December 23, 2011
December 7, 2011
Restaurant Traffic Flat in 2011
QSRs saw a 1% bump in patrons in the first quarter, year-over-year,
but then stayed flat for the next two.
LA Times reports HERE
.
but then stayed flat for the next two.
LA Times reports HERE
.
December 6, 2011
December 5, 2011
December 1, 2011
November 30, 2011
November 28, 2011
Dairy Queen Franchisees Settle Dispute
The independent group of franchisees (Dairy Queen Operators Association)
will have one of their representatives at every meeting between Dairy Queen
management and the corporate approved Franchisee Advisory Council (FAC).
One might think that the typical franchisee does not trust the FAC?
.
will have one of their representatives at every meeting between Dairy Queen
management and the corporate approved Franchisee Advisory Council (FAC).
One might think that the typical franchisee does not trust the FAC?
.
November 26, 2011
November 22, 2011
McDoonald's Grand Opening Mismanaged
No one with any retail experience in any business would
ever set a public time certain for opening and promoting
a new location. I'm assuming this is a McOpCo store or
an Operator who is letting corporate people make all
the decisions.
The drive for increased sales has officially become mindless.
McDonald's Grand Opening Snubbed Customers
Update:
This is how to open a business - a private, soft event
the day before, a press release the next morning and open
in the afternoon.
.
November 17, 2011
BKC's Failing Corporate Stores
"3G is taking the cash out, and not putting it towards remodeling or upgrading its corporate stores in North America."
BKC's Failing Corporate Stores - Franchise Association News
.
BKC's Failing Corporate Stores - Franchise Association News
.
November 15, 2011
Skinner on CNBC
"Skinner said there are 600 items in the McDonald's pipeline, including new
snacks and beverages."
Holy KVS, Batman! Your new POS is already obsolete!
Here's the article
.
snacks and beverages."
Holy KVS, Batman! Your new POS is already obsolete!
Here's the article
.
November 11, 2011
November 10, 2011
Analysts Attend Hamburger U
McDonald's held their bi-annual investor meeting at H.U. today.
We will post various media reports from the meeting.
Starting with this corporate press release.
New product news released
Nations Restaurant News Reports
.
We will post various media reports from the meeting.
Starting with this corporate press release.
New product news released
Nations Restaurant News Reports
.
November 9, 2011
Restaurant Meal Prices Likely to Play Catch-up to Inflation
"Food-at-home inflation is rising faster than food away from home, which might allow for additional pricing actions in the near term," (McDonald's CFO) Bensen said.
Poultry in Motion
.
Poultry in Motion
.
November 8, 2011
November 6, 2011
McDonald's chief : Curb Spending and Cut Taxes
"We pay some of the highest [corporate] taxes around the world. There needs to
be some levelling."
Ironically spoken by the CEO of the franchise company that charges higher rents
and royalties than any franchised brand in the world.
From the UK Telegraph
.
be some levelling."
Ironically spoken by the CEO of the franchise company that charges higher rents
and royalties than any franchised brand in the world.
From the UK Telegraph
.
November 5, 2011
The Fight for Fairness in Franchising
"Imagine owning a small business for 20 years, pouring all your time, money and sweat into achieving a decent cash flow and a little equity. Then imagine getting a contract in the mail stipulating that if you want to continue doing business, you must replace thousands of dollars of perfectly good equipment, adjust suppliers or prices or make a dozen other changes that could destroy your bottom line. And if you don't sign, you more or less forfeit your life's work."
Yeah, just Imagine!
.
November 4, 2011
OWS Protester Arrested At McDonald's
After a violent rampage at a McDonald's that refused to offer him free food.
OWS Protester Arrested At McDonald's:
'via Blog this'
.
OWS Protester Arrested At McDonald's:
'via Blog this'
.
November 3, 2011
Tim Hortons Rolling Out Specialty Coffee Line
Now they can sell a few dozen espresso drinks a day!
Tim Hortons rolling out specialty coffee line | QSRweb.com
.
Tim Hortons rolling out specialty coffee line | QSRweb.com
.
October 22, 2011
October 21, 2011
Does MCD's CFO Decide Menu Prices?
McDonald's already hiked prices twice this year, by 1% in March and 1.4% in May, and will consider more as necessary. “We will continue to evaluate additional price increases in light of this inflationary environment always balancing our goal of driving traffic and marketshare gains with effectively managing the impact of rising costs,” Mr. Bensen said.
Crain's reports HERE
.
Crain's reports HERE
.
October 19, 2011
October 14, 2011
October 13, 2011
October 12, 2011
October 11, 2011
October 7, 2011
October 6, 2011
October 5, 2011
October 3, 2011
October 2, 2011
October 1, 2011
Wall Street protest's success not easily measured - WSJ.com
Wall Street protest's success not easily measured - WSJ.com: "They sleep on air mattresses, use Mac laptops and play drums. They go to the bathroom at the local McDonald's. A few times a day, they march down to Wall Street, yelling, "This is what democracy looks like!""
'via Blog this'
'via Blog this'
September 26, 2011
September 25, 2011
September 24, 2011
September 22, 2011
September 20, 2011
We Must ‘Create Appropriate Transition’ for What Americans Eat
U.S. Agriculture Secretary Tom Vilsack told members of the National Restaurant Association on Monday that Americans need to “adjust” their tastes so that they like the kind of food the government believes they should eat.
USDA Secretary: We Must ‘Create Appropriate Transition’ for What Americans Eat | CNSnews.com:
'via Blog this'
.
USDA Secretary: We Must ‘Create Appropriate Transition’ for What Americans Eat | CNSnews.com:
'via Blog this'
.
September 19, 2011
September 16, 2011
September 15, 2011
September 13, 2011
September 9, 2011
September 6, 2011
QSR Insights: Is Menu Variety Hurting Your Comp Store Sales? – QSR Insights
Doing few things well rarely hurts sales performance. Or, put another way,
variety isn’t always the spice of life.
QSR Insights: Is Menu Variety Hurting Your Comp Store Sales? – QSR Insights:
'via Blog this'
variety isn’t always the spice of life.
QSR Insights: Is Menu Variety Hurting Your Comp Store Sales? – QSR Insights:
'via Blog this'
August 27, 2011
August 26, 2011
Arby's changes menu, trying to "do it better"
"Arby's executives acknowledge that it takes a certain swallowing of the ego to wait and let McDonald's or others move first."
Arby's changes menu, trying to "do it better" | ajc.com:
.
August 22, 2011
Banks Charging Debit Card Fees
A customer uses a debit card to make a purchase at a McDonald's.
"Some of the nation’s largest banks have launched or are considering charging fees when consumers make purchases with their debit cards — that popular plastic link to checking accounts."
Debit card fees could signal trend | ajc.com
.
Chipotle, McDonald's And The Rise Of Value Eateries
Some interesting McDonald's numbers here.
Do they relate to franchisee profits?
Chipotle, McDonald's And The Rise Of Value Eateries - Investors.com
.
August 20, 2011
August 19, 2011
August 18, 2011
August 16, 2011
August 13, 2011
For McDonald's Operators
We've found a place on the RTS (Restaurant Technology Services) website
where they admit they are a wholly owned subsidiary of McDonald's.
Check it out HERE
.
where they admit they are a wholly owned subsidiary of McDonald's.
Check it out HERE
.
And Now for a Little Politics ...
"If the US Government was a family, they would be making $58,000 a year, they spend $75,000 a year, & are $327,000 in credit card debt. They are currently proposing BIG spending cuts to reduce their spending to $72,000 a year. These are the actual proportions of the federal budget & debt, reduced to a level that we can understand."
- Radio Host Dave Ramsey
.
August 12, 2011
Could There Be A Future Without Value Menus?
"Value Menus boom during times of economic hardship, but they don’t
produce high returns for the fast feeders’ bottom lines."
QSR Insights: Could There Be A Future Without Value Menus? – QSR Insights
.
produce high returns for the fast feeders’ bottom lines."
QSR Insights: Could There Be A Future Without Value Menus? – QSR Insights
.
August 10, 2011
August 8, 2011
McDonald’s Same-Store Sales Rise 5.1%
Analyst says: “Everybody is raising prices,” Saleh said. “The question
is, ‘Can they raise prices today and see their traffic hold six to eight
months down the road?’”
McDonald’s Same-Store Sales Rise 5.1% on China - Bloomberg:
.
August 7, 2011
Other Franchise Equity Group Websites Updated
Mr. Equity commented on timing a sale or exit HERE
A vintage McDonald's memo on price fixing by McDonald's Co-Ops HERE
Please feel free to make anonymous comments or ask anonymous questions.
.
A vintage McDonald's memo on price fixing by McDonald's Co-Ops HERE
Please feel free to make anonymous comments or ask anonymous questions.
.
August 6, 2011
August 4, 2011
I'm Just Saying...
The Dow has lost nearly 1,000 points since the Smurfs rang the opening bell
on July 29 in case we're looking to pin this on someone.
.
Franchise Equity Group: Our Security Is Bulletproof!
Franchise Equity Group has assembled an impressive E-mail address list of
franchisees and related parties. However, this information is only handled
by myself and no one else ever gets near this information. I do not sell
or rent my E-mail list. Never have, never will.
As always all communications here at Franchise Equity Group are confidential
and the identities of our clients and constituents are never revealed.
That's the nice thing about being a One-Man-Shop.
.
August 1, 2011
July 30, 2011
July 28, 2011
July 27, 2011
July 25, 2011
July 22, 2011
McDonald's 2011 Results - Earnings Call Transcript
McDonald's Operators should keep up on what management
is telling investors about your business.
McDonald's Management Discusses Q2 2011 Results - Earnings Call Transcript - Seeking Alpha
.
is telling investors about your business.
McDonald's Management Discusses Q2 2011 Results - Earnings Call Transcript - Seeking Alpha
.
July 21, 2011
July 19, 2011
July 14, 2011
July 7, 2011
Ronald McDonald Costume - History Detectives
Oak Brook's Covert Income: Ronald McDonald Costume - History Detectives - PBS...: "Ronald McDonald Costume | History Detectives | PBS ."
.
.
July 6, 2011
July 4, 2011
McDonald’s $80,000 Twitter Ad Spend That Failed
While the writer of the article posted below certainly has an attitude
there is something risky about a brand such as McDonald's trying to
develop a Twitter marketing strategy. Imagine if the New York Co-Op
installed a huge digital billboard in Times Square. Then imagine that
anyone, anywhere can use their smart phone to post messages on the
billboard. And, there was no editing or screening of these posted
messages. Can you imagine what would happen?
But that's Twitter. The internet is what it is and people are free to say
whatever they want about any brand. It just shouldn't be happening
on a corporate sponsored site.
McDonald’s $80,000 Twitter Ad Spend That Failed - AllTwitter
.
June 29, 2011
Good Quarter for Skinner
So far for the 2nd quarter Jim Skinner exercised options for
100,000 shares of MCD at $40.44 and on the same day sold 131,012
shares for a total sale of $10,044,690.
Jan Fields exercised 63,250 optioned shares priced between
$28.75 and $40.44 and immediately sold them for a total sale of
$5,116,925.
EDGAR reports HERE
.
100,000 shares of MCD at $40.44 and on the same day sold 131,012
shares for a total sale of $10,044,690.
Jan Fields exercised 63,250 optioned shares priced between
$28.75 and $40.44 and immediately sold them for a total sale of
$5,116,925.
EDGAR reports HERE
.
June 28, 2011
What Does McDonald's Do With All Its Free Cash?
While McDonald's franchisees take on billion$ in debt
to remodel and rebuild their landlord's buildings the
Motley Fool asks:
What Does McDonald's Do With Its Free Cash? (MCD)
.
to remodel and rebuild their landlord's buildings the
Motley Fool asks:
What Does McDonald's Do With Its Free Cash? (MCD)
.
June 27, 2011
June 26, 2011
Why $1 Hamburgers Are Still Hot
Value-Meal Index, or Why $1 Hamburgers Are Still Hot | News - Advertising Age
Burger King moving away from dollar price points?
.
Burger King moving away from dollar price points?
.
June 24, 2011
Technomic: Don’t Call it a Recovery, Yet
Technomic: Don’t call it a recovery, yet | Nation's Restaurant News: "“When we ask people why restaurants have raised prices, only one in 10 think it’s because [the industry is] greedy and wants to make more money off them,” Melissa Wilson, a technomic analyst said."
.
.
June 22, 2011
Jack in the Box Yanks Toys from Kids' Meals
A very clever move by JIB. They sell few kid's meals so they can make
their larger competitors look like bad guys and subject them to even
more pressure from the food nazis.
Jack in the Box yanks toys from kids' meals | Reuters
.
June 16, 2011
McDonald's YouTube Recruiting Video
Maybe I'm just late to the party but I've never seen anything
like this short McDonald's recruiting video in the USA. Very
well done.
YouTube - Recruiting.
.
like this short McDonald's recruiting video in the USA. Very
well done.
YouTube - Recruiting.
.
June 13, 2011
Wendy’s/Arby’s to Sell Arby’s to Roark
The more these chain's go through changes in ownership, leadership, and direction the better things will be for the major players that don't go through such trauma.
Wendy’s/Arby’s to Sell Arby’s to Roark, Undoing Peltz Tie-Up - Businessweek
.
Wendy’s/Arby’s to Sell Arby’s to Roark, Undoing Peltz Tie-Up - Businessweek
.
June 11, 2011
A True Story of How Big Money is Corrupting the Franchising Industry
I've not yet read the book but this is an interesting book review. It mentions the
most important word in franchising - Churning.
Like when a franchise company demands that a franchisee rebuild their landlord's
buildings. No matter what happens to the franchisee the landlord's real estate
empire is improved.
Dunk'd, A True Story of How Big Money is Corrupting the Franchising Industry | BlueMauMau
.
most important word in franchising - Churning.
Like when a franchise company demands that a franchisee rebuild their landlord's
buildings. No matter what happens to the franchisee the landlord's real estate
empire is improved.
Dunk'd, A True Story of How Big Money is Corrupting the Franchising Industry | BlueMauMau
.
June 10, 2011
Chains Moving Away From $1 Price Point
On the $1.00 Burger King Double Cheese:
"Burger King’s new ownership is too smart to want to repeat that
mistake. During its recent earnings call, Burger King EVP-CFO
Daniel Schwartz stressed that the chain’s focus from now on is
to “drive profitable sales.”
BurgerBusiness reports HERE:
.
June 9, 2011
McDonald's Co-Op Removes Ads That Offended Far Rockaway NY
Or at lteast one city councilman in Far Rockaway.
Ad agency people who have a snob's sense of
humor always get their clients in trouble.
McDonald's Removes Ads That Offended Far Rockaway, Councilman James Sanders
.
Ad agency people who have a snob's sense of
humor always get their clients in trouble.
McDonald's Removes Ads That Offended Far Rockaway, Councilman James Sanders
.
June 8, 2011
June 7, 2011
Crain's - McDonald's tells Australia, We'll Make Better Coffee
This reminds us of something .....
The Arch Deluxe commercials featuring kids turning up their nose
at adult burgers saying words like "Yuk!"
Negative advertising rarely ever works. This too will backfire.
McDonald's tells Australia, We'll make better coffee | Consumer | Crain's Chicago Business
.
The Arch Deluxe commercials featuring kids turning up their nose
at adult burgers saying words like "Yuk!"
Negative advertising rarely ever works. This too will backfire.
McDonald's tells Australia, We'll make better coffee | Consumer | Crain's Chicago Business
.
May 27, 2011
May 26, 2011
May 24, 2011
McDonald's Franchise Rewrites
Friends of Franchise Equity Group should watch
their E-mail for our comments on the current
status of the McDonald's Rewrite Policy.
.
May 23, 2011
State Franchise Relationship Laws
Interesting article by attorney Mario Herman. His website appears to the right.
"Such statutes may override some provisions contained in franchise agreements regarding termination and non-renewal, by providing that franchisors must give certain "notice" periods and must have "good cause" for terminating and/or not renewing a franchise agreement."
Protection After the Purchase, State Franchise Relationship Laws | BlueMauMau
.
"Such statutes may override some provisions contained in franchise agreements regarding termination and non-renewal, by providing that franchisors must give certain "notice" periods and must have "good cause" for terminating and/or not renewing a franchise agreement."
Protection After the Purchase, State Franchise Relationship Laws | BlueMauMau
.
54 Store Operator to run McDonald's in Greece
When will "Developmental Licenses" be used in the
USA as they were in the early days of McDonald's?
Times of Malta reports HERE
.
USA as they were in the early days of McDonald's?
Times of Malta reports HERE
.
May 20, 2011
Subway Says It Will Open 2,000 Stores in North America This Year
Will this be their "Convenience Strategy"?
Subway Says It Will Open 2,000 Stores in North America This Year - Bloomberg
.
Subway Says It Will Open 2,000 Stores in North America This Year - Bloomberg
.
Ronald's Dad Defends His Son
Barry Klein discusses how this impacts our culture far beyond Ronald McDonald.
Commentary: Ronald McDonald creator defends character | QSRweb.com
.
Commentary: Ronald McDonald creator defends character | QSRweb.com
.
May 18, 2011
May 16, 2011
May 13, 2011
Just When I Thought I was Out ..... They Pull Me Back In
There's something ironic about a big franchise company hiring an actor who usually plays an organized crime figure to do a TV commercial voice over.
May 12, 2011
May 11, 2011
Sonic Plans to Simplify its Menu
And raise some value menu prices
Keep It Simple, Sonic: Items Axed, Deals Restructured | βurgerβusiness: "Sonic plans to simplify its crowded food-and-drink lineup when it introduces new menu boards on May 26"
.
Keep It Simple, Sonic: Items Axed, Deals Restructured | βurgerβusiness: "Sonic plans to simplify its crowded food-and-drink lineup when it introduces new menu boards on May 26"
.
May 9, 2011
May 8, 2011
McDonald's Revamps Stores to Look Upscale
USA Today says:
"If the new look proves to be a hit, it could redefine America's biggest restaurant chain and nudge competitors at all ends of the spectrum to find some way to respond.
If consumers don't buy in, however, it could become McDonald's $1 billion folly."
Somebody check my math - but at over a million $ per location that's more like
a potential $15 or $20 Billion folly. Pretty soon we're talking about real
franchisee money!
Update - A reader has pointed out there will be several thousand U.S.
locations that will not be candidates for a remodel or rebuild but one
billion is still a very, very low number.
McDonald's revamps stores to look more upscale - USATODAY.com
.
"If the new look proves to be a hit, it could redefine America's biggest restaurant chain and nudge competitors at all ends of the spectrum to find some way to respond.
If consumers don't buy in, however, it could become McDonald's $1 billion folly."
Somebody check my math - but at over a million $ per location that's more like
a potential $15 or $20 Billion folly. Pretty soon we're talking about real
franchisee money!
Update - A reader has pointed out there will be several thousand U.S.
locations that will not be candidates for a remodel or rebuild but one
billion is still a very, very low number.
McDonald's revamps stores to look more upscale - USATODAY.com
.
May 4, 2011
Dunkin’ Brands Files for $400M IPO
Another coffee brand benefits from McDonald's franchisee
advertising spending in 2009 + 2010.
Dunkin’ Brands files for $400M IPO | Nation's Restaurant News
.
Taco Bell Franchisees & Value Messaging
On April 21 Taco Bell Franchise Management Advisory Council (Franmac) President Tom Cook sent a letter to franchisees airing a list of 14 grievances Franmac has with Taco Bell, encouraging franchisees to participate in a Taco Bell Town Hall call. It included the desire to launch an agency review, a complaint about the handling of the infamous Taco Bell beef lawsuit and a point expressing discontent over the fast feeder's "value messaging."
AdAge reports HERE
.
AdAge reports HERE
.
May 3, 2011
Taco Bell Owners Push Back on Yum Hardball Tactics
The value proposition as currently being executed is not driving transactions, and squeezing margins beyond a reasonable tolerance.
Taco Bell Owners Push Back on Yum Hardball Tactics | BlueMauMau:
.
Taco Bell Owners Push Back on Yum Hardball Tactics | BlueMauMau:
.
May 2, 2011
May 1, 2011
April 28, 2011
April 27, 2011
McDonald's Skinner Sells $10-mil. in Shares
While his tenants spend their retirement nest eggs remodeling the McDonald's REIT
.
Starbucks Passes Burger King, Wendy's for No. 3 Spot
Thanks, in part, to McDonald's franchisee ad spending against espresso drinks
.
Preparing for Inflation - A Forbes Blog Network
"Inflation is a completely new experience to many current business owners, as we have not had high rates of inflation in almost 30 years. Watch your margins carefully. Worry about growing profits, not just your sales."
.
April 23, 2011
Seismic Shift in Franchisees Seeking Balance
"Franchisees also want audited disclosures on vendor kickbacks. Kickbacks from a vendor to a franchisor can significantly raise the price of goods to franchisees, and they are typically undisclosed. They act as a hidden royalty fee."
Seismic Shift in Franchisees Seeking Balance | BlueMauMau
April 22, 2011
April 21, 2011
MCD Execs Sacrifice Operator Margins For Traffic
for the long-term," McDonald's Chief Financial Officer Peter Bensen said Thursday
on a conference call.
Some one should tell Pete that the franchisees set the menu prices, or do they?
Easy for him to spout off since there are far fewer McOpCos.
On menu pricing - I keep hearing that McDonald's regional bureaucrats are
urging Operators to "not repeat the mistakes of 2008". Apparently the Operator
is then supposed to hang their head and feel guilty about being opportunistic the
last time we had food inflation.
But this is the usual revisionist history, or a sign of high turnover in the McDonald's
executive ranks. The truth is that 2008 saw some back door increases but that
was also the middle year of three annual Federal minimum wage increases, along
with many state minimums.
I submit raising the minimum wage from $5.15 in June 2007 to $6.55 in July 2008
was the cause of menu price increases far more than food inflation (or greedy
franchisees).
So you might educate the corporate types HERE'S a link to the D.O.L. history :
.
McDonald's Raises Food Inflation Predictions
It said it now expects food costs to rise between 4 and 4.5 percent in the United States and Europe this year. In January, McDonald's said it expected its food costs to rise 2 percent to 2.5 percent this year in the United States.
.
April 20, 2011
GOLDSTEIN LAW GROUP - National Franchise Law
In this 15 min. video attorney Jeff Goldstein pitches his law firm but
also provides an interesting update on the state of franchise law in
the USA. Worth a watch for any franchisee.
.
April 19, 2011
April 18, 2011
April 16, 2011
April 15, 2011
April 14, 2011
30 Year Low in Americans Working?
"The share of the population that is working fell to its lowest level last year since women started entering the workforce in large numbers three decades ago"
.
McDonald's LatAm Franchisee Rises 26 Percent
At least one McDonald's franchisee is building equity!
.
April 12, 2011
World's Largest McDonald's Franchisee
Bloomberg reports HERE
.
April 11, 2011
April 10, 2011
April 8, 2011
Burger King Pulls Plug on Redesign
Burger King CEO John Chidsey announced a grandiose plan to remodel all 12,000+ Burger Kings worldwide to the slick “20/20” design, which he called “contemporary, edgy, futuristic.” Franchisees called it expensive.
.
April 7, 2011
April 6, 2011
April 5, 2011
March 30, 2011
Where Are They Now ?
Russ Smyth, formerly President of McDonald's Europe spent a year at
H&R Block and is now CEO of the HAVI Group, owner of Perseco and
several other McDonald's suppliers. HAVI is also one of the owners of
the underground real estate empire (SCC).
Former McDonald's execs Tom Dentice and Ed Rensi are preparing to
open their third Tom & Eddie's.
Former McDonald's guys Mike Roberts and Mike Donahue are preparing
to open health food restaurant, Lyfe Kitchen.
Former McDonald's Executive VPs Pat Flynn and John Charlesworth
still sit on the Chipotle Board:
And you can help with our research. The owner of much of McDonald's
real estate, System Capital Corporation, is headed by a "Don Horwitz"
Is this the former McDonald's top attorney?
This chart links a director of SCC to the HAVI Group
SCC and the HAVI Group are both based in Downers Grove, Illinois,
across the freeway from each other, five minutes from Oak Brook.
.