McDonald’s does NOT care about the Operator. It only cares about stockholders. Nearly half the Operators are in financial distress yet McDonald’s keeps piling on costly mandates and initiatives. The Corporation, in an effort to be politically correct, is on the WRONG SIDE of issues which directly hurt the Operators (minimum wage, unionization, etc.). McDonald’s Operators need an independent franchise association, and that association needs to join the CFA. There is no other way out of an abusive relationship than to take control of your own fate. The association can speak for Operators, so they don’t have to personally stick their own necks out for retribution from management employees. The association hires professional employees who aren’t Operators (or people who are former Operators). McDonald’s can’t do anything like not renew them or default their leases. They are free to speak the minds of the members without the members getting retribution. McDonald’s is in the process of borrowing $10 billion and paying out a total of $30 billion to shareholders by the end of 2016 in dividends and share buybacks. Right after McDonald’s announced the increased debt, the ratings agencies cut McDonald’s credit rating to three notches above junk. That could mean higher borrowing costs for franchisees. The ‘partnership’ is DEAD.
McDonald’s, by its actions, has and continues to demonstrate that it places ZERO value on the Owner/Operator body. Field service is not helpful, in fact is an adversarial relationship. Marketing is geared to enrich McDonald’s Corporation – driving sales through discounting and very little consideration given to profitable sales. The cost of doing business continues to rise, from the outside as well as McDonald’s initiatives. It’s increasingly difficult to achieve and predict profitability going forward with all of the increases.”
3 comments:
We need mobile ordering. The kiosk looks great but does nothing for me at the drive thru! Table service is not something the customer is asking for!
McDonald’s does NOT care about the Operator. It only cares about stockholders. Nearly half the Operators are in financial distress yet McDonald’s keeps piling on costly mandates and initiatives. The Corporation, in an effort to be politically correct, is on the WRONG SIDE of issues which directly hurt the Operators (minimum wage, unionization, etc.). McDonald’s Operators need an independent franchise association, and that association needs to join the CFA. There is no other way out of an abusive relationship than to take control of your own fate. The association can speak for Operators, so they don’t have to personally stick their own necks out for retribution from management employees. The association hires professional employees who aren’t Operators (or people who are former Operators). McDonald’s can’t do anything like not renew them or default their leases. They are free to speak the minds of the members without the members getting retribution. McDonald’s is in the process of borrowing $10 billion and paying out a total of $30 billion to shareholders by the end of 2016 in dividends and share buybacks. Right after McDonald’s announced the increased debt, the ratings agencies cut McDonald’s credit rating to three notches above junk. That could mean higher borrowing costs for franchisees. The ‘partnership’ is DEAD.
McDonald’s, by its actions, has and continues to demonstrate that it places ZERO value on the Owner/Operator body. Field service is not helpful, in fact is an adversarial relationship. Marketing is geared to enrich McDonald’s Corporation – driving sales through discounting and very little consideration given to profitable sales. The cost of doing business continues to rise, from the outside as well as McDonald’s initiatives. It’s increasingly difficult to achieve and predict profitability going forward with all of the increases.”
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