September 20, 2014

Canada Betts on Coffee


Here's why McDonald's wants to serve you coffee at home





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Accountants are Important, But ...

All too often I’ll come across a McDonald’s Operator who is thinking about selling a really
good store. A store with high volume, reasonable rent, a good facility, etc. The Operator
will say something like, “I’m going to meet with my accountant to determine what the store
is worth”.

What?

This the product of years of focus on cash flow ratios, valuations by experts, and continued
interference in store resales by McDonald’s corporate.

Accountants don’t determine resale prices of McDonald’s stores – the seller and market
conditions ultimately decide the selling price.

Accountants play an essential role in store sales. They can help the buyer decide if they can
afford the deal. They help the seller with tax ramifications and other issues.

But having an accountant determine the value of a uniquely good store?

Nonsense.
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Obama, Unions Trial Bar Take Aim At Franchise Model

Obama, Unions Trial Bar Take Aim At Franchise Model - Investors.com
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Americans Are Tired of Long Restaurant Menus




The Washington Post reports
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Shareholders McCashing In

Despite woes McDonald's hikes dividend for 38th straight time
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September 18, 2014

More McCashing In

On September 16th McDonald's VP Jose Armario exercised his option on 13,910 MCD
shares at $57.08. On the same day he sold 15,120 shares of MCD for a one day net of 
$624,018. 

Source Yahoo
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September 17, 2014

Build-A-Burger: A National Launch

I previously referred to the four store McDonald's Build-A-Burger program in Southern
California as a "test". It's not a test - it's the preordained future of McDonald's.

When four stores out of 800 plus are conducting an operational "test" one does not bring
in the national media to create a PR stunt. The San Diego and Los Angeles CoOps have
already launched a social media campaign to draw reporters into the restaurants.

How does management back away from this without admitting to a huge failure?

In fact, I don't think there are any real "tests" in McDonald's any longer. Someone comes
up with an idea to copy a competitor, the Innovation Center develops the product, and 
the national roll-out plan is finalized.

Therefore, at the very beginning of the "test", we get this on Twitter:


Breaking Burger News: Media, bring your press badge to McD's @ 3805 Midway Dr. before 2:30 pm for a FREE Build Your Burger

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New Deck Chair in McDonald's Marketing

McDonald's hires Ehle as VP customer officer - CCB
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Why Chipotle Won't Franchise

Entrepreneur Mag Reports
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Carl's Jr. CEO on McDonald's and QSR Industry

Is the fast food industry on its way out? - Fox Business Video

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September 16, 2014

Nothing's Ever Simple Is It?

Can you reach it? Please pull your car closer to the building.


Apple Pay At McDonald's Drive-Through - Business Insider
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Cashing In On The Way Out

On September 12 McDonald's SVP Jeff Stratton sold MCD shares valued at
$2,870,869.00. In addition he exercised his option on 23,172 shares of MCD
purchasing them at $56.64 a share. If he were to sell these exercised shares at
today's closing price he would net another $860,100.00.
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September 15, 2014

McDonald's Build-A-Burger

There is a daily drumbeat of media attention to the Build-A-Burger test being
conducted in Southern California. The press loves this story because it's a chance
to write about their fellow millennials wanting to “Have it Their Way”.

But too much attention to a test product can be a very bad thing for McDonald’s.
If the Build-A-Burger test does not get expanded nationally it will be a checkmark
in management's loss column and the headline will be, “Don Thompson fails with
millennials”.

When a product or concept test gets a lot of press it’s no longer a test, it becomes
a forgone conclusion.

This might be similar to the testing of McCafe. Oak Brook announced a challenge
to Starbucks before the testing of espresso coffee drinks. The test was conducted
in the state of Michigan and showed very little customer acceptance. But, Oak Brook
and a few McDonald’s Operators lied to the rest of the country about the results of
the test and espresso drinks went national in the spring of 2009. That year saw the
lowest sales increase of all the Skinner years because McDonald’s Operators wasted
their advertising budgets on espresso drinks instead of advertising food that sells.

The years 2007 and 2008 had been rough for Starbucks but the many millions spent
advertising McCafe gave them a boost in 2009 and they've been on a roll since.

Of course, trying to reinvent the McDonald’s operation is far more dangerous than
having an idle espresso machine. Especially when the people making the reinvention
decisions have never run a McDonald’s restaurant.

Here's today's Bloomberg article on Build-A-Burger

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September 12, 2014

Act Now - California Franchise Legislation

As we reported a few weeks ago, California SB-610 is headed to Governor Jerry Brown's
desk for his signature or veto. Below is a series of E-mails from the Coalition of Franchisee
Associations encouraging California franchisees to write the governor. This first E-mail 
contains a link to a very easy to template with which to send a letter.

If you support franchisee friendly legislation but do not operate in California please consider
E-mailing a link to this post to your Operator friends in California.


---------- Forwarded message ----------
From: 
Date: Fri, Sep 12, 2014 at 3:15 AM
Subject: You must act today! SB-610 - Letters to Governor Brown
To: Keith Miller


Dear California Franchisee or Franchisee Leader,
It is now crunch time.  We are far below our goal for letters to the governor.  This bill WILL NOT be signed if franchisees don't express their support.  The SB-610 team will be meeting with Governor Brown's staff on Monday.  We want to go into that meeting with stacks of letters.  See below for my previous messages on how to send the letter.  The simplest way is to go to the following link:
Make sure you modify the letter with your information.  From this site, your letter will automatically be sent to the email for the SB-610 team.
If you have already sent in your letter, we appreciate your support.  If you have not, please, please, act today.  Victory is within reach.
Sincerely,
Keith R. Miller
Chairman - Coalition of Franchisee Associations (www.thecfainc.com)
Owner - Subway Grass Valley & Auburn, CA
Phone (530) 906-3988
 

 

----- Original Message -----
Sent: Friday, August 29, 2014 10:47 PM
Subject: SB-610 - Letters to Governor Brown Needed

Dear California Franchisee or Franchisee Leader,
At the end of last week we informed you that Senate Bill 610 passed the California Senate on a 23-9 vote, and has been sent to Governor Brown for signature.  There is a real risk that the governor will VETO the bill.  We need every franchisee on this list to act, and act now.  Each of you needs to send a letter to Governor Brown.  The team working on this legislation has put together instructions for the letter which is attached. Please open and follow.
As instructed, a short personal story is key.  If you have been harassed or unfairly treated by your franchisor, give a specific example.  Try to relate your story to the specifics in the bill, which are as follows:
  • It solidifies the rights of franchisees to freedom of association. 
  • It expands termination rights in that a default must be a "substantial and material breach of a lawful requirement of the franchise agreement" for a termination to occur.  Current law which is not changed contains the 30 day cure period on the default, and has exceptions for immediate termination, such as a serious health or safety issue. 
  • It expands transfer rights by giving franchisors 60 days after the receipt of required transfer documentation to approve a transfer, or provide written documentation if not approved. 
  • If a termination or transfer is not done in accordance with these provisions, the franchisee shall either be reinstated and receive damages, or the franchisor shall pay the franchisee the fair market value of the franchise and franchise assets. 
  • And finally, it specifically prohibits a franchise agreement to waive any provision of this law, or to waive the implied covenant of good faith and fair dealing. 
If you do not have a specific example, still write your letter with your business information and that you support the signing of SB-610.
The opposition is continuing their scare tactics and lies.  We must make sure the governor hears our story.  We must have everyone on this list send in letters, and each of you need to find five other local franchisees you know to also send in letters.  We need 1000 letters to make our point.
We plan on printing all the letters off and delivering to Governor Brown's office as a show of support.  You MUST do both, fax to the governor AND send a copy to our email or fax.
We are so close to having this franchisee protection bill signed into law, but we all must act to make it happen.  The opposition has already been pounding the governor's office, we need to show how many of us Californians count versus the "suits" the opposition has hired.
If you have any questions, please contact me.  Thank you for your ongoing support.  Make our 1000 letter goal a reality.
Sincerely,
Keith R. Miller
Chairman - Coalition of Franchisee Associations (www.thecfainc.com)
Owner - Subway Grass Valley & Auburn, CA
Phone (530) 906-3988
Endorse and donate to the Universal Franchisee Bill of Rights at www.franchiseebillofrights.org 
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September 8, 2014

Memo To McDonald's - New U.S. President's To-Do List

Thanks to the McDonald's Operators who pointed out this Seeking Alpha article by author
Denise Lee Yohn. She suggests Mike Andres should:

* Stop introducing new products outside the core menu.

* Stop courting the media when it comes to quality.

* Stop the retail bagged coffee.

* Start improving value perceptions.

* Continue streamlining the menu.

* Re-focus on families.


Memo To McDonald's: Core Execution Should Be On New U.S. President's To-Do List

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