February 28, 2022
February 26, 2022
Senator Bernie Sanders Rips MCD for "Corporate Greed"
It's understandable that a socialist democrat like Bernie Sanders wouldn't understand a business model but it's too bad Fortune didn't include a few sentences explaining how pricing works in a franchised system.
February 25, 2022
February 23, 2022
February 22, 2022
Former McDonald's Suit Moves to Burger King
According to Paulo Pena's Linkedin profile he worked for McDonalds for two years (2017-2019) and was in charge of all McOpCos in the USA.
How could a person, so new to the company, be in charge of 800 restaurants?
Answer: He has a Harvard MBA, so he walks on water. But who was in charge of McDonald's USA when such decisions were made? Of course...another Harvard MBA.
February 20, 2022
K.I.S.S.
Keeping a simplified menu is going to be something of a tug of war between McDonald's Owner/Operators and McDonald's management. There will be three forces pressuring management to slowly return to a more complicated menu and operation.
1) Investors and analysts - If management doesn't produce a stream of new products, they will be accused of not having an "Innovation pipeline". If the company ever returns to having in-person "analysts' days" the guests will expect to be fed exciting new products from that pipeline.
Investors will give a simplified menu lip service, but they don't understand what it means and will reflexively push for menu creep.
2) Industry media - Reporters need content and clicks so they will write about any new product news they can find. They will constantly bug corporate about new products. I'm amazed how much press Shamrock Shakes are getting. Can a 40-year-old product be new product news?
But the Chicago office will contribute to this pressure from the media by cranking out press releases about new products, especially when they need positive press.
3) Social media - "Listening to our customers" is an oft-used phrase. Unfortunately, sometimes that means a marketing person spending an hour on Twitter and Tick Tock. A few comments from a few people (McDonald's customers or not McDonald's customers) and "the Internet is on fire" with people demanding fake meat or ADB.
Exactly how this tug of war takes place will depend on same-store sales. If sales stay positive in the USA there will only be muted cries for new products. If sales go soft or McDonald's USA falls behind the competition the outside pressure on management will be substantial. And, with so little real restaurant experience in Chicago, it's likely management will easily yield to the pressure.
Only Owner/Operators can prevent menu creep.
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February 17, 2022
February 16, 2022
February 14, 2022
DoorDash and McDonald's
DoorDash and McDonald's - New Commision Rates
Speaking as a consumer: having done business with both of these firms - Uber seems to be very selective in choosing their employees. It seems DoorDash will hire anyone (and those people will steal your stuff).
February 12, 2022
February 11, 2022
February 9, 2022
February 7, 2022
February 3, 2022
Coming to a Blue State Near You
California advances fast-food bill - Restaurant Business
Passage of the act brought cheers from organized labor, particularly the Service Employees International Union (SEIU), which is widely cited as the bill's author.
“Imagine cooks, cashiers and janitors sitting around the table with owners, franchisees and government officials to set fair standards for pay, hours and working conditions across California’s entire fast food industry,” Mary Kay Henry, president of the Service Employees International Union (SEIU), said in a statement. “It’s an absolute game-changer for reducing income inequality and how we treat fast-food workers in this state.”