This article also mentions the bankruptcy of Quaker Steak and Lube where former McDonald's VP Debra Koenig was serving as Chairman of the Board. Logan’s Roadhouse files for bankruptcy .
6 comments:
Anonymous
said...
Interesting that McD corp people don't go on to be sucessful leaders in the rest. industry.
The reason why most long-term McD's corporate folks can't make it outside the McD's system other franchisors don't have a system were where everyone knows their rolls; additionally other systems don't have the army of soldiers to enforce corporate initiatives.
There are a lot of reasons smaller franchisors cannot be as successful regardless of their leadership. First, they have more competition than MCD had when at the same size. MCD operators over the years have been risk takers and have access to much more money to advertise and to reinvest. Rensi found that out when he was with "Found that out when he was with "Famous Dave's". They had no access to the money needed and the operators were not going to risk personal assets.
Having the programs with the MCD lenders is an asset most of the others don't have. Sometimes we take that for granted. The other side of that coin is that it created the problem of having too much debt.
Access to cash, marketing programs, real estate locations and other all come together to be very hard to compete with. Former MCD executives go in and realize that they cannot develop those same programs with other companies for many reasons.However, they should know that before taking those jobs.
The Landlord Subordination Agreement signed by McD's assures easy access to credit from national lenders allowing operators to over-leverage themselves on re-investments that may not make good business sense, and acquire loans/debt that would not be approved in the "real" world.
6 comments:
Interesting that McD corp people don't go on to be sucessful leaders in the rest. industry.
Kevin Reddy (ex McD) just got the boot at Noodles & Co
Soon, they'll be looking for a home near downtown Chicago.
The reason why most long-term McD's corporate folks can't make it outside the McD's system other franchisors don't have a system were where everyone knows their rolls; additionally other systems don't have the army of soldiers to enforce corporate initiatives.
There are a lot of reasons smaller franchisors cannot be as successful regardless of their leadership. First, they have more competition than MCD had when at the same size. MCD operators over the years have been risk takers and have access to much more money to advertise and to reinvest. Rensi found that out when he was with "Found that out when he was with "Famous Dave's". They had no access to the money needed and the operators were not going to risk personal assets.
Having the programs with the MCD lenders is an asset most of the others don't have. Sometimes we take that for granted. The other side of that coin is that it created the problem of having too much debt.
Access to cash, marketing programs, real estate locations and other all come together to be very hard to compete with. Former MCD executives go in and realize that they cannot develop those same programs with other companies for many reasons.However, they should know that before taking those jobs.
The Landlord Subordination Agreement signed by McD's assures easy access to credit from national lenders allowing operators to over-leverage themselves on re-investments that may not make good business sense, and acquire loans/debt that would not be approved in the "real" world.
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