Coalition of Franchisee Associations

May 30, 2009

Starbucks Pushing Landlords for 25% Cut in Rents

"hurt by an economy in which cost-conscious consumers cut back on premium coffee."

So says Bloomberg


May 27, 2009

At the MCD Annual Meeting

Management on McCafe:

"Things are going very, very well," Thompson said, without giving any sales details. "It has exceeded our expectations."

A company spokesman later said U.S. espresso-based coffee sales are up by 40 percent on average per restaurant since the launch of the national ad campaign.

Someone seems to be confusing feebees with "sales".

ChiTrib article is HERE


May 26, 2009

McCafe in Europe

What better way to convince Wall Street the McCafe
launch is a success than to announce that it's being
expanded into Europe?

Reuters reports


May 11, 2009

Coffee War Bullets Just Got a Lot More Expensive

More detail on coffee and sugar costs...

"The amount of coffee stored at
warehouses earlier this month
dropped 18% from the highs of
last fall, according to an account
from Bloomberg. Meanwhile, crop yields have been
relatively puny: output in Columbia and Costa Rica
may have dropped as much as 30%. Commodities traders
said prices could climb another 40% before the end
of this year."

Barron's Reports


May 7, 2009

Something Squirrelly With Your McCafe Bills?

Now that the smoke is clearing from the McCafe installations
(at least in 70% of USA stores) it would be wise for the
individual Owner/Operator to take a good, line by line look at
the costs being billed by the corporate approved contractors
and suppliers.

I'm hearing a new horror story everyday about unjustifiable
and unexplainable expenses with no responsibility borne
by McDonald's corporate people.

It must come as a surprise to corporate staffers that Owner/
Operators know what it costs to install a drink system, move
a wall, or cut in a floor sink. These bureaucrats have never
had to write the checks so it's up to the Operators to keep
track of these things.

What can an Owner/Operator do about these over charges?
You probably won't ever get your money back but at least
the corporate types can be made aware you are on to their
game. That might prevent this from happening again, for
instance, when you change out your MFY kitchens in a few

The other question is - what happened to all that money?
This will possibly amount to $100 to $200 million in over
charges just for the United States.

It's hard to believe Oak Brook facilitated these excesses as
a simple favor to their captive contractors and suppliers.
Ah, the wonder of only using privately held vendors with no
transparency requirements!


May 3, 2009

AdAge on McCafe

"The massive media weight from McDonald's could lift the
entire category, since specialty coffee has never had
the benefit of big bucks before."

An interesting way to use McDonald's Owner/Operator's Money!

AdAge article is HERE