September 19, 2018

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 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 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