December 9, 2017

Advertising McDelivery - Already?

Unless you were out of the country or in solitary confinement you saw a flood of McRib
commercials in November. While the commercial itself is fine, especially if you're trying
to introduce a younger generation to the McRib, isn't it too early be advertising delivery?
Even subtlety?.

McDonald's USA is a long way from having a predominance of customers able to access
McDelivery. As I understand it, some stores and some Operators will never be on 

Yet the concept of delivery is already on OPNAD?

We've been here before. Oak Brook forced OPNAD to launch McCafe espresso drinks 
in the spring of 2009, a silly season to introduce cold weather drinks. Worse than that - 
about one third of McDonald's USA stores didn't have the product. Management had so
over-hyped the new product line to Wall Street that there was no way they could wait 
until fall to launch McCafe.

So OPNAD went full steam into McCafe espresso, wasting millions in Operator ad $$$.
Same store sales went flat because A) OPNAD was advertising something that wasn't in
all restaurants,  B) Americans weren't interested in hot drinks in the summertime.

But this illustrates that OPNAD has two jobs, driving customers to McDonald's and also making an impression on McDonald's investors. It works like this - management jumps 
the gun and tells Wall Street about the next few initiatives or promotions.  Sometimes 
this happens a year out, more often about six months. Along the way management will 
tell media and analysts that 90 percent of McDonald's Operators support the program. 

Then, after analysts and investors have seen hundreds of commercials on the subject management can conduct a quarterly conference call and tell them the campaign was
a huge success. Of course their audience believes it after seeing all those commercials!

Can McDonald's Operators stop OPNAD from prematurely advertising McDelivery?

December 5, 2017

Survey Answers Some Key Third-party Delivery Questions

This survey contains some interesting data but also some spin. I direct your attention to:

* Ticket prices are impressive and the managements of the restaurant companies with 
delivery claim that the typical order amount is 2/3/4 times the restaurant's average check. 
Of course it is. What customer is going to spend $5.00 to have a $7.00 order delivered? It's 
either a group order or a person stocking up on that restaurant's food.

* These same managements claim that the bulk of delivery is incremental. They have to say 
that because analysts are expecting same store sales increases. In fact the last quote in this 
article is, "We consistently hear 70 to 80 percent range (incremental sales) from folks that
we partner with".

And yeah, he works for Uber.

Survey sponsored by Franchise Times Magazine

December 4, 2017

Press Coverage of New Dollar Menu

Today was a real Deja Vu day. Spent the afternoon explaining the Dollar Menu to a 
new batch of reporters. It was 2002 all over again.

McDonald's to launch a new Dollar Menu next month in 'value wars 2.0' - ChiTrib

December 2, 2017

Cheap Building, No Matter Where It's Located

Muleshoe TX is SW of Amarillo

$49,900 for McDonald's building

What Has Happened To The McDonald's Supply Chain?

Running out of chicken tenders?

A major bakery employs illegals as one third of their workforce?

The UK has run out of pork products?

McDonald's has run out of bacon for its egg Mcmuffins - The Independent

My first reaction to these screw-ups was that they must have a bunch of newbies
running the supply chain. However, the two women running the global and USA
supply chains have each been in that end of the McDonald's business for nearly 
30 years.

The problem must be in the direction coming from the know-nothings upstairs.

November 29, 2017

Chipotle Seeks CEO Successor

Sad that a major restaurant chain has no bench and has to go outside for a new, inexperienced  CEO - Wait - McDonald's USA did that very thing only one year ago - 
Never mind.

Chipotle seeks CEO successor with turnaround expertise - NRN