Peter Romeo from Restaurant Business discusses McDonald's history with about 95% accuracy. An interesting 12-minute listen.
Why is McDonald's still a single-brand operation, CosMc's aside?
After listening I learned some things I didn’t know and my family has been involved since 1962. Dad just never fully disclosed all of this or it was so unimportant and uninspiring that it didn’t warrant discussion.My prediction is that this also fizzles out. Why? Because it was constructed for the wrong reasons. While I haven’t yet learned how they intend to operate this brand, a brand that was built using our money for research and development, a brand that is now carrying products that we have been asking for for years, it will fail because it is undoubtedly designed from the ground up to enrich those who do not work at the expense of those who do.If this was developed with an intent to enrich those who operate the restaurants first, it would provide the fuel and energy and passion needed to thrive. When one finds themselves working to enrich others, when one goes to work every day only to tread water, when leadership not only has no idea how difficult it is to pull off, but has clear open contempt for those who make their lives of leisure possible, when leadership will not even think about physically helping a clear struggling operation, these are signs that this is destined for failure.I think I heard that the franchising plan is to “lower the barriers of entry for ownership.” That is code for “you will own nothing and you will like it.” This model will draw average at best operators who not only are inept, they will be unwilling to make the sacrifices needed to be successful. They think that it just happens because they show up. Those who have the skills and ability and dedication to see and resolve bottlenecks, to accelerate growth, those who are capable of making it work won’t bother because it is not worth their time and money.This bunch believes “Operators” operate their brand at their whim, they refer to us as glorified Uber drivers who spend too much time on the golf course and are easily replaced. The truth is that they are the newcomers, they are the visitors in the world that we and our families have built.This might have a future if the model is built that reflects Ray’s intent, to provide a system where anyone with drive and ambition can work hard and get rich. This will not work if the model is anything other than that and the best moving products will wind their way into our restaurants in the end.
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