May 7, 2015

McDonald's Should Fear Its Franchisees

"Unfortunately, Easterbrook’s turnaround plan made almost no mention of the franchisees 
that are the public face of the company."
 
McDonald's Should Fear Its Franchisees - Bloomberg
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5 comments:

Anonymous said...

Unfortunately, McD Franchisees fear the franchisor. And we have NO REPRESENTATION on the Board of Directors, and Inept representation by the sell-out operators on the NLC and Opnad. McD can continue to strong arm us into rebuilds, MRPs and bad decisions at will.

Anonymous said...

McDonald's Corporation will always control the franchisee that is just the way system is set-up; as long as they control the real estate they will always control the franchisee.

Anonymous said...

Perception is everything. As long as the Operators think they have no power they don't. McDonald's has ruled by intimidation after Fred passed. McDonald's Board of Directors do not have a restaurant bone in their body and only care about the stock. That is their job. They don't need the Operator. Top Management answers to them and they THINK they don't need a partnership relationship either.
McDonald's will throw the Operator under the bus every time because that is where they get their financial return from the value of the stock.
The Unions have raised enough fuss to make McDonalds do some things they wouldn't have done otherwise. The government and legislatures reach into business all the time.
As long as you don't develop power you are what you think you are. Powerless-----Perception is everything.

Anonymous said...

Serious damning article and huge "WAKE UP" call to all top brass and board-Glad to be out of the system

"Why McDonald's Can't Save Itself - The Myth of Core"

http://www.forbes.com/sites/adamhartung/2015/05/08/why-mcdonalds-cant-save-itself-the-myth-of-core/?utm_campaign=yahootix&partner=yahootix

Anonymous said...

The operators need to take care of ourselves. "Just Say NO!" Don't do one thing that is not required in the license agreement. We have allowed them to do this to us hoping it will allow us to expand or to avoid being impacted by a new store going to another operator. It is time to stop. They need to get the message loud and clear. If we allow it they will continue to abuse us. Don't rely on operator leadership. Do it yourself. Take items off the dollar menu and raise the price, stop all reinvestment unless it is your best interests. Regardless, of what they say or want get your debt manageable and make money for yourself. This doesn't mean you have to be confrontational just explain that you are not in a position to borrow more money and that is your judgment to make not theirs. If we bend over and spread our cheeks they will continue to ram it to us. They simply don't care. Its not their name on all those financing agreements. Stop thinking this is the MCD of the past where the concept of the three legged stool was real. The three legged stool is now a myth. Take care of NUMBER ONE!!