June 25, 2010

Don't Let Jim Skinner See This Article

Is this the next Starbucks idea McDonald's will imitate?



Anonymous said...

if we are trying to be an upscale place why is our average check dropping? I will answer my question it's the ridculous push for TCs and not profitable sales!

Richard Adams said...

For our non-McDonald's readers:
TCs = Transaction Counts, or Customer Count

If a business seeks only
TC increases the Average
Check drops and even if
sales increase profits may
decline. It takes more
labor to serve more
customers, lines get too
long, the facility needs
increased cleaning and
maintenance, etc.

In other words, as
average check drops
each transaction
becomes more
expensive to service.

McDonald's management
delights in telling investors
about increased customer
counts and taking "Share"
from competitors because
the Corporate side is
largely insulated from the
profitability problems
created by this stratagem.

Anonymous said...

rebuilding older stores in prime locations simply due to age is sheer lunacy.

Our customers don't want fancy, they want cheap and fast and clean. Oak Brook has totally lost sight of that.

Anonymous said...

The McDonald's management has taken away the individual operator's ability and right to price their products fairly. The Dollar menu for both Breakfast and Lunch/Dinner plus the "recommended" pricing of all other products will cause the system to collapse under the weight of commodities, labor and health-care expense plus the new debt for remodels, rebuilds and relo's.