February 1, 2019

Forbes - McDonald’s CEO Not Worried About Franchisee Relationship

Franchise News Briefs: McDonald’s CEO Not Worried About Franchisee Relationship

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15 comments:

Anonymous said...

IGNORE US AT YOUR PERIL STOCK PRICE STEVE. PS - AS A PROUD DUES PAYING MEMBER OF THE NOA , Please dont call me owner operator anymore. I am an OWNER and I will be here LONG AFTER YOU ARE GONE!

Anonymous said...

Does that mean that Easterbrook agree with the operators. It's the only conclusion I can come up with if he is not worried about the relationship. Easterbrook has a lot more to worry about on the global map. Has Chris K. and Easterbrook been engaged in any conversation about all of this we can hear or read?

Anonymous said...

Does that mean that Easterbrook agrees with the operators? It's the only conclusion I can come up with if he is not worried about the relationship. Easterbrook has a lot more to worry about on the global map. Has Chris K. and Easterbrook been engaged in any conversation about all of this we can hear or read?

Anonymous said...

Why should he be worried they control the franchisees, they might toss us a few bones but they will continue to erode average restaurant cash flow. McDonald's has a long line of O/O's and people that will buy you out if you don't like it. NOA is the best thing to come along in a long time to help preserve franchisee long-term restaurant cash flow and equity but they will continue to drive their agenda for years to come.

Anonymous said...

To the above ‘OWNER’ - you should get better at the ‘Operator’ part - that’s the part that makes YOU money!

Richard Adams said...

"McDonald's has a long line of O/O's and people that will buy you out if you don't like it."

That might have been the case 10 years ago but it doesn't appear to be the case today.
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Anonymous said...

There may be a long line of people who will buy your zero cash flow restaurant out, but there are zero banks in the line that pays for it.

Smarten up. Join NOA. Numbers simply don't lie but liars do.

Anonymous said...


"McDonald's has a long line of O/O's and people that will buy you out if you don't like it."

Sure, but if you are making tiny money, your wont get a decent sale price for your restaurant. Not a good place to be.

Anonymous said...

The NOA now has nearly 900 dues paying operators representing over 6,000 stores. Insure your future

JOIN the NOA
MMGA

Anonymous said...

ANYONE who thinks that MCD Corporate pajama boys don't monitor and post pro Corp agendas needs to buy a clue! ( like the fifth comment here)


Take back our future-MMGA


JOIN the NOA !!!!!

Anonymous said...

There are plenty of Operators that are willing and able to expand and are searching for growth. However, they are not going to pay more than the store is worth based upon CPA valuation. When these operators find a store where the price does not exceed it professional valuation they will buy it. They will take a strong equity position of about 40%. Half of their 60% loan will be taken with a variable rate so that they can prepay it. Then they will take a near manic obsession with PAC. The main ingredients of PAC is Food cost, labor and product yields. I don't think there is a MCD in America that does not have a waste in man hours and where unrecorded food waste is higher than what the operator thinks it is. The average fry yield, I'm told, is 300 but with direct focus a 500 is achievable. If an operator can increase PAC by three percent it makes debt service easier and pre debt cash flow increases increasing store values. I admit that it is easier said then done but that is what buyers are looking to do. If an operator wants to sell a store it has to be priced according it's documented value. Like anything else. The problem is that many operators think stores are worth more than they really are. Once your pre debt cash flow begins to soften big valuation issues are on the horizon. The days of paying too much for stores are over.

Anonymous said...

What is a "Corp. Pajama Boy?" I'm not familiar with the term.

Anonymous said...

Pajama Boys don't eat burgers. Or anything else that we sell.

Anonymous said...

McDonald's is its restaurants .

Over 90% of those restaurants lay in the hands of independent franchise owners.

Franchise Owners don't need to take over the NLC or any other team. They need to ensure the process is fair and consistent. Every member, and I mean every member, of the current NLC, OPNAD ROA, SET has been hand picked by their regional leadership for their willingness to defend the "FED" position - all the way down to the "technology board".

OPNAD votes are a joke. You attend a meeting and EVERYONE, and I mean everyone, is AGAINST a certain promotion - yet - it passed the OPNAD System vote. How? Ever see the tallies? Is there an outside system monitoring the tallies? Your told its passed - and everyone, and I mean EVERYONE - shrugs and says "DAMN" - and moves on.

Have to trust the system they say - and who is that? Why is it only those "selected" to fill these positions, seem to be the PERFERED OPERATOR, that gets all the stores. You then sit in a SEED store with these ASSHATS, and they don't have a clue... about anything...operations, financials, Cost Benefits... anything. They spout out a line fed to them, like 'Ole Faithful at Yellowstone.

Sorry, but the upcoming elections should have only one set of leadership - and those should of been every NOA founder that stuck their neck out on the line for the betterment of the brand. Without that initial level of dedicated leadership - all we can expect is the same 'ole, same 'ole - as the system has many of the same failed leaders REAPPLYING. And you can be damn sure the COOP / REGIONAL / whatever the name is this week LEADERSHIP, will be trolling the vote tallies - and miraculously, your all due a Business Review in the coming months.

Anonymous said...

Well said about the upcoming elections. I'm not sure if everyone is aware, but each coop only gets one vote. That's the NFLA representative per coop. Call that individual immediately and tell them to represent the ENTIRE coop body. Not just their own opinions. NOA board members deserve to be in the NFLA spot. Not people from the previous regime.

Also, it should NOT be a private ballot to ensure accuracy.

MMGA -- Thanks NOA!