Speaking of Same Store Sales

 When discussing new stores with McDonald’s Owner/Operators, we often get sidetracked by the finances of a particular new store, when the real issue is the cannibalization of the Operator’s existing stores.

Sure, one can argue to get a point or two shaved off a new store’s rent and royalties, but what about that 25% cannibalized from your older stores?

Speaking of sales, if Accelerating the Arches goes forward, you can forget about same-store sales for 5 or 6 years. It’s impossible to increase same-store sales while saturating the market with new stores; Newer, smaller chains can do it, but not at the age of 70.

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