May 31, 2017

How Many Operators Will Opt Out of McDelivery?

Why McDonald’s is going big into delivery - NRN
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2 comments:

Anonymous said...

I know nothing of changes coming to NRBES with the exception of what is stated in the 2020 document that we all received this week.

I do know that NRBS is being STRICTLY and STUPIDLY applied. I've seen it and I've heard MULTIPLE stories.

Replacing dining rooms every 10 years is STUPID, refreshing every 10 or so is smart. Who wants an old, worn and tired dining room. They get that way even when well maintained.

2020 commitment is the biggest risk I've seen in my career. McDonald's will win for sure. We might win too though, but the risk is almost entirely on us.

$20,000/store "kicker" if whatever cc numbers are attained isn't a "kicker" AT ALL. It is just $ to be used to fund some other "reinvestment". Just like the stupid retail coffee money. We were led to believe that we would get back profits earned from McCafe retail sales, (a brand that WE paid to bring to life) only to learn that the checks that we expected to get were already spent...on new espresso machines that many never saw a ROI on the first go-round. Someone I know spent over $100k for the McCafe cell remodel and subsequently sold an average of 7/day. 7!!! Even with extensive LSM. I'm sure that some stores sell a ton, but a ton of stores don't. I'd love to know what the REAL ROI on an average store was on that absolute debacle. Heck, I'd like to know what it is now...WITHOUT inflating the numbers adding coffee to the mix. I think that they even wrapped shakes and OJ into "McCafe" numbers. They do all sorts of stupid tricks to muddy the water- let's see espresso BY ITSELF and I'll eat every single word. McCafe is expresso. PERIOD.

3.2% minimum marketing spend. REALLY? 2% OPNAD. 1.3%Co-op. .5 promo (and this WILL rise). Hmm. My calculator says 3.8% and I haven't spent one dang dollar on a single discretionary LOCAL anything. We're not saving a single dollar- we are simply taking on more debt or spending our cash on top of what we were already doing- or for many, stacking 2020 expenses on TOP OF WHAT WE ARE DOING RIGHT NOW.

If this doesn't work, these clearly brilliant, hip, and cool people (they sounded pretty smart) who we met in Chicago and are half my age...heck, they're younger than my kids- well, it'll be a blip on their resume. The ones at the top will be fired. And we will be making note payments. Hopefully still able to make those payments.

It better work.

I think it might.

On average, we are old, tired with crappy fake food. That's how a lot of stores look and that's what the public thinks. If we're going to do all of this, they'd better get with it on social media too. That's where the people are. Our social media looks like I wrote it after talking to my 80 year old lawyer.

And the app...more free food.

Get ready, overt pressure is coming. I'd bet a lot that every one of us is being tracked DAILY as to whether we've signed our commitment letter.

Have you?

We really have no choice- if the minimums are met and you didn't sign you won't be around much longer. Unless the minimums aren't met. That would be interesting.

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Anonymous said...

The minimums will be met. Remember who is counting the Votes !!!!