Coalition of Franchisee Associations

June 29, 2015

From "Thanks for all the great comments"

To the previous commentor. I'm the guy that wrote the "this is your business" post. Why would you worry about passing on a site and getting sold out. I swear you all (except the person that agreed with me) sounds like we are living in the USSR. Your are giving the company way too much credit and power. Can you imagine the PR right now if they were trying to purge O/Os while also trying to sell us company owned restaurants? I used to blame the company for a lot, but now I am thinking they have chosen a lot of O/Os who aren't entrepreneurs. Because of what you do, you're worth a lot more than you think. This is hard work, and you all could easily find other ventures or opportunities. Yet, I see it so often that you think you would be nothing without them. Again, it sounds like battered wife syndrome. When I mentioned taking back the system, we can do it together. Again, they can't ignore us if we speak up and are prepared for the battle. They will back down; I can say that I, personally, have seen it countless times.

We need to start a group outside of the NLC. I think the company picks these people, anyway. Once we do that, they will listen. Let's stop acting like children and start speaking up and together (instead of in the hallways of a hotel conference room) outside of co-op meeting. You all are better and stronger than this.

June 24, 2015

Franchising, Edgy Marketing and the 2016 White House Run

McDonald's should acquire CKE Restaurants Inc. just to 
make Andy Puzder the next McDonald's CEO. He's the smartest guy in the industry, if not in American business.

Andy Puzder's Blog 

McDonald’s Stock Buyback Plan Aids Officers, Not Franchisees

Janet Sparks is the former publisher of the Continental Franchise Review, an industry newsletter that covered the franchise community for over 30 years. She has also been 
a columnist for a leading franchise magazine for the past 13 years. Today she is an 
independent journalist who engages in investigative reporting, tackling complex issues 
that impact the franchise industry. Janet can be reached at 
or at 303-799-7398.

McDonald’s Stock Buyback Plan Aids Officers, Not Franchisees - BlueMauMau


Thanks For All the Great Comments!

One commentor began with: "I'm surprised that there has not been more focus on the finance/debt issues by MCD in the Business Media. Many stores have good operations 
but the problem comes from declining sales and costs below the PAC."

There is only one source for such reporting - McDonald's Operators. A reporter can't 

make up the facts or report on speculation. They need sources that are informed and 
quotable. McDonald's is not required to report on Operator profitability and when they comment on it, they lie. Whatever information they might gather is sealed. Accountants retained by Operators can't talk about their clients business but if they did, they'd lose 
all of their McDonald's business.

This could only be reported on if an Operator or Operators pick up the phone or go on

line with the reporters from the major business media. They've been waiting for years 
to hear from McDonald's Operators.

I hear the following from a reporter or an analyst almost every day:

"I know the answer but I have to ask, do you know of any McDonald's franchisees who

 will discuss these issues?"

June 19, 2015

Panera CEO Discusses the Future of Eating Out

Panera Bread CEO Ron Shaich Discusses the Future of Eating Out - The

Where Are They Now? - Ed Rensi Out at Famous Dave's

 "While franchisees liked some of the changes, some balked at extensive and expensive remodelings, Smith said.
“I think Ed angered franchisees by coming in and telling them it’s my way or the highway,” he said. “Franchisees don’t like to be told how to run their business and dictated [to] on how much money to spend.”
 Still struggling, Famous Dave's changes CEOs again - StarTrib

June 18, 2015

McDonald's to Shrink in USA

Most of the reporting on this topic has centered around "under performing" stores. That may be true but will this also be used to harvest the equity in locations owned by the secret real estate investment trust? No matter what the sales volume?

McDonald's to shrink in US, 1st time in decades - Yahoo Finance

McDonald’s CEO Has a Misguided Obsession with Chipotle

Business Insider - Hayley Peterson

June 12, 2015

ChiTrib On McDonald's Management Changes

Secret to success at McDonald's? Quit and come back after a few years!

This Is How Oak Brook Says OPNAD Works

How McDonald’s franchisees help approve new marketing campaigns - NRN


This has been a Homer Simpson week for me.

My extended family includes a number of people who are
politically liberal. Since liberal policies always fail they've
tried to change their political label to "progressive". To
irritate these folks I still address them as liberals.

But, three months ago McDonald's management began talking about making McDonald's a "modern, progressive burger company". All this time I've been thinking this meant they wanted to be more innovative, dynamic, or forward thinking.

But that's not it. The hiring of Robert Gibbs shows that I've been hearing this wrong. The 
intent is to become more "liberal" politically and philosophically with McDonald's Operators
paying the bills.

I'm thinking about 80% of McDonald's corporate employees would describe themselves as
"liberal" or "progressive". How many McDonald's Operators would describe themselves
as such, 1%?, 5%?

McDonald's Plays Politics

Much is being written about the possible political impact of McDonald's new talking-head.
How naive to think one person can solve all of McDonald's political challenges.

Gibbs may have the connections to stop franchisee friendly legislation from reaching the
Federal level but in reality the International Franchise Association has that pretty well

But can he hold the NRLB and the unions at bay? Organized labor has been targeting McDonald's for forty years, first as a serious organizing attempt and today as their highest profile scapegoat.

One guy will not cause the unions to back off. As long as McDonald's is the largest entry
level employer they'll be the union favorite. Gibbs will fool around with the issue, make
a few million $$$, and move on – probably to work as a lobbyist – for organized labor.

By Hiring Robert Gibbs, McDonald's Plays Politics - Forbes

June 10, 2015

The New York Post Reports...

McDonald's Operator Comment of the Week

Esterbrook seems competent to me but has his hands full. Andres is a short timer in my opinion. MCD is in this position due to a colossal failure of leadership by the board of directors and top management. Skinner has to give up some skin as well. They did nothing to anticipate changes in consumer taste. They talked a lot about the changing face of America and the importance of technology. They made terrible promotions and did nothing positive with technology except lip service. However, being in the food business they just ignored what was happening regarding consumer taste's and left us flatfooted. Never before has MCD been so reactive. We have always acted to control our own destiny. Selling food for a profit and giving customers a good experience fell as a priority. But, we were certainly "politically correct". Thompson was a nice fellow and smart but he was never a leader. Now, they want to target millinals (sp). These people don't have any money they are mostly living with their parents. MCD needs to take care of MCD and stop over reacting to special interest groups that attack our food and other areas. We worry about competitors that should not even be mentioned in the same sentence with MCD. Fix the food, give us a manageable menu and we will kick their asses. Customers want it fast and hot. Want to build sales? Make the drive thru a major focus. They hire all these high profile "PR" people but what are they going to talk about? The best and most effective "PR" tool we have is the Ronald McDonald Houses. There are great stories to be told there. We have millions invested in them. They are never mentioned. The operators I know are not afraid of these competitors. What the operators are afraid of is MCD. They have done more harm to their own operators than any competitor could have ever done. It defies understanding!!!

BlueMauMau on McDonald's Changes

Down Again in May, McDonald’s Makes Changes - BlueMauMau franchise news

June 6, 2015

8 Toxic Types of People You Should Keep Out of Your Life

Anyone who pages through a copy of Entrepreneur Magazine realizes they get a large 
chunk of their ad revenue from franchise companies desperately seeking franchisees. 
As such they go pretty easy on franchisors.

So it's humorous that they've published an article about avoiding toxic people. The first
four personality types perfectly describe those who work for large franchise companies.
 8 Toxic Types of People You Should Keep Out of Your Life

June 5, 2015

Wendy’s Debt Load: Good for Franchisees? Not.

If one replaces Wendy's with the word McDonald's and triples or quadruples the
numbers in the article the last paragraph certainly applies.

Restaurant Finance Monitor

June 3, 2015

You.....You're the Bun

Now that McDonald's Operators have built East Balt into an empire they will now
be subsidizing Wendy's food costs.

East Balt Bakeries Acquires The Wendy's Company Bakery Business