Coalition of Franchisee Associations

April 13, 2016

Any Operator Comments on This?


Richard Adams said...

Operators should probably respond by E-mail.

Anonymous said...

On the surface what's not to like I'll take a $100,000 in additional cash flow by 2020?

I realize most corporate folks will not be around by then or accountable, my regional manager will be gone, zone/division person probably even our us president and CEO might be nowhere to be found.

The financial commitment from an O/O perspective is modernize your restaurant average operator cost $400,000 - $500,000 annual debt service about $65,000 but probably something that would need to be done anyway and McDonald's can't bother you about that site for 10 years supposedly.

If it doesn't work they will have a hundreds of reasons why, the economy, the political environment, the changing millenniums eating habits, operations, lack of aggressive value message. When you try to hold them accountable to this they will say it was the right plan at the time and endorsed by "your" owner operator leadership!

Anonymous said...

Good points, I'd bet money there will be a different USA pres. with a new plan at the next WWC.

Richard Adams said...

McDonald's Corp. has had seven CEOs in the past 20 years and too many USA Presidents to count so chances are good there will be new faces at the 2018 convention.

Anonymous said...

just returned from the convention. I believe these guys know what its about. Its about making money and good business practices. The convention reflected that, in my opinion. As Easterbrook said, "The convention is about business not show business" There was a lot less fluff. You could see it also in the awards.

The "experience of the Future" needs to develop the business case further but it has great potential. Although, we can't continue to ignore the drive thru.

Anonymous said...

I'm not an O/O, but a vested supplier. While at the convention, I went to a local Restaurant of the Future. While very attractive and modern, it was slow and the amount of staff, including gentlemen in jackets and ties, was overwhelming. I can't see how this will work in average volume restaurants, particularly when 70ish% of the sales come through the drive thru. Am I missing something?

Richard Adams said...

Thanks for commenting - what you see are indications of two problems:

1) Delusional thinking by the new management team that the drive-thru and dining room percentage of sales can be flip-flopped and somehow guests will be motivated to get out of their cars and come inside to wait 9/10 minutes for custom made burgers. And then try to enjoy their customized meal sitting next a booth filled with a large family chowing down on $1.00 sandwiches and cups of free water.

2) At a certain point in their careers (when they get a limo and a driver?) McDonald's executives no longer want to be "hamburger guys", they want to be "restaurateurs". This became evident when Jack Greenberg began buying up various small but more upscale chains and the impulse continues today. These fantasies are especially easy to pursue since the risk is borne by franchisees. When proven misguided the worst that can happen to a McDonald's executive is they retire a multi-millionaire.