One commentor began with: "I'm surprised that there has not been more focus on the finance/debt issues by MCD in the Business Media. Many stores have good operations
but the problem comes from declining sales and costs below the PAC."
There is only one source for such reporting - McDonald's Operators. A reporter can't
make up the facts or report on speculation. They need sources that are informed and
quotable. McDonald's is not required to report on Operator profitability and when they comment on it, they lie. Whatever information they might gather is sealed. Accountants retained by Operators can't talk about their clients business but if they did, they'd lose
all of their McDonald's business.
This could only be reported on if an Operator or Operators pick up the phone or go on
line with the reporters from the major business media. They've been waiting for years
to hear from McDonald's Operators.
I hear the following from a reporter or an analyst almost every day:
"I know the answer but I have to ask, do you know of any McDonald's franchisees who
will discuss these issues?"
.
14 comments:
Can we tell you,anonymously, and you can tell them??
I am so pissed with how our company is being run, I have no problem with my name being associated. They are running us in the ground, and I am tired of putting up with it. Our franchisor sucks, and it is time for us to hold them accountable. For those of you afraid to show your name or to speak up in meetings, what are you afraid of? Do you want another high rent , slave job restaurant? Who is with me?
I have already commented and am waiting approval. For the first comment, you are are part of the problem. You need o be confident and speak up in meetrings. Do you want to.be compared with a battered wife? That is what you sound like. I'm tired of O/O's who agree with me in breaks but say nothing in meetings. You do realize this is your business and debt? Until we speak with one common voice (the NLC basically is drinking the corp kool-aid), we are going to end up winless. You are supposed to be entrepreneurs, start acting like it. I'm an O/O too, and I have been fighting. Join me!
"Can we tell you,anonymously, and you can tell them??"
That's what we've been doing for years - If you see me quoted someplace I'm just repeating what
McDonald's Operator are telling me. But anonymity only goes so far. Journalists want to work with the real people involved. And they are not so much interested in the gory legal or financial details. They want to cover the human side of the story, how you felt, how you got there, what would you do different, what are you going to do?
If being anonymous is your game you should be sure to participate in our Operator surveys!
The issue in some cases is retaliation from the company. Some of us have children coming into the business. I don't want my son to start with a bad attitude and with fear of MCD. I have taught him that the biggest mistake he can make is taking on too much debt and that he will be encouraged to do so. MCD will always say that if you don't do it you will miss out on growth opportunities. But, growth opportunities are not today what they once were. Thus, that threat is not as effective as it once was. Debt is absolute poison. Every time you do it in this business it is like drinking a glass of bleach. It has not always been the case but today it is an addiction. "What are you going to do" with too much debt there is little you can do if sales are not increasing. Growth is not always the answer. At one time I had eight stores and was very happy. My cash flow coverage ratio was approaching four(4). Managers were well paid and satisfied. Then I was given a great opportunity to expand and double the size of my organization. Like a dolt I did it. Many millions of dollars in debt later I think back on better days. The addiction to growth and debt can create big problems. Then the reinvestment pressure began. The company people are completely out of touch with reality. The most any of them had ever done is take out a mortgage and they think they know all about business and debt management. As to the future of MCD we have got to get sales back and get debt under control.
Those Journalist should talk to their peers who cover Washington. They quote anonymous sources all the time.
In some cases? Retaliation from the company is the issue in every case.
You all remind me of the O/O's in my co-op, except a couple. This is your business. I have left two comments already. Why don't you help us get all together Richard? As for me, I don't care about my name being used. I have turned them down on 24/7 (lose money on most locations). I'm closed on Thanksgiving and Christmas. I have fought an STO that would have left me with two terrible restaurants. I have turned down two new restaurants. I'm still expandable. You all are giving this company way too much credit. They are all talk and no bite. Start voting like your family's income depends on it, because it does. They are too busy worried about making themselves rich and the board and shareholders. They don't care about you or your family. The sooner that you realize that, the better off you will be. They lie to get the us to do promotions that may drive sales but give us a terrible bottom line. I'm ready to get a group of O/O's with me. Richard, I think you would encourage this. I don't care if they know who I am. I'm ready for the fight. Again, who is with me? This is just like my co-op meetings. Crickets chirping. Have fun drinking the Kool-Aid with Jim Jones (I mean McDonald's). This is your business, start acting like it. If we can unite, they can not stop us, and the NLC is worthless. They are just trying to get a family member approved. All I can say is grow up and realize your name is on the loan(s) that they got you to sign up for that. The more power you give them, the more they will gladly take. Don Thompson has millions to show for it, and us O/O's are still paying his consulting fees. WAKE UP O/O's we are being screwed. It is time to take the system back.
The time is now Richard.....too many O/O's in debt, and McD believing its okay. Its not.
You can't take back what is not yours to begin with. It's McDonald's system and the operators are just a means to an end: terrific cash flow for the company with little risk.
"You all remind me of my O/O's". Very well said, comments spot on. I think every Operator needs to ask themselves really what they are forgoing by standing up and speaking up regarding their own business. You are correct the notes are in our names not McDonalds. And trust me all you on the fence. If you defaulted on your note they would not save you, they would simply give it to another operator to burden it for them. This is Wall Street never sees and overlooks when looking at defaults of McDonalds stores. That is why Banks "in bed" with Brand know the McDonalds wont let the loans default.
I pray this all comes to pass and that most of us come together. I have passed along to operators that seem trust worthy. Obviously there is still some risk that they would sell me out. I'm use to it.
To the previous commentor. I'm the guy that wrote the "this is you business" post. Why would you worry about passing on a site and getting sold out. I swear you all (except the person that agreed with me) sound like we are living in the USSR. Your are giving the company way too much credit and power. Can you imagine the PR right now if they were trying to purge O/Os while also trying to sell us company owned restaurants? I used to blame the company for a lot, but now I am thinking they have chosen a lot of O/Os who aren't entrepreneurs. Because of what you do, you're worth a lot more than you think. This is hard work, and you all could easily find other ventures or opportunities. Yet, I see it so often that you think you would be nothing without them. Again, it sounds like battered wife syndrome. When I mentioned taking back the system, we can do it together. Again, they can't ignore us if we speak up and are prepared for the battle. They will back down; I can say that I, personally, have seen it countless times.
We need to start a group outside of the NLC. I think the company picks these people, anyway. Once we do that, they will listen. Let's stop acting like children and start speaking up and together (instead of in the hallways of a hotel conference room) outside of co-op meeting. You all are better and stronger than this.
Right on "This is your Business". YOU ARE 100% Correct. I comment only on the facts. Everyone needs to wake UP!!!!!!
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