Franchise Equity Group

July 13, 2020

SSBBs Are So 2019



I've gotten some negative feedback on my comments about SSBBs. But none other than Coke agrees. I wonder, how many people are comfortable enough with their smart phones to use 
this kind of application?

We talk on our phones, we text, we e-mail, but in truth we use little of the phone's power. 

I carry a phone that could launch a mission to Mars but I only use its most basic functions.

It will be a few years (5/10?) before every consumer is ready to order their drink on their phone. Of course the younger generations will pick it up right away and that's why Coke
sent out this publicity photo of a twenty-something creating a drink on his phone.

But if Coke can leverage their experience from the implementation of 52,000 Freestyle machines into a replacement for the SSBBs they can corner the market and sell or lease a lot of equipment to QSRs. And get their syrup volume back up.

https://www.businessinsider.com/coca-cola-reveals-a-touch-free-freestyle-machine-2020-7

https://finance.yahoo.com/news/coca-cola-just-invented-a-way-to-save-the-soda-machine-from-covid-19-120031011.html
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Owner/Operators - The Cultural Conscience of McDonald's

Thanks very much to anonymous who sent in an insightful comment HERE including a
link to the YouTube video of the October NOA meeting.

Anonymous highlighted the speech by Larry Light. I'd only seen clips of his talk but the full
version is terrific! If you were in attendance it's worth a re-watch. If you haven't seen it - it's
the best 35 minutes you'll spend this week.

As anonymous indicates, Larry's portion begins with Blake's introduction 21 minutes in. 

The video is HERE

Again, the anonymous comment is HERE
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July 8, 2020

A Rare WSJ Article

WSJ articles don't appear here often because they're behind a pretty expensive 
paywall. But this is worth a peek as it ties in with the previous post  If you are not 
a WSJ subscriber check back as these articles often appear on other sites for 
no $$$. We'll them find them when they show up.

Buffets and Salad Bars, Closed by the Pandemic, Remain Roped Off - WSJ

This CNN article is very similar to the WSJ article
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July 5, 2020

Will McDonald's USA be Ready for the New Normal?


During the June 19 NFLA call management was asked about a "Drive-Thru" only option. Management seemed to poo-poo the idea based on previous experience. This is the new normal and previous research and knowledge mean very little. The typical McDonald's 
drive-thru percentage of sales is going to settle in at 5 or 10 percent above of what it was 
pre-pandemic. If it was 70% before, it may be 80% in 2021. 

This is now a germaphobe nation and your customers have been retrained. They'll also have a little PTSD and it's going to be difficult to get folks to feel comfortable eating next to strangers. Drive-thru only new stores and rebuilds as options might make a lot of sense in the future.

And on the June 19 NFLA call management was evasive about the future of Self Service Beverage Bars. SSBBs are another thing that will keep guests out of the dining room.

I've already admitted to being a germaphobe and that I think SSBBs are disgusting, always have. Restaurant operators of all brands should prepare themselves for a world without SSBBs. 

Following is a video from a radio station that appears to be a local patch job with some corporate video. Can you imagine customers viewing this or similar messaging and then be willing to use an SSBB in a restaurant?

The more you boast about cleanliness and safety (as you should) the less your guests will go anywhere near an SSBB. As said before, if guests are afraid to touch your outside door handles they're not going to touch the levers to get ice or pour a drink.

This rejection of SSBBs will drive more customers to the Drive-Thru where they will feel 
that the McDonald's crew person handling their drink is more trustworthy than the customer before them at the SSBB.

Video from an Atlanta radio station

How the pandemic will change how restaurants are built - Restaurant Business
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