February 15, 2019

McDonald's Franchisees Dump on McDelivery - Crain's

McDonald's franchisees say delivery deal with UberEats devours their profit margins
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9 comments:

Anonymous said...

The title of the article should have been, "UberEats McDonald's Lunch".

Anonymous said...

Glad this is getting coverage. UberEats has been nothing but a headache for our restaurants. I hope we end our contract. Why can't we use GrubHub? I hear it's better anyways.

Anonymous said...

GrubHub, DoorDash, Postmates, Seamless, ALL have higher customer satisfaction ratings than UberEats! Why are we with Uber? Can you say kickbacks???

Richard Adams said...

Kickbacks on everything you pay for, count on it. It's universal in franchising.
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Richard Adams said...

When McDelivery goes on OPNAD - will Uber contribute to the ad buy or do McDonald's Operator shoulder the entire expense?
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Anonymous said...

Coke subsidizes our advertising, why doesn't UberEats?

Anonymous said...

Richard, I absolutely love this blog. thank you for facilitating these conversations.

I've seen you say that before about the kickbacks. I'm an operator, BTW. I'm also rereading a book called "franchising: a trap for the trusting" it argues that the kickback structure, if undisclosed, can create potential litigation for a company. especially when it's not acting in good faith and hidden.

if this were provable, the NOA should investigate further. we need more advocacy for operators.... OR the Noa's independent counsel should review for our advocacy. times are a changing.... we need to protect ourselves.

Richard Adams said...

While the kickback issue could be a long term goal for the NOA they need short term accomplishments to get McDonald's USA back on the road to recovery and to build Operator participation.

Getting into the internal workings of McDonald's and their vendors would take years of discovery and legal wrangling. Remember, most McDonald's vendors are privately held companies who have no reason to open their books for anyone.

It's like our decades of discussion about Golden Mac and System Capital Corp. being owned by a group of McDonald's vendors who leases land to McDonald's who sublets it to McDonald's Operators. It's all private and non-public.
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Anonymous said...

The problem with the Uber economics is real and needs to be solved. But we as a franchisee control the Uber menu pricing on RFM. There is 3 options on RFM eat in/ eat out and other. Other is the Uber pricing. I have personally priced all my Uber menu prices 15-20% above my regular menu. (11 Stores in a metropolitan area) Uber is 4% of my total sales.