PagesBuy Us A Cup of Coffee

December 7, 2014

McDonald's Expands Build-A-Burger

The first sentence in this article says it all:

"The future of McDonald's fast food may be slowing it down."

These people who think that McDonald's customers, or potential customers, will
"be willing to wait longer if they know it's being made for them" are delusional.

The wait time for the food was seven minutes with the USA Today reporter watching? 

How long will it take in a real world situation?

And, if it's not a drive-thru product McDonald's is not going to attract millennials. As
I've written before, based on my experience with my two millennial children and their
friends, this is a drive-thru generation and is why the McDonald's drive-thru % has 
increased over the past decade. You're not going to get them to come inside the 
restaurant, even for a Build-A-Burger.

Unless you give the food away - which is why coupons are mentioned repeatedly in this
article. The sales numbers coming out of these test stores are going to be distorted or
falsified in the same way McCafe espresso test numbers were cooked.


McDonald's expands custom sandwich option - USA Today
.

11 comments:

Anonymous said...

Having this platform to express facts that must be "vented" is Great!! Thank you Franchise Equity for staying objective to the concerns. I have one comment after reading from many of the comments. The Operator system is very fragile when it comes to the daily economics of the Operators. These comments are not coming from disgruntled Owner Operators, they are coming from FRUSTRATED Owner Operators who are exhausted with so many ridiculous things asked of them.

Anonymous said...
This comment has been removed by a blog administrator.
Anonymous said...

Build a burger will go the way of triple-ripple, and hot-side, cold- side.

With 75 percent drive thru stores what are they thinking?

Let's talk about the 40 percent or more of the operators that are underwater with their finances. It was mentioned several time many are struggling. McDonald's must put their efforts there, unfortunately they will not. They can replace you like you might replace a crew person.

They just talk with no results. We are in major trouble sales wise and cash flow wise. I do not see a turnaround any time soon. If you are selling stores now, you are selling at the worst time because your costs are so high it gives the new operator a deal because of the decreased ratio.

Good luck all. STAY STRONG AND STAY TOGETHER

Anonymous said...

McDonald’s MCD -3.89% had justified the lofty Mighty Wing price because the wings were so immense, taken from its suppliers’ gigantic eight-pound chickens. The wings were arguably a bona fide deal. But this brings up problem No. 3: Customers didn’t make that connection. Cost-conscious diners gazing up at the menu didn’t realize they’d be getting “absurdly huge drumettes,” as a blogger put it. “This was quality for price,” a former executive tells Fortune, “but McDonald’s is known for quantity for price.” McDonald’s might have thought they were value. Customers simply viewed them as expensive. (from 12/01/14 Fortune article)


YET now we compound that MISTAKE by doing Build a Burger, another misguided QUALITY attempt.

Anonymous said...

Oak Brook has the WRONG culprit.
See:

http://seekingalpha.com/article/2630405-mcdonalds-millenials-arent-the-problem

Anonymous said...

What would be wrong with sending the comments from this blog and the other blog with all of the 25 comments to the guy that gets the McDonald's world famous survey. It would give the investors a glimpse into the real world of McDonald"s. Not a bad thing!

Anonymous said...

70-75% drive thru and Oak Brook is tinkering with a 5-7 minute service initiative??

INSANITY

I wish the McD Board of Directors read this blog.

Anonymous said...

The issue with the "Mighty Wing" promotion was not the size of the product or the price. The issue was that it was not eatable! They made it too hot thinking it would bring in and keep a bigger Hispanic customer base. Its true that product was aimed solely at Hispanics. It was a flop with all customer groups. They took a great product that our customers were looking forward to a product that had always been successful and purposely screwed it up. Straton really screwed the pooch with that one. He was probably just the scapegoat since it likely came down from the politically correct crowd in top management. The point being that this was not a business decision focusing on profit and cash flow but on other things. Until that is corrected we will see a lot more of it. Check it out. Its true.

Anonymous said...

By common consent in the operator community and in much of the company we agree that our menu board is too complex and service times are becoming a serious problem. How can anyone seriously think "Build-A-Burger" will solve any of this. It will make the kitchen more complex and service times worse. Why have a menu board at all. Just let the customers come in and tell us what to cook. Bring your own meat. To be very kind, our leadership is not as strong as in the past!!!

Anonymous said...

I have not seen build a burger yet so it might be a little unfair. But what I read about it from McDonalds and in the USA today does not seem promising. 7 minute wait time?come on man!!!!!

Secondly, maybe as a slogan we can say, " have it your way, have it your way,!!!! Opps I think someone else used that slogan about 40 years ago. My bad.

If we made a movie about our last 10 years it has to be a comedy. Help the operator cash flow.

Anonymous said...

Perception is reality, and we all know that when are customers know us as speed and affordability you are not convince them that you are a Chipolte'. If McDonalds had any progressive thinkers at the top they would be finding the next Chipolte out there and let their highly skilled run them, and give them hope in being part of a progressive brand. We all remember when they nixed the CoBrand scenario with Chipolte'. Mark my words the Activist investors are going to demand they use the cash while it is there to use. McDonalds is a great brand that has finally run its course, especially the economic model to put them in the ground