March 29, 2017

Chick-fil-A Will Own the Restaurant Industry

As other big chains move to larger, and larger franchisees Chick is sticking with their
one-store-per-owner rule. Big big chain multiple operators can't compete with that.




Chick-fil-A is Still the King of Customer Service - QSR mag

March 28, 2017

Franchisees Flex a Newfound Might

"McDonald’s has been ceding more authority to franchisees as part of CEO
Steve Easterbrook’s pledge to accept more ideas from the field and encourage
the customization of menus to local areas. But it resisted Segal Marco’s request
to let shareholders decide if a franchisee should be on the board."

Restaurant Business reports
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March 27, 2017

Can Oak Brook Levy Fines On McDonald's Operators?

If this looks familiar it's because the original version of this post appeared here last week. We got some good comments in addition to several inappropriate comments. Somehow, in deleting the inappropriate comments I also deleted the entire post. So, for your pleasure, here it is again.

===================================================================

Ninety-five percent of the time McDonald's Corp. gets its way with McDonald's operators  
through "bluffing". 

As we've discussed many times OPNAD is the biggest bluff concerning McDonald's USA. 
Another bluff concerns constant reinvestments. Most of corporate's methods concerning 
food safety are a bluff (more on that later).

But the worst kind of bluff is forcing operators to do something that has no foundation in 
the contractual relationship, but I already mentioned OPNAD.

The latest example has to do with the "Hardware Modernization Program".

As with most of McDonald's Corp. vendor relationship there is endless opportunity for graft 
and corruption between McDonald's, their executives, the vendor, the vendor's people, and 
the finance company.

But what really caught my attention is the statement that says, "If an owner/operator 
declines to participate a $1,000.00/month ongoing penalty will be assessed". 

Maybe every McDonald's operator in the country recently signed new, revised, franchise 
agreements with McDonald's and I missed it. How does anyone have the contractual power
to levy fines on McDonald's Operators for not going along with an Oak brook program?

Where is that in your franchise agreement?

Does the NLC suddenly have to power to levy fines? 

Like all arrangements between McDonald's and the vendors everyone benefits but the Operator. 

And there's another concern, the McDonald's employees who came up with this assessment 
may know nothing about the McDonald's franchise or contracts. Since McDonald's is now 
run by people who know nothing about restaurant operations they apparently also know nothing about franchising.

McDonald's Operators should not be "bluffed" into spending money just because a McDonald's corporate employee says, "Write us a check".

Maybe I just need to be educated on these changes but until I am I'll remain shocked at the 
audacity of McDonald's Corporation.
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Jan Fields Finds a Job

Buffalo Wild Wings nominates former McDonald’s executive to board
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March 23, 2017

Talk To The Analysts - Part Deux

The Crain's article below mentions Maureen O'Brien of Marco Consulting, the firm
sponsoring the Operator on the McDonald's board idea. If Operators have feedback
for Maureen here's her E-mail connection.

Maureen O'Brien contact form
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March 22, 2017

Crain's On McDonald's Franchisee Welfare

This article is worth reading a couple of times. Joe Cahill is one of best, and 
most experienced, writers on McDonald's. While he doesn't take sides he seems
to understand the small business person's point of view.

Note that he makes several mentions of Mark Kalinowski's McDonald's Operator 
surveys. One of many reasons Operators should participate.

McDonald's at a pivotal moment with franchisees - Joe Cahill
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March 15, 2017

Where Does All of Oak Brook's Money Go?


We don't usually post articles from Seeking Alpha because they are mostly opinion but
this fellow does a good job of discussing McDonald's shareholder's expectations for
ever-increasing dividends from the company.

This is why management is pulling the plug on contributions to remodels, rebuilds, etc. Operators are on their own, the shareholders must be satisfied.

Buying McDonald's For Dividend Growth? Not So Fast
.

This Is So Not Going To Happen

McDonald's Franchisee Board Seat Eyed After Years of Discord - Bloomberg
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