier.

These corporate aristocrats need to get out of their safe spaces and experience what's happening in real McDonald's restaurants.