In my 30 yrs plus as an O/O I've seen this happen over and over. They get some level of success, they get fat, things slow down, they downsize and draw new divisional/regional lines. It seems to happen about every eight years or so. It must be a result of their short-term business tactics.
We've been through this three times. It happens about every 11 or 12 years. In my opinion, it all starts with their obsession with Market share. They build too many low volume store too fast. Quinlan, Greenberg lost their jobs over it. Thompsom may be next but he has other assets MCD prizes more than profit. I'm told that the bloat has grown greater than it was before Jim Canalopo took an axe to the bloat. When he died the company returned to their old ways of adding staff and meaningless programs. A good regional manager would see the problem and advise Oak Brook but they are a big part of the problem. Clearly they now know there is a serious problem. What they do about it remains to be seen. When companies consistently make bad decisions there is a day of reconing and we are close to that day. Deep cuts to staff are necessary but it is not the only solution. A corporate culture of profitability must be rebuilt.
5 comments:
They need New GM's they have been in their positions way to long.
Find some people who know what it's like to run a restaurant.
In my 30 yrs plus as an O/O I've seen this happen over and over. They get some level of success, they get fat, things slow down, they downsize and draw new divisional/regional lines. It seems to happen about every eight years or so. It must be a result of their short-term business tactics.
They need to trim 10-20% of their bloated staff. But the ones who really need to go are Thompson & Co
We've been through this three times. It happens about every 11 or 12 years. In my opinion, it all starts with their obsession with Market share. They build too many low volume store too fast. Quinlan, Greenberg lost their jobs over it. Thompsom may be next but he has other assets MCD prizes more than profit. I'm told that the bloat has grown greater than it was before Jim Canalopo took an axe to the bloat. When he died the company returned to their old ways of adding staff and meaningless programs. A good regional manager would see the problem and advise Oak Brook but they are a big part of the problem. Clearly they now know there is a serious problem. What they do about it remains to be seen. When companies consistently make bad decisions there is a day of reconing and we are close to that day. Deep cuts to staff are necessary but it is not the only solution. A corporate culture of profitability must be rebuilt.
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