More discounting coming...."Our franchisees also recognize the importance of the $2.99 price point, and we're excited to announce that they recently voted to extend this advertising through the end of the year. But we recognize that consumers' value perceptions are most influenced by our core menu pricing. We're working closely and collaboratively with our U.S. franchisees on this opportunity, and we're developing ideas for how we might address this as an entire system"
More discounting only leads to trade downs from full price menu items. It erodes cash flow and decreases profitability for the owners. The owners LOSE, only Corp WINS. Partners? I think not!. If corp were true partners they would lower fees to the owner, and share in the pain. Of course the feckless NFLA and OPNAD drones rubber stamp everything Chicago rams down our throats!
NFLA and OPNAD ... we discuss the two groups as if they were equal in their power and influence.In reality, the NFLA is pretty toothless. There is nothing in the formal franchise relationship that deals with theNFLA, other than a few mentions in the franchise disclosure documents. That's how MCD managementcan get away with reorganizing the organization. First, there was nothing, then the NOAB, then the NLC, then the NFLA (did I miss any?). Groups that undergo constant change.If a CEO doesn't like the way the Owner/Operators are standing in the way, they'll simply reorganize the entityand give it a new name. OPNAD is a different thing. It's a legal entity with real power. Trouble is: that power is rarely, if ever, used. OPNAD, in its current form, is older than most of the people reading this.. .
3 comments:
More discounting coming...."Our franchisees also recognize the importance of the $2.99 price point, and we're excited to announce that they recently voted to extend this advertising through the end of the year. But we recognize that consumers' value perceptions are most influenced by our core menu pricing. We're working closely and collaboratively with our U.S. franchisees on this opportunity, and we're developing ideas for how we might address this as an entire system"
More discounting only leads to trade downs from full price menu items. It erodes cash flow and decreases profitability for the owners.
The owners LOSE, only Corp WINS. Partners? I think not!.
If corp were true partners they would lower fees to the owner, and share in the pain. Of course the feckless NFLA and OPNAD drones rubber stamp everything Chicago rams down our throats!
NFLA and OPNAD ... we discuss the two groups as if they were equal in their power and influence.In reality, the NFLA is pretty toothless. There is nothing in the formal franchise relationship that deals with theNFLA, other than a few mentions in the franchise disclosure documents. That's how MCD managementcan get away with reorganizing the organization. First, there was nothing, then the NOAB, then the NLC, then the NFLA (did I miss any?). Groups that undergo constant change.If a CEO doesn't like the way the Owner/Operators are standing in the way, they'll simply reorganize the entityand give it a new name.
OPNAD is a different thing. It's a legal entity with real power. Trouble is: that power is rarely, if ever, used. OPNAD, in its current form, is older than most of the people reading this..
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