Coalition of Franchisee Associations

December 24, 2014

A Lttle Help? ..... Some great comments here!

Can McDonald's Operators help us understand this 2015 McDonald's Corporate strategy:

"Re-ignite entrepreneurial spirit of three-legged stool"

I'm familiar with the three-legged stool but what does it have to do with entrepreneurship?


Anonymous said...

Used to be suppliers, operators, corporation; but now it's Stockholder returns; operator reinvestment, rent and service fees.To hell with operator cash-flow, profit or return on investment.

Anonymous said...

Thats a "feel good" slogan, and its TOTAL BS. Corp has completely removed all of the entrepreneurial spirit from the operator community with its myriad of rules, penalties, and punishments. Almost every decision needs to be approved by McD, I was even told what decor I HAD to choose on an MRP !! Corp has its tentacles deeply imbedded into every aspect of our business. Its stiffiling.

Richard Adams said...

My sense is that when McDonald's corporate people use "entrepreneurial" they define the term as:

Operators being willing to risk all of their cash flow and equity on ideas and programs dreamed up by McDonald's corporate people.

If Operators balk they're not being "entrepreneurial".

Anonymous said...

Until they tell us what it is then I'm assuming there is none. Right now the lower level beaurucrates are running loose and think they themselves are entrepreneurs. They are a big part of the problem. The meeting in Las Vegas is supposed to advise us of the road being taken to future success. I don't know why they choose a format like that when they can come to the co-ops and engage in dialog of a more meaningful nature. It is just more of the same. The system was in big trouble when Greenberg was fired and Canalopo took over. He cut out the fat, got the regions lean, got out of bad leases, realigned the system and things were going well when he died. The system is now again bloated to levels like they were when Jim took over. They just can't run it. Plus, they would rather be politically correct than profitable. It is truly unbelievable!!

Anonymous said...

Those thinking of leaving the system, what are you looking at? A friend sold stores and picked up several "Racetrack" gas stations. Seems to be going well. They can't believe the difference. They just want to make money.

Anonymous said...

I agree with all comments.

Vegas will be smoke and mirrors, a perfect city for convention.

I just had a meeting with my field service manager going over our plan for 2015 after about a hour and a half of conversation she said I need to condense it. With that in mind, we are going to Vegas for THREE days to listen to the McDonald plan. how about condensing that to a few hours?

The only reason we are going there is the rooms were purchased several months ago under a commitment and we could not get out of it without a substantial penalty.

As mentioned earlier, have the meetings from region to region and discuss each separately because evidently that's the way we are moving.

Losing faith in the system as each day passes. VERY

Anonymous said...

I read all the comments and I feel bad for the Operators who are very logical, good business people, who have become disillusioned by what is happening. My best analogy is an abusive relationship, where the person who is being abused just cant believe that it is happening, but then returns in hopes that things will get better, only to realize the same thing continues. MCDONALD'S: Stop thinking our cash flow is Yours, Stop Making us feel we are not "team Players" when we say no to a ridiculous roll out, and start making decisions that are sound.

Anonymous said...

I will NOT go to Vegas. It will be a SHAM. Three days to indoctrinate us on Oak Brooks latest hair brained idea?? NO THANKS!

"Lovin > Hatin" is an idiotic slogan, adopted because the Marketers had no fresh new ideas. Its laughable.

The solution is clear , but will not be adopted as long as Thompson is in charge, and perhaps never. We simply need to cut the menu items (genuine cuts) by 20%, consolidate some regions and cut regional and corporate staff by 15% (way too fat and BLOATED), abandon "Build a Burger" and return to a simple, limited, Good Food FAST operation. Scrap rebuilding perfectly good buildings just to change the roofline, and return stores to profitability by ceasing to cannibalize existing store sales by building new stores nearby.

We also need to return to our roots as a family destination, with NO involvement in politics or PC issues . Be truly neutral.

Simple really, but way too complicated for a CEO with NO OPERATIONAL EXPERIENCE !

I miss JIM !!!!!

Anonymous said...

That's an idea, we all boycott the vegas event. save time, money, and frustration. Save our money for the worldwide in '16.

Anonymous said...

I read the FEG blogs with a great amount of sadness. We sold our restaurants over 10 years ago. At the time, Field Service attempted to eviscerate our equity by producing a long list of required improvements before we could sell. Fortunately, we were able to dodge that bullet, but in reading the blog and talking to present O/O's, the evisceration process has gotten even worse. The financial magazines and web sites lambast McD's for their futile attempts to be all things to all people, while losing sight of the product and mission. Guess that's what we get for putting the corporation in the hands of a mechanical engineer instead of a seasoned restaurant person like Cantoluo.

Anonymous said...

This website should be sent to everyone in the system. The Current Financial benefit of being a "team" player is being overshadowed by frustrated operators who don't care anymore to say NO to them. Un-Expandable becomes very subjective to them when you are not a "team" player, but it is extremely powerful to Say NO to them, and not care of the repercussions. We all need to stop drinking the "cool Aide" Great Business People who entered the system have become "stepford wives" Numb to your own voice of reason.

Anonymous said...

The corp. should have the same accountability as we do. We write out a business plan and when we miss a few targets we contuine to get reminded of our shortcomings.

In VEGAS all operators should get the script that is presented for the future to TRY and hold them accountable. Probably a fruitless attempt because they hold all the cards.

It will be nothing but words written by a PR firm to bring us together.

At the operator convention it was AS ONE how is that working for everyone?

Don't mran to bring the President up but we could kind of use his motto just a little different.


Anonymous said...

We were promised Much at Worldwide in Orlando.

To date, Oak Brook has deliver...NOTHING

Anonymous said...

I say send everyone a transcript of what is being said (without all the hype, music and whatever performers they have this year). Period.

If they are lucky the indocteration will be given to 70 percent of the operators. What about the others who can't or don't want to go, how will they find out? Good news for them they save some money, and no one is around to bother them.

Someone said earlier the rooms were purchased months ago and they are just trying to fill them to save some money. Why else would they add the operator staff,? They wer never ASKED to attend world-wide although operators take their people there as a reward.

In closing, this is going to be one big show, and the coming out of our leader. I hope he can do it, but I think we are to far behind the 8 ball and the conpany goal is stock holders and if some operators leave, so be it.



wonder how much they will charge us to attend their meeting.

As they say AS ONE.

Anonymous said...

Let's get Mr. Adams this transcript and I am sure he can read between the lines and tell us what they are really saying.

Anonymous said...

Hey "Any Operators can be replaced in Day". NOT ANYMORE. They are loosing their pool of people to do the ridiculous. Prospective Franchisees are hard to come by in the US and ask a second generation how happy they really are. Don't get me wrong some of the large multiples are very happy$. But even in their ranks they are loosing faith. The newer generation wants to own the newer hipper brands. We all know when you tell someone you own a McDonalds they are "wowed" and then in the next breath they say "I hate your hamburgers" I have fought that stigma from day one. Massive Changes are needed this time around this is NOT 2001 when the stock sunk.

Anonymous said...

Heres an idea. Many (if not most) operators have lost confidence in Don Thompson. Your blog is read by both operators and investment professionals. Why not take a "survey" of your operator readers asking for their candid opinion of McD Direction , Thompson and Top Management. Since Oak Brook wont listen to us, maybe by influencing the investment media we could get McDs attention and tell the REAL story !

Anonymous said...

Lots of good comments.

The Las Vegas event is a few months away but I suggest to those that are interested to do daily comments on the presentations. And what you think of the comments.

Is it real or just more hype and telling us how great the system, suppliers are along with the corp.?

Do not see how the corp. can balance the stock holders and the operators. Just realizing that now after over 20 years.

It's all about the money. We contuine to get lower scores from our customers, chipolte, Panera, Chick-f-le and 5 guys are unfortunately where the millenniums are headed. You better watch out, you better not cry you better watch out because it's not your dads/ moms McDonalds anymore? THANKS DON.

Richard Adams said...

Re: Surveys - Thanks for your thoughts – while it’s never been the sole purpose of this web site to bash McDonald’s management it does seem to be the place for Operators to “vent”.

We already have our world famous Operator Survey we do for Mark Kalinowski at Janney so that’s one reason I would not want to use the term “survey” on this website. Another reason would be - when we survey Operators for Janney we do it by E-mail and I know those responding are McDonald’s Operators. When a reporter calls to follow up on something in our survey I can state unequivocally those are comments from McDonald’s Operators.

Since this website is anonymous (that’s a good thing) I can’t make that statement. Anyone who knows McDonald’s can tell these comments are from knowledgeable McDonald's Operators but they are anonymous to the world.

Since the McDonald's system runs on paranoia this is not a perfect system but it’s the one we have at this point in time.

Anonymous said...

Greatest day of my life after getting married, having my children and getting accepted to the McDonald's registered applicant program, was the day, not too long ago, that I retired and left the system for good. As bad as some of the management has been over the last 30 years(i.e., the Rensi regime,etc.)nothing compares to what the system has been going through for last five years, and since the deaths of Jim Cantalupo and Charlie Bell in 2004-5.The stool now has just one leg and it is sitting on the Operator's back. Best wishes to you all.

Anonymous said...

The McDonald’s business is now completely out of balance for the Franchisees…some years ago it was possible to take 23 to 24% in Rents+Royalties+Publicty and still get some profit but now with a strong competition with lighter investments it will be more dificult to get a financial equilibrium…Mcd Corporation became like the ex-Soviet Union…large, ineficient and afraid of any changes. Future will be more and more dificult for Franchisees to get a return on investment

Anonymous said...

Send a message, a vote of "NO CONFIDENCE" in Thompson, Wahl & Co.

The "flu" is bad this year !

Anonymous said...

No problem boycotting Las Vegas but I would add the Orlando fiasco as well. It was a complete waste of my money. I don't need to keep hearing "We are McDonalds"!! With a regular menu from the '90s, we need to focus on entering 2015 with some contemporary menu items!! We are at the bottom with a Board as stultified as Don Thompson.