Analyst David Palmer is out with expanded comments on the McDonald's value platform.
Here's an excerpt from his report.
"So what now for McDonald’s? In our view, McDonald’s will likely stay committed to the
$1, $2, $3 menu with some other marketing adjustments that will be supported by its
made-to-order fresh beef burger launch. While value remains a key pillar in the US
turnaround—there are others including ongoing food upgrades, a massive reimaging
campaign, and improving convenience (mobile order and delivery). McDonald’s is asking
for significant investments and has a new grading system that is designed to bolster in-restaurant execution, which may result in fewer, better franchisees in the system."
Trouble is, the people deciding on who's a "better franchisee" know very little about what
it takes to be successful in McDonald's.
McDonald's (MCD) Expected to Make Quick Changes to Value Menu - RBC
North of the border, over 70% of Tim Horton's franchisees are railing against their franchisor for bullying and intimidation up from roughly 50% in October: https://www.theglobeandmail.com/report-on-business/tim-hortons-taps-new-leader-amid-sour-franchisee-relations/article38254607/
Unfortunately that's a subscription website (darn Canadians). I'll look around to see if anyone else is reporting on Tim's.
There's a new sheriff in town get on board or get out. Top management is endorsed & supported by your elected NLC, OPNAD & regional operator leadership representatives. As long as top management or their regional corporate employees can influence or threaten your elected representatives nothing will change to benefit franchisees, the system will continue to get worse for franchisees.
Changing top management will do nothing it is the structure of the franchisee leadership or representation that needs to change until that happens your business will continue to get harder to operate, ROI on investments overall benefit the corporation.
That isn't going to change as long as using only the existing franchisee leadership structure is the only option. The franchisor set it up and will ALWAYS be able to control it. Only an independent franchisee association will work. Just look around at the other brands. Dunkin' Donuts and Burger King especially stand out as having powerful independent associations and their relationships with their franchisors are a whole lot better.
We need to return to a concept like MOOA to truly represent us.
Amen to that!
Most Operators do not know what the MOOA was. Some of you long timers need to enlighten us and tell us what you think it could do for the Operator body. This is in light of the Non Effictive NLC, OPNAD, NSLC and the Newly formed LAT.
I am sorry that we do not have Leaders in Susan S. Travis H. & Chip M. I know they think they are representing us well but I believe they just agree with whatever McD says. I want to see and hear about real negotiations and some push back.
We were Sold a PIPE Dream that OMD could handle the buying of Media & it would be cheaper. They were not prepared.
We were Sold a Crock that OpNad could move the mountain. They were not prepared.
We were Told that McD. could handle the BBV 2020 logistics and supplies needed. They are not prepared.
We were Told that we needed New Food, ran out of Tenders. They were not prepared.
We were Told that NCR could handle our needs. They were not prepared.
Seems like there is a theme here.
The Answer is Always “We are Moving Fast and Something’s will Fall Through the Cracks”
Post a Comment