As we've discussed before, there are so many restaurants trying to get into delivery and so many delivery services that the total sales number will be huge but the individual restaurants will have a tough time profiting from delivery.
"but often the investors operate with a generic playbook: avoid capital spending, refranchise restaurants and sell off assets. Fear hangs over the decision-making process in most public companies as boards seek to avoid becoming a target”
I spent much of last week talking with reporters, analysts, and McDonald's Operators about the problems created for franchisees by the never ending discounting in the QSR industry. Then, over the weekend, I stopped at a McDonald's drive-thru. Pulling into the inside lane I was confronted with a back lit display box mounted six or eight feet in front of the full menu board. The message in the sign was essentially the same as this banner to the right >. Riddle me this - you've got me in your drive-thru lane, I'm not going anywhere, why are you suggesting I order your cheapest food? Wouldn't an Operator prefer I spend a few more bucks on a signature sandwich meal? I remember when increasing the average check was a good thing. .