June 25, 2009

Sit-Down Discounting

This New York Times article details the stress
being put on "fast casual" chains.

A TGIF franchisee says, “My ultimate goal as
an operator is I need to drive traffic, and if
that traffic is going to Applebee’s or going to
Chili’s, I need to take that traffic away,”

That sounds like a typical corporate goal but
the job of the restaurant operator is to make
a profit on every transaction and to stay in
business. You can't do that on customer counts
alone.

.

Fed Revs Up Franchise Terminations

As a franchisee does it make you nervous that
the federal government can move in and force,
if not encourage, auto manufacturers to terminate
dealer franchise agreements?

This article compares car dealers to McDonald's
and Wendy's

.

Fenton's Golf Folly



Here's the latest on the whistleblower lawsuit over Oak
Brook's alleged development of a complex scheme to hide VP
Tim Fenton's country club memberships.

This all involves $2,940 in a year when Fenton made more
than $3.5 million in total compensation!

This has to appear absurd to McDonald's Owner/Operators
who have watched while McDonald's Corporation and it's
executives (past and present) have their sticky fingers
in most of the suppliers and privately held entities set
up by McDonald's as "approved vendors" selling goods
and services back into the system.

Just the tip of the iceberg. The real nondisclosure is
in the billions.

CNN Money article is HERE
.

June 23, 2009

Wage Hike to Squeeze QSRs



Every time the minimum wage goes up the discussion centers around cost cutting at the restaurant level. Since most of the impacted stores are franchised - where is the discussion about the franchisor backing off on some fees and royalties?

As in This Dow Jones ARTICLE investors comfort themselves in the fact that the corporate entity is "Insulated" by being heavily franchised.

It sure was a good time to sell off all those McOpCos!

.

June 11, 2009

June 2, 2009

Update on Card Check

Both President Barack Obama and Vice President Joe Biden were co-sponors of prior versions of the legislation when they served as senators

QSR Magazine Reports

.