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July 8, 2020

A Rare WSJ Article

WSJ articles don't appear here often because they're behind a pretty expensive 
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
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July 5, 2020

Will McDonald's USA be Ready for the New Normal?


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
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June 27, 2020

If McDonald's Corporate Executives Get Their Way

"..... calls the Democratic labor agenda the most underappreciated election-related 
risk, as a higher minimum wage and new laws to organize workplaces would be 
priorities, especially hurting McDonald’s, while more labor protections for gig 
economy workers would affect companies like Uber."

Positioning your portfolio for a Biden Presidency - Barron's
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June 22, 2020

No ADB Yet, But You Can See it From Here



From the article: "McDonald’s added All-Day Breakfast in 2015, generating strong sales and helping to bolster the chain after a years-long sales lull."

Here's how this is going to happen. As Jonathan Maze points out, when ADB was launched
McDonald's USA sales had been soft for several years. It was time for a natural business cycle rebound that made ADB look more impactful than it actually  was.

Easterbrook took credit for the "success" of ADB and gave it so much fanfare that it's a major
part of this career history. The media and Wall Street analysts still believe the hype and will
expect ADB to make a comeback once more dining rooms are reopened.

McDonald's management can't admit that ADB was over hyped in 2015 so they will continue 
to claim that customers are clamoring for ADB.

After all, what are they going to tell analysts - "We want to bring it back but our franchisees won't let us"?

McDonald’s is reconsidering the future of All-Day Breakfast - Restaurant Business
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June 13, 2020

When McDonald's Corp. Plays Politics It Always Backfires

So McDonald's Corp. is using the phrase "Black Lives Matter" in corporate produced advertising?

From my perspective Black Lives Matter is three things:

* It's a slogan.

* It's a massive internet presence.

* It's becoming a political party.

At the present time the focus of BLM is apparently the Defunding, Deconstruction, and Demonization of law enforcement across the country.

It's hard to imagine there's a company in the USA more interwoven with law enforcement
than McDonald's and its franchisees. And it's not just because of McDonald's size. It's about the all American image, the flag flying at every store, and the constant interaction between McDonald's Owner/Operators and law enforcement.

This was true when I was a crew person and police could eat for free at McDonald's. It was 
true when I was an Owner/Operator and the San Diego County Sheriff's Department was a 
key component of my LSM activities. And It's true today as evidenced by thousands of 
postings on social media.

The trouble is, McDonald's management appears to be completely unaware of this long-standing relationship. And the ad agencies and public relations people will be oblivious to
this history.

So management will act emotionally and thrust the brand right in between BLM and law enforcement. That's the last place any company should find itself.

Taking sides in this situation (which appears to be getting worse as I write) could be the 
biggest Lose-Lose in the history of McDonald's.

McDonald’s #BlackLivesMatters Ad Was Shortsighted and Hollow – Adweek

Workers Aren't Impressed by Corporate Anti-Racism - NYmagazine

No, That Company Cannot Fund Trump's Champaign



                


  Quashing some internet rumors about Trump and Biden


June 8, 2020

Taking Their Time

"Hopefully, we’ll get our lobbies open soon,” Mr. Meoli said. “Personally, I am in no hurry, especially at 30%. With all that is required on cleanliness, sanitation, hygiene, keeping customers safe, keeping our crew and managers safe, to do that for 30%, that doesn’t make a whole lot of sense right now."

McDonald's Owner/Operator Mike Meoli


Delaware State News
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This Is Taco Bell Being Smart

The McDonald's PAC is a dinosaur from days gone by when our country was not so 
divided and when both McDonald's franchisees and McDonald's corporate believed 
in free enterprise and entrepreneurship. 

Taco Bell Corp. does not make donations to presidential political campaigns and has no involvement with or control over donations made by franchisees.
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June 4, 2020

May 12, 2020

Burger King, Popeyes, Tim Hortons Ready for Dine-in

They are going to shut down their self service beverage bars. That's a good idea. There's no such thing as a sanitary self service beverage bar when it's publicly accessible. As a germophobe (there, I said it) I find them disgusting.

Burger King, Popeyes, Tim Hortons North America stores ready for dine-in, CEO says - QSRweb
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May 2, 2020

Crain's Chicago Business on Chris K.

"McDonald's initial responses to the crisis have angered franchisees. They want McDonald's to forgo rent payments and other franchisee fees for three months, but McDonald's offered only to defer collections for three months. Leaked communications between the company and an independent organization representing 1,200 franchisees reveal escalating animosity."

"But McDonald's could do more for franchisees. Ozan emphasized that the company has plenty of liquidity, with $5 billion in cash and access to billions more in credit. McDonald's continues to pay $3.5 billion in annual dividends."

Joe's column quotes from both the Howard Penny letter and the Kalinowski survey.

> McDonald's CEO must fix strained relationship with franchisees

Please see my advice in the comments section for accessing this column.
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April 28, 2020

Owner/Operators Spent Milllion$ Building McCafe for This?


Strange McBedfellows

These days a hearty laugh is hard to come by but it's OK to get a chuckle out of some irony.

In 2017 then McDonald's USA President Chris K. was incensed that Donald J Trump had 
been elected and inaugurated President of the United States. He let loose on his personal Twitter account with liberal insults about the President that would rival the rantings of 
late-night "comedians" like Jimmy Kimmel or Stephen Colbert.

After we discussed his tweets on this website they were deleted and eventually the entire Twitter account was expunged.

So it's fun to see that Mr. K has been selected by the Whitehouse to participate in a food-
and beverage-focused panel to advise the administration on the economic recovery.

Will his office be festooned with pictures of himself shaking hands with President Trump? 
Will this be a feature in the 2020 Annual report?

Or, will the left-wing CEO delegate this duty to one of his conservative underlings?

What's that?

There are no political conservatives working for McDonald's Corporation?

Never mind.

Trump taps restaurant executives for ‘Economic Revival’ group - NRN
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April 26, 2020

One of the Best McDonald's Commercials Ever

Reminds us of the Food, Folks, and Fun commercials that Paul Schrage and his team 
produced in the 1980s.

                                          Grown Brave - McDonald's - YouTube

April 25, 2020

I Just Got Back From 2021

McDonald's came out of the Chinese virus problem in pretty good shape. Primarily 
because less stable chains and independents disappeared. For example, Steak and 
Shake closed its last store in the third quarter of 2020. As the economy improved in 
the fourth quarter of 2020 there were far less eating-out opportunities. Since McDonald's
was well established in every USA trading area it was easy to vacuum up those meal 
occasions.

Large restaurant chains will more easily survive the pandemic - Maze
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