Coalition of Franchisee Associations

March 19, 2021

Inflation in 2021, Recession in 2022

Jonathan Maze digs into Big Mac prices by labor market

Biden admin: Businesses won't raise prices to cover taxes increases


Anonymous said...

The stupidity in liberal logic is mind boggling, but real. Its dealt with every day when the system focuses solely on a philosophical mission and not its financial one.

Amazing what they will try to achieve with OPM - Other People's Money. Failing to realize, after their 15-minutes of fame fades - they too are left to pay for their own stupidity. By then, it may be too late.

Anonymous said...

Just got word that the HAZMAT books, required by law on the materials and chemicals required by McDonald's. Is no longer an accepted format for the restaurants!

Restaurants now have to enroll in a WEBSITE APP service, paying a FEE to get required data suppliers are REQUIRED BY LAW to provide, like MSDS sheets.

I bet this added cost isnt tracked on the ever growing technology fees dumped on the restaurants!

Anonymous said...

COOPs still discounting with old methods (advertising and 123DM), plus the added Global Mobile App (GMA) discounts (added COOP and National level promotions) and now the new REWARDS program.

The expected 1.2% Promo is now WELL OVER 3.5%, and the addition of REWARDS will send it over 5%.

This with the planned rent restructuring will make pre debt cashflow evaporate.

With all this GIVE AWAY in the restaurants, can anyone say with certainty that the promotional cost ARE NOT considered TOP LINE sales - also being tagged for Rent and Service fee?

Richard Adams said...

Isn't this a looney time to be doing a lot of discounting? The next six months are going to see very soft comps and most restaurant chains are sure to enjoy great sales increases. Save your powder for later in the year or next spring when you'll be up against some real tough comps. Or are the McDonald's corporate folks so addicted to discounting it's all they know to recommend?

Anonymous said...

Its all they know.. no marketing skills whatsoever. Just advertising promo and price pointing.

People getting $1400 a person checks, plus $300 per kid monthly credits. They can pay more than a $1 drink, one would think.

Richard Adams said...

That's what the circus folk call a one-trick pony. Useless for anything else. But aren't advertising and marketing people supposed to keep their clients up to date on cultural and economic changes? A lot has changed in the past 12 months and McDonald's Corp. and the agencies are still obsessed with discounting?

Anonymous said...

How did McDonald’s Corp Current Management become so morally bankrupt? No partnership. All
I hear from them is fairy tale visions with regards to marketing and franchising. Discount at the expense of the operator. First right of refusal is used more than I have ever seen in the last 30 years. Taking stores away or not rewriting operators only to grow “preferred” operators, operation be damned. Don’t get me started on o/o leadership; non existent. All of these actions are done to convince Wall St that the average o/o organization has a never ending increase in cash flow. Thus, implying that all us o/o’s are ready and willing to pay for their initiatives. I, for one, have had enough. Stores sales are pending and I look forward to looking in from the outside.

Anonymous said...

Well, they started by removing all the useful marketing reporting restaurants were offered to do market analysis. Then with NewPOS and digital, they locked away the ability to Local Store Market (LSM) to address directly localized competition. With RFM, they removed the ability to control pricing - as PROMOTION engines override any line item pricing an operator may have and restrictions in programming prevent any operator from initiating any localized promotion to address their market condition.

They throw out numbers in meetings they themselves have no idea of its genesis. They use reports on their system, but have no skills in identifying the accuracy of the report data they use. Unwilling, if not unable, to challenge any of the results provided. If the check mark is GREEN, its good - even if it's improperly calculated. So if its inaccurately RED, cause the TV MARKET data is skewed - well you screwed on your review. You cant debate a fact with people that simply don't understand the marketing process. It's why McDonald's don't call them BUSINESS CONSULTANTS any longer. They cant consult in anything. Operators question anything, they threaten eligibility like some schoolyard bully.

You'd hope this wasn't by design. But you'd have to question when the system is now led by narcissistic people that have more time in the toilet, than in McDonaldLand. Their focus is CENTRALIZED CONTROL, even though autonomy in local store franchisee controls is what MADE McDonald's brand.

Now I'm not saying FULL AUTONOMY, as protecting the brand is essential. Its the single duty of the Corporation. But today's corporate offices, officers and personnel at every level are far beyond the "protect the brand" aspect of the franchise agreement. Corporate is an ACTIVE participant in COOPS with daily operational, pricing, people decisions and programs; and now even P&L input and controls.

Todays preferred operators are simply an identification of those easily led by the nose. You don't need 30 stores to be successful. You just need a real ability to work the patch you have to make money. Don't expect anyone else to do that for you. With that said, the system shouldn't needlessly be placing landmines in one's path to success. With THAT said, I learnt with all the challenges to deal with - one only has to wait. For like the weather in Louisiana, the WINDS OF CHANGE blow hard and often.