Greenberg nails it and says what Franchisees have been saying for YEARS. THE MENU IS TOO BIG !!! Thompson promised simplification, they cut (only) five products and then ADDED four new ones. We need to cut the menu by AT LEAST 20% !!! And "Build a burger" is NOT the answer, it will make things operationally WORSE. When will Oak Brook WAKE UP ??
Don Thompsons backround is NOT in Operations. He once told a magazine that he wouldnt join McDonalds because he didnt want to be a "burger flipper". Thompson needs to GO, and his replacement needs to be an OPERATIONS person, a burger flipper !!
This thread is an excellent outline of the issues facing the MCD system from the point of view of the operator community. It is my hope that there is some way to insure that responsible Executives in MCD top management are reading it. An issue that I think needs vetting is the issue that it appears that many MCD executives in the regions and in upper middle and top management equate a good MCD administrative decision as being a good business decision. Many times that is just not true. When you talk to Executives about the dollar & cents issues you can see the steel curtain fall behind their eyeballs and they just don't get it. Then they start agreeing with you and speaking in the current platitudes about cash flow of which they know nothing. Every twelve years or so MCD worships at the feet of the God of "Market Share" they then build too many stores too fast and end up driving a truck through many operator organizations causing serious financial problems and they don't even say "oop's". They are never wrong!! They need to put their clip boards down and get a dose of reality. The problem for us is that MCD has great cash flow and they can keep making these same mistakes for a longtime before it impacts the macro business. However, when it does it will really be bad. On the Corporate side they are too top heavy and fat. The region employee's are too ambitious for their own promotions and will say or do anything to please the dolt GM. Even when they know decisions are marginal at best. They admit it. Sales are going to continue to suck and debt service continues to go up while MCD employee's keep singing the jingle and wait for their next performance review. Direct quote. "Don't those operators know they are affecting our bonuses". The beast needs to be tamed.
Are there enoogh operations people left in McDonald's to turn things around? Thompson has gotten rid of so many long time ops people like Stratton and Fenton. It appears to be dangerous for an Oak Brook person to know how to run stores.
4 comments:
Greenberg nails it and says what Franchisees have been saying for YEARS.
THE MENU IS TOO BIG !!!
Thompson promised simplification, they cut (only) five products and then ADDED four new ones.
We need to cut the menu by AT LEAST 20% !!! And "Build a burger" is NOT the answer, it will make things operationally WORSE.
When will Oak Brook WAKE UP ??
Don Thompsons backround is NOT in Operations. He once told a magazine that he wouldnt join McDonalds because he didnt want to be a "burger flipper". Thompson needs to GO, and his replacement needs to be an OPERATIONS person, a burger flipper !!
This thread is an excellent outline of the issues facing the MCD system from the point of view of the operator community. It is my hope that there is some way to insure that responsible Executives in MCD top management are reading it. An issue that I think needs vetting is the issue that it appears that many MCD executives in the regions and in upper middle and top management equate a good MCD administrative decision as being a good business decision. Many times that is just not true. When you talk to Executives about the dollar & cents issues you can see the steel curtain fall behind their eyeballs and they just don't get it. Then they start agreeing with you and speaking in the current platitudes about cash flow of which they know nothing. Every twelve years or so MCD worships at the feet of the God of "Market Share" they then build too many stores too fast and end up driving a truck through many operator organizations causing serious financial problems and they don't even say "oop's". They are never wrong!! They need to put their clip boards down and get a dose of reality. The problem for us is that MCD has great cash flow and they can keep making these same mistakes for a longtime before it impacts the macro business. However, when it does it will really be bad. On the Corporate side they are too top heavy and fat. The region employee's are too ambitious for their own promotions and will say or do anything to please the dolt GM. Even when they know decisions are marginal at best. They admit it. Sales are going to continue to suck and debt service continues to go up while MCD employee's keep singing the jingle and wait for their next performance review. Direct quote. "Don't those operators know they are affecting our bonuses". The beast needs to be tamed.
Are there enoogh operations people left in McDonald's to turn things around? Thompson has gotten rid of so many long time ops people like Stratton and Fenton. It appears to be dangerous for an Oak Brook person to know how to run stores.
one minute and 48 seconds into this video
http://finance.yahoo.com/video/ceos-next-224500964.html
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