Coalition of Franchisee Associations

March 28, 2019

Minimum Wage - Minimum Thought

I think I've absorbed most of the news on McDonald's Corp's announcement to the 
National Restaurant Association on the minimum wage issue. But none of that news
explains why this change in policy had to be made into such a spectacle.

First, McDonald's relationship with the NRA was not a public issue. I've never seen 
it in the press, never been asked about it by a reporter or an analyst. Never heard a
McDonald's Operator mention it. The bizarre stuff the unions send out or post online 
doesn't mention the issue. If it was a public issue only a few people knew about it.

Secondly, it appears that this could have been handled with a private phone call between
McDonald's Corp. and someone at the restaurant association. Instead, someone at 
corporate made the decision to issue a manifesto and make a public splash.

Thirdly, this hands organized labor a moral victory and they are already asking for more

But there's a reason this was handled so poorly...

The corporate culture at McDonald's has been taken over by employees with liberal 
political leanings. One of the traits of liberals is they think that almost everyone 
agrees with liberals and the small percentage of the population who don't agree with 
liberals are best ignored. 

And being a liberal is a way of life. Their political views can't be separated from their 
personal and business lives. This makes it very difficult to make good decisions.

Which brings us to McDonald's VP Genna Gent, the signatory of the unnecessary letter.
Who is she?

She's been with McDonald's for two years. Before McDonald's she did political work for 
the American Beverage Association and before that she was with the State of Michigan 
for ten years as communications director. For most of those years, she worked for uber-
liberal Governor Jennifer Granholm. 

Anyone familiar with Governor Granholm would know that she's the type of political 
leader who wants everyone around her to share her uber-liberal political views. Just like Robert Gibbs had to share Barrack Obama's views.

Like I said, liberals have trouble making good decisions and this minimum wage debacle 
proves it.


Anonymous said...

Richard, I couldn't agree more. Well said!

one additional comment -- the letter that was written was nonsense. I'm really amazed at the ambiguity in it. I'm paraphrasing, but in general said, let me be clear " we won't lobby.... but we are looking forward to continued discussion with lawmakers. and to be a part of the solution.

Modern English, Progressive management

Richard Adams said...

Liberals don't like to be called liberals, they prefer "progressive".
McDonald's management set out to create a "modern progressive burger company".
It appears the word "progressive" has a double meaning in the McDonald's slogan.

Anonymous said...

Disastrous political stupidity. You can never appease the left, even with complete, abject surrender. It is and never will be enough.

This is a boneheaded decision. As will be publicly proved.

ThanksMCD management for screwing the rest of the IFA members and their franchisees along with your own.

Anonymous said...

McDonald’s decision not to fight the minimum wage increase is giving new fire to the national minimum wage debate, an issue that has continued to build momentum since the last federal minimum wage increase to $7.25 in 2009. While a number of states have enacted legislation increasing wages in that period, bi-partisan gridlock has prevented the advancement of any federal legislation, with public perception of GOP policymakers as pro-business in opposition to pro-consumer Democratic policymakers. Citing Politico’s report on McDonald’s statement to the National Restaurant Association, MSNBC asks the question, “what if those business stop asking for protection?” Their answer: “when McDonald’s drops its opposition to a minimum wage increase, and the U.S. Chamber of Commerce signals a willingness to deal, it suggests the debate is changing in ways that are likely to produce results,” even if it is unlikely those results will be realized under the current administration.

Anonymous said...

Every 25 cent increase in the minimum wage impacts bottom line by about 1%. Stop contributing to the McDonald's PAC! Remember, "Republican" President George W. Bush approved the last increase in the Federal minimum wage in 2007 to $7.25/hour by 2009. It took 70 years to increase the minimum wage to $7.25/hour, but now it may take only 15 years to get it to $15.00/hour. It will get even worse because the minimum wage may also be indexed to inflation increasing it every year like in California after 2022.

Anonymous said...

Who saw the "Stock Price Steve Shorts Owners" shirt? Incredible!


Anonymous said...

Why would they fight to hold minimum wage down? Think about it, they have robbed all the profits and cash from the system, how do you increase top line sales, force average check increase in our stores by watching minimum wage increase and the natural increase of check by us trying to survive. Win Win for MHQ!

Anonymous said...

Higher wages, higher prices, higher top line fees and rents to MCD.

It's just like every other decision that they have made, like adding delivery fees into the sales number on which fees and rents are piled.

Why is anyone surprised by this. It's just another page out of the same playbook.