So, a Chicago suit wants McDonald's Owner/Operators to aim to be greater? And he figures if his letter writer pulls up the name of Ray Kroc that McDonald's Owner/Operators will sit up and pay attention.
Well, I can do that too. After all, I actually knew Ray Kroc - Ray Kroc hollered at me.
Mr. Kroc wrote in his first book that when he was growing up his family nicknamed him "Danny Dreamer" because he was always lost in thought.
In several regards, McDonald's Owner/Operators also live in a dream world.
There's the dream world where it's a good idea to spend millions on your landlord's building to infinity and beyond.
There's also the dream world where it's a good idea to keep pouring money into a chasm called OPNAD when the rest of the world knows local control is best in businesses and government.
With that in mind let's look at the four built points sent from the suit.
New Term - Rewrite has always been an inaccurate term. It was used to placate the Operators from the first MOA. In rewrite meetings of the day, the attorneys in the room would call the deal a "New Term" and the Operations guys would call it a "rewrite".
Separate New Term from Expandability - That's substantially been done over the past few years as the size of the average Operators grows. When a fifteen-store Operator absorbs a ten-store Operator are all of that buying Operator's stores up to date and expandable on their own? Of course not. This just formalizes it. It also gives corporate total control over who buys what stores(s).
And it means McDonald's USA is trending toward larger and larger Operators.
New Candidates - This can only be seen an effort to separate the Next Gen from the herd. I am blessed with many friends who are retired or nearly retired and who have kids in the McDonald's business You guessed it, there's a constant tug-of-war. The family wants the Next Gen to continue their education in the business. The corporate folks want the Next Gen to simply be an extension of the bureaucracy.
Values - This is where they get you - It only takes three or four sentences to get outside your franchise agreements and control your life from a woke state of mind where franchisees will march in step with their corporate brethren. To understand this better, scroll down to May 14th where we displayed a circular chart explaining Environmental, Social, and Governance.
When corporate management teams (execs and directors) get involved with ESG they tend to lose their minds.
Management gets distracted by priorities that have nothing to do with the business welfare and then ignores business threats that are right in front of them. So it will be with ESG.