Coalition of Franchisee Associations

May 27, 2023

Some Companies Will Get Woke to Death

To make the current BudLight, Target, and Dodgers controversies easier to discuss publicly, these moves by such companies are described as going "Woke". That's a polite way to approach the subject. The recent controversies are far more than just woke. This is about the corporate world intruding their questionable morals into the private lives of their potential customers and, worst of all, interfering in the development of their customer's children.

While it's not the same, the clothing and merchandise that Target displays have a relationship to the books on the shelves of the local elementary school.

How does a company avoid getting dragged into this quicksand?

It's especially difficult if the management has caused many recent changes and the brand's history has undergone an erasure or a revision. This would have been most apparent in company divisions that had much to do with branding and advertising. An easy thumbnail? Take a quick audit of the average staff ages of the different divisions. The younger the department, the more dangerous it will be for the brand's future.

Some companies are lucky. They'll have a layer of franchisees or dealers who are able to step in and act as a buffer to keep the corporate types from taking the brand down the wrong path. That is, if said franchisees or dealers will step up and act as a roadblock
to any possible deliberate or accidental reimaging. Some will step up; some will run and hide.

The above picture is dramatic. Is Target going to self-destruct? Heck if I know. That's above my pay grade. I do know that if, fifteen years ago, someone had told me that Sears would soon be gone, I would have scoffed at the idea.

May 25, 2023

Contemporary Advertising is a Drag

Ten days ago I wrote: "It's important to follow the Budweiser story. Every major U.S. brand is run by silly people who will make similar mistakes. Their training and education taught them to "change the world," and that comes first, before their stakeholder's welfare."

Every week a new corporate blunder becomes apparent. Last week it was Target. This week, Northface apparel company, next you'll hear a lot about the Los Angeles Dodgers. I'm not too sure who it was, but I heard a smart commentator on the radio say,

"These people aren't there to serve the customers. They are there to convert them".

The latest commercial from Northface

There's Something Funny About OPNAD

Advertising Age magazine has completed a study of how much Black-owned media the big brands are buying. Of course, they cover McDonald's. There's nothing new in the reporting, but a passage mentioning Tariq Hassan gave me a chuckle.

"One of the McDonald's challenges, similar to General Motors, is the divide between the national budget (controlled by Hassan) and the local budget driven by the franchisees."

"Controlled by Hassan"? I'm sure Tariq thinks so.

Reporters can only put down what the corporate pukes tell them, even when a corporate guy gives himself a promotion.

May 19, 2023

Someone Desperately Needs Attention

McDonald's CEO appears to be looking for a job

Burger Underground

Drill, Baby, Drill at Wendy's

I can think of a number of storefront Chipoltes or Smashburgers where tunneling might work but in a store that already has a drive-thru? Wendy's can dream about fully utilizing their buildings but at their volumes that's going to be a while. 

At the same time, restaurant companies are discussing smaller locations and cheaper facilities with greater demand upon existing parking spaces. In addition, governments, Federal and local, will continue to push for EV charging stalls.

And then we'll wonder why dining room sales went to absolutely nothing.

May 15, 2023

Don't Miss These Comments

It might pay to review comments on service fees since this April posting

Are Service Fees to be Reduced?

The Bud Goes On

"It took me 20 years to build this brand...

and they dismantled it in a week" says man behind Bud's iconic ads.

It's important to follow the Budweiser story. Every major U.S. brand is run by silly people who will make similar mistakes. Their training and education taught them to "change the world", and that comes first, before their stakeholder's welfare.

May 12, 2023

Are Chains Being Honest About Prices and Traffic?

Wendy's sees no major resistance to prices - Yahoo  

Most QSR chains are telling investors that the price increases they've taken haven't hurt traffic. That contradicts common sense and the word on the street says if it hasn't hurt yet, it soon will.

From friends, neighbors, reporters, analysts, to extended family, it seems to me that everyone outside the offices of QSR corporate headquarters is complaining about prices at quick-service restaurants. Part of the problem? Most chains are run by new generations of executives who have no background in the business of value.

When customer contraction begins to hurt sales the only answer will be an increase in deep discounting or the good old "burger wars".

May 10, 2023

Andy Puzder - Long Form

Most visitors to this website seem to enjoy to the wisdom of the former Carl's Jr. CEO. This is a transcript of a speech he recently gave at Hillsdale College. It's longer than most of our postings but worthwhile. The speech is a few months old so some statistics may be dated.

The Biden Economy and How It Can Be Fixed

May 4, 2023

Why Are McDonald's Franchisees so Angry?

Jonathan Maze is one of the few reporters who can write this bit of history since he pretty much lived it. Of course, thanks to the smart McDonald's Operators who have a continued dialogue with Jonathan, this article was possible,

But, he and other reporters fail to pick up on an interesting aspect of these events. They cover this history as though McDonald's culture is accustomed to the constant change in management. They fail to cover the trauma caused by the change from a culture guided by the founders' principles (an entrepreneurial culture) to one dominated by corporate raiders, all happening in the past decade. Someday, someone will write the rest of that story.

Viewing assignment:  Movie "Wall Street," 1987, Douglas, Sheen

McDonald's is thriving right now - Restaurant Business Online

Bigger is not Bettter

Large operator of Hardee’s declared Chpt 11 after closing 39 stores

When chains let their big multiples continue to absorb smaller and troubled Operators the big multiples eventually get in trouble.