November 17, 2010

More on McDonald's Rebuilds

Every body's talking about McDonald's rebuilds but nobody
wants to do anything about it. I've spoken with Operators
who might spend $2 million on a rebuild - somebody explain
to me how this works. Before the cost of money that's $100K
per year over the life of that individual franchise. Add to
that another $100K a year in a) constant remodeling,
b) constant technology upgrades, c) constant new product
introductions.

And at the end of the twenty years have nothing to sell
because the McDonald's building needs to be rebuilt again?

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November 11, 2010

It's the Lease We Can Do



We are still gathering feedback
on changing the policy whereby
McDonald's Operators pay to
remodel or rebuild their
landlord's building. If you have any comments on the previous discussion please send them to the E-mail address listed to the right of this page.

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November 10, 2010

QSR Mag on Franchise Litigation

On lawsuits over "approved vendors" an obscure franchise
consultant states:

“Such disputes often rise from franchisees’ suspicions that the franchisor is getting kickbacks or other profits from approved supplies and suppliers. Much of this distrust can be prevented with complete transparency in all the franchisor’s business relationships and income streams. This includes, as much as possible, disclosure of off-the-books income of the franchisor’s executives.”

QSR Magazine article is HERE

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November 5, 2010

McCafe Advertising Still Building Sales at Starbucks

The traffic increase was particularly strong in U.S. Starbucks stores, where 6 percent more people came in and each spent 2 percent more, on average, than a year earlier. (WSJ)

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Peak Hour Performance



I've been hearing a lot about lunch
peak hour at McDonald's. However,
there does not appear to be much
Mcmanagement concern about menu
simplification.

As a McD veteran I see frustration on the faces of McDonald's
crew and management trying to handle a menu growing to infinity
and beyond. And, as a customer I am victimized by other confused
customers who take forever ordering either because the menu is
too complicated or the menu board is complicated.

Since so many McDonald's executives lack operations experience
(or have conveniently forgotten what they once knew) the only
solution to this problem is franchisee activism. There was once an
Operator group that dealt with such in-store challenges.

It was called the NOAB.
Ah ... good times!

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November 4, 2010

Caution - Food Inflation Next Decade

Investors are counting on food inflation to
increase revenues to franchised restaurant
companies in 2011. Not the restaurants - just
the corporate side.

But can QSRs raise prices any further now that
all major brands have a value menu? Can Operators
sell $5.00 sandwiches? Is America ready for $8.00
"value meals"?

Sorry, but not me. I'm buying $3.00 meals on the
Dollar Menu!

The WSJ reports on food prices HERE

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November 2, 2010

McRib Commercial

The McRib commercial with the father who has to
put on his babie's bib is one of the best McDonald's
ads ever.

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