May 29, 2013

NASDAQ Looks at McDonald's Stock Gains

"Even if the Dollar menu (or other lower priced products) is able to raise
the total sales, McDonald's might be the only beneficiary and its
franchisees could be left to battle low profits. Thus, the company also has
to address the growing discontent among franchisees arising due to this
conflict of interest."

McDonald's Stock Gains This Year Look Overdone As Challenges Remain

May 24, 2013

Operator Only Comments

Restaurant analyst John Gordon has apparently seen some info from a
McDonald's "Operator Only" Meeting and he's made some comments on...

Blue MauMau here

Here's John Gordon's profile

May 9, 2013

Unbalanced Barbells

Twenty years ago the McDonald's
corporate position on discounting,
couponing, two-fers, etc. was that
these activities devalued the food
and both customers and restaurant
Operators eventually become
addicted to discounts. These days
there can be no doubt that wisdom
of prior generations is true as proven

* McDonald's refocus on the Dollar Menu 

* Wendy's refocus on their value menu.

* The demise of the McDonald's Angus line. This alone proves that QSR customers will not move to higher priced products when there is a loss-leader menu available.

Wendy's To Adjust Marketing for Remainder of 2013

“We’re not stepping away from the high end; we have some outstanding products coming into the pipeline,” he said. “Our strategy has to put pressure against high-end items but also recognize that 20 percent of the overall business out there in quick service is the price-value shopper. Some of the growth we’ve seen through very strong sales of Flatbread Grilled Chicken have been offset by share losses on the price-value end of the business.”  Wendy's CEO

From Nation's Restaurant News

May 3, 2013

When Should the Franchisor Be Allowed to Act in Bad Faith?

Updated Info on California Franchise Legislation

Fired McDonald's Exec Alleges Company Condoned “Illegal Insurance Scheme” - Crain's Chicago Business

"A former McDonald's senior insurance director alleges that the company condoned an “illegal insurance scheme” regarding insurance policies for Happy Meal promotions. In an age-discrimination lawsuit filed May 1, James Kasprzyk charges that a company affiliated with McDonald's makes Happy Meal toys and another McDonald's-affiliated company insures them. That company, McDonald's"

Crain's Article is HERE

Copy of the Lawsuit is HERE

State of Maine Jumps on the Franchise Bandwagon

Maine Introduces Groundbreaking Franchise Bill:

The Inside Scoop on Sport Clips from Franchisee

This is also a disturbing trend in the thinking of too many McDonald's folks,

 “It takes a while to break even and it takes multiple stores to get to an income to make it worthwhile.”

The Inside Scoop on Sport Clips from Franchisee Alex Howson | FRANCHISE CHATTER: