Coalition of Franchisee Associations

June 29, 2023

Hard at Work on the French Riviera

I admit I'm just a simple man from Sioux Falls but isn't Cannes where the world's elite celebrities go to celebrate themselves?

Apparently, now, it's where McDonald's marketing execs go to promote their careers.

Or maybe Hassan was there on vacation, on his own dime, and he just happened to run into a camera crew from Yahoo Finance?

Video - Eight minutes of corporate blather

June 24, 2023

Prototype - Ordering Kiosk for First Mars Store


Joe Erlinger Cashes In (Or is it, Cashes Out)

There are many reasons a corporate employee might sell some or all of their company shares. Options come with rules and regs or sometimes a person just needs the money! Or, maybe there's an opportunity out there that seems like a better investment. Like a great deal on a larger mansion.

Nevertheless, it is curious that the President of MCD USA would sell off more than one-quarter of his MCD holdings Especially since the share price has been a nice little run-up over the last ninety days.

MCD USA Pres sells 4,487 shares of MCD stock - Marketbeat

June 13, 2023

National Restaurant Association on Credit Card Fees

Restaurant Operator says:

"See below for Swipe Fees. I have sent an email to my US House Member and both US Senators in support of the proposed CCCA."

Ninety second video from the public affairs guy at the NRA

NRA Public Affairs website

June 11, 2023

McDonald's Owner/Operators Are Front Page News

As mentioned before, the current issue of Crain's Chicago Business contains an extensive article about conflicts between McDonald's Owner/Operators and corporate. In fact, the article is headlined on the cover of this week's print issue. something like this:

McDonald's franchisees push for more power

"A group representing about half of McDonald’s restaurant owners squares off over new performance standards, franchise renewals and spending mandates"

Now, Crain's is just one publication but this cover page is seen by all the pajama boys as well as everyone at their country clubs and the maitre d's at the finest restaurants in Chicago. 

It's bound to be a Chicagoland embarrassment.

June 8, 2023

Franchisees, Franchisees, and the IFA

An anonymous question received this week:

"I know what the organization says publicly but is the IFA pro-franchisee or are they more of an extension of franchisors? I'm not sure that you can be both."

For franchisees and the IFA - You need each other, in much the same way that you need your franchisor. Every industry needs public and political representation. But, this is very much of a "strange bedfellows" situation. The relationship needs to be carefully managed.

A couple of hypotheticals: If the IFA wanted to work against proposed legislation that would regulate the industry in a way that would harm the entire franchise industry it would be good to have all franchisees on board.

But, what about legislation or regulation that would give franchisors the absolute power to develop new locations with no consideration given for cannibalization of the sales of existing locations? Franchisees might want to be on the opposite side of the IFA.

Traditionally the IFA was for franchisor members only. A few decades ago they realized that was publically untenable and started allowing franchisees as members. 

McDonald's Owner/Operators will need to trust their selected and elected representatives to manage the relationship with the IFA. Everyone should expect that when it comes down to the IFA and the best interests of the big franchisors - the franchisees will go under the bus.

June 7, 2023

A Little More On DEI

It's important we clarify the differences between DEI(Diversity, Equity, and Inclusion), at least on a superficial level. The first graphic below was pulled off the Internet randomly but represents most organizationss' DEI statements.

It's not different from how most organizations have described their culture and HR philosophy for years.

The lower graphic is a common way to describe ESG (Environmental, Social, and Governance).

While there are some connecting threads, ESG is much different from DEI. 

ESG is pure socialism. ESG transfers power from the stakeholders in the organization to special interests who may have nothing to do with the organization.

DEI has been around for years. Yes, it can be misused, but that's always been the case.

ESG opens the door to liberals, leftists, environmentalist whackos, and those seeking to do damage to the organization.

It says so on the little wheel.

June 6, 2023

Now, Live From Shark Tank!

For such a successful guy Kevin O'Leary can speak in pretty common sense terms. In this interview with Fox's Jesse Waters, he encapsulates today's business environment. Seven minutes well spent, except Jesse talks too much.

Are other boards of directors learning from Target's experience? - Video

June 5, 2023

Chick-fil-A and DEI

I previously commented about Chick-fil-A and DEI while admitting I hadn't paid much attention to the dust-up. After getting up to speed, I understand.

All large companies have websites with a lot of fancy language about their culture and they have since the mid-1990s. Before that, this kind of "mission statement" was usually confined to their annual report. If we had the analytics, we would likely find these are the least visited pages on any corporate website. I doubt your typical business reporter or editor has ever seen these pages. So, when an activist on a campaign against DEI found these pages on the Chick-fil-A website, they assumed it was something new. While the Chick website had been updated to include the term DEI the content is probably as it has been for the past few decades. But again, to a reporter or activist, it looked like all-new content about DEI.

If it hasn't already, this will blow over quickly, and Chick-fil-A will suffer no harm.

The "target" this week will be Target.

Lawyer's View on the Corporate Use of DEI

Attorney Jonathan Turley appears often on TV

June 3, 2023

McDonald's "New" Chicago Office

Some boring real estate finance stuff here until the last paragraph. McDonald's Corp is five years into a fifteen-year lease on their offices. While that lease surely has some options on the back end that seems like a very short commitment. I came up in a company that tried to own everything and if we couldn't own it we wanted to assure a 40 or 60-year occupancy (on the restaurants). With all the money spent and fanfare generated by moving to Fulton Market, this seems like a short-timer's attitude.

McDonald's only has ten years left on lease

Crain's Chicago and McDonald's

For their subscribers, Crain's Chicago Business is running two articles about McDonald's that, if you're a subscriber, might be interesting. Remember, Crain's publishes in about a dozen other cities in addition to Advertising Age magazine. A subscription to one of these publications may give one access to these articles.

McDonald's shareholders defeat liberal shareholder proposal on DEI

Crain's also recapped the current relationship between McDonald's and Owner/Operators