Coalition of Franchisee Associations

January 27, 2023

Poultry Nepotism

Since no one was actually harmed it's time to make fun of the CFO of Tyson Foods, the great-grandson of founder John Tyson. He was found intoxicated in a stranger's bed sleeping it off. Google Earth tells us that the lady's house was about two blocks from the nightlife district adjacent to the University of Arkansas. We can assume he'd been bar hopping and was trying to find his car but instead found her unlocked door.

John Tyson pleads guilty to public intoxication and criminal trespass.

Fairhurst Legacy

Shareholders can sue McDonald's for ignoring signs of a toxic culture

Land of 10,000 Spills

If you're traveling the Midwest you can identify McDonald's customers from Minnesota. They'll have soft drink stains down the front of their shirts.

McDonald's testing strawless lids in Minneapolis

January 18, 2023

Fifty-Seven Minutes With Chris K.

For McDonald's Owner/Operators: The following link was sent in last week but I haven't had occasion to listen to it. After all, he's your boss, not mine.

This interview was conducted by David Novak, former CEO of YUM Brands ('99 - '16) and now an author and leadership "expert". YUM Brands operates KFC, Taco Bell, Pizza hut, and others. He claims to be the "co-founder". I'm sure Harland Sanders would be surprised to hear that.

Articles or interviews like this are annoying because it's just two people who think they are peers sitting around grooming each other like the apes at the San Diego zoo. But, you might learn something about how pajama boys think.

David Novak podcast - introductory page

Speaking of Social Media

One of the social media platforms business owners should be cautious about is called TikTok. The name sounds harmless enough but the site is owned and operated by the Chinese communist party (government).

That might not bother all of us but it bothers a lot of politicians and more than a few parents.

A couple of concerns:

* Such websites can track everything about the user, Yes, so can Google and the like but in this case, the fear is that the Chinese government now has a growing database containing information about millions of Americans, particularly young Americans.

* TikTok could be a form of brainwashing or manipulation. It is said (or feared) that if an American teenager logs on to Tiktok they are fed only mind-numbing, sophomoric activities.

Meanwhile, a teenager in China might be fed intellectual, mind-expanding activities that will help them excel over Americans in the future. Sound a little like "Red Dawn"? Is it possible? Yeah, it's possible but who knows if it's happening.

Nevertheless, there is going to be a lot of controversy about TikTok in the near future. Companies and individuals should be very careful about using the platform to represent their brand.

Companies with a large exposure to China will be especially challenged.

January 16, 2023

McDonald's and Starbucks No Longer Love Twitter

McDonald's hasn't tweeted since November 17th, last year.

It's entertaining that two companies run by devout liberals would be comfortable with Twitter when it was run by like-minded liberals but now that Twitter might be owned by a moderate person they don't know where to turn. It's as though they suddenly found out their significant other was an ax murderer. 

But that's OK, McDonald's has done itself more harm than good with their Twitter account. The company would be better off without it. That much public dialogue can only do harm to a brand.

No one knows where Elon Musk will take Twitter (certainly not Elon Musk) so it's best to stay out of the way.

Companies in a quandary might take a look at the In-N-Out Twitter account. They throw up a pretty product picture a few times a month but more importantly they prominently display their 800 number for customers to call with comments or complaints. Kind of old fashioned, huh?

I don't know what will happen with Twitter but my gut tells me Twitter's days as a promotional vehicle are over.

In-N-Out on Twitter

January 11, 2023

Subway for Sale (for $10 billion?)

Report: Subway exploring potential sale - NRN

Danger, Will Robinson!

This article is essentially an advertisement for a robot company but I've got some advice for the manufacturers or end users of automation - Stop Apologizing!

In this labor market, there's no reason to be defensive about automation. You're not replacing people, you're filling essential positions. Look at the lame rhetoric from this article:

“It’s not about replacing human workers,” Park says. “Robots are there for the customers. Having the robots do mundane tasks like bussing tables  enhances staff timing and decreases food running costs so that servers have more time to engage with customers.”

Our robots’ main function is to bring food from the kitchen and take dirty dishes back so that human workers can maximize time in the dining room,” he says. “Human workers should be able to do what they do best—interface with patrons. No robot can possibly replace the human touch.”

This is an unnecessary response to complaints from organized labor that date back a century. Real people, real customers just don't care. I like being able to buy a car or truck that was built by robots in a "right-to-work" state.

If you can afford it - automate. Don't let the union thugs stop you.

Addressing the labor shortage with robots - QSR mag

January 10, 2023

This Changes Everything

Well, not everything but it's a big departure for the company to move that far east. Tennessee often gets lumped in with the east coast states when actually Nashville is almost straight south of Chicago.

In-N-Out to open locations in Tennessee

Why are there crossed palm trees in front of In-N-Out stores?

January 9, 2023

More on Accelerating the Arches 2.0

McDonald's quickens new store growth while cutting jobs - Bloomberg

There's not too much new here except for some interesting analyst comments.

“You’re expecting to hear this from tech companies, but why are they cutting headcount now? Are they concerned about the next 12 months?” Bloomberg Intelligence analyst Michael Halen said in a phone interview. “The job cuts could indicate that they’re maybe worried about the direction the consumer is going in.”

“It sounds like they want to reorganize the company into different structures to grow faster,” BTIG LLC analyst Peter Saleh said. “Maybe they feel like they don’t have the right people in place.”

Easterbrook Fined $400K by SEC

 Former MCD CEO lied to SEC about his firing

January 6, 2023


McDonald's to make staff changes as part of broader revamp

According to SeekingAlpha

According to the Wall Street Journal

The WSJ link is behind a paywall but others will duplicate the coverage in a few hours.

Such as this from Jonathan Maze - Restaurant Business

January 3, 2023

This Will Be The Year of ESG

There is more to BlackRock than you might imagine

"What is less public are the key policy persons running economic policy for Biden Inc. They are simply said, BlackRock. Much as Goldman Sachs ran economic policy under Obama and also Trump, today BlackRock is filling that key role. The deal apparently was sealed in January, 2019 when Joe Biden, then-candidate and long-shot chance to defeat Trump, went to meet with Larry Fink in New York, who reportedly told “working class Joe,” that, “I’m here to help.”

BlackRock owns 7% to 10% of MCD shares making them one of the company's largest owners.

ESG's perverse, narrow, fraudulent ethical principles

"Over seven million British households have fallen into “fuel poverty” this winter, and special “warm rooms” have been set up to help people survive freezing weather. Recent headlines warn that Britain could have nationwide blackouts and extensive factory shutdowns and layoffs this winter. In Germany, families are stocking up on candles, so that they can at least read while they shiver jobless in their homes."