Coalition of Franchisee Associations

February 26, 2017

Prices for Restaurants are Sky-High Right Now

Of course, we're talking about entire chains changing hands, not Operator to
Operator sales.

Jonathan Maze @ NRN reports
.

8 comments:

Anonymous said...

Since we don't have a free market for our stores and McDonald's controls the sales prices not much of this applies to McD O/Os.

Anonymous said...

With the rewrite and reinvestment requirements McD places on sales, any store under $3mm is virtually worthless.

Richard Adams said...

And McDonald's shareholders all over the world thank McDonald's Operators for your contribution. And the super-secret REIT thanks you for improving or replacing their buildings.

Anonymous said...

Heard today that MCD is expecting a 20% attrition rate in the operator community. Normal has been 6%.

Anyone hear this?

Anonymous said...

McD is applying the expandability and rewrite criteria to force out smaller O/Os and then looking the other way concerning those criteria for the buyer of the smaller O/O's stores.

Richard Adams said...

20% sounds conservative, especially over the long term.

Anonymous said...

At the end of March there is a meeting in Oak Brook which will give a "Vision" of what is coming. They are expecting that this will be the motivation for operators to sell. If they don't sell soon the new improvements will go on the NRBS list and no sales will be approved unless the buyer or the seller agree's to do them.

Anonymous said...

Look at the Dunkin Donuts system about 12 years ago under Jon Luther and Steve Horn.

That is the future. Maybe some of us will get paid something for our restaurants instead of just getting churned out of the system for Oak Brook to get all of the buyer money. Maybe.