December 30, 2020
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"Chris Kempczinski's plan to shift additional costs to franchisees seems certain to intensify their mistrust of a CEO they viewed skeptically even before the fast-food giant promoted him to the top job a year ago."
December 12, 2020
December 10, 2020
December 9, 2020
December 7, 2020
"What's clear, the operators no longer have the true faith and trust of the existing McDonald's leadership and Board of Directors, to honestly, openly, and most important compliantly engage with the franchisees and their signed franchise agreements. This includes the obvious ineffective NFLA and OPNAD, which were conveniently thrown under the bus on the current ongoing McDonald's conference call.It is evident, the driver in McDonald's Corporation today is the current stock drivers. Not building, maintaining, and nurturing the long-term relationship that built the Golden Arches into a worldwide powerhouse brand. Today, this powerhouse is being steered with leaders that little to no history, bear minimum investment, and having absolutely no skin in the operational gain.
McDonald's has lost ZERO in this national COVID crisis. Operators have taken the brunt of added cost in trying to keep stores open; with plexiglass, sanitizing equipment, and other needs to address BOTH McDonald's and Government COVID-19 concerns. They have done this many times with only 50% of a facility; even when the government allowed 100% of the dining room is open. However, operators paid FULL RENT. They also paid full service fees, when most of McDonald's Corp sat at home, on the beach, or offsite - sending dictates to the restaurants. A $5000 per restaurant technology fee is a drop in the corporate bucket they drenched operators with during this pandemic. The $5000 is a fraction of Operator cost owners paid to keep their businesses open during this pandemic. Where's the partnership? There was none, and the rent and service deferments were a joke (if not in some states illegal) - so I won't even acknowledge them.
Restaurants are buckling down for ANOTHER round of lobby or restaurant closures, lost service areas, and other obstructions - where's our "partners" head in these matters? Sending FOOD SAFETY inspections warning that these will commence in full force on January 1, 2020. Guess it's their way of saying we know your down - here, here's a kick in the teeth while you're there. And we will zap you with these other financial struggles.
Questions will only make it easy to identify the weakly positioned operators. Be leery my friends, there are those in the bushes wanting to reduce the operator number."
December 6, 2020
December 4, 2020
McDonald's Owner/Operators should expect more announcements like those in the December 3 letter from U.S. "Leadership". McDonald's management has to convince investors that this is a growth company. Sales, corporate income, share price, dividends must constantly increase, year over year. Since they can't expand the number of stores the growth in corporate income has to come from somewhere. From here forward it's your turn.
That's why the CEO is eager to see the federal minimum wage go to $15.00.
December 2, 2020
December 1, 2020
November 29, 2020
McDonald's November news has been dominated by the announcement of "McPlant", the latest fake-meat venture.
For me, this is a bit of deja-vu. There are similarities to the introduction and roll-out of McCafe in 2008/2009.
First, McCafe was sold to Wall Street long before the actual "testing" even began. The test was not a test but a publicity stunt. The outcome of the McCafe test was predetermined.
Secondly, McCafe was sold as a "Starbucks Killer" and the world outside of McDonald's assumed that McDonald's could duplicate Starbucks drinks and sell them for one-half the price. Today the publicity generated by the fake-meat manufacturers and chains already selling fake products has convinced the mainstream press and some in the QSR industry that the world is clamoring for fake-meat.
The chain that's gotten the most buzz is Burger King with the Impossible Whopper. In truth, Burger King is doing very poorly and domestic same-store sales are flat or down while other major burger chains are trending up nicely. It would be impossible to make the case that the Impossible Whopper is doing anything for Burger King.
Nonetheless, reporter after reporter is writing that McDonald's is "behind" Burger King in serving fake-meat.
Outside of the Owner/Operator capital investment, the biggest risk in venturing into a new product category is the waste of precious advertising dollars. McDonald's management assumes the power of OPNAD can sell anything. So does Wall Street. McCafe proved that to be wrong - OPNAD spent millions and sales went down.
Most McDonald's Owner/Operators are eager to upgrade their chicken lineup next year. I've never heard from an Owner/Operator who wants to invest in or serve fake meat products.
November 24, 2020
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I first met Bob 20+ years ago when I was trying to expand my franchising knowledge.
He's still fighting the good fight.
October 11, 2020
October 9, 2020
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October 4, 2020
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September 29, 2020
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September 23, 2020
Small business owners should not participate in "Get Out The Vote" efforts.
Citizens who are not registered and don't vote are generally uninterested and uninformed. They will then depend on mainstream media to make their decisions. And all big government ideas sound good to them. Emotional ballot language works on them. Do we want such people to decide the future of our country?
Before you get involved in such efforts, ask yourself:
* Will my customers vote in the best interests of my business?
* Will my employees vote in the best interests of my business?
* Will uninformed citizens vote in the best interests of my business?
And, there is no such thing as a "non-partisan business coalition" or any political organization that is "non-partisan". They are all, at the core, liberal, pro-big government entities.
There are certainly non-partisan people who don't know anything about politics or care. Anyone who would build or work for a supposedly non-partisan organization is almost certain to be a big-government liberal and will stealthily steer the organization in that direction.
Having said all that, I would never attempt to stop or discourage another citizen from voting or would I be involved in any kind of disenfranchisement.
However, if I have a liberal, big government neighbor (and I do) I will not block his driveway so he can't go to the polls on November 3rd. But, if his car won't start I will decline to drive him to the polling place so he can cancel out my vote.
As illustrated on this website every day, the interests of small business owners is very different from the interests of large, multinational corporations. And these large companies are often run by card-carrying liberals who love big government despite the damage government does to the owners of small businesses.
Just asking you to think about it before you participate.
September 20, 2020
September 17, 2020
September 16, 2020
September 14, 2020
Some of the comments herein and other communications with McDonald's Owner/Operators appear to blame Travis Scott for being affiliated with McDonald's. And some had no idea that the rap genre contained such vulgar language.
September 11, 2020
September 6, 2020
Easterbrook soap opera stays in the news and McDonald's management's
Out of the other side of their "values" management has gone all-in to partner with
How can a corporation have "values" and then partner with a celebrity who promotes
I remember when McDonald's was a family restaurant chain.
I know, you're thinking it's a generational thing and I wouldn't understand. You'd be
But don't take my word for it, read for yourself. Below is a link to McDonald's new
September 4, 2020
September 1, 2020
under Easterbrook and now question them given the company’s current allegations. “Operators are pissed,” one franchisee said."
By Jonathan Maze - Restaurant Business
August 31, 2020
August 25, 2020
August 23, 2020
|Click to enlarge|
I've worked with Jonathan for years and he's one of the best reporters covering the restaurant industry. He has superior knowledge about the financials of the business. Not only at
the corporate level but he always seems to understand the
restaurant profitability side. Don't miss his presentation!
Fox's Tucker Carlson and guest discuss Goodyear
His guest blames corporate Human Resources departments for this kind of mess.
I think it's a combination of corporate PR, adverting dept., and HR.
August 20, 2020
Don't bully your employees or your franchisees into being "Woke".
What The Goodyear Episode Can Teach Us About Diversity Training - Forbes
A few previous McDonald's Owner/Operator comments on this are HERE.
August 19, 2020
|Click to Enlarge|
in existence of Ronald McDonald (in costume) smoking a cigarette.
Enlarge and check Ronald's right hand.
August 17, 2020
August 14, 2020
August 13, 2020
August 12, 2020
This Is the Inept Board That Runs McDonald’s – 24/7 Wall St.
McDonald's board faces new scrutiny of investigation into former CEO - WSJ
August 9, 2020
August 7, 2020
August 5, 2020
August 3, 2020
July 31, 2020
Thousands of units are being closed sooner than they might have been without the pandemic - Restaurant Business
July 30, 2020
profit be damned, bring back all-day breakfast".
“McDonald’s kind of underperformed a little bit early on in the pandemic. I think part
of that was the fact that they halted their all-day breakfast to kind of help to improve franchisee margins and throughput at the drive-thru during lunch and dinner times."
- Michael Halen
But we can't blame analysts. For four years they've been told ADB was a huge success.
It's now official Wall Street lore and management can't go back and say, "ADB was not a
McDonald's Earnings Disappoint, Starbucks Beats - Restaurant Engine
July 28, 2020
July 27, 2020
July 25, 2020
driven to promote menu diversity and complexity that has nothing to do with what's
happening in the restaurants.
Why all these sauces? Why would you advertise that you had so many sauces?
This is something completely contrary to what's working at McDonald's yet OPNAD is
wasting their budget on a counter-productive commercial.
Five/six years ago I visited a McDonald's to sample the latest new chicken product. I placed
my order with a young man and he asked me what sauce I wanted. Since I was the only one
at the counter I mischievously asked, "What kind do you have"?
He looked at the POS screen and started rattling off the various sauces. He looked like
a healthy teenage fellow but his respiratory system couldn't handle the list and halfway
through he stopped to take a breath and mumbled, "McDonald's has too many sauces".
If there had been a line behind me how much would I slowed up service times? Worse yet,
what if I'd been in drive-thru?
Yeah, McDonald's has too many sauces yet OPNAD is blowing their budget promoting the
There's a deep state in McDonald's that doesn't support or understand menu simplif -
ication. If such ads are on the air it concerns me that some of those in the deep
state are Owner/Operators who participate in such decisions.
Candidate for the dumb commercial of the year:
July 24, 2020
July 23, 2020
the infamous "Cobra Effect".
This is why the unemployment rate is high yet every business is looking for employees. Employees can make more money filing for unemployment. The Feds should no longer
be supplementing unemployment,
Government has been way too generous
July 21, 2020
July 20, 2020
serve so much as they pick them based on the length of the drive-thru line."
Jonathan Maze on keeping things simple - Restaurant Business
Taco Bell eliminating 12 menu items - NRN
July 18, 2020
Pre-pandemic, one of the McDonald's stores I frequented has plenty of seating, a Playplace,
a full size SSBB, and does well over $3 million a year. When things are busy there is always a line 2 or 3 deep at the SSBB. I'm imagining guests standing in front of a Freestyle machine screwing around with their phones trying to make the app work and trying to decide what
exotic drink they want to create. The line will stretch back to the kiosks.
Given the transaction counts at the typical McDonald's it would take three, maybe four Freestyle machines to replace one of today's SSBBs.
NRN on touch-less
July 16, 2020
July 13, 2020
I've gotten some negative feedback on my comments about SSBBs. But none other than Coke agrees. I wonder, how many people are comfortable enough with their smart phones to use
this kind of application?
We talk on our phones, we text, we e-mail, but in truth we use little of the phone's power.
I carry a phone that could launch a mission to Mars but I only use its most basic functions.
It will be a few years (5/10?) before every consumer is ready to order their drink on their phone. Of course the younger generations will pick it up right away and that's why Coke
sent out this publicity photo of a twenty-something creating a drink on his phone.
But if Coke can leverage their experience from the implementation of 52,000 Freestyle machines into a replacement for the SSBBs they can corner the market and sell or lease a lot of equipment to QSRs. And get their syrup volume back up.
link to the YouTube video of the October NOA meeting.
Anonymous highlighted the speech by Larry Light. I'd only seen clips of his talk but the full
version is terrific! If you were in attendance it's worth a re-watch. If you haven't seen it - it's
the best 35 minutes you'll spend this week.
As anonymous indicates, Larry's portion begins with Blake's introduction 21 minutes in.
The video is HERE
Again, the anonymous comment is HERE
July 12, 2020
Just skip to the last paragraph.
McDonald's Unveils a Net Zero Energy Restaurant (But Stumbles on Other Initiatives to Reduce Its Carbon Footprint)
July 10, 2020
July 8, 2020
paywall. But this is worth a peek as it ties in with the previous post If you are not
a WSJ subscriber check back as these articles often appear on other sites for
no $$$. We'll them find them when they show up.
Buffets and Salad Bars, Closed by the Pandemic, Remain Roped Off - WSJ
This CNN article is very similar to the WSJ article
July 5, 2020
During the June 19 NFLA call management was asked about a "Drive-Thru" only option. Management seemed to poo-poo the idea based on previous experience. This is the new normal and previous research and knowledge mean very little. The typical McDonald's
drive-thru percentage of sales is going to settle in at 5 or 10 percent above of what it was
pre-pandemic. If it was 70% before, it may be 80% in 2021.
This is now a germaphobe nation and your customers have been retrained. They'll also have a little PTSD and it's going to be difficult to get folks to feel comfortable eating next to strangers. Drive-thru only new stores and rebuilds as options might make a lot of sense in the future.
And on the June 19 NFLA call management was evasive about the future of Self Service Beverage Bars. SSBBs are another thing that will keep guests out of the dining room.
I've already admitted to being a germaphobe and that I think SSBBs are disgusting, always have. Restaurant operators of all brands should prepare themselves for a world without SSBBs.
Following is a video from a radio station that appears to be a local patch job with some corporate video. Can you imagine customers viewing this or similar messaging and then be willing to use an SSBB in a restaurant?
The more you boast about cleanliness and safety (as you should) the less your guests will go anywhere near an SSBB. As said before, if guests are afraid to touch your outside door handles they're not going to touch the levers to get ice or pour a drink.
This rejection of SSBBs will drive more customers to the Drive-Thru where they will feel
that the McDonald's crew person handling their drink is more trustworthy than the customer before them at the SSBB.
Video from an Atlanta radio station
How the pandemic will change how restaurants are built - Restaurant Business