February 5, 2012

Remember Financial Planning?

Last month The Chicago Tribune ran an article about McDonald's remodels. 
The piece is essentially an Oak Brook press release but an Operator wrote
in to point out an extraordinary quote from a Kansas City Operator. The 
Operator . . . "said she views her remodels, ranging from $350,000 to 
$700,000, as long-term investments and hasn't calculated how long 
it will take to break even."

Wow - I'm wondering if that comment will set off alarm bells in Oak 
Brook since it indicates Operators are not doing their due diligence 
before taking on massive debt.

Or, going forward, is that exactly the kind of Operator Oak Brook wants?

                     From the Chicago Tribune

And this operator says he may upgrade nearly a third of his stores in 2012 
(that's one-third of 25 stores in one year).

                     Business Journal.com

February 1, 2012

See You in December

Most restaurant companies have have reported good sales numbers for December 2011
but few CEOs or CFOs explained to investors that same store sales were inflated by
great weather and calender shifts. Of course if bad weather hurts sales they'll always
use that as an excuse.

But looking down the road - those franchisees in the publicly held chains will be expected
to exceed those good sales numbers in December 2012 - no matter what the weather.

Not to worry, just put the Big Mac on the Dollar Menu and advertise it nationally.