September was dominated by hand-wringing over same-store sales at QSRs. Yet no one in the industry or the press wants to discuss the real problem:
There are just too many quick-service restaurants.
Franchisees, investors, Wall Street analysts and corporate suits all delude themselves that the marketplace is infinite. It's not, it's full. And yet private equity firms buy up small chains with plans for rapid expansion, and McDonald's plans to open hundreds of new stores in the USA.
8 comments:
My cash flow is down way more than 10%. Chris K is fudging the numbers. And, by the way, McDonalds stock price and profitability is near an all time high!!!
Too big to fire? CK take note. McDonald's is too big, too ubiquitous to garner the specific details that are when much smaller brands like Cracker Barrel shoot themselves in the feet with woke policies. We should enumerate them in one comprehensive list including systematically eroding Owner cash flow and equity by:
-Destroying the Ray/Fred "partnership" culture in all areas
-Purging the system collaboration as founded to detriment of franchisees/suppliers. Ran the best franchisees out of the company.
-Destroying the model of restaurant economics to benefit corp, stock price and minimize owner equity/cash flow.
-Brand changes dubious to brand loyalty with generic, soleless remodels
-Virtue signaling on public policy issues to woke rather than customers/sales
-DEI by other names rampant in corp to franchisee selection or policies
-Throwing natural allies, i.e. restaurant advocacy groups under the bus in deference to woke voices, unions, fear of vocal minority vs. real customers
-(Please list others to numerous for one post)
If only the investors, analysts and media would be more truthful about what they know, have seen and cover up as size matters to TRUTH.
https://nypost.com/2025/08/27/business/steak-n-shake-demands-cracker-barrel-ceo-be-fired-unveils-maga-style-hats/
100% SPOT ON
GET WOKE - GO BROKE
add Harassments and INTIMIDATION by corporate vs operators
considering Franchisees "renters" not Owners (Myra said it)
saying "Operators are like Uber drivers ,easily replaced" (CK said it)
I. Heard the MYRA & HODDY
comments dozens of times
can you PLZ provide the times
& where they were said
LOVE TO SHARE - without a
little ammo - not as good
SOMEONE HAS THIS - DOZENS
KNOW
-Creating false technology invoices, forcing franchisees to pay.
-Break BBV2020 commitment on lowering hours used daily.
-Use NRBES as a weapon to control franchisees.
-Creating annual business objectives that have not changed in years and expect different results. This includes measurement systems that do nothing to bring in additional guests.
-Using ROFR as a rent escalation policy.
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