Franchise Equity Group

October 30, 2014

Back to the McFuture?

McDonald's Divisions being changed back to Zones? What's a "zone insights person"?

Is this another tactic to deflect attention away from Oak Brook?

This is reminiscent of the days when McDonald's USA Zones were changed to Divisions
to be "closer to our customers" yet four out of the five original Divisional offices were
in Chicagoland.

I pay no attention to 2nd tier McDonald's corporate people so can someone tell me who's
this James Collins? Has he been working somewhere else since 2011? Is this another rehire? 
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October 28, 2014

Burger King Franchisees And Coaches

"Franchisees have complained that some of the coaches are too young and inexperienced, 
 with many of them hired straight out of business school."

Burger King Franchisees And Coaches - Business Insider
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McDonald's: Millennials Aren't The Problem

Howard Penny is one of the Wall Street analysts who asks questions corporate
management hates to answer.


MCDONALD’S: MILLENNIALS AREN’T THE PROBLEM — McDonald’s Corp
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October 27, 2014

More on "Aggressive Change"

In February we discussed Jack Greenberg’s late 1990s attempt to reinvent McDonald’s.

Our previous post is HERE.

This is where Greenberg said:

"Those of us who weren't with you at the beginning of McDonald's are excited to be 

  with you during the reinvention of McDonald's".

Welcome to the 21st century version of Greenberg's statement.

On last week’s conference call with Wall Street analysts Don Thompson used the phrase “aggressive change” numerous times. This is code for “reinvention” and could be just

as destructive as Greenberg’s attempts to change McDonald’s.

Another key theme of the conference call was “localization” or “A flatter, more nimble organization that ensures key business decisions are made closer to the customer, by 

people with local market expertise.”

It’s hard to believe that a bureaucracy run by control freaks that’s been top-down for 

30 years is going to turn on a dime and encourage creativity and entrepreneurship in 
the field. But, this is a shrewd political move that takes the spotlight off Oak Brook and
puts the onus on McDonald’s Operators and faceless corporate field people.

This buys management time to deflect blame and gets them through the 2015 share -

holders meeting. If things aren’t going better by the spring it will be time for a full
on attack on the Operator community.

Which, McDonald’s veterans will remember, was another Greenberg strategy (one of 

his last).
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