Coalition of Franchisee Associations

November 29, 2014

More From Fortune Magazine - Video

Fortune reporter Beth Kowitt discusses her article from several weeks ago. I worked
with Beth on the Fortune article and found her to be a capable professional. But,
she is a millennial and like all millennials considers her generation to be special
and unique. Here's Beth with a video recap of her article:

YouTube video is HERE

A Priest, a Minister, and a Rabbi Walk Into a McDonald's

McMass wants to put McDonald's in a church

November 21, 2014

Franchisors Tell Investors More Than Their Franchisees

We've always encouraged McDonald's Operators (and franchisees from any brand) to follow the
communications between corporate management and their investors and analysts who cover the
company. This usually takes the form of press releases and on-line conference calls following
the publication of a particular quarterly earnings report.

But presentations like the aforementioned Morgan Stanley Conference can be more instructive.
The end-of the-quarter conference calls are 80% about the past and 20% about the future. Investor conference presentations are almost entirely about the future. Since the future of McDonald's is in question it's important to study how management plans to reinvent the brand.

Especially since this reinvention of McDonald's is being orchestrated by executives who've never
run a real restaurant or come face to face with a real McDonald's customer.

Three things stand out of the McDonald's discussion at this conference:

* All of McDonald's problems will be solved through "Technology". Management says their digital
strategy will "revolutionize how the customer experiences us".

* Simplifying the menu and operation while adding customized products was discussed with no
serious discussion about real world conflicts this creates. Technology will take care of everything.

* Other than talk of selling some McOpCos there was no mention during these discussions of the
fact that McDonald's has franchisees. If a Wall Street analyst was new to the industry they might assume that every McDonald's was operated by McOpCo. Menu prices are discussed with no mention of franchisees. Vast technology investments are discussed with no mention of franchisee buy-in. Changes to the kitchen are discussed with no mention that those kitchens are owned by franchisees. 

Normally there is rhetoric such as "our franchisees are aligned with our plan" or some positive statement. This time it was as though McDonald's Operators don't exist. 

November 12, 2014

Restaurants could see strong year in 2015

Restaurants could see strong year in 2015 - NRN

McDonald's Drops Rights to "You Deserve a Break"

McDonald's Drops Rights to "You Deserve a Break" - BurgerBusiness

Can McDonald's get its mojo back?

"There was no shortage of answers. For starters, there were certain operational failures, 
some of which—like menu creep—had been decades in the making. In 1990 Fortune covered the proliferation of McDonald’s menu, noting that the restaurant offered 33 items, not counting size permutations. That was up 25% from 1980. Today the menu has 121 items, a 75% increase from 2004"

Fallen Arches: Can McDonald's get its mojo back? - Fortune mag 


November 8, 2014

Restaurants Find Eliminating Discounts May Hurt Sales?

For the first 35 years of McDonald's history corporate leadership discouraged franchisees
from discounting because it cheapened the brand and was an addictive business tactic.
Now the entire quick service industry is addicted to discounting. 

Isn't this just a result of the industry being over-built and saturated?

That's part of the reason but it's also driven by the fact that most of the major players
are publicly held companies and have to satisfy their shareholder's obsession with same 

store sales increases, profitable or not.

Restaurants find eliminating discounts, coupons may hurt sales, traffic - NRN

November 2, 2014

Some Good Advice For McDonald's

Kellogg School's Calkins advises McDonald's to refocus on its core strengths - Crain's

In Mobile Payments War ...

"Somewhat famously, former Wal-mart CEO Lee Scott was asked at a conference last year whether he felt confident CurrectC would succeed. Scott's response: "I don't know that it will, and I don't care. As long as Visa suffers."

In mobile payments war, consumers are a powerful army