February 16, 2017

How McDonald’s Franchisees Can Best Manage Risk

Seems the greatest risk for a McDonald's Operator is taking financial and 
reinvestment advice from McDonald's Corp.

How McDonald’s Franchisees Can Best Manage Risk - Concannon Miller
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11 comments:

Anonymous said...

MCD went so long with poor leadership righting the ship is becoming nearly impossible. We haven't heard much about Esterbrooks progress of eliminating five hundred million dollars from the U.S.A. P&L and Balance Sheet by 2018. I hope he is still on track. The time has come for the operators to say "no More" until they prove their methods are working and that they are serious about cutting the excessive costs from the company. The operators can't afford it. All of the programs they have thrown at us are simply not working and store managers are frustrated. How long does this go on before the operators dig in their heels and just say NO?

Anonymous said...

It will go on as long as they can say "no" to a rewrite.

Anonymous said...

"All of the programs that they have thrown at us are simply not working...how long does this go on?"

Well, get ready. More is coming and NOW. More failed "tests" are rolling nationally and they are expensive. Find someone on the Create Your Burger and self-ordering stations test (I think it was 4-5 co-ops), ask what it cost in equipment and re-doing their lobby whether it needs it or not, and ask them what it cost altogether.

I hear $100k-1m/store. And it's coming, or at least part of it, to YOU. And sooner than you think.

And ask them how many customers are actually using the self service things. The answer is almost none.

Anonymous said...

It will go on until operators form and fund an independent franchisee association and start driving the bus with it instead of being told what to do and to fund the cash flow to Oak Brook with their own money (McCafe anyone?)

Anonymous said...

The Rocky Mountain Region just went thru a 'operator only' listening session, where we were told to saddle up and pile on the debt.. Or be forced out.

Never seen such disarray in over a decade. McDonald's has lost so many leaders and the regional teams are a joke.

Unable to run MCOPCO restaurants, they now turn their beuacrac focus on expanding younger operators they can 'control', at extreme detriment to the brand. And abandoning the extremely successful strategy of operators living and working their community.

McDonald's will lose the JOINT EMPLOYER court standings, as the franchisor moves from guidance and assisting under the Franchise agreement. To price fixing, and mandated operational and financial decisions once left to the franchisee entrepreneur.

Anonymous said...

I don't think it is taking financial "advice" from McDonald's they are the franchisor, with thaqt can dictate their agenda that is just the way it is being a franchisee. To change that we need stronger O/O leadership Reggie Webb was the last true advocate for the franchisee.

Anonymous said...

Panera does everything McDonald's should emulate, technology, design and quality messaging.

Chick Filet has the same.. I have yet to walk I to a Chick Filet and see a $1 menu.

You can sell quality at a decent price. You have to be ready to absorb a QUALITY impact, when your sole focus is on PRICE. With expanded menus, the system can't even be FAST.

A key element to McDonald's success as a brand, and we give the niches to our competitors in the FAST CASUAL.

We keep chasing enemies we should have easily vanquished decades ago, and ignore the growing segment we pretend to play in... All the while looking backwards. Scared.

Led by regional leadership whom are Managers, not leaders. While people with true knowledge of running the business are forced out. Replaced by Yeah sayers who want to line their pockets, not caring for what's left over then they are done.

Ray and Fred are rolling in their Graves.

Richard Adams said...

"I don't think it is taking financial "advice" from McDonald's they are the franchisor"

OK, make that taking financial "orders".

Anonymous said...

Anyone miss MOOA? I do.
Sadly today 95%+ of Operators dont even know what it was.

Anonymous said...

There will be no positive change for MCD O/Os as long as we have a USA president who knows nothing about the business. O/Os will and should ignore him and he'll go away soon. Then maybe the board of directors will learn thier lesson and bring in someone who knows MCD operations. But it will be too late for a lot of O/Os.

Anonymous said...

He will be gone by the 2018 worldwide. Probably Easterbrok too, bet Gibbs will be gone this summer to go back to work for Obama.