Cattle Outlook: Fewer cattle in feedlots, record high for beef Cattle News:
Cattle Outlook: Fewer cattle in feedlots, record high for beefhttp://
December 22, 2012
Fewer Cattle in Feedlots, Record High for Beef
Cattle Outlook: Fewer cattle in feedlots, record high for beef Cattle News:
December 19, 2012
Famous Dave's hires RMS
Famous Dave's hires pricing consultant Revenue Management Solutions:
Former McDonald's Exec to Run Japanese Chain
It's good to hear that Ralph Alvarez's health problems have been resolved.
Former McDonald's Chief to Run Japanese Chain Skylark:
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Former McDonald's Chief to Run Japanese Chain Skylark:
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December 18, 2012
December 17, 2012
Consumer confidence to remain fragile in 2013
"Despite ongoing improvement, the U.S. economy has only
recovered about half of the jobs lost during the Great Recession,
and consumer confidence is expected to remain fragile in 2013."
NRA Rstaurant Industry Forecast::
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recovered about half of the jobs lost during the Great Recession,
and consumer confidence is expected to remain fragile in 2013."
NRA Rstaurant Industry Forecast::
.
December 13, 2012
December 11, 2012
McDonald’s CFO Must Defend Margins From Bargains
The Wall Street Journal profiles McDonald's Chief Financial Officer. An analyst is
quoted, "Bensen “has to be the voice of reason,” said Andy Barish, managing director
of equity research for Jefferies & Co. “There needs to be a little bit of balance
and discipline” when it comes to pricing."
This makes it sound like the CFO sets menu prices. While he's not supposed to be doing
that he probably does have RMS on speed dial.
The CFO Report - WSJ:
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December 10, 2012
December 8, 2012
Obamacare and Food Inflation
A McDonald's Operator asks - "How are Operators planning to pass
along costs to customers when the Affordable Healthcare Act kicks in?"
In my humble opinion - in the short term - they can't.
Quick Service Restaurant menu prices are already at the upper limits and
speaking as your customer, we're just not going to take it anymore.
Future increases are going to seriously damage guest counts. It's fine to
ponder factors like Food Away From Home but because of the AHA and
possible food shortages Operators are headed into the great unknown.
Shareholders have enjoyed the fruits of food inflation in recent years and
it appears that managements of QSR companies do not want franchisees
or investors to see any challenges ahead.
In particular, at McDonald's, the corporate folks are counting on a food
inflation windfall to continue to indulge shareholders and to pay for MRPs.
So McDonald's customers will be asked to pay $5.00 or $6.00 for a Big Mac
to cover increased food costs, healthcare costs, and to help the Operator
pay for remodeling their landlord's building? That's just not going to work.
I'm suggesting McDonald's Operators do several things:
* Don't count on food inflation when making plans for the future. Your
customers will outsmart you and they'll certainly outsmart Oak Brook.
* Back off on borrowing money. Even though interest rates are favorable
you're in rough seas, there's a killer wave of unknown magnitude on the
horizon, and Operators are willingly taking on water?
* Do not let management use Operator "leadership" as a tool to rush you
into taking on debt.
* Take another look at our comments on the Dollar Menu.
In a recent letter to fellow Operators a member of an RLC wrote,
"Our finances are under pressure and will most likely continue to stay
that way." The letter went on to encourage Operators to hurry and sign
up for more MRPs!
An obvious Oak Brook form letter but is this the kind of schizophrenic
financial advice one gets for their McDonald's franchise fees?
The challenges of 2013 and 2014 could not have been imagined five years
ago and sticking to a corporate agenda developed a decade ago may do a
lot harm.
.
along costs to customers when the Affordable Healthcare Act kicks in?"
In my humble opinion - in the short term - they can't.
Quick Service Restaurant menu prices are already at the upper limits and
speaking as your customer, we're just not going to take it anymore.
Future increases are going to seriously damage guest counts. It's fine to
ponder factors like Food Away From Home but because of the AHA and
possible food shortages Operators are headed into the great unknown.
Shareholders have enjoyed the fruits of food inflation in recent years and
it appears that managements of QSR companies do not want franchisees
or investors to see any challenges ahead.
In particular, at McDonald's, the corporate folks are counting on a food
inflation windfall to continue to indulge shareholders and to pay for MRPs.
So McDonald's customers will be asked to pay $5.00 or $6.00 for a Big Mac
to cover increased food costs, healthcare costs, and to help the Operator
pay for remodeling their landlord's building? That's just not going to work.
I'm suggesting McDonald's Operators do several things:
* Don't count on food inflation when making plans for the future. Your
customers will outsmart you and they'll certainly outsmart Oak Brook.
* Back off on borrowing money. Even though interest rates are favorable
you're in rough seas, there's a killer wave of unknown magnitude on the
horizon, and Operators are willingly taking on water?
* Do not let management use Operator "leadership" as a tool to rush you
into taking on debt.
* Take another look at our comments on the Dollar Menu.
In a recent letter to fellow Operators a member of an RLC wrote,
"Our finances are under pressure and will most likely continue to stay
that way." The letter went on to encourage Operators to hurry and sign
up for more MRPs!
An obvious Oak Brook form letter but is this the kind of schizophrenic
financial advice one gets for their McDonald's franchise fees?
The challenges of 2013 and 2014 could not have been imagined five years
ago and sticking to a corporate agenda developed a decade ago may do a
lot harm.
.
December 4, 2012
December 3, 2012
55 Year Old Whopper for 55¢
To celebrate its 55 year anniversary, a line of limited-time-only Whopper Sandwiches
has been unveiled.
Sounds a little like the "McDonald's Campaign 55"
QSR Magaine reports HERE
.
has been unveiled.
Sounds a little like the "McDonald's Campaign 55"
QSR Magaine reports HERE
.
December 1, 2012
Opinion on McDonald's from Crains Chicago Business
"But how many customers lured by ads for a $1 cheese-burger will shell out four
times that for an Angus burger? Lower prices won't help McDonald's franchisees
already struggling to preserve profits as food costs rise. This is the inherent tension
in the company's relationship with franchisees: McDonald's takes its money off the
top as a percentage of restaurant sales, while franchisees pocket what's left over
after paying all the expenses of running the restaurants."
times that for an Angus burger? Lower prices won't help McDonald's franchisees
already struggling to preserve profits as food costs rise. This is the inherent tension
in the company's relationship with franchisees: McDonald's takes its money off the
top as a percentage of restaurant sales, while franchisees pocket what's left over
after paying all the expenses of running the restaurants."
McDonald's is losing sales as Burger King and Wendy's rebound - Crain's Chicago Business:
.