Coalition of Franchisee Associations

June 9, 2020

Ray Kroc Knew This in 1955...

but we keep forgetting:

61% of US McDonald's customers OK with limited menu - QSRweb


Anonymous said...

If there was ever a chance to reduce the menu it is NOW. Don't waste the opportunity.

Anonymous said...

And also a perfect opportunity to get rid of $1.00 drinks and free refills.

Anonymous said...

Its why 80% of the customer willingly go to OTHER QSR restarants and pay $8, $9 & $10 for a meal.

While MCD chases after the other smaller percentage with discounting. They lost all ability to MARKET, they can only ADVERTISE. They have stolen the ability for operators to Local Store Market.

We cater to a group that vandalizes our properties and harasses our employees; whines on customer forums seeking (demanding) the FREE items.

Their consolidation of COOPS has removed regional flairs that differentiated the brand to the area's customers and built brand trust.

Too many markets never see their operators, even during an inspection. The brand has become what it used to mock... a corporate shirt.

Its why the system can't drop a simple promotion like $1 drink.. too many McOpCo managers running restaurants today.

Anonymous said...

If it costs an operator $1 to sell a 50 cent time, MCD still wins.

Sell the restaurant. Buy the stock.

Anonymous said...

We need a voice IN corp. If owners buy enough stock, we can force MCD to put a owner on the BOD.

Richard Adams said...

We've discussed many times that the idea of forcing an Owner/Operator onto the BOD of MCD is not a productive or practical solution to anything.

But, lets fiddle with some numbers. There are 743,000,000 shares of MCD outstanding. How many shares would McDonald's Owner/Operators need to control to have influence?
The MCD market cap changes from day to day but is typically around $150 billion. How many million$ would the individual Owner/Operator need to invest?

And not every Operator can afford to play in this game. My guess is that less than 1,000 USA Operators could participate. The other question is, are MCD shares a good place to park your money? Certainly, over the long haul, it's been a great investment but it's been pretty volatile over the past year.

McDonald's Owner/Operators have been talking about BOD representation since the 1970s. This might have been a good idea back then but today's McDonald's Corporation is just too big and the Owner/Operator community too small.

Anonymous said...

I would never buy McDonald's stock, while being a franchisee I have enough skin in this company already and your correct the O/O's could never buy enough stock to be an influence we have more of an influence with joining and supporting NOA.

Anonymous said...

It is time to the realize that being on the BOD is not the correct road.
- It would Cost to much, in stock roughly 1% would be $1.5 billion or $1 million per every operator.
- NO one on the Board will listen to 1 voice crying in the wilderness

The Correct Road for me is:
- Being a Member of the NOA
- Having 3 agenda items each Operator can get behind. Like: Limited Menu, Every Restaurant must be able to Stand on it’s own financially and index rent Calculations to the CPI.

We the Operators need to be willing to participate in Civil disobedience called on by the NOA: The NOA must be willing to call on their members for Action:
Examples would be Staying Closed on Thanksgiving and Christmas and/or Changing Late night hours.

Anonymous said...

BK franchisees tried buying stock to force a board seat several years and ownership teams ago and got hosed.

Anonymous said...

Just an fyi, perhaps, you're thinking about current operators. There are previous operators who own stock and large chunks of it.

Also, it's an interesting experiment to see -- the amount of money you bought your first restaurant for -- and seeing, if you would have put the down payment solely in stock. How would you have done? Which would be better?

Anonymous said...

To answer the Poster‘s question above, it is much more complicated than the simple Q.
18 years ago It would have turn $1.1 million (Cost of 1st store) into $8 million plus $528,000 in dividends.
1/2002 stock price $26.20 adjusted for splits, today price $189.17.

The same restaurant today is worth $3 million (No Debt), Amount put down was $275, interest rate 6%.
Provided stable income and a rock to build my company on. Just 2 extras that are hard to calculate.

You can either own Stock or own a Business, I prefer to do BOTH.

Anonymous said...

Interesting thought from the poster above you can go here and see where you would be today.

As for my story, the original $350k I put down in 8/1994 would be worth a little more than $9m now. I own four restaurants now with a value probably a little over $8m I have about $2m in debt so $6m in equity

If I sold today my numbers probably look about like this; 30% in taxes, after what I have left to depreciate I might be lucky to end up with close to $4m left.

To be fair over the years I have been making cash flow and used to purchase other items worth value, I have really never put much down for the remaining restaurants I purchased just used my equity in my business. But it is interesting if I would have taken that $350k and worked a different job/business where I would be. I had good years in McDonald's but nowadays it's a chore to keeping turning a profit and I probably work harder now than I worked 20 years ago things have changed and it never seems better for the franchisee.

Anonymous said...

exactly, and those customers are fine with paying more than a $1 for a drink too.

Anonymous said...


Anonymous said...

There is zero chance that corporate doesn't flood the menu back up with crap, ADB and expanded $1 items.

Remember, every dollar you make is a dollar that you stole from corporate.

Every cent that goes in the register, even if it cost you a dollar to collect that one cent, is pure profit for corporate. We haven't stood up to it yet so why would we now?