September 20, 2014

Canada Betts on Coffee

Here's why McDonald's wants to serve you coffee at home


Accountants are Important, But ...

All too often I’ll come across a McDonald’s Operator who is thinking about selling a really
good store. A store with high volume, reasonable rent, a good facility, etc. The Operator
will say something like, “I’m going to meet with my accountant to determine what the store
is worth”.


This the product of years of focus on cash flow ratios, valuations by experts, and continued
interference in store resales by McDonald’s corporate.

Accountants don’t determine resale prices of McDonald’s stores – the seller and market
conditions ultimately decide the selling price.

Accountants play an essential role in store sales. They can help the buyer decide if they can
afford the deal. They help the seller with tax ramifications and other issues.

But having an accountant determine the value of a uniquely good store?


Obama, Unions Trial Bar Take Aim At Franchise Model

Obama, Unions Trial Bar Take Aim At Franchise Model -

Americans Are Tired of Long Restaurant Menus

The Washington Post reports

September 17, 2014

Build-A-Burger: A National Launch

I previously referred to the four store McDonald's Build-A-Burger program in Southern
California as a "test". It's not a test - it's the preordained future of McDonald's.

When four stores out of 800 plus are conducting an operational "test" one does not bring
in the national media to create a PR stunt. The San Diego and Los Angeles CoOps have
already launched a social media campaign to draw reporters into the restaurants.

How does management back away from this without admitting to a huge failure?

In fact, I don't think there are any real "tests" in McDonald's any longer. Someone comes
up with an idea to copy a competitor, the Innovation Center develops the product, and 
the national roll-out plan is finalized.

Therefore, at the very beginning of the "test", we get this on Twitter:

Breaking Burger News: Media, bring your press badge to McD's @ 3805 Midway Dr. before 2:30 pm for a FREE Build Your Burger


New Deck Chair in McDonald's Marketing

McDonald's hires Ehle as VP customer officer - CCB

Why Chipotle Won't Franchise

Entrepreneur Mag Reports

September 16, 2014

Nothing's Ever Simple Is It?

Can you reach it? Please pull your car closer to the building.

Apple Pay At McDonald's Drive-Through - Business Insider

Cashing In On The Way Out

On September 12 McDonald's SVP Jeff Stratton sold MCD shares valued at
$2,870,869.00. In addition he exercised his option on 23,172 shares of MCD
purchasing them at $56.64 a share. If he were to sell these exercised shares at
today's closing price he would net another $860,100.00.

September 15, 2014

McDonald's Build-A-Burger

There is a daily drumbeat of media attention to the Build-A-Burger test being
conducted in Southern California. The press loves this story because it's a chance
to write about their fellow millennials wanting to “Have it Their Way”.

But too much attention to a test product can be a very bad thing for McDonald’s.
If the Build-A-Burger test does not get expanded nationally it will be a checkmark
in management's loss column and the headline will be, “Don Thompson fails with

When a product or concept test gets a lot of press it’s no longer a test, it becomes
a forgone conclusion.

This might be similar to the testing of McCafe. Oak Brook announced a challenge
to Starbucks before the testing of espresso coffee drinks. The test was conducted
in the state of Michigan and showed very little customer acceptance. But, Oak Brook
and a few McDonald’s Operators lied to the rest of the country about the results of
the test and espresso drinks went national in the spring of 2009. That year saw the
lowest sales increase of all the Skinner years because McDonald’s Operators wasted
their advertising budgets on espresso drinks instead of advertising food that sells.

The years 2007 and 2008 had been rough for Starbucks but the many millions spent
advertising McCafe gave them a boost in 2009 and they've been on a roll since.

Of course, trying to reinvent the McDonald’s operation is far more dangerous than
having an idle espresso machine. Especially when the people making the reinvention
decisions have never run a McDonald’s restaurant.

Here's today's Bloomberg article on Build-A-Burger


September 8, 2014

Memo To McDonald's - New U.S. President's To-Do List

Thanks to the McDonald's Operators who pointed out this Seeking Alpha article by author
Denise Lee Yohn. She suggests Mike Andres should:

* Stop introducing new products outside the core menu.

* Stop courting the media when it comes to quality.

* Stop the retail bagged coffee.

* Start improving value perceptions.

* Continue streamlining the menu.

* Re-focus on families.

Memo To McDonald's: Core Execution Should Be On New U.S. President's To-Do List


September 4, 2014

'I'd join a union'

Obama: 'I'd join a union' -
"If you are in a job where you have to go stand on a street corner and get paid minimum wage by some union goon to hold up a sign that says you want more money, you have failed at life." -

Political commentator Erick Erickson