October 28, 2014

Burger King Franchisees And Coaches

"Franchisees have complained that some of the coaches are too young and inexperienced, 
 with many of them hired straight out of business school."

Burger King Franchisees And Coaches - Business Insider

McDonald's: Millennials Aren't The Problem

Howard Penny is one of the Wall Street analysts who asks questions corporate
management hates to answer.


October 27, 2014


CBS conducts a softball profile on Don Thompson. The Mcspinmasters did a pretty good
job on this one. It appears from this segment that Don Thompson has vast restaurant
operations experience.

"He sees himself-as his wife does -- as the same guy who started on the grill all those
  years ago."

When discussing minimum wage pressures Don missed an opportunity to differentiate an
entry level wage from a living wage.

CBS News Sunday Morning is HERE

More on "Aggressive Change"

In February we discussed Jack Greenberg’s late 1990s attempt to reinvent McDonald’s.

Our previous post is HERE.

This is where Greenberg said:

"Those of us who weren't with you at the beginning of McDonald's are excited to be 

  with you during the reinvention of McDonald's".

Welcome to the 21st century version of Greenberg's statement.

On last week’s conference call with Wall Street analysts Don Thompson used the phrase “aggressive change” numerous times. This is code for “reinvention” and could be just

as destructive as Greenberg’s attempts to change McDonald’s.

Another key theme of the conference call was “localization” or “A flatter, more nimble organization that ensures key business decisions are made closer to the customer, by 

people with local market expertise.”

It’s hard to believe that a bureaucracy run by control freaks that’s been top-down for 

30 years is going to turn on a dime and encourage creativity and entrepreneurship in 
the field. But, this is a shrewd political move that takes the spotlight off Oak Brook and
puts the onus on McDonald’s Operators and faceless corporate field people.

This buys management time to deflect blame and gets them through the 2015 share -

holders meeting. If things aren’t going better by the spring it will be time for a full
on attack on the Operator community.

Which, McDonald’s veterans will remember, was another Greenberg strategy (one of 

his last).

October 22, 2014

Minimum Wage Backfire - WSJ

What used to be a starting wage is now supposed to be a "living wage"

Why Chipotle Will Never Replace McDonald's

"McDonald's domestic sales last year totaled nearly $36 billion, which was greater 
than the entire fast casual industry's sales ($34.5 billion), according to Technomic."

Analysts Discuss

Is Chipotle Really Healthier Than McDonald’s?

One Chipotle burrito can be twice the calories of a Big Mac and have nearly a full day’s worth of calories. A burrito with chicken, white rice, black beans, fajita vegetables, tomatillo-green chili salsa, guacamole and cheese with a side order of chips is 1,695 calories A Big Mac has 530 calories.

MarketWatch Reports HERE

October 21, 2014