So OPNAD is to vote on advertising McDelivery - this is McCafe all over again.
In the spring of 2009 OPNAD began national advertising of McCafe when only about two-thirds of the stores had the product. A lot of customers were disappointed.
On the October call with analysts, management claimed that by the end of the year 9,000
U.S. stores would have McDelivery. Again, that's about two-thirds of the 14,000 stores.
Deja vu all over again.
This a particularly dicey problem since some stores will never have McDelivery.
And when OPNAD wastes money like this national sales suffer. The year 2009 was going
along pretty well with positive same-store sales until McCafe and then sales flattened out. That's bound to happen when advertising a product millions of customers can't access.
Operators will be able to tell a lot about their OPNAD reps when this vote is taken.
OPNAD reps who vote for this advertising will be voting to force their fellow Operators to waste their valuable OPNAD dollars to produce unprofitable sales (unprofitable for the Operator that is).
There's another reason corporate jumps the gun on these system changes - it helps the share price. Investors and analysts have been hearing about McDelivery for two years but they'll be excited when they see McDelivery commercials on national television broadcasts. All paid for by McDonald's Operators.
It's not really like McCafe in one important respect: any consumer in the USA could buy McCafe products in any grocery store, CVS, Walgreens or any other retail outlet that isn't a McDonalds restaurant.
Ad dollars spending big to compete against the restaurants. What a great management team?!?!
Get to Dallas.
I was at a Co-Op meeting when we were told that McCafe k-cups would be sold in grocery stores,etc. Only two operators(including myself),out of about 30 who were there, objected. This was the company and OPNAD competing against operator owned stores. No doubt about it. The Regional VP told us that McCafe must compete with Starbucks in grocery stores(even though they do not have franchises) and to basically sit down and shut-up as it was a done deal. Again, fraidie-cat operators reaped what they sowed.
I was told when we did McCafe we would become a beverage destination and was required to purchase refrigerators for bottled drinks when I refused they told me I just do not get it we are going to be selling so many bottled drinks the refrigerated cabinets will be needed, I explained to my FSM at the time the whole distribution problem with that and the bottlers rights to distribute bottled drinks and they just looked at me like I was looney. Today we sell no bottled beverages to go and I have alot of wall furniture. But they always no better at least how to spend other peoples money.
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