You just knew this was going to happen once Andres "retired"MCD has no LOYALTY to either employees OR OPERATORS
These guys ( new and old) better start wearing name tags so we know who they are.They are leaving so quick its hard to tell who is in charge.The new guy (don't even know his name) is a 50/50 bet to be around at the 2018 convention and 25/75 bet he will be around in 2020and we at seeing 2020 visions from people than won't even be around. Your thoughts RICHARD? One more thought. I believe McDonalds in a reader of this blog. Would that be accurate? Deep down they know a lot more are leavingOf he 4,000 McOpCo for sale how many are in the USA? Maybe someone from the corporation could weigh in on this.The Big Mac story, there are people in leadership that don't eat the Mac either, not nuggets, not 1/4 pounders, not egg mcmuffin Ray would wonder " what did you do to our company '?
^^What he said.^^
More executive "retirements" expected this week - Modern and Progressive!After they purge the Corp old timers, wanna bet they start a purge on long term Operators next??
That's already started. The trouble is - Oak Brook already has a goal to get rid of the one to three store Operators. Pretty soon they are going to run out of Operators, or every Operator will have 20 stores.
"The new guy (don't even know his name) is a 50/50 bet to be around at the 2018 convention and 25/75 bet he will be around in 2020 and we at seeing 2020 visions from people than won't even be around. Your thoughts RICHARD?"This hire is one of the most devastating decisions made in the history of McDonald's because it illustrates that the CEO and the Board of Directors place no value on restaurant operations. There's no way this guy will survive the next 18 months and he may take other people down with him. Question is - how many Operators will be crushed in the process?.
MCD is following the old Dunkin' Donuts management team's plan to consolidate franchisees and shed company units.They turned the franchisor's litigation department into a profit center by suing small franchisees out of existence. You will notice that the unit count has more than doubled since then, there are virtually no company stores and the number of US franchisees is the same or smaller, even with the giant jump in store count.It's pretty common to see 50 unit DD owners. MCD is following the same playbook. It's all out there in the DD history. There should be no questions or surprises as the plan unfolds. The only question is what, if anything, are MCD franchises going to do about it?
McD O/Os will bend over and say, thank you sir may I have another.
While it's an industry trend McDonald's is actually following the Burger King plan of getting out of the restaurant business and downsizing the corporate side to a shell of its former self. Servicing franchisees is no longer an objective.I doubt there will be a lot of litigation. McDonald's will continue to use the rewrite program to flush out the smaller Operators..
Richard is right on, this is exactly what BK did a few years ago to "turnaround" their business. Meanwhile McDonalds has said nothing about lowering our service fees! What are we paying for? Training staff is gone so now everything is done via webcast. The restaurant people are being driven away or taking packages.And what has Easterbrook accomplished? All day breakfast? It hasn't done much for me.
MCD has never explained what they want to be or look like after all of these changes have been completed. We know that technology will play a much larger role at the store level and in Chicago. But, no one knows what that means in terms of cost and operations. I hate to see Karen King leave but downsizing in general is a good thing, IMO. MCD has become too fat and sloppy and the employee's have been running the company more for the benefit of the employee's for far too long. Refranchising 4000 stores will make a huge difference. Many of those stores will require massive reinvestment. However, at some point the system needs to become focused on selling our food and not just making changes. When I say selling food I'm not talking about selling discounted food. I understand that regional managers will begin meeting with individual operators to ask for support for the beverage program against co-op leadership recommendations. The co-ops need to stay united.
You think your conversations with McDonald's are frustrating now? Wait until you start dealing with these folks that have never spent a day in the restaurant. Modern, progressive and no clue how to drop a basket of fries!
If you think McD's is going to reduce service fees with their $500 million savings, think again.It's going back to shareholders in dividends,stock repurchases and pay down their debt. Wouldn't be surprised if service fees actually go up. It's probably been close to 20 years since the last increase and the boys in Chicago could use the cash. After all, the cost of providing all those great services to operators is more expensive than it was 20 years ago, right?
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