Coalition of Franchisee Associations

May 31, 2019

Pizza Hut works to fix its asset problem

While pizza delivery seems to work it's unknown if delivered burgers and fries will work. 

But, it is interesting that both pizza and hamburger consumers are less and less interested 
in dining in the restaurant. Whatever happened to the idea that every McDonald's could 
be turned into a Starbucks?

Pizza Hut works to fix its asset problem

May 29, 2019

Beyond Meat's Stock Could Jump 30%

A deal with McDonald's would be a real windfall for Beyond Meat shareholders. I guess
the decision will depend on how deeply McDonald's executives are invested in BYND.

It's been a busy week for Beyond Meat but as far as I can tell no reporter or analyst has
looked into whether a very high food cost product would actually fit on a QSR menu. All
the coverage is about keeping the wacko vegans happy.

Two great ways to waste the OPNAD budget, first, advertise McDelivery. Next, advertise 
fake meat.

Beyond Meat's stock could jump 30% if it partners with McDonald's, analyst says

May 28, 2019

This Was Not a Test, It Was a Stunt

BK says St. Louis traffic up 18.5%? Easy to do if you give away enough food and do a market-wide coupon blitz.

Impossible Whopper boosted BK’s foot traffic by double digits

Doing Without Delivery

"But more companies are shifting their focus to profitability, getting bolder in their 
 demands in the process."

Why a big Applebee's franchisee may ditch delivery

May 21, 2019

May 20, 2019

More on JACK DT Speed

While franchisees are calling for his ouster CEO Comma sounds pretty smart in this article.

"Comma seemed to suggest that remodeling business for dine-in sales is not efficient, given that the vast majority of customers take their food with them.
“Not only do 70% of our guests come to the drive-thru, but half of the remaining 30% that go into the dining room are takeout customers,” Comma said."
Jack in the Box focuses on speed

Wasting OPNAD $$$ ?

McDelivery commercial - delivers happy when you're feeling all those other emotions

May 16, 2019

JACK Not For Sale - Will Improve Service

"The overall objectives of these efforts are to make training and execution easier on our crews, provide faster and more consistent service for our guests and deliver more sales and profits for all operators. By the end of 2021, we’re targeting a one-minute improvement in average service time, while maintaining quality, accuracy and friendliness ratings." - JIB CEO

Sorry bud, you're about 30 years late with that objective.

Jack In The Box takes itself off the market - Restaurant Business 

BK Parent to Grow Too Fast - Will Fall Down - Go Boom

BK parent company RBI unveils global growth strategy

May 15, 2019

Fortune on Uber Eats IPO

"One key to Uber Eats success may be the help it gets from its partners, some of the nation’s largest food brands including McDonalds, Subway, and Starbucks, all of 
which boost the number of transactions with smaller, less expensive orders."

Uber Eats Could Help Fuel a Post-IPO Stock Price Rebound

Wouldn't it be interesting to know how many McDonald's corporate employees are shareholders in the Uber Eats IPO?

The Simple Life

Simplifying ADB and phasing out Signature Crafted are good moves. It's great to see 
changes that are actually "Operator Driven". 

I have a suggestion to take things a little further - back off on all the "customization".

There was a cultural shift in the McDonald's system someplace in the last decade when McDonald's corporate people convinced themselves that customers wanted menu variety 
over fast service. It seems to have started with slow service times after the introduction
of Made For You.

I've written often that the dumbest thing I've ever heard a McDonald's corporate person 
say was when a PR person was trying to justify the long lines with MFY ... "Guests don't 
mind waiting longer if they know the meal was prepared just for them". Felony stupid.

Here's an example - using the in-store kiosks - the kiosk is constantly asking you if you 
want to "customize" your order. Maybe some of that is unavoidable (McCafe) but it sure 
could be deemphasized.

I'm suggesting Operators go though the McDonald's operating system including kiosks, 
the McDonald's App, McDelivery, etc. and look for anyplace a customer might encouraged
to make changes to their product.

I'm not suggesting that Operators turn off or turn away customers that want to "Have It 
Their Way". They will always be with us. Just don't encourage them to develop bad habits.

And maybe we'll see less goofy YouTube videos of millennial customers screwing around
with the kiosks.

May 13, 2019

Uber Eats is More Important Than Uber Ride Share

"Uber said in its IPO filing, “a significant amount of our Uber Eats Gross Bookings come from a limited number of restaurant chains.” It needs to make these guys happy."

Uber Eats Needs to Deliver More Than Ever - Bloomberg

This Vegan Thing is a Lot of Bull

My Sunday paper included a flyer from an organic grocery store (a smaller version of 
Whole Foods) advertising "Beyond Meat" burger patties. Packaged two quarter-pound 
patties (8 oz.) the sale price is $4.49. Yes, that's $9.00 a pound.

Amazon Fresh has the same product but for $5.99 or $12.00 a pound.

Now that's retail and economies of scale will bring that price down but it's going to be
a long time before Beyond Meat or any of their competitors fit into this 2 for $5.00 world.

Vegan items sweep fast food as Chick-fil-A, McDonald's eye options - Business Insider

May 3, 2019

Crain's Cahill on McDonald's First Quarter Results

"McDonald’s can’t expect sustainable long-term growth with a shrinking customer base. Easterbrook said he’s hoping expanded delivery and the completion of restaurant renovations will help boost guest counts."

McDonald's first quarter results show the company is depending on core menu offerings

Don Thompson Hits It Big

Beyond Meat IPO Stock Price Soars in Best Debut of 2019 - Fortune

May 2, 2019

Great Discussion on our Featured Post >>>>>>>>>

Big New Profit Center For McDonald's Corp?

The eye opening discussion the NOA started last week about Technology Fees charged to McDonald's Operators is important. Many franchise systems are initially built on selling products or services to franchisees (Baskin-Robbins, etc). 

Other than real estate McDonald's has not tried made a lot of money that way.

But, ironically, that's how McDonald's got started. In chapter six of Grinding It Out Ray Kroc writes about his mindset during final negotiations with the McDonald brothers:

"Remember, I was thinking more about prospective Multimixer sales than hamburgers at that point"

Ray's priorities soon changed but selling equipment or products to franchisees might have doomed the McDonald's system.  If McDonald's gets too aggressive about selling technology services to  franchisees  it will forever change the business model.

Being a McDonald's Operator Keeps You Young

Too old to sell Big Macs? And update on the New Jersey lawsuit.

McDonald’s wants to get rid of franchise owner because of age, lawsuit says

Uber Losses = $3 to $4 Billion a Year

No problem, McDonald's Operators can make that up.

Uber hints at brutal delivery market 2019 - FranchiseTimes