April 1, 2015

McOpCo Pay Increase

A win-win for Oak Brook - higher pay in McOpCos pressures Operators to
raise wages and raise prices which raises revenues to McDonald's Corp. 

And Easterbrook looks like a hero all around.
.

24 comments:

Anonymous said...

Andres and Roberson read a statement written from their PR department and lawyers.

This is complete sell out and stab in the back. No input from O/Os.

Forget profit lets worry about social issues. No questions on the call. Told to call our GM.

Anonymous said...

Have not seen the Andres comments, can someone provide them please.

Second, if serving breakfast all day and this mentioned raising of the minimum wage, why in the HELL did they not bring this up at the ####### summit

Do we need to go to Vegas again to listen to the way they plan on helping the operator.

Stab in the back is kind, to be fair I still need to see the comments.

Anonymous said...

They timed that CEO change right didn't they?

"Looks like a Hero" I will be the first one to say he's my hero when my cash flow and equity goes up year after year.

Richard Adams said...

New CEO is a marketing guy - it will be all about the McSpin.

Anonymous said...

Mcd raises wages by 14%. Why did they not warn us at the summit?? Partners??? I think not

Anonymous said...

All this does is embolden the Unions . They will crow that they got both Walmart and McD to blink, and insist that Fight for $15 is doable. McD has stabbed us in the gut.

Anonymous said...

Sadly this is NOT a April Fools joke. However it does feel like our "Partner" will win on all accounts.
Media, Employees and Sales all will be happy. The ones that got taken for granted again is the Franchisee.

This was being plan before the Summit along with the breakfast test. But all they could talk about is things that will happen 5 yrs down the road.

Is NOW the time to Sell and Retire?

Richard Adams said...

"Is NOW the time to Sell and Retire?"

No, that was last year.

Richard Adams said...

Managment has a great excuse for not giving the Operators a heads-up. They are in the middle of the battle with the NLRB and don't want to do anything that would look like they are influencing employment decisions by franchisees.

Anonymous said...

Let's review. Mcd gets a guaranteed percentage of top line sales, the suppliers get a guaranteed profit and return',and the franchisee gets no guarantees. The three legged stool has a short leg, and it's ours . We need an operator Union. NLC is a joke.

Anonymous said...

Attention NLRB, contact me. I can prove that McD is a joint employer by the conditions they force on me

Anonymous said...

McD has declared war on its licensees. So here is what I am going to do and what I urge all operators to do. I am going to raise my wage rate to parity. But I currently have 500,000 transactions. I'm going to meet with my accountant and determine what prices I need to charge to guarantee me a 15% profit and still pay the higher wages. This will require a huge price increase, which will reduce TCs. We will figure the prices to guarantee me a 15% return on 250'000 transactions. Yes sales will fall, but I will still make a better profit. I Win. The only loser is McD on reduced sales. They broke the partnership not me.

Anonymous said...

If you want to pay your employees a higher starting wage then just do it, total marketing ploy why else would you officially announce it instead of just quietly doing it. Higher wages higher prices McDonald's Corporation comes out ahead. If franchisees are not profitable and successful the whole system fails but sorry they just do not get it.

Anonymous said...

MCD Leadership should have meet with Owner Operator Leadership to discuss the pay raise. They talk about McFamily and 3 legged stool. There is no trust between operators and MCD .

Anonymous said...

McDonald's plan to win is simple. Run out the old operators that have made the company successful over the years with their sacrifices for every initiative that rolls out of Oakbrook while expecting to make a profit in return and replace them with a "new" generation of operator that is perfectly happy to be a glorified McOpCo manager. Owner Operator leadership have all been bought and paid for by the company and have no backbone when it comes to dealing with the company. I attended a regional financial workshop where the finance director openly said that operators should expect and be willing to make less money in the future because the financial ratios must be made....Ray is rolling over in his grave!!!!!

Anonymous said...

Just got an email like everyone else this morning about another web cast.

Can't wait to hear what the SUPREME LEADER has in store today.

Maybe Cain's Chicago already knows or the Wall Street Journal.

My bet is he will apologize far the way the news was handled.

My EX-WIFE frequently gave me surprises as well, I hope he has a better story.

As you all know his words will be gone over throughly by our great legal team.
What the HELL happened to our GREAT company?

Anonymous said...

You can NEVER satisfy fanatics by actually doing anything. They WILL NOT REST until we are destroyed. Obama has proven that appeasing those who wish to destroy our country only invites more demands, and McD's leadership has simultaneously just legitimized the movement to destroy our business and has demonized the O/O community.

I'm stunned.

Anonymous said...

Easterbrook said in a Wall Street journal piece.

quote "DONT BE SURPRISED TO BE SURPRISED" end quote. What does that mean for all of us?

The operators around McOpCo will really be in trouble if they do not follow what Easterbrook did.

Maybe he should have meetings with operators instead of the Wall Street Journal.

The article did also mention that we did not go far enough and that the 15.00 movement would not go away.

Looking forward to our daily web casts in the future.

We do not need World Wide or conventions just have web casts and TELL us what you want.

I WONDER HOW LONG A TWO LEGGED STOOL CAN STAND? Looks like we will find out very soon.

STAY STRONG

Anonymous said...

It is clear, the corporation cares about its shareholders and their own careers. At a recent meeting, a corporate employee stated they were "all in." Did I miss the memo that corporate employees were taking on debt for the business and would see annual fluctuations in their salaries according to business results? What a joke. Even when they fail, they get rehired as "consultants" with ridiculous salaries.

I agree that it is time for us to band together and form a group that the company must be forced to work with. The NLC is a complete farce.

Anonymous said...

Though I sold out last year after almost three decades, and thank God I did, I continue to feel your pain and wish my fellow operators all the best as you deal with these issues over which you have no control. In my business life, the most exciting day was when I became an operator and then when I left the system. The handwriting was on the wall for the last several years, but has now come to a head. Unfortunately, the legal system has not been our friend and the franchisor is in the cat-bird seat. One last thing: to the anonymous operator who plans on cutting transactions in half, just know that, as a result, you will not be eligible for growth or rewrite at your next business review....so make as much money as you can, get ready for many visits from your consultant, and make an exit plan sooner, rather than later.

Anonymous said...

I sold in December-----Thank you God! I think I'll go back to church. On Good Friday yet. Thank you God!

Anonymous said...

I can't wait for the next survey Dick !

Richard Adams said...

You won't wait long.

Anonymous said...

This is my analysis. Many are disgruntled and fear by doing what is right will hurt their growth chances. My advice. Don't be. McDonalds is in a panic mode and they have been for many years. fear of what. More debt, unrealistic rents, and marginal profits. Snap out of it. I did. I am so happy I sold my stores. Have a plan in place to leave "the abusive relationship" analogy, always hoping its going to get better but NEVER DOES.