September 17, 2014

New Deck Chair in McDonald's Marketing

McDonald's hires Ehle as VP customer officer - CCB
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7 comments:

Anonymous said...

The company is getting so top heavy with officers, vice and senior vice presidents of every possible bureaucratic department, you can expect that there will be an increase in service fees from 4% to 4.5%-5% at rewrite to cover the additional overhead, especially with a long-term sales slump.

Richard Adams said...

That's certainly possible, problem is - the stores up for rewrite today were opened during the period in the mid-1990s when MCD was only opening 150 or so new stores a year (USA). It would take a long time for higher service fees on such a small number of stores to have an impact on the corporate bottom line. Of course there are also rebuilds and resales on which to raise fees. Expect Oak Brook to also go after rents and other fees to make up for same store sales decreases.

Anonymous said...

Another ex-PulteHomes exec?? Perhaps they will come in handy trying to sell all the excess closed McD store real estate that is on the horizon if we dont change the menu complexity FAST.

Anonymous said...

I thought we had such a "deep bench" ? Why then are we bringing in all the outsiders with absolutely NO INDUSTRY EXPERIENCE to be the top Brass at Corp??????

Richard Adams said...

But that’s the idea. When a company goes astray the reaction is to bring in new blood and new ideas. The trouble is – many, if not most, of those new ideas won’t fit in a system like McDonald’s because the new blood does not understand the culture nor the restaurant operations.

But we’ve been here before. Operators of a dozen years or more will remember when Jack Greenberg continually
reorganized the company, getting rid of many many veteran operations people and bringing in new “talent”.
Remember Alan Feldman?

Those in upper management with no real restaurant experience are very threatened by those who have actually run a McDonald’s. Therefore they are eager to bring in more people with no operational knowledge making their own nominal experience look more comprehensive.

Anonymous said...

according to goggle this guy is supposed to an expert on marketing houses to millennial generation.

Anonymous said...

Two people now do the job the Regional Manager used to do.
Economic Analysts now do the job a Regional accountant used to do.
If shareholders knew of all the waste in human positions, they would demand a 25% layoff.