March 22, 2020

File Under: Just My Opinion

The previous anonymous comment is terrific but I want to disagree on one point. Getting OPNAD and the Co-Ops to reduce fees by any percentage would take months of conflict 
and negotiations. Time you just don't have.

Trying to advertise or discount your way out of this disaster is like shouting into the wind 
to stop a hurricane. 

These are voluntary advertising programs and go far beyond your franchise obligations. I'm not talking about banking your contributions to be spent later but stopping your voluntary contributions altogether,  NOW. 

Advertising and discounting in this environment is a complete waste of the cash you need 
to survive.
.

11 comments:

Anonymous said...

I was not considering using the money to advertise or discount now. I want the money to pay my employees and other obligations. Liquidity is the name of the game today.

Anonymous said...

Unfortunately our OPNAD chair, Vickie, doesn't have a clue. She has fallen lockstep into accepting the company's plans for MORE discounting. This is not leadership. In these turbulent times, we need to make FULL MARGIN to simply survive.

Anonymous said...

Cut ALL advertising temporarily and let us keep the OPNAD and COOP funds to stay afloat!!!!

Anonymous said...

Is there a reason that short term liquidity is the primary focus of the company vs long term health of the O/Os? Obviously short term relief helps us get to long term, but partnering on the losses via rent reduction seem to be a more equitable way to share the losses. McD balloon payment in 4 months will be another round of liquidity issues. Seems like they just don't want to partner in this situation. But of course, its all interest free.....

Anonymous said...

There is no voluntary payment of OPNAD or COOP - its all automatic withdraw under the threat of operator eligibility by the franchisor. With the new franchise agreements tightening the screws by changing Service Fees to unrestricted Royalty; and rent agreements that are floating and no longer set for the franchisee. It's all about what can a system milk from the operator to save a Stock Valuation - not the brand, brand image or brand trust.

No voice of the operator. The NOA is dead, they got nurtured quickly and thoroughly. COOP is an operator organization, the corporation has no say - yet I know operators made ineligible due to comments made in discussion at an operator coops meeting. Corporation is a GUEST at these functions - legally can be banned by the directorship - yet this stuff happens. Routinely.

Why? Because there will ALWAYS be weak-minded operator leadership willing to throw other operators under the bus. A COOP can vote to suspend its spending. Most COOPs only push national agenda anyways, there's no LSM. You'd think most would have had those urgent meetings / votes to do it already. Why haven't they? SCARED.

Same reason OPNAD doesn't move for the benefit of the operator - even though its a OPERATOR organization. You read hear, operators ASKING for help. When in fact, they need to stand up and DEMAND it.

Anonymous said...

Prior to full shut down , most European McDonald's high-street restaurants were down over 80% ! Drive Thru's will continue to trade at under 45% with only deferred rents .

Anonymous said...

Time to recommend full closure. Sales down 30-40%, labor up to 28% and ROP cant react to hourly changes fast enough. Waste is thru the roof, grill delays slow drive-thrus. They closed the UK, most of Europe... its time to do it here. Staying open onky balances a stock price.

All this digital, with no messaging to address the hard work our people are doing to keep these businesses open.

This brand has lost its way. It hard to have insurance, but its useless. No cuts from suppliers, no real help from corporate... 3 legged stool my foot. The entire weight is always on the back of the operator.

Now a national stimulus package with 4 months unemployment, staffing will be outrageously difficult moving forward with a system paying people to stay home.

Cool part, everyone can now get free Obamaphones!

Anonymous said...

It is long past time for NOA to learn how other independent franchisee associations won their battles.Why is NOA trying to make it us as we go along down the road to bankruptcy? Why are they still playing campfire Ames with Chris K????

Anonymous said...

It's interesting Chris K & Kevin Ozan are never on any system webcasts only Joe US CEO/President & Spiro who both would need to get any major financial relief provided by McD's Corp approved by them. USA is the largest operating market in the world, so where are Chris & Kevin to answer questions directly from O/O's & suppliers? Questions should also be able to be submitted anomalously from O/O's, Staff and suppliers for all the obvious reasons. Total lack of leadership hiding behind their front men. That's like me not meeting directly with my restaurant managers or them not hearing directly from me just sending my supervisors to provide my message. We need true leaders not people that hide during crises; Chris & Kevin should be available 20 hours a day 7 days a week right now to the systems global market or resign.

Anonymous said...

To the above post....you don’t see or hear from Chris K and Kevin Ozan because they are very weak leaders. They should have light shined on them. Chris is a placeholder CEO that doesn’t want to jeopardize the undeserved power he is feeling right now by exposing he has NO idea what he is doing. Kevin, has always hidden from accountability for his financial and life changing decisions he makes. Both couldn’t run a shift in our restaurants. And they definitely can’t do their current positions with any integrity. Awful management.

Anonymous said...

Understanding, the average restaurant would come ahead simply dropping the $1 drink, pricing $1.39, $1.69, and $1.99 - even though competitors are still way higher. A liquidity fact they work hard to prevent operators from learning.