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February 26, 2022

Senator Bernie Sanders Rips MCD for "Corporate Greed"

It's understandable that a socialist democrat like Bernie Sanders wouldn't understand a business model but it's too bad Fortune didn't include a few sentences explaining how pricing works in a franchised system.

Complains about huge profits and price hikes

February 22, 2022

Former McDonald's Suit Moves to Burger King

According to Paulo Pena's Linkedin profile he worked for McDonalds for two years (2017-2019) and was in charge of all McOpCos in the USA. 

How could a person, so new to the company, be in charge of 800 restaurants? 

Answer: He has a Harvard MBA, so he walks on water. But who was in charge of McDonald's USA when such decisions were made? Of course...another Harvard MBA.

Burger King franchisee names Paulo Pena CEO

February 20, 2022

Carl Ichan Nominates Two New MCD Directors

Nominates two members amid a dispute with the company over its treatment of pigs.

MCD Board of Directors responds

K.I.S.S.

Keeping a simplified menu is going to be something of a tug of war between McDonald's Owner/Operators and McDonald's management. There will be three forces pressuring management to slowly return to a more complicated menu and operation.

1) Investors and analysts - If management doesn't produce a stream of new products, they will be accused of not having an "Innovation pipeline". If the company ever returns to having in-person "analysts' days" the guests will expect to be fed exciting new products from that pipeline.

Investors will give a simplified menu lip service, but they don't understand what it means and will reflexively push for menu creep. 

2) Industry media - Reporters need content and clicks so they will write about any new product news they can find. They will constantly bug corporate about new products. I'm amazed how much press Shamrock Shakes are getting. Can a 40-year-old product be new product news?

But the Chicago office will contribute to this pressure from the media by cranking out press releases about new products, especially when they need positive press.

3) Social media - "Listening to our customers" is an oft-used phrase. Unfortunately, sometimes that means a marketing person spending an hour on Twitter and Tick Tock. A few comments from a few people (McDonald's customers or not McDonald's customers) and "the Internet is on fire" with people demanding fake meat or ADB.

Exactly how this tug of war takes place will depend on same-store sales. If sales stay positive in the USA there will only be muted cries for new products. If sales go soft or McDonald's USA falls behind the competition the outside pressure on management will be substantial. And, with so little real restaurant experience in Chicago, it's likely management will easily yield to the pressure.

Only Owner/Operators can prevent menu creep.

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February 14, 2022

DoorDash and McDonald's

DoorDash and McDonald's - New Commision Rates

Speaking as a consumer: having done business with both of these firms - Uber seems to be very selective in choosing their employees. It seems DoorDash will hire anyone (and those people will steal your stuff).

Maze on Menu Price Inflation

 But grocery prices are soaring, too.

February 3, 2022

QSRs Take a Risk with Celebrity Endorsements

 








Franchise Times - Celebrity Circus

Coming to a Blue State Near You

California advances fast-food bill - Restaurant Business

Passage of the act brought cheers from organized labor, particularly the Service Employees International Union (SEIU), which is widely cited as the bill's author.  

“Imagine cooks, cashiers and janitors sitting around the table with owners, franchisees and government officials to set fair standards for pay, hours and working conditions across California’s entire fast food industry,” Mary Kay Henry, president of the Service Employees International Union (SEIU), said in a statement. “It’s an absolute game-changer for reducing income inequality and how we treat fast-food workers in this state.”