January 23, 2018

More From CNBC On Operator Survey


McDonald's Owners not happy with headquarters



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4 comments:

Anonymous said...

Operators have been sold out by 2nd generation who have no business sense, now filling National Leadership positions. They would sell their soul for another store, without any sense of profitability to support the reinvestment they approve.

December 2019 will be the time of massive lawsuits, as those forced out over reinvestment, will see those they sold too in non-compliance of the reinvestment they were forced out over.

Upper managements comments this isn't Ray Kroc's McDonald's is correct, as there is no MCD experience in Oak Brook. Guess that's why they are relocating away from the campus that served generations.

MCD sold Chipolte over the food safety risk that model posed, now's walks in their footsteps.

Redesign and technology is nice, but you only get to pick one vendor for decor, one vendor for technology. Makes you wonder who owns stock where?

Seen one of McD's biggest brand fans and an owner walk away in disgust. Crazy times.
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Anonymous said...

"Operators have been sold out by 2nd generation who have no business sense, now filling National Leadership positions. They would sell their soul for another store, without any sense of profitability to support the reinvestment they approve"

I'm a 2nd generation operator and in general agree with the previous post. However, when you state "without any sense of profitability to support the reinvestment they approve" I think that's ALL operators. Because, unfortunately, whether you agree or not, we're the tenant. Not the landlord. If you want to be a MCD owner/operator, YOU WILL REINVEST.

I own absolutely nothing but a franchise term. My grills and equipment are worthless, seating and decor, signage, all worthless. I own nothing but being associated with a strong brand. MCD knows that, and unfortunately exploits it.

In my opinion the business is way harder to run today than it was 10 years ago. Economics have changed, our PMIX is out of control and our equipment prices seem to get the MCD premium. Sales will simply keep up with the pace of inflation over the next 10 years. and the key is getting out of Debt to make some money for yourself, your employees, and give back to your community. And HOPE that you have a franchise term to sell to someone else and that there will be a buyer somewhere out there.

in short, i don't think it's all of us 2nd generation operators who are the "problem." It's a giant faceless entity that exploits the entire operator community because we have our life savings on the line -- hidden in disguise as "unleashing shareholder value." MCD really needs to care about STAKEHOLDERS not simply shareholders.

Anonymous said...

Well said but the problem is that there are no incentives to make MCD care about all stakeholders- stock options are a great way to incentivize shareholder returns but there's no real reason to keep O/Os' profits up other than long-term viability of the business...the top dogs have golden parachutes so they obviously don't care about that. The only thing they care about is share price which is driven by market share and sales (D123).

Richard Adams said...

Going forward the only people who will care about the long-term viability of McDonald's are the Operators.