Coalition of Franchisee Associations

October 25, 2017

Courtesy of Seeking Alpha - Transcript of MCD Earnings Call

McDonald's Q3 2017 Results


Anonymous said...

Experience of the Future is hurting our profits. Labor is increasing, and there are
constant additional costs. The Corporation’s standard line is, you will need to add
another person to handle this new product, table service, or whatever the new initiative
is. The 0.80% that we were to save with the new Co-Op advertising structure and new
OPNAD [Operator’s National Advertising] rate to help pay for Vision 2020 is already
disappearing. Many of the things that our current agencies now include will be
additional charges with the new advertising agencies. The main issue will continue to
be hiring and retaining enough employees to work in the restaurants. McDonald’s is
doing nothing to make the job easier for the restaurant managers and crew. They
continue to push the restaurant personnel to do more and put more pressure on them
with grading, etc. Every week there is a new initiative for the managers to focus on.
They need to slow the initiatives down and have less of them, as even our long-term
employees are now quitting. The Corporation is having the same issue with their
personnel, as they demand more and more from their people. McDonald’s Corporation
is thinking short term, not long term.”

Anonymous said...

Also .80% savings we are suppose to see is being eroded by Regional Marketing folks trying to scare us into spending more.

With statements Like “the CoOp .70% was just a starting point”, “we will have to spend more to have a complete plan” or “I am not sure the OpNad plan will get us all the way there, so you will have to plus it up locally”.

I would prefer McDonald’s to Just say what they mean Starting Out and NOT play Stupid games. This coming from someone that has heard and been at every meeting about this 2020 Plan.

Anonymous said...

Whatever we are going to be saving on advertising is a shell game it is just going to the marketing line or food cost with all the giveaways on the McDonald's APP that is called customer acquisition cost just a different and new way to get customers in the door.

Richard Adams said...

A shell game to raise the OPNAD contribution, consolidate Co-Ops, and reduce the number of agencies giving more power and control to Chicago headquarters instead of the Operators in the field. Classic control-freak management.

Anonymous said...

Our relationship with Corporate is the worst I’ve seen in my decades as an Operator.
The top management has removed the best region- and zone-level personnel who
had any relationship with the Operators. They have gutted field service, and pushed
more responsibility on the Operators. With the lowest base rent now at 15%, they will
get Operators to squeeze prices to compete, but 19% to the Company in rent and
service fees is not sustainable for the Operators over the long haul. And those are
green fees because they will demand more and more products to drive top line. What
happened to the promise of simplification? That’s the way.”

Anonymous said...

Giving Oak Brook control over the offerings on the Global Mobile App was a HUGE mistake. They will promo us to death, regardless of losses, to drive Sales and TCs. Thanks OPNAD and NLC operator cowards