Coalition of Franchisee Associations

July 26, 2014

Otto & Sons, China, and the Secret REIT

There's been unfortunate news out of China for McDonald's. An OSI subsidiary had 
some food safety problems. Competitor YUM also uses OSI to a limited degree and
immediately dropped them as a vendor. The media has been trying to make a big 
deal out of YUM bailing on OSI but that McDonald's is sticking with them.

McDonald's can't dump OSI! That would be a huge disruption to the McDonald's 
system. And ... OSI is one of the owners of System Capital Corp.

So, if you're a McDonald's Operator, OSI might be one of your landlords. They're not 
going any place.

Innovation = Slower Service?

As we've discussed before, the younger consumer supposedly wants a lot of
choices, but they want it NOW. Growing the menu and slowing down service
is going in the wrong direction. 

Younger consumers prioritize speed of service and technology - QSRWeb

Chipotle - Faster Service (throughput) Builds Sales

Chipotle cites increased throughput as a driver behind same-store sales lift - Fast Casual

NPD: Restaurant Traffic Stuck in Neutral

“There are some fundamental shifts in how consumers, particularly low and middle-income consumers, address their discretionary spending,”
NRN Reports

July 24, 2014

Burger King Is Run by Children

Found it! A restaurant company where the top executives have less
operational experience than the guys at McDonald's.
Burger King's CEO, Daniel Schwartz, Is 33 Years Old - Businessweek


July 10, 2014

Putting the "Q" Back in QSC

I'm hearing from McDonald’s Operators frustrated by the negative press 
surrounding the latest Consumer Reports survey of QSR customers. Well 
folks, I’m here to tell you, as long as McDonald’s is the biggest chain, and 
chooses to be the industry's low-cost provider, the quality of your product 
will always be in question. 

During a recent conference call with Wall Street types one of the analysts
asked me, "What if McDonald’s upgraded the quality of those menus items 
on the Dollar Menu?” This person had been assuming that the meat, buns, 
and condiments, used in the Dollar Menu and More were inferior to those 
used in Big Macs and Quarter Pounders.
Now, this is a smart person who follows the restaurant industry for a living.
If they think this way - what about the average consumer who's been exposed
to thousands of Dollar Menu messages over the past dozen years?

If McDonald's sticks with the Dollar Menu you are stuck on the bottom rung 
of consumer perceptions. It's just human nature.

Taco Bell Ups the Protein

Taco Bell introduces Cantina Power menu, emphasizing protein - NRN

July 5, 2014

Boloco and Shake Shack Offer Above-Average Pay

The leftists at the New York Times try to compare a few tiny privately held
chains with the publicly held QSR giants. They ignore the cash that's paid to 
shareholders in the public companies depleting the chain's ability to pay
higher wages. They also continue to claim the minimum wage is a "living

Seattle Hires Attorney for Defense in $15 Wage Rules

City of Seattle hires attorney for defense in franchise suit over $15 wage rules - Puget Sound Business Journal