February 26, 2019

McDonald's Operator Comment of the Week (So Far)

Delivery has to be a balance, and profitability is an issue. However, so is QUALITY - and 
the chargebacks to restaurants because a product isn't meeting quality and accuracy - 
with no ability for the restaurant to challenge that model is simply dumb. Add the complexities of MCD negotiated fees, service charges, etc. - you don't have to be a math professor to realize that McDelivery is a GOLD MINE! Where MCD gets the top line SALES (GOLD) - leaving 
the operator with what's left - the loss (or the SHAFT)

Just like giving capital with $1 ANY SIZE DRINK - just "because". When the closest competitor small drink is $1.89 and their Large is over 2.89. Or $2 McCafe to build the supermarket sales - as the competition is selling for closer to $5

McDelivery worked in Asian markets due to population densities that far exceed even the largest US cities of NYC and LA. Completely different model here in the United States - even 
if these larger markets can get close to the demographics. Still, wasn't that a KROCISM - to Local Store Market (LSM) those sorts of ideas? How is what works in NYC good for a highway market in Kansas? Its not like Asia, where its good in HONG KONG because there isn't a McDonald's outside the limits to be impacted with the expectation of delivery. Unlike the USA, where restaurant saturation fills even some of the most remote travel areas in the country.

Looking to build sales - simplify the damn menu to speed service. Declare MFY dead, as the current production engine is dead in its ability to resurrect service times. How dumb is the system simplification focus, when it cant even ELIMINATE the McDouble - a made up sandwich designed to address food cost when the Double Cheese was removed from the $1 menu?

You just have to sit back and scratch your head at the low hanging fruit - but wasting $$$ and synergy on far fetched projects... or taking years to develop simple projects... like digital food safety.
.

4 comments:

Anonymous said...

I hope that every MCD Operator is aware that CEO Steve Easterbrook apparently has so much free time on his hands,(ignoring all our MCD problems),that he has taken a seat on the Board of Directors at WalMart. Glad to see he is giving 110% of his efforts to us./(sarc)




MMGA

Anonymous said...

After returning from BLS last week I used the last couple of days to reflect on what I learned. First, actions have consequences, or should I say lack of actions, as the past operator leadership learned this week. Were these past leadership operators malice or corrupt in their decision making of the past, NO. Did they fall victim to a con-man whose leader is a European Socialist in actions and words, YES. The game changed dramatically, and no-one picked up on the clues until it was too late, and we signed "The Letter". Now we all look back and say, "Why didn't we know what we were signing, why didn't our NLC, LAT, SET or any of several diversity groups have this document reviewed?" The answer is simple we believed in a system that used to still have three legs to the stool, even if our leg was shorter at times. We collectively believed that even though we were all threatened at the Gallery Walk that it would be okay because the Corporation cared about us.

I was told last week that the NLC attorney did review the letter, the same NLC attorney whose check comes from corporate. I watched an exchange with this attorney in one of the Operator Only sections where he was made to look like a fool by an operator who challenged his "Comprehensive Review" of the new NFLA bylaws. The section of the by-laws was very clear as it related to voting and the attorney, apparently without reading our by-laws told the group an opinion that it was completely opposite of what the by-laws stated. Any wonder we weren't warned about the problems with "The Letter"?

I also learned that corporate leadership believe that the operators are a bunch of fools. I watched in shock the "Morgan & Spero" hour on the stage were they had fun acting like they never talked before about the business. The scripted exchange was nothing short of insulting to the audience of owner operators. At one point "Halfwit Morgan" insulted the entire room when she clarified a point by saying, "This is for all the non-operations people in the room". The only "non-operations" people in the room are the folks that call MHQ home, everyone of them!

Times are changing and I believe that the formation of the NOA and the elections of last week are the nail in the coffin for Pajama Boys time at McDonald's. His attitude last week was that of the "Honey Badger, "He Doesn't give a SH**!" He answered questions with distane for the operators, at one point saying he would "Tear-up the Letter", yeah right. He was always a short time distraction for the company, the "Hitman" that Steve wanted to set the US operations into chaos. Now that we have new operator leadership and the NOA aligned with the wishes of the collective operator base. It's time for Steve to pull the ripcord on Chris' Golden Parachute. If Steve doesn't and we continue to be at odds with the company the NOA and Operator Leadership will carve a path for other "Global" operators to form and create their versions of the NOA. Steve is not happy with the "US Operators" because of these issues. Sorry Steve Chris was your hire. Thank you Howard Penny for finally talking about Steve's terrible hire.

MMGA

Anonymous said...

This is only the start! The roads will become rockier, more difficult to navigate in the coming years. We'll see what happens with some too big to fail operators down the road.

Anonymous said...

Just seen McCafe Frappes and Mochas in the Supermarket. 13 oz (small) but they arent selling at $2. What idiots are operators to give away product and discounts to promote this.