Seems these articles are arbitrary, in that the menus McDonald's simplified since the pandemic (ridding All Day Breakfast, Salads, Parfaits, etc) were some serious (and much needed) cutbacks.
Now, one lesson McDonalds can learn from CHICKS, is the reduction (elimination) of mindless discounting, and the added marketing of PRODUCT QUALITY inside and outside the restaurant.
The difference is that Chi-filA and its franchisees share profits on the bottom line, and MCD takes profits only from the top line.
MCD doesn’t care about the bottom line. They can take your franchise and resell to to someone else for a low price, keep that money, and it allows the buyer to make money on the small margin products you could not.
This is why menu items that are 0.02% of sales aren’t pulled. That royalty is all cash to MCD. They don’t feel the cost of that sale, you do!
Chik shares the profit on that sale with its franchisee, so it cares about the unit level bottom line
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Seems these articles are arbitrary, in that the menus McDonald's simplified since the pandemic (ridding All Day Breakfast, Salads, Parfaits, etc) were some serious (and much needed) cutbacks.
Now, one lesson McDonalds can learn from CHICKS, is the reduction (elimination) of mindless discounting, and the added marketing of PRODUCT QUALITY inside and outside the restaurant.
The difference is that Chi-filA and its franchisees share profits on the bottom line, and MCD takes profits only from the top line.
MCD doesn’t care about the bottom line. They can take your franchise and resell to to someone else for a low price, keep that money, and it allows the buyer to make money on the small margin products you could not.
This is why menu items that are 0.02% of sales aren’t pulled. That royalty is all cash to MCD. They don’t feel the cost of that sale, you do!
Chik shares the profit on that sale with its franchisee, so it cares about the unit level bottom line
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