December 13, 2017

Now McDelivery Makes Sense...

It's been hard to get our brains around the McDelivery program but it makes more sense
if we consider this initiative works in a McDonald's USA with fewer and fewer McOpCos.

For decades McOpCo profits were an important factor in McDonald's corporate earnings.
This brought a little balance to promotions and initiatives. McDonald's Corp. had skin in 
the game. If an idea was bad for profits it wouldn't make it through the filters because it
would hurt McOpCo as much as the Operators.

Without a large McOpCo base McDonald's Corp. must depend on rents and royalties for
nearly all of their income. And the only way earnings will grow is through ever increasing 
same store sales.

It's likely that in the future McDonald's Operators will be confronted with many promotions and initiatives that only build sales and would have never seen daylight ten years ago.


Anonymous said...

Ordered free 10pc nuggets (it was a one day deal in my market) on UberEats yesterday to see how it worked as a customer- although it said "limit one per order", Uber's app let me add 3 to my order, pay and everything. I didn't have to order anything else- just paid the delivery fee and was expecting 3 orders of 10pc to arrive based on what the app confirmed. Waited patiently for my order to arrive and excited that it let me order 3 of these but when it showed up, only 1 order of nuggets in the bag. No warning whatsoever because the app showed that I ordered 3 10 pieces and that they were on their way.

I know it only said 1 per order so I'm not surprised but if random customer is able to order 3 in the app and only 1 shows up, what's the likelihood of getting a complaint? Also, is UberEats collecting a sales commission from the operator off of my free order?

Why put out offers that the technology simply can't handle? Is the goal to upset customers? It's just like every other MCD technology piece- crap- but this time we're paying a commission of 10-25% to do it.

Modern & Progressive

Anonymous said...

They have carved the Heart & Soul out of this business and ATE it.

They want more kid business, then Fire Ronald McDonald.
They want more family business ,then remove playlands
They want faster D/Ts, then add to the McCafe menu and Add fresh beef.
They want higher Cash Flow, then add Labor to the Dining room to teach people how to use a Kiosk, and do table service.
They want better Operations, then let Operators grow to 20, 30, 40 & 50 Stores.
They want us to give Gold Standard everything, Yet their Communication & Technology is No Standard (total failure)
They want us to give Table Service, yet I would be happy to have people just to give Service.
They want Better Advertising, but Create an Ad Agency from 2 Old Dried Up ones.
They want delivery, then saddle operators with fees that guarantee we lose money on the delivery.

Richard Adams said...

Of course, McOpCo may have their own deal with Ubereats?