That headline is wrong Mr. Maze. It should read "McDonald's begins to buckle under pressure from franchisees on delivery profits".
The original Uber deal illustrates that the people in charge of McDonald's USA still don't understand the McDonald's business and certainly don't understand franchising..
I think the greedy people in charge of Mcd USA do understand franchising. They understand it very well. They simply do not care about operators financial viability. They are only concerned about lining their own pockets. We are useful idiots to them. They inherited a successful system and have stripped it down to a one sided profit machine in favor of stock price and corporate profits. The only reason the stock price is as high as it is today is because of all the reinvestment money that we as the operator community have injected into their buildings/ technology/ initiatives. That is money that they would not have been able to come up on their own that would have been acceptable to Wall Street to take a gamble on. If nothing changes, which I believe it won’t, it is just a matter of time before operators will go bankrupt, then be forced to sell their stores to giant owner organizations. Even then the giant organizations won’t be able to continue to survive McDonald’s modern day Illegal PRICE FIXING discounting tactics. The system will ultimately be nothing comparable to the great company it once was. I hope Steve and Chris read this blog. And I hope their lives end up mirroring the same results as to the damage they are inflicting on the great hard working people they are taking advantage of. I hope they change their course. KARMA. MMGA
Let's just agree there are two kinds of franchising - There's "Growth" franchising where the franchise system is growing and is entrepreneurial. Corporate management knows that to keep the system growing the franchisees must be successful and motivated.Then there's "Ripe" franchising where the growth has stopped and all corporate can do is strip mine the corporate assets. In this phase, it doesn't really matter what happens to the franchisees.What I was trying to say was McDonald's management does not understand the "growth" or the entrepreneurial side of franchising.Kind of like the old political bumper sticker that said, "This country is being run by people who could not have built it"..
The problem with MCD management changing course to help franchise owners' bottom lines is that they don't serve owners. They serve stockholders, both in their personal desires to boost the value of their stock options and because of their LEGAL DUTY to put shareholders first. Always remember their legal fiduciary duty and how they get paid.It's going to get worse before it gets better if it ever does get better.
When Donkeys FLY!
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