Review & Outlook: Small Business and ObamaCare - WSJ.com
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November 12, 2013
November 11, 2013
November 8, 2013
Wisdom From 2003
Jim Cantalupo became Chairman and CEO at the beginning of 2003 and
had this to say in the opening paragraphs of the 2003 Annual Report:
"As you will recall, our business was in serious need of improvement
when I became chairman and CEO at the beginning of 2003, I said back
then that we had taken our eyes off our fries, and we paid a price.
Our performance had disappointed our customers, our shareholders and
ourselves. We know we had a lot of work to do to right McDonald's ship
and rebuild our foundation to support future growth."
Ten and one-half years later can't the same thing be said about McDonald's
today? Isn't expanding the menu exponentially and making the restaurant
operation insanely complex also taking your eyes off your fries?
The 2003 annual report also makes this statement:
"In the long run, only exceptional service will truly differentiate
McDonald’s from the competition. So we are making a concerted effort to
improve the friendliness, speed and accuracy of our service. We improved
our drive-thru service times in the U.S. last year, but we’re committed
to doing even better.
We’re simplifying our restaurant operations. We’re using more visual menu
boards to make ordering easier for customers. We’re also eliminating some
sizes and slow-selling items and better organizing the kitchen, front
counter and drive-thru areas to improve efficiency."
Wow, what a difference a decade makes!
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had this to say in the opening paragraphs of the 2003 Annual Report:
"As you will recall, our business was in serious need of improvement
when I became chairman and CEO at the beginning of 2003, I said back
then that we had taken our eyes off our fries, and we paid a price.
Our performance had disappointed our customers, our shareholders and
ourselves. We know we had a lot of work to do to right McDonald's ship
and rebuild our foundation to support future growth."
Ten and one-half years later can't the same thing be said about McDonald's
today? Isn't expanding the menu exponentially and making the restaurant
operation insanely complex also taking your eyes off your fries?
The 2003 annual report also makes this statement:
"In the long run, only exceptional service will truly differentiate
McDonald’s from the competition. So we are making a concerted effort to
improve the friendliness, speed and accuracy of our service. We improved
our drive-thru service times in the U.S. last year, but we’re committed
to doing even better.
We’re simplifying our restaurant operations. We’re using more visual menu
boards to make ordering easier for customers. We’re also eliminating some
sizes and slow-selling items and better organizing the kitchen, front
counter and drive-thru areas to improve efficiency."
Wow, what a difference a decade makes!
.
November 7, 2013
Chipotle vs McDonald's
Chipotle has become increasingly
aggressive in distancing their brand
from McDonald's. Even while two
former McDonald's executives still
serve on the Chipotle board of
directors (Flynn & Charlsworth).
From Fool.com.
November 5, 2013
November 4, 2013
BK To Introduce 'Fewer, More Impactful' Menu Items
"The strategy would ensure franchisees could execute the menu items easily and profitably and that Burger King could support it with stronger marketing campaigns."
NRN Reports
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NRN Reports
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November 1, 2013
Do You Know the Way to McCafe?
When I heard about Operator "Leadership" discussing the support of a new coffee initiative
I thought it was a joke or that I was being misinformed.
Then, Don Thompson mentioned coffee in his remarks on last week's analyst conference
call. Then, this week it was announced that a McCafe line would be tested in supermarkets.
It's doubtful we're only talking about drip coffee here and likely much of this is about espresso based drinks.
McDonald's Operators are busy and the years go by quickly so we'll review the damage done
by the disastrous launch of espresso drinks in 2009. The year was going along pretty well until McDonald's Operators began spending millions advertising espresso drinks - America yawned. This took advertising support away from the core menu and other new product introductions. Sales suffered and did not rebound until the introduction of iced drinks in the spring of 2010.
Please refer to the chart at the bottom of this post.
If this is another effort against espresso drinks it's coming at an awkward time as the overall sales improvements from 2003 to 2012 masked the failure of espresso drinks. There is no such momentum currently in the USA. This is a dangerous time to waste more advertising and system resources on a failed product line.
As for McCafe in supermarkets - after McDonald's Operators have spent many millions supporting the McCafe brand - the benefit of supermarket sales will go to McDonald's Corp. Kraft, and the supermarkets? Where do Operators go to get paid for trying to build the
McCafe brand?
Yes, McDonald's management will blather about "brand extension" benefiting the Operators
but that never seems to work out the way it's promised.
If this is about spending more money on espresso then it is a continuation of Oak Brook's
obsession with Starbucks and their efforts to be more than "Hamburger Guys".
If OPNAD votes to spend more on espresso then it's time to consider shutting down this
voluntary ad fund.
I thought it was a joke or that I was being misinformed.
Then, Don Thompson mentioned coffee in his remarks on last week's analyst conference
call. Then, this week it was announced that a McCafe line would be tested in supermarkets.
It's doubtful we're only talking about drip coffee here and likely much of this is about espresso based drinks.
McDonald's Operators are busy and the years go by quickly so we'll review the damage done
by the disastrous launch of espresso drinks in 2009. The year was going along pretty well until McDonald's Operators began spending millions advertising espresso drinks - America yawned. This took advertising support away from the core menu and other new product introductions. Sales suffered and did not rebound until the introduction of iced drinks in the spring of 2010.
Please refer to the chart at the bottom of this post.
If this is another effort against espresso drinks it's coming at an awkward time as the overall sales improvements from 2003 to 2012 masked the failure of espresso drinks. There is no such momentum currently in the USA. This is a dangerous time to waste more advertising and system resources on a failed product line.
As for McCafe in supermarkets - after McDonald's Operators have spent many millions supporting the McCafe brand - the benefit of supermarket sales will go to McDonald's Corp. Kraft, and the supermarkets? Where do Operators go to get paid for trying to build the
McCafe brand?
Yes, McDonald's management will blather about "brand extension" benefiting the Operators
but that never seems to work out the way it's promised.
If this is about spending more money on espresso then it is a continuation of Oak Brook's
obsession with Starbucks and their efforts to be more than "Hamburger Guys".
If OPNAD votes to spend more on espresso then it's time to consider shutting down this
voluntary ad fund.
Click on chart to enlarge
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