January 11, 2019

Or did McDonald’s Operators "Take" More Media Control?

"The local media review is the latest sign that McDonald’s is taking steps to address 
franchisee concerns amid mounting tension with the company’s operator community."

McDonald’s to give markets more media control
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13 comments:

Anonymous said...

Media control means nothing as long as Chicago still controls the freebie giveaways on the mobile app.


Take back McDonalds-JOIN the NOA!

Anonymous said...

Where is Chris K in all of this he should be out there addressing these concerns, he has gone silent. I was looking forward to him starting off the year with him walking around the office licking his ice cream cone letting us know why I am almost going bankrupt. More debt than I had in the last 30 years and the lowest cash flow in the last 10 years. A stellar job they are doing they will all be gone in a few years leaving operators and the company with hundreds of millions in debt.

Anonymous said...

I think that is correct. Chris K. is the President of MCD USA and it is he who we should be hearing from. Currently he has no credibility and will never have any unless he steps out from behind the curtain and demonstrates some leadership. I don't think he has the "know how" or the ability. His poor results has him running scared. Easterbrook needs to publicly support him or move him out. The present situation is untenable and is only going to get worse from the operator point of view. However, if the stock price remains strong they may not care. The operators best opportunity for a solution is to put our faith in the NOA, pay our dues and follow their recommendations.

Anonymous said...

Low cash flow, higher operating costs, more debt. Exactly why the Corp is re-franchising most of their restaurants. A win-win, no brainer for them, but bad for the O/O. Chris K must be very pleased with himself.

Anonymous said...

Simply put Crooked Chris K and Greedy Easterbrook are DESTROYING the system !

Anonymous said...

The NFLA is nothing but a warmed over version of the current NLC.It will be just as INEFFECTIVE..


MMGA

Richard Adams said...

You guys are giving Chris K too much importance. BBV2020 and all of the other changes made to McDonald's USA are not his plan nor the CEO, nor the board of directors. It's a strategy launched by the owners of Burger King 6 or 7 years ago. 1) Strip the corporate side back to nothing 2) Get out of the restaurant business by selling most company stores. 3)Reduce services to franchisees 4) Centralize control of marketing.

This has become the industry standard for franchised chains. This is the template Wall Street expects McDonald's to follow.

Now, at McDonald's, it's been implemented clumsily and ineptly but it's not Chris K's plan, he's just the hatchet man. When he's gone the plan will still be the plan, unless McDonald's Operators dismantle the plan.
.

Anonymous said...

I agree the plan needs to be dismantled. However, I share no sympathy to the hatred of the current McDonald’s executive teams! These are people that are deliberately ruining people’s lives in the owner community by drowning us in debt and unrealistic execution expectations. Debt that is going to be hard to recover from not only in the short term but the long term as well. People that know the harm they are causing but continue at their own gain. People that feel they are superior in knowledge and can justify their actions amongst each other to be able to sleep at night. I believe it is common knowledge to know that Wall Street is cut throat but now it has caused a civil war amongst ourselves to determine our brands future. It doesn’t matter which company(s) started this expectation of how franchisors perform in the current marketplace...there are many that are thriving without the same approach. It matters what type of PEOPLE we have leading all of us in a wise and financially beneficial way that benefits everyone under the brand.

Anonymous said...

We are irrelevant to Steve E and Chris K. Their stock options are waaaaay in the money by many millions of $$$$$$ and the Wall St analysts are loving everything that they say. The only people who care less about Operators than Steve E and Chris K are the Wall St gang. That who management really works for.

It is all about stock price, stock options, buybacks, raising rent and service fees, etc and no longer about burgers and fries.

Anonymous said...

This will never end until Crooked Chris and Stock Price Steve have been removed. And that will ONLY happen if :

The stock price crashes,OR

YOU join the NOA !!! ($200 is cheap insurance !)
nationalownersassociation.com

Anonymous said...

Local markets have more control but get no more money. So like everything else we have to do MORE with LESS resources.

Anonymous said...

I'm a next gen operator, it's saddening to grow up in a brand, see how much it means to our communities, and see how it's provided for our family, and see the direction we're heading....

MCD upper management is out of touch with real life in the restaurants. Take a look at the videos online about mcd workers fighting... fighting for $15, fighting their own teams, fighting employees -- and we are constantly making their jobs harder. What don't we understand about simplification?? CUT THE MENU BY 50% Don't keep adding products, don't keep adding procedures ,don't keep adding equipment -- McDonald's needs to choose this day whom you will serve... everyone or no one. we can't serve everyone at 100% satisfaction. McDonald's needs to focus on operator feedback and make meaningful changes.

For what it's worth, this bbv2020 plan was in the works prior to Chris K and Easterbrook. They have just kept it going. the brand eroded over the last 5-10 years where managers in the company acted unfairly towards operators... Bullying tactics, impact, holding next gen's hostage in the program for years, zero transparency, IPUR for dirt in the corner.... BS. All for what??? a hope that the consultant can get promoted to FSM.... and maybe director. at the expense for families who give their lives to this brand. What a joke and travesty. we've had the "swagger" beaten out of us. We're only as good as our next customer and it's best to walk humbly.

Chris K inherited this crap, in my opinion, HOWEVER, he has a chance to make it right. Own up to it, recognize the problem and make changes that aren't "compromises." I hope he will respond in such a manner.

Anonymous said...

Good point. The entrenched MCD bureaucracy over the years took authority over many important aspects of the MCD system. They, IMO, were not sincere about making MCD better but in their own power and promotions. They developed many weapons to use against the operators and they would use them for no good business reason. MCD had/has its own "deep state". that is one good thing Easterbrook did was to break up these fiefdoms but still has work to do in this area. These people spent millions upon millions of dollars on their own programs that had nothing to do with strengthening the business or selling product. To keep their jobs they built hundreds of stores that should have never been built. They created their own internal "networks" and spent money on meetings, travel, adopting policies for their own good and of no benefit to the company or the system. Many worked to dismantle the "impact" policy. They did not attempt to hide their envy of the operators independence and worked diligently to bring the operators under more and more control of various groups. It is still bad but nothing like it was. The operators need to educate themselves on the limits of company power in the franchise agreement and in common law. The company has done things as a matter of policy that was never permitted in the franchise agreement and got away with it because of bullying tactics and knowing that no one operator could afford to sue them. I believe that the NOA will bring these facts to their attention and force necessary change through established channels. There is a lot of work to be done to MMGA.