Its really not hard to understand, that a National pricing strategy which hasn't changed in nearly 20-years is unsustainable. Clearly, competition to McDonald's can alter their value strategy. They sustain the all unique restaurant knowledge that money is made with DRINKS and FRIES. Everyone in McDonald's used to understand that too.
The key to McDonald's success was its markets - where operators lived in their market, advertised and campaigned their markets (LSM); and sponsored within their markets. The system had so many COOP's because of the diversity of our great nation. Now, conglomerates of 30-50 stores have no clue of their individual market. The brand is losing trust in markets that it neither understands or worse seldom supports. The motto, "We're not just on your corner, but in your corner" is what made McDonald's great. It has all but died. With it, the soul of McDonald's is hemorrhaging.
Talking about what made our brand great, is now considered degrading the brand. Bureaucracy over collaboration of business may drive a temporary stock price. It isn't a sustainable business model. But don't believe me, look at the rising Chick-fil-A BRAND. They have taken the MCD model and is using it (to their great success) against its inventor.
McDonald's didn't invent the hamburger. Ray Kroc invented a way to serve it FASTER. The fame to McDonald's has always been and will always be the DRIVE-THRU. Again, MCD didn't invent it - it perfected it with FAST, ACCURATE and FRIENDLY.
FAST will always supersede VALUE in the customers mind. (REMEMBER, SPEEDY)
Even if the strategy is VALUE, the average McDonald's Soft Drink is priced 229% below the competition. That's not VALUE, that's ignorance. Still, even with those ridiculous prices, people come and steal soft drinks out of the lobby. The value menu now attracts a threatening type of consumer - driving away the average (money spending) MCD customer.
CUSTOMERS are finding more and more restaurants LOCKING RESTROOM DOORS, ADDING SECURITY GUARDS and other measures to combat the attraction of those lower value customers. Transactions are dropping, who wants to go to a prison lock-down for their meal. Or to be threatened and harassed by panhandlers and other civic issues that a renovated lobby didn't fix. And conglomerates no longer living in those communities understand, worse don't address with local city governments.
Franchise operators are forced to innovate LOBBYS - when the entire national focus is DRIVE-THRU. Expand menus with WWF that slow the kitchens, when the demand is for faster service. Field service is all about a GRADE, than SERVICE. Most don't have any restaurant business experience.
The system builds labor intensive production systems like OPL and BDAP, when restaurants struggle to staff. Force graded positions like a GEL, or added TABLE SERVICE - when labor struggles are at a all-time high. Simple solutions like Artificial Intelligence taking Drive-Thru orders will take another 7-10 years to implement - as MCD cant purchase off the shelf and isn't technology savvy to properly and expeditiously develop such programs internally.
Remember, it took nearly a decade to wrap the soft drink on a receipt for a EVM.
Quality is a mindset based on our advertising - which has NEVER addressed on a Nationally sustained advertising program. This should be the goal of OPNAD - QUALITY, SOCIAL RESPONSIBILITY and EMPLOYER IMAGE.
Instead, the McDonald's system (overnight and without pushback) abandoned its heritage. It first abandoned marketing RONALD's FRIENDS, and it didn't take long thereafter for the system to abandon RONALD himself. Odd isn't it, how the bureaucracy deemed RONALD ineffective when the rising competition is represented (effectively) by a COW. Yet again, talking business strategies that contradict the bureaucracy is branded subversive, or antiquated thinking requiring immediate elimination.
I'm glad outside sources view the NOA as a driver. For sitting in the system, the NOA is being viewed as bogged down. The national excuse for decades has been "we are working on a value strategy to replace" - when what's needed isn't a replacement. Don't we have 123DM? Isn't there value on the GMA? Doesn't COOPs add to the already burdening National discounting? What's needed isn't a replacement for $1 ANY DRINK / $2 MCCAFE - just a removal of the program. My friends, that shouldn't take years, or even months to figure out. A OPNAD ROLL CALL VOTE should be held immediately.
Then removal of NATIONAL driven pricing altogether... our nation is too diverse for a one show fits all program. What it does need is national leaders to BUILD THE BRAND IMAGE (QUALITY, SOCIAL RESPONSIBILITY, EMPLOYER IMAGE). Remember, the strategies that once built TRANSACTIONS and BRAND LOYALTY!
And quit the threats, some value strategies will work - others will fail. To threaten franchise licenses is childish, as it is ignorant of basic business systems. Who has entered this system to fail, or not make money? Thumping chest or stomping feet isn't strength, its a sign of ineffective leadership.
This seems simple to me, As a Franchisee of McDonald’s here is what I want:
1). To be able to use Ronald & Friends. 2). Have a Simple chicken sandwich that rivals CFA. We did have one!!! 3). Be Graded 3 times a year 1 Announced, 1 Unannounced and Unannounced FS 4). Have a trained Consultant to call when needed. 5). To have the ability to give up products that don’t sell in my area. (Bagels, Hazelnut, & Chick.Strips as Examples) 6). Price my products Competitively & effectively (For Me NO $ Drinks I’m in a Tourist area) 7). Find ways to Push D/T to over 80% by 2021. By pushing Accurate Friendly SPEED 8). Have a Marketing Department that understands Creativity not Discounts 9). Have Pulls on Technology items that I need., POS - YES - E whatever NO 10). Uniforms that have Life, Not the Prison Look 11). Styrofoam in the South, Other Sustainability items where it makes since. 12). McD. Working on things the Owners ask for more than what they think up. 13). Drop the Dbl. Cheese and Leave the McDbl. 14). Hold Qtr. Meat for 5 mins during the Peaks 15). Every Restaurant must stand on its own Financially 16). Independent Audit of OpNad and Recorded / Published votes 17). Shake / Sundae Machines that don’t cost 30k and Break daily. 18). Not being ridiculed by McD for suggesting something is not working, then they change it 6 months later after they found out we were right. Treat Me with Dignity & Respect, I have earned it. 19). Make the Arches bigger on Billboards in Advertising. I am Proud on my Brand. 20). Have McD officers that actually understand the Impact on a Restaurant when comes to adding stuff.
These are a few of the things I want. I am sure someone has better Ideas. Please share them.
Who is in business to fail? And failing restaurants can be fairly evaluated in the business review. These evaluations do nothing but place enormous stresses on the restaurant people.
Restaurant Management turnover is the greatest in the history of McDonalds. And I know stores that should of failed 'evaluations', but their owner is on a protected list due to they way they vote.
Field service should be there to work with SERVICING THE FIELD. A operators service fee shouldnt be given to be harrassed. We all want to make money.
We need a system focused on making hamburgers.. not pencil pushing burocrats.
10 comments:
Its really not hard to understand, that a National pricing strategy which hasn't changed in nearly 20-years is unsustainable. Clearly, competition to McDonald's can alter their value strategy. They sustain the all unique restaurant knowledge that money is made with DRINKS and FRIES. Everyone in McDonald's used to understand that too.
The key to McDonald's success was its markets - where operators lived in their market, advertised and campaigned their markets (LSM); and sponsored within their markets. The system had so many COOP's because of the diversity of our great nation. Now, conglomerates of 30-50 stores have no clue of their individual market. The brand is losing trust in markets that it neither understands or worse seldom supports. The motto, "We're not just on your corner, but in your corner" is what made McDonald's great. It has all but died. With it, the soul of McDonald's is hemorrhaging.
Its not Ray Kroc's McDonald's any longer.
Talking about what made our brand great, is now considered degrading the brand. Bureaucracy over collaboration of business may drive a temporary stock price. It isn't a sustainable business model. But don't believe me, look at the rising Chick-fil-A BRAND. They have taken the MCD model and is using it (to their great success) against its inventor.
McDonald's didn't invent the hamburger. Ray Kroc invented a way to serve it FASTER. The fame to McDonald's has always been and will always be the DRIVE-THRU. Again, MCD didn't invent it - it perfected it with FAST, ACCURATE and FRIENDLY.
FAST will always supersede VALUE in the customers mind. (REMEMBER, SPEEDY)
Even if the strategy is VALUE, the average McDonald's Soft Drink is priced 229% below the competition. That's not VALUE, that's ignorance. Still, even with those ridiculous prices, people come and steal soft drinks out of the lobby. The value menu now attracts a threatening type of consumer - driving away the average (money spending) MCD customer.
CUSTOMERS are finding more and more restaurants LOCKING RESTROOM DOORS, ADDING SECURITY GUARDS and other measures to combat the attraction of those lower value customers. Transactions are dropping, who wants to go to a prison lock-down for their meal. Or to be threatened and harassed by panhandlers and other civic issues that a renovated lobby didn't fix. And conglomerates no longer living in those communities understand, worse don't address with local city governments.
Franchise operators are forced to innovate LOBBYS - when the entire national focus is DRIVE-THRU. Expand menus with WWF that slow the kitchens, when the demand is for faster service. Field service is all about a GRADE, than SERVICE. Most don't have any restaurant business experience.
The system builds labor intensive production systems like OPL and BDAP, when restaurants struggle to staff. Force graded positions like a GEL, or added TABLE SERVICE - when labor struggles are at a all-time high. Simple solutions like Artificial Intelligence taking Drive-Thru orders will take another 7-10 years to implement - as MCD cant purchase off the shelf and isn't technology savvy to properly and expeditiously develop such programs internally.
Remember, it took nearly a decade to wrap the soft drink on a receipt for a EVM.
Quality is a mindset based on our advertising - which has NEVER addressed on a Nationally sustained advertising program. This should be the goal of OPNAD - QUALITY, SOCIAL RESPONSIBILITY and EMPLOYER IMAGE.
Instead, the McDonald's system (overnight and without pushback) abandoned its heritage. It first abandoned marketing RONALD's FRIENDS, and it didn't take long thereafter for the system to abandon RONALD himself. Odd isn't it, how the bureaucracy deemed RONALD ineffective when the rising competition is represented (effectively) by a COW. Yet again, talking business strategies that contradict the bureaucracy is branded subversive, or antiquated thinking requiring immediate elimination.
I'm glad outside sources view the NOA as a driver. For sitting in the system, the NOA is being viewed as bogged down. The national excuse for decades has been "we are working on a value strategy to replace" - when what's needed isn't a replacement. Don't we have 123DM? Isn't there value on the GMA? Doesn't COOPs add to the already burdening National discounting? What's needed isn't a replacement for $1 ANY DRINK / $2 MCCAFE - just a removal of the program. My friends, that shouldn't take years, or even months to figure out. A OPNAD ROLL CALL VOTE should be held immediately.
Then removal of NATIONAL driven pricing altogether... our nation is too diverse for a one show fits all program. What it does need is national leaders to BUILD THE BRAND IMAGE (QUALITY, SOCIAL RESPONSIBILITY, EMPLOYER IMAGE). Remember, the strategies that once built TRANSACTIONS and BRAND LOYALTY!
And quit the threats, some value strategies will work - others will fail. To threaten franchise licenses is childish, as it is ignorant of basic business systems. Who has entered this system to fail, or not make money? Thumping chest or stomping feet isn't strength, its a sign of ineffective leadership.
The incoming OPNAD chair has already sold us out on $1 drinks!!!!
How many McDonald's franchisees can find OPNAD mentioned in their franchise agreements?
.
This seems simple to me, As a Franchisee of McDonald’s here is what I want:
1). To be able to use Ronald & Friends.
2). Have a Simple chicken sandwich that rivals CFA. We did have one!!!
3). Be Graded 3 times a year 1 Announced, 1 Unannounced and Unannounced FS
4). Have a trained Consultant to call when needed.
5). To have the ability to give up products that don’t sell in my area. (Bagels, Hazelnut, & Chick.Strips as Examples)
6). Price my products Competitively & effectively (For Me NO $ Drinks I’m in a Tourist area)
7). Find ways to Push D/T to over 80% by 2021. By pushing Accurate Friendly SPEED
8). Have a Marketing Department that understands Creativity not Discounts
9). Have Pulls on Technology items that I need., POS - YES - E whatever NO
10). Uniforms that have Life, Not the Prison Look
11). Styrofoam in the South, Other Sustainability items where it makes since.
12). McD. Working on things the Owners ask for more than what they think up.
13). Drop the Dbl. Cheese and Leave the McDbl.
14). Hold Qtr. Meat for 5 mins during the Peaks
15). Every Restaurant must stand on its own Financially
16). Independent Audit of OpNad and Recorded / Published votes
17). Shake / Sundae Machines that don’t cost 30k and Break daily.
18). Not being ridiculed by McD for suggesting something is not working, then they change it 6 months later after they found out we were right. Treat Me with Dignity & Respect, I have earned it.
19). Make the Arches bigger on Billboards in Advertising. I am Proud on my Brand.
20). Have McD officers that actually understand the Impact on a Restaurant when comes to adding stuff.
These are a few of the things I want. I am sure someone has better Ideas. Please share them.
Interesting comment, Richard. I just looked at one and could not find OPNAD anywhere. It does say Advertising. But I do not see OPNAD.
I STRONGLY endorse items 1-20.
However, Stock Price Steve and Clueless Chris have no incentive to even listen to Operators concerns.
SOLUTION - JOIN THE NOA
Who is in business to fail? And failing restaurants can be fairly evaluated in the business review. These evaluations do nothing but place enormous stresses on the restaurant people.
Restaurant Management turnover is the greatest in the history of McDonalds. And I know stores that should of failed 'evaluations', but their owner is on a protected list due to they way they vote.
Field service should be there to work with SERVICING THE FIELD. A operators service fee shouldnt be given to be harrassed. We all want to make money.
We need a system focused on making hamburgers.. not pencil pushing burocrats.
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