September 26, 2016

McDonald’s and Dunkin Franchisees

As has been pointed out, there are differences between McDonald's and Dunkin franchisees.

BlueMauMau discusses the two franchise systems
.

12 comments:

Anonymous said...

Will he give preference to MCD operators who sell out for obvious reasons and are looking to buy another franchise?

Anonymous said...

"McDonald's has a reputation of having a top-down command structure, a benign one, while Dunkin' franchisees nowadays have push and pull with their franchisor." Benign!! A top-down command structure is inherently NOT benign. This author obviously does not understand how McD's interacts with many of its operators.LOL!

Richard Adams said...

Agreed that the word "benign" doesn't apply to any franchisor/franchisee relationship I know about.

You're also correct that, even though he's been immersed in covering the franchise business for a decade or two, Don Sinegowski does not know much about McDonald's franchisees. Like most people he has to rely on our Operator surveys for any direct feedback. I know because he often calls to discuss the survey results.

But Don spends his days talking to franchisees from many systems and to representatives of their independent franchisee associations. He sometimes attends their independent conventions or conferences. He covers franchisees as they pursue governmental activism or franchisee friendly legislation. I'm sure his phone contact list is full of franchisees who will eagerly take his call.

Since McDonald's Operators don't participate in any of the above there's no way he would learn about, or accurately cover, how McDonald's interacts with its operators.

He hears real life franchisee stories all day long - from McDonald's Operators? - Crickets.

Anonymous said...

This interaction you refer to will be exposed, I think, when the legal arguments regarding "joint employer" are laid out. It will be interesting to see if it changes between now and then. Operators may have ample opportunity to expose a lot of it when the time comes. A "Benign" command in MCD is not one I have ever seen. Underhanded, mean spirited, revenging, retailation, overbearing, heavy handed, dishonest, personal attack's, envious, are but a few words I would use in my description of the interaction you speak of.

Anonymous said...

I guess we can't post pictures here but if we could in a discussion about McDonald's O/Os I'd post a picture of a herd of sheep.

Anonymous said...

Is that as in "are EWE expandable"

Anonymous said...

Benign synonyms:kindly, kind, warmhearted, good-natured, friendly, warm, affectionate, agreeable, genial, congenial, cordial, approachable, tenderhearted, gentle, sympathetic, compassionate, caring, well disposed, benevolent. Does this define the top down management style of Mcd's?. I doubt it.

Anonymous said...

MCD operators need an independent franchisee association, and that association needs to join CFA. There is no other way out of an abusive relationship than to take control of your own fate.

The association can speak for operators, so they don't have to personally stick out their own necks for retribution from management employees. The association hires professional employees who aren't operators (or people who are former operators). MCD can't do anything like not renew them or default their leases. They are free to speak the minds of the members without the members getting retribution

Anonymous said...

Just attended a Millitary Association (redacted for anonymity) meeting and was struck by the institutional differences.

In this branch of service, current command encourages and supports retired officers forming associations to teach younger officers what it took to achieve their success. I listened to a retired two star speak on leadership within the service and his process of decision making and leadership. I immediately thought of the stark difference with McDonald's and our culture of showing retired/sold-out operators the door. How helpful would it be to have a place/website, etc. to learn the ropes from those who have gone before?

I was struck by McD's culture of showing retirees the door and locking it behind them. Rather than use the assets that are floating out there they want them GONE. And for obvious reasons, mostly having to do with power and control.

What a waste it is to have our institutional equity just pissed away. How helpful would it be to have those who have successfully navigated our business available and even pushing their advice and experience?

Could and probably would be perceived as a threat to current leadership. It may be that but shure would help O/O's today and tomorrow.

Richard Adams said...


Great comment. Some of that is natural, generational differences. My first store as a McDonald's Operator was in a fast growing suburb of San Diego. As such the Chamber of Commerce was dominated by business people in our thirties and early forties. The Chamber director brought in two fellows from SCORE (www.score.org) who were in their sixties. I remain embarrassed at how we greeted these two gentlemen (who were volunteering their time) with yawns and zero interest in the help they were offering. Because they had gray hair we just weren't interested.

But it's obvious that McDonald's management is using this universal human tendency to make McDonald's "Modern and Progressive" - and losing a lot of experience and wisdom in the process.

And then bringing in decision makers at the top of the company with no operational knowledge could make matters even worse.




Anonymous said...

Years ago there was an attempt to form an organization where retired operators played a role in passing on their experience and knowledge. It was called "The Evergreens". Rensi made a big deal about it but I never heard any more about it.

Richard Adams said...

They had a role at a few Operator conventions in the 1990s. I remember retired ombudsman John Cook having a role as Evergreens was for both Operators and retired corporate folks. My guess would be that Jack Greenberg would have flushed the idea since he would have found that kind of institutional memory very threatening. Just as today's management team wants nothing to do with the foundations of McDonald's.