The SAM wall is unnecessary and downright dangerous! If the back of the house cant see the front counter it makes it IMPOSSIBLE to trip silent alarms or panic buttons. And we will NOT sell one more Hamburger with it! Furthermore, Chris K told an operator I know that the wall was intended to shield the eventual introduction of robotics to our kitchens, in spite of the fact that a robot for McDonalds is no where near available yet. They are worried about offending the public when they replace humans with robots! Lets not worry about robots until they are actually AVAILABLE. The recent email from the NLC was a total cave in to MCD. The NLC does NOT represent the best interests of the operators!MMGA!Join the NOA !!!
BB2020 and EOTF are a total failure. Our debt is crushing and we are not getting the returns required to pay for MRPs. TC increases and sales increases are non existent. And the MRPs are FAR MORE expensive than MCD indicated at the Gallery Walks. Also the projects are far longer time wise than projected, killing cash flow! WHY DID THE NLC GO ALONG WITH THIS??Also, the Corp cutting partnering from 55% to 40% after 2020 is absurd and will only put more financial pressures on the Operators for an item that was FORCED on US. The Partnership is DEAD.
Will McDonalds be liable for injuries caused by the security problems of SAM walls they forced on us? Could be an interesting LAWSUIT !
Any Operator who is not a dues paying member of the NOA is allowing MCD to abuse (rob) you and enrich themselves. The NLC was and is not representing Operators. MCD is stealing money from YOUR checkbook! Join the NOA, its CHEAP INSURANCE.
Robotics? Automation will only work in a simple food operation. With all of the customization options and more complicated products McDonald's kitchens are moving in the opposite. direction.As far as turning off customers - The public would be no more offended by robotics at McDonald's than they are by renting a movie at a Redbox. It's a non-issue.
OH GREAT. MORE construction to further send my customers over to my competition.
Jaun Samour needs to just quit talking to and for us. He, Susan Singleton and the Whole NLC bunch have driven the Operator’s car over a Cliff. I think it is a good time for ALL of them to work on their own restaurants and LEAVE mine alone. They also need to leave the negotiations to people more qualified to advocate for our position as Owners and not the McDonald`s position. I am SO offended by his statements, he is NOT my ADVOCATE. He needs to Let the newly elected representatives of the NFLA, which many are members of the NOA do the deciding. After all, he has about as much chance of getting re-elected to the Chairmanship of the NFLA, as a Vegen has at the National Cattlemen Association. I have the Sam Wall in 4 Restaurants and the B-dap Cell in 3, each of these cost me extra labor each day, as well as extra construction Cost. Just Shaking my head, what in the HELL where they thinking making us do this. Finally I believe, Steve Easterbrook & Chris K love being in charge of a Fortune 500 Company but hate it is McDonald’s. That is why they want to rid us of our Legacy and Heritage. So as far as I am concern both can go today.
This is for anyone that was on the NLC that might be on the NFLA. Please sit down and keep quite. Each of you have a hand in this mess. How you ask??1). Did you stand up and voice your concern when it was unpopular on BBV 2020? I never Heard you. 2). Did you share those concerns at a ROA, the Gallery walk or some other event? I never Saw you. 3). Did you email your constituents or the Owner Operator body of your concerns? I never Read anything from you. Why should we believe you have a passion Now to be our advocate?Why should we believe you have a Spine Now to stand and defend us?It is, because it has become popular. It is because 2 Owners, Blake & Mark put it ALL on the line and stood up for ME. Thank You Blake & Mark
If MCD thinks this is so important and necessary why don't they pay for it. It's their buildings. Why do they just now say it has to do with future robots. Does anyone believe that? Why are we now hearing about robots? Are there any stores anywhere testing robots. How much will robots cost? How much M&R will be required by robots? Is there a restaurant anywhere outside of MCD using robots? His statement makes it an absolute must not to build the Sam Wall. How many hundreds of thousands of dollars will the "REQUIRED" robot package cost. Have we been informed about this? The NOA is right. Don't even consider the Sam Wall unless the entire purpose with costs are explained. About the time robots may become feasible all of the shoddy materials being used in the MRP's will need replacing. It would be better if operators drove down the street throwing hundred dollar bills out the window. These guys have become completely out of touch with reality.
^i never thought about it that way. But yes, Since they do own the building we should demand that that part of the upgrade be 100% Corp cost. After all it is leasehold “improvement” to them!
McD Corp paying 100% of the cost is not the answer as they will recoup their return by raising your rent at the end of your lease remember they are the landlord and if they do not receive a return they will get it one way or another. We have to do investments that have proven solid returns; SAM does not do that. Yes we need to remodel our restaurants and stay relevant or we will have an old tired brand but the current costs are ridiculous for a quick service restaurant. The NLC has been a joke the last 8 years there are a few good O/O's on the NLC but they are far and few between.Not sure how we will ever do robots we cannot even get current technology to work, kiosks are a joke, software is an embarrassment, mobile order is where our time & energy should be, RNT is barely an improvement & speed over previous equipment at a cost of $8000+ per restaurant the costs of all these initiatives that hardly have a return cause so much strain on everyday reinvestments we have to make as a business owner, HVAC units, parking lots, equipment. I have some great looking SAM walls but broken HVAC units, bad looking parking lots and landscaping. Let us just be a clean, good repair, simple decor, fast, good food quick service restaurant.
On top of this excellent post about MCD paying for walls in its own buildings, Operatprs would have to depreciate the cost of a SAM wall over 391/2 years, as the new tax law left restaurant acclelerated depreciation out of the law due to a typo. I kid you not. This is even worse than the Sam wall alone.Anybody think that the SAM wall will last 391/2 years?Of course MCD will get its "investment" into its own building through increased rent starting day one. Would MCD be willing to spread its recapture of its 55%/40% "contribution over that same 391/2 years that it is forcing Owner Operators to do, all while paying jacked up rents and service fees?Has anyone at NLC even asked? Do they not see this as an issue? I'm betting NOA has crunched the numbers.
So if you don't build the "wall", will it be included in McDonald's NRBES? Then when you sell your store, will the cost of the wall that you did not build be subtracted from the sale price to the new owner?? Has anyone asked that question of the NOA when they tell you not sign the deal?? Just asking.
"Will the cost of the wall that you did not build be subtracted from the sale price to the new owner?"First of all, if you are selling then this is not your fight. It is the fight for the O/Os that intend to continue making a living in the system. Build lyour wall and serve your personal agenda, don't pretend that it is serving owners that plan to continue in the McFamily and rebuild it to MMGA.There's nothing wrong with selling out of this mess, but that isn't what NOA has its sights on. As Mark said in Tampa, " a good time to sel is not a good place to be."If Chris K messes with your own contract on your way out, that is a different issue and you should sue if they steal your value. However if NOA iss successful, there won't be a deficiency to use as a sales price reduction. Or you can just disgorge your own value. Your choice. I choose to fight to keep my family's own money.
I think the way it works is that MCD would not approve the sale unless the new owner agreed to build it. Then the seller and buyer would work it out between themselves.
The "work it out between themselves" usually would be a reduction in the sales price of the store to account for the cost of NRBES items to the buyer. So advising the operators not to sign the wall deal may be helping current cash flow, but reducing future equity in the business, and possible sale-ability. Am I missing something here??
If the new owner agrees to build it, he will reduce his or her offer price. The SAM wall is stealing equity from a seller if MCD forces a buyer to spendextra money to buy a restaurant. It's pretty simple.It's a money grab from a seller.
So is the NOA going to keep fighting this? Or did Juan waive the white flag?IMO - This was McD doubling down to see if the NOA has teeth.
So the bottom line is McDonald's will get their wall, one way or the other. From either the current owner, or the buyer when he/she sells. Am I correct?? If so, wouldn't it be less expensive for all to build the wall now if the Company is paying for part of the investment? Playing devils advocate.
It would be better if the NOA gets MCD to abandon the stupid SAM Wall because it is operationally inefficient and a waste of money. Even if MCD agreed to pay for the SAM Wall it is a bad idea.Allowing MCD to steal a slice of a store's sale proceeds isn't a solution.Also, if you aren't selling, like 99% of the O/Os are not, no one should build the SAM Wall.
This would not necessarily hurt the seller. The seller, if it were me, would simply say if you want the store this is the price, you build your own wall. Most buyers are eager to grow an additional $15,000.00 to $20,000.00 wouldn't stop a sale in my opinion.
Come on, the NLC cave? To assert they'd cave, you'd have to assert they had a structure (back bone) to begin with.This is the leadership of the approved (sanctioned) operator leadership. Caved... that's a laugh. A known joke here in the Denver metro area. Thank God for the NOA. Now pray the NOA acts before it's too late.Discounting is as big a threat, as are these remodels. Promotion is nearing 10% with GMA and National giveaways. Operators need to pay increased min wage ($11.10), $12.00 by 2020. Time for serious leaders and sound resolution....fast!
EVERYONE NEEDS TO KNOW WHEN THE NLC ELECTIONS WILL TAKE PLACE.
NFLA elections will be coming up..... But not everyone has a vote. talk to your NFLA rep per coop. Tell them to ask entire coop who they want elected and not simply vote on their own preference.
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