Coalition of Franchisee Associations

September 29, 2018

Know-Nothings Hiring Know-Nothings

I'm sure most McDonald's Operators are numb to it but I still find it astounding that McDonald's Corp got rid of so many experienced operations people and is now out on 
the street trying to replace them with people with zero McDonald's experience and  immediately thrusting them into operations positions.

Case in point - the Chicago field office just promoted or hired six new people to be 
"Operations Associates". Two are experienced McDonald's people. The other four are 
from off the street. One from Panera, one from Starbucks, one is a former Firehouse 
Subs franchisee, and one from Berlin Packaging.

Rumor has it that the Denver Field Office is busy hiring Burger King people.

I guess if the decision makers at the top have so little experience with McDonald's they 
don't know the value of a team with deep experience.

Also, the job description for an Operations Associate is "Offer expertise in tools and 
resources for restaurant operations (shift management)".

How long does it take for a person off the street to become an operations resource for McDonald's Operators? A year? Two? Three years?

Wondering About World's Largest McDonald's Franchisee?

                                    Investment Sticky Note: Arcos Dorados Holdings

September 26, 2018

September 23, 2018

McMisleading Advertising

I recently visited a McDonald's store in a market that does not offer McDelivery. Yet, the 
P.O.P. for Glazed Chicken Tenders mentions McDelivery. What's up with that?

Takes me back to 2009 when OPNAD launched nationwide advertising for McCafe when 
less than two-thirds of the stores in the country had the product. Will OPNAD be just as premature when they advertise McDelivery?

Many Operators think this blunder hurt the success of McCafe.

LYFE Kitchen Almost DEAD

Interesting because:

1) LYFE was founded by two former McDonald's execs, Mike Roberts and Mike Donahue.

2) More proof that no matter what surveys, focus groups, and politicians say, consumers
    want tasty, filling food. Chains that don't offer such are doomed to fail.

Carlisle Corp. sells off struggling LYFE Kitchen

September 19, 2018

Who Controls the Morality of McDonald's Commercials?

This commercial is awful (and a little perverted)

Never mix grandmas with lust in ads for a family restaurant.

This McDonald's commercial is great

Good use of humor and family fun.

Since McDonald's Operators pay for McDonald's television advertising - do they no longer have any input on what's aired? 

Another Restaurant Company That No Longer Wants to Be in the Restaurant Business

Steak 'n Shake copying the Chick Fil A licensing model.

The Burger Gold Rush is On at Steak 'n Shake - QSR mag

September 17, 2018

McDonald's Shares Have Not Had a Good Year

McDonald's Shares Go Rancid - TheStreet

The above article includes a short video of Wendy's CEO talking about kiosks, mobile 
ordering, and drive-thru.

September 15, 2018

Trading Spaces

I recently talked with a former McDonald's Operator who commented that, when pulling into a McDonald's parking lot, he gets the impression that McDonald's is doing everything to keep customers from parking and dining in the restaurant. He was referring to all the signs advertising McDelivery, mobile ordering, and curbside pickup. I hadn't looked at it that way but I have noticed these initiatives appear to be eating up the parking stalls most convenient to the entrance to the restaurant.

Soon after my news-feed picked up an article from the Netherlands about a deal to install charging stations at 168 McDonald's. Most businesses tend to install these facilities in the most visible spot on the property and that's usually near the entrance, often next to the ADA required parking.

Less convenient parking sends more customers to the drive-thru and hopefully not to the competitor next door who probably has parking right in front of the door. In theory this makes it harder to justify dining room upgrades and kiosks.

September 13, 2018

Eating Habits Are Changing Faster than QSRs Can Keep Up

If only McDonald's had an attribute that made it more attractive than cooking at home.

Wait! Fast service could, but McDonald's leadership is going in the other direction. 

Fast Food Races to Meet Americans’ Growing Demand to Eat at Home - Bloomberg

September 12, 2018

September 11, 2018

Is McDonald's USA Slowing Service Benefiting Competitors?

Sonic stock surges on improved traffic

From comment below, "Of course there is nobody left in McDonald’s operations who even knows that there are lines in the cups, even if they happened to notice the lines they certainly don’t know what they are for. Even if they know what they are for they don’t know why." 

September 10, 2018

September 5, 2018

Wide Gulf Between Average and High Frequency Diners

High-frequency customers are first to notice, and first to be turned off by, slow service.

Wide Gulf Between Average, High Frequency Diners - Franchise Times

McDonald's Operator Comment of the Day

Modern and progressive would include the company “investing” into O/O’s ability to attract and retain higher quality people. Our business model DOES NOT support the salaries needed to compete with Chic, Hobby Lobby, Buccees gas stations. 

If they’re so interested in modern and progressive and attracting and retaining the best available they’re going to have to allow us to play on a level field. We just can’t offer the pay and benefits others do, no room. These “investments” like college tuition etc sound great but we are busy making note payments and paying rent/service fees and shouldering more annual expenses every year. 

I don’t recall a mebtion of 2% food cost (as a %of sales) at the gallery walk. We were unprepared for this and it isn’t getting better. 

I can’t pay $14/hr with full benefits like the guys mentioned do so we usually get those who others don’t want. Oh, and at business reviews we get to explain why our turnover is so high? Hell, I’m losing 20+yr vets who *were* lifers. They’re tired of unrealistic demands and irrational field service idiots with less experience keeping them on the defensive. 

The whole thing is broken. Leadership is running out of people to blame, they fired those who might have helped. 

They are obsessed with analytics, their own tell a pretty compelling story. 

We will see if the next bunch lives in reality, I predict these guys will soon see the door. Their own obsession will be their undoing.


September 4, 2018

Clever Diversity Prank

I'm sure if I was this restaurant's Operator I'd find this irritating but it's actually pretty funny.

This Fake Promotional Poster Hung in a McDonald’s for Over a 50 Days