"Beyond asking franchisees to pitch in for upgrading restaurants—work that could
set them back millions of dollars—McDonald's is pressuring owner-operators to cede
even more control to Oak Brook over a particularly sensitive issue to franchisees:
menu discounts and deals."
McDonald's reasserting its authority over franchisees - Crain's Chicago Business
Kudos to those Operators who worked with Peter on this Crain's article.
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13 comments:
No suspicion to it, franchisees asked to be all in or get out. While there is the investment, some makes sense. But to be forced with the constant discounting, drinks, sandwiches, McCafe, and now shakes too. With their technology, corporate can now program a register to discount with little to no operator involvement or approval. And they already have control over the menu boards, at another operator expense. Sheep to the slaughter, Ray is rolling in his grave. What happens when those in charge no longer have any McDonald's history or experience. There is no argument to be made against joint employer, operators are now paid management for the company.
There is No McD. history with any of these folks. They want to erase all of McDonald's vast history and Culture. I believe that is why Easterbrook wants to build Downtown. It will remove all Links to: Ray, Fred, Ronald and ALL other foundations of what many of us grew up with. There is No thought of an Operator. This is PLAIN and SIMPLE a power grab to make Franchisees Employees.
Easterbrook is ashamed he is the CEO of McDonalds or any QSR for that matter. He would rather be CEO of a Fast Causal or a more acceptable Company, that would be more to the likening of the other CEOs. Quite simply he is embarrassed by us and what we stand for.
I am Surprised that there is Not more indignation by fellow Operators on this blog.
I don't know what the Corporation is worried about. They have always gotten their way and operators always bend over and spread their cheeks. Once all of the MRP's are done the operators will be again swimming in debt and drowning in discounts. Plus, it won't be long before suppliers will be raising prices. Discounts and supplier price increases. The only people that will "be Lovin it" will be our competior's.
I thought I was investing in a franchise, but I really only bought myself a JOB.
WE NEED AN OPERATOR UNION NOW MORE THAN EVER !!!!!! (not the NLC JOKE)
"Get on board or get out" has been the mantra since the Rensi/Quinlin days. Nothing new about that.
Things are bad, no question about it. However, think of where were headed with Thompson. We couldn't have continued in that direction much longer. He was the closest thing to zero I've ever seen in MCD. When the bills for the MRP's come due there will be difficult times and stores values plus the bills won't leave much to retire on. We've seen this before "the train has left the station". As the operators were scrambling to get on the train the company never cut their own cost and let the staff size continue to grow and gain more control. Soon the company was being run by staff for their own benefit. Millions were wasted on programs that were never necessary. PC became the flavor of the month and generated great ideas like "lets remake MCD to be like a jap automobile manufacturing plant" Remember that one" MQM! Another great idea Really BOLD chicken wings so fuckin hot you had to drink two milk shanks to find you way back to your car. They were so sure of it they ordered 50, 000,000 pounds more than needed. All the while sending manager to classes on leadership. Hedge funds are already licking their chops over MCD real estate holdings. If Easterbrooks plan doesn't work and more cost cuts are not soon I hate to think or try to predict the future.
We need an independent Operators Association ASAP, before we are all eliminated. I see the other systems that have them, like competitors at BK, Dunkin Donuts, Subway etc that don't get bent over like Operators do because they have their own associations that can ignore their NLCs
Past time to rebirth MOOA
The McDonald's that we started with is gone forever. Easterbrook has destroyed the culture within the company and with the owners. He has driven out most of the mid level folks that could actually help you in the restaurants and they've pushed all the training onto the restaurants. I'd be fine with that if our service fees were reduced, but they remain the same. Less service, same price!
I know in the past there was saber rattling about getting on board or getting out, but easterbrook and crew are buying out owners and keep forcing this reorg plan for the markets. They want more marketing dollars nationally, but our results with national programs are abysmal. Why would I vote to have less say in my promotions either in my market or nationally?
We need to resist these actions to dampen the voice of the owners. Besides all of the costs that they are piling on the owners, they are taking more control of the programs in our restaurants! Since when does Oak Brook get anything right?!
"easterbrook and crew are buying out owners" - Since these posts are anonymous I don't know I'm correcting here, or this might be something of a typo, but I don't think anyone should assume that McDonald's Corp. is reducing the number of Operators by running around with buckets of cash. Anyone who is waiting for McDonald's to make them a juicy offer is stuck in the 1990s. Why pay a premium when they can just let the Operator die on the vine?
This is especially true in an era where McOpCo is a dirty word in Oak Brook. There may be exceptions where MCD can step into a pending bankruptcy, get the stores on the cheap, and sell them quickly.
But capital must be preserved for the shareholders, not for flipping stores.
I haven't heard that MCD is buying any stores. If they are you can bet they pay less than another operator would pay. Plus, when they do buy a store once they offer the lowest they deduct another $50,000.00 per store for G&A. I, for one, support driving out as many MCD people as possible. Mid-level, top level, lower level espically those that have been feather bedding for the last 15 years watching the system go down the tube's. Their training programs are well designed but we train people far better than the company does. It is correct that the great system many of us brought into is gone forever and anyone who thinks we can bring it back is foolish. The challenge is to learn how to make money in this new enviornment. Thinking that operators are going to effectively resist these trends being set by corp. is unreasonable they never have and never will. Oak Brook gets it right when they continue to fire people and close under performing stores. The more staff they get rid of the more responsibility will accrue to the operators who can have more control over their own businesses. Our region has 13 people in the construction department. All they need is three. That is not my assessment its Oak Brooks and I agree with it. The regional office is a palace. They could be just as effective in a business park in the suburbs. Ever see your regions travel budget that your stores are paying for? They need to shitcan all of it and start over from scratch. Easterbrook is right to destroy the culture that has evolved in MCD and he needs to drive out twice the amount of bureaucrates that has been done. Drop any dreams of fee's being cut its is not going to happen. Hell, I'll pay them a per cent more if they will just stay away.
They HAVE bought out some operators at ridiculously high valuations- because they were bulletproof and outspoken. But the usual tactic is to run them off or like a previous poster said...die on the vine.
Sounds like more Operators should be "outspoken".
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