5 Questions With McDonald's China Chief

A great growth story

.

Join the Discussion on Rebuilds

There's a good discussion string HERE

As we've discussed in Franchise Equity Bulletin, the best
way to pay for a part of the increased debt service when
forced to rebuild your landlord's building is to stop
spending more than the contractually obligated level of
advertising and promotion.

.

Internet Marketing Should be Pretty Much Free

I have a few more months of experience with social media and
find it pretty useful and enjoyable but still question the value
to franchisees of a large chain. I've seen thousands of McDonald's
Tweets and fail to see how it might build business. Facebook
is far more powerful and I can see applications in marketing and
recruiting.

If you like using Twitter or running your own Facebook site, go
for it. But, you should not be paying anyone substantial $$$ to
run these programs. I envision agencies charging McDonald's Co-Ops
confiscatory fees for hits, followers, and, friends - to say
nothing of the undisciplined OPNAD fund.

Just remember, this is kid's stuff so follow the lead of McDonald's
Corporation who put a couple of interns to work but for social media
promotion use the free services available all over the internet. As
in the following article:

McDonald's using free content as part of the caramel mocha campaign

.

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?

.

You, You're the Yuan

McDonald's raise prices in China

.

McDonald's, Jack N Box. in bed with Unions on Ombamacare

Fox reports - you decide

.

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.

.

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

.

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)

.

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!

.

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

.

Transcript of MCD 3rd Quarter Call

Third Quarter transcript is HERE

.

McD Europe Chief Leaving to Run Hotels

Bloomberg Reports HERE

.

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.

.