This press release is significant because it's unusual for McDonald's to make such a big deal out of hiring an executive from another chain. I don't see everything that Owner/Operators receive but I do see the public announcements. If I recall correctly this is the first time the company has distributed such a complete and nicely produced CV. That's very flattering for a new executive and on first read her experience is impressive.
But, does that experience apply to McDonald's? Both Chipotle and Panera operate about 4,000 locations each. There's plenty of room for both chains to add hundreds if not a thousand new locations in the USA. Finding those new locations should be a no-brainer. In a sense, the two chains are where McDonald's was in the '70s and '80s.
Today, McDonald's USA is in the business of filling holes in an already saturated marketplace. Sure there will always be population shifts and marketplace changes but they'll appear in small numbers. Does anyone at McDonald's Corp have any experience with cannibalization?
It's curious that management approaches the topic of growth as if McDonald's is on par with the smaller chains. At least that's how they want investors to think.
4 comments:
NO MCD EXPERIENCE...........................TYPICAL
She adds DRIVE THRUs to Chipolte and claims credit for it , as if she invented them!!!
Richard is correct about there being almost NO new development lane for more traditional MCD restaurants. But that isn't why she was hired.
Note that her experience includes expanding CMG's DIGITAL business. SO more discounts to more people that cost nothing to send out in the world. That cost gets incurves inside a restaurant by the owner.
Her experience also includes alternativee formats, like, say, a drive thru only store. That could be good, because they might be cheaper to build. But it could be bad, because the smaller footprint can be squeezed into space in between exiting full service restaurants and siphon off their customers. Cannabalization, but the existing restaurants keep all of their costs, which are increasing.
She speaks five languages and went to Harvard, so she is no dummy. Unfortunately, she isn't your friend. She is Chris K's friend.
Development in the franchise world also means new business using existing assets. That means churning your restaurant to those new buyers that management talks about. Hint: you don't get the money when your restaurant is sold.
and those smaller new stores will pay higher rent so mcd is motivated to siphon off as much of our sales as possible
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