Coalition of Franchisee Associations

December 19, 2024

Anonymous Comment of the Week

"Does anybody have the gifts to stand up and say that the absurd app discounting equates to completely unprofitable transactions? The last few days have resulted in 10 percent guest count increases with no sales increases and a rise in base food of over .3 percent to basically give away chicken nuggets and double cheeseburgers. All done to fix their mistakes on faulty McCafĂ© machines and bad supply chain that caused Ecoli…. Can’t wait for the new mcvalue menu!"

Originally posted at: McDonald's ends year on strange note

December 16, 2024

McDonald's vs. FBI

McDonald's surpasses FBI in shooters apprehended in 2014

"Not again," sighed Director Wray, handing over his resignation. "I don't know how McDonald's does it. How did they beat us at arresting shooters, all while making perfectly crispy fries, a solid breakfast, and surprisingly good coffee? We just can't compete with the golden arches." (Babylon Bee)

December 14, 2024

This No Way to Run a Growth Company

Maria Bartiromo interviews Northern California Owner Scott Rodrick

McDonald's owner closes two CA locations due to minimum wage hike

How Does My Menu Grow?

The worst way to gather customer feedback is to go to the internet. Comments and reviews are so cluttered with bizarre and phony comments the dialogue means nothing. This has ruined consumer reporting in that reporters can spend a few minutes online, pulling down a few negative comments and come up with a headline saying, "Social media is aflame!" or "Customers are crying out for_____." 

To make it worse, corporate employees read these comments and go on to make all the wrong decisions.

The following article is nothing new but is a great example: a few customer comments, and McDonald's feels the need to expand the menu. In this case, the McPres of the USA says, "The Snack Wrap will be back in 2025,” Erlinger said. “It has a cult following, I get so many emails into my inbox about this product.”

Of course, his handlers wrote that for him, having no idea what the change would do to the operation or if it would sell. They only want an eye-catching headline and new product news for the analysts. Using the internet for customer research is a very, very lazy way to do business.

Always listen to your "customers" - then - do what's best for your business.

December 13, 2024

McDonald's Ends Year on Strange Note - Maze

Trump, Ecoli, CosMc's, Altoona, $5 Meal Deal etc, etc.

Ecoli - "It prompted the company to invest $100 million, including $35 million for marketing and the rest to help franchisees whose sales were hurt the most." 

December 9, 2024

December 6, 2024

Anonymous says:

Anonymous has left a new comment on our post "Value Meals Killing Our Bottom Line".

To quote billionaire Mark Cuban, “ too many businesses concentrate on sales rather than profit, which ultimately leads to their failure”. ARE YOU LISTENING?

California Lost 4,256 Jobs: Feds

"According to Revenue Management Solutions, a company that analyzes restaurant transactions to optimize menu pricing, California menu prices in June were up 7.5% year-over-year, but foot traffic is down — nationwide menu prices were up 3.1% with foot traffic down 3.6% compared to the year prior. This decline is a clear indication that customers are opting to skip a fast food visit altogether rather than pay higher menu prices,” said RMS.     The Center Square - California

November 29, 2024

Is This a Good Thing? ... Or Bad?

This week's Macy's Thanksgiving Day parade was delayed for an hour because political demonstrators blocked the route. Of course, this was a huge press event that happened directly in front of Ronald McDonald's ballon. Across the world, there are pictures and videos of Ronald appearing to be supervising or involved in the demonstrations. Let's hope it looks like he disapproves.







November 22, 2024

Maze on McValue

McDonald's launching "McValue" next year

“We worked closely with our franchisees to create a new platform that will let our customers define value on their own terms.” Pres. MCD USA

November 21, 2024

California Voters Reject Min. Wage Increase

Let's not get too excited. California's history is that the voters speak, and the elected officials go around the voters and pass bad laws anyway. Or, the bureaucrats in Sacramento make up regulations that have the force of law.

Measure would have raised wage to $18, highest in the nation

McDonald's Value Offerings for 2025

The strategy is pending approval from franchisees but is expected to pass

November 17, 2024

Do They Represent the American Diet?

With the sanctimonious talk about the American diet, here are two of the most popular entertainers in our culture today.

Country Western Star Jelly Roll and rapper Lizzo. Good examples for our youth, right?


I couldn't find a picture of Jelly Roll in a bathing suit, but as you can tell, he easily tops 300 lbs. The facial tattoos are a nice touch. Another good example for the kids.

I remember when country western music was supposed to be the wholesome alternative to rap "music".

When will one or both of these celebrities be chosen as McDonald's promotional partners?

Trump's Win Puts DEI on Life Support

Now he'll pull the plug - NYPost Opinion

November 15, 2024

McDonald's HQ Being Gracious?

Related to the onion outbreak:

The Wall Street Journal reports that McDonald's is "investing about $35 million into marketing for its U.S. business" and "a total of $65 million into supporting franchisees who have lost business."

November 7, 2024

C-stores struggle against QSR Discounting

"Among c-store operators who consider their foodservice programs to be in direct competition with QSRs, three-quarters said they are specifically concerned about McDonald’s value meal offerings on their own traffic and sales for foodservice"

Restaurantbusinessonline

November 2, 2024

Boeing Grounds DEI

Elon Musk on DEI: “Do you want to fly in an airplane where they prioritized DEI hiring over your safety? That is actually happening,” Musk said on X.

In a subsequent post, Musk wrote: “People will die due to DEI,” 

Boeing dismantles DEI department - NY Post



November 1, 2024

Wendy's to Close 140 Stores

Attempting to Convince Shareholders that QSRs are a Growth Industry

* In most chains, new stores typically pay higher franchise fees and royalties than older stores.

* As Wendy's has acquired many franchisees over the years, the corporation has likely developed a real estate portfolio that needs trimming. In many locations, a QSR is not the highest and best use of a property. Wendy's (and other chains) can close the store, sell the property, and book a tidy gain. Let the franchisee pay to build a new store down the street and pay higher fees.

Wendy's to close 140 restaurants

October 27, 2024

October 26, 2024

Political Payback From D.C.

We've posted a lot of fun items this week, but this might be the best. Three elderly politicians think they can understand how a franchise system determines pricing. Not even their brightest young aid can make them understand. This is like V.P. Harris. She keeps trying to throw money around, but it's obvious she doesn't understand the difference between a tax deduction for a small business and a direct cash payment from the government. She also doesn't understand that small businesses don't need a tax deduction for many tax years, especially start-ups.

Three Democrat Senators attack McDonald's for hosting Trump visit

October 20, 2024

 


Trump Now One in Eight

   Well, I was right; that was fun. We'll see if it has any long-term impacts. For now, McDonald's is the official restaurant of the Trump campaign, and you'll never know how many Harris supporters will pass McDonald's and pull into a competitor's drive-thru.
   Now that the event appears to have short-term positives, Joe E. has jumped on the bandwagon and published a letter making it sound like it was his idea. That's kind of sad. And whoever on Joe's long list of support staff thinks that Kamamala Harris would copy Trump and also spend some time in a McDonald's is way, way overpaid.
   So, I'll remain glad that Trump pulled off a political coup but apprehensive about the long-term impacts on the McDonald's system.



Trump on Happy Meal Toys - The Bee

 


Trump promises to bring back good Happy Meal toys

October 19, 2024

You're on Fries Mr Trump

This sounds like fun, so I may be jealous, but it could backfire with international repercussions. McDonald's dodged a bullet in Israel with an ownership change, but these days it's risky to have a potential U.S. President appear to have a favorite global restaurant brand. Plus, McDonald's USA serves millions of Democrats every day.

Isn't this contrary to the Election Season guidelines published earlier this year?

Trump will do everything at Pennsylvania McDonald's

October 16, 2024

Harris Asks for Job Back at McDonald's

Immediately after leaving the Fox News interview, Kamala Harris called McDonald’s to see if she could, by chance, get her old job back.


Cashier, drive-thru, onion lady. I just need a job.

October 12, 2024

All I Know is What I Read in the Wall Street Journal

QSRs Help in Hurricane Relef

CFA, Dennys, Dominos, McDonald's - Franchise Wire

Samaritan' Purse 

October 9, 2024

McDonald's Corp Sues Meat Suppliers

Allegedly conspiring to fix the price of beef

Occasionally, McDonald’s Corp. gets a little slap-happy with litigation. Like a hammer thinking everything looks like a nail, the legal department thinks every corporate challenge looks like a possible lawsuit.

This “management by bullying” peaked in the late 1990s when the company was suing everyone and threatening every Owner/Operator. Part of the problem was that one of McDonald’s directors was a prominent Chicago attorney who was a partner at a prominent Chicago law firm. Conveniently, said firm handled most of the company’s litigation.

This compulsion fizzled out around the turn of the century with all the changes in CEOs and directors. 

If they give a pajama boy an unlimited legal budget, it can be a control freak’s dream. Let’s hope not.

September 28, 2024

A Hurricane Helene Donation Opportunity

Samaritan's Purse, lead by Franklin Graham



MCD Shares Break Records

Back in June, we discussed, with some alarm, that McDonald's share price had drifted down to the mid-$200 range.

Is anyone watching the MCD stock price? - 6/18/24

We should now recognize that the MCD share price has finally topped $300 over the past week, driven by market momentum and an announced increase in the MCD dividend.

However, in the longer term, the increase comes from investors' confidence that McDonald's Owner/Operators will continue to follow corporate discounting plans.

Congratulations to MCD shareholders.

September 17, 2024

Are We Done With McHarris?

This is one last post about the Kamala Harris and McDonald's issue. It seems to have run its course, and I'm told she isn't going to use McDonald's in her commercials anymore. That doesn't mean Trump/Vance won't still mention it, but probably with less frequency. It is disappointing that news reporters in their 20s and 30s expect businesses to produce employment records from forty years ago. Of course, if Kamala hadn't ever worked at McDonald's, there would be nothing to reveal.

Harris touts her time working at McDonald's. Will it help? - LA Times

September 4, 2024

Former McDonald's VP Makes Good

It doesn't happen that often that a former McDonald's exec goes on to a successful position elsewhere. Debbie Stroud appears to be the exception.

Whataburger CEO retiring - Stroud takes post - Rest Business

https://www.linkedin.com/in/debbie-stroud-88149540/details/experience/

September 3, 2024

Life is Political - Like it or Not

Kamala Harris' claim that she once worked for McDonald's continues to attract considerable attention. So far, McDonald's Corp. has responded with "no comment." While this is dangerous ground because no corporate favor can be shown to any candidate, isn't this a chance to reinforce the fallacy of the Joint Employer concept? 

Shouldn't one of the pajama boys be able to put together a statement that says, "These people don't work for us, and we know nothing about them?" And/or "We don't keep records of franhiceee's employees?"

A proper nonpartisan statement would be better than leaving the questions hanging, which only allows the media to speculate that McDonald's Corp. is hiding something.

McDonald's is getting a lot of attention on the campaign trail - Yahoo

August 28, 2024

Restaurant CEO Turnover

A lot of restaurant chains have changed CEOs this year - Maze

Does Taxing "Unrealized Gains" Include Business Equity?

This $100 million excludes many people, but it gets the government involved in measuring a citizen's level of wealth. Where else do they do that? Your bank does it - does the IRS? This takes me back to Trump's first Presidential campaign when the liberal media was frantic to get hold of his tax returns. They thought they could determine his net worth from his returns.

For taxpayers with $100 million in total wealth - CATO Institute

August 16, 2024

Raise Wages and Energy and Then Complain About Inflation

There are only a few baby steps between government controlling grocery store prices and government controlling restaurant menu prices.

Price controls could create more problems than they solve - CNN

August 8, 2024

Go Big or ???

Peter Romeo from Restaurant Business with a 10 minute podcast about McDonald's history. One correction, if I heard him right he has the McDLT after the Arch Deluxe. Actually, the McDLT was introduced in the 1980s, the Arch Deluxe was from the mid-1990s.

Otherwise, it's very educational if you are being asked to invest in a new product.

McDonald's past attempts to go big - Restaurant Business

August 1, 2024

McBears and Bulls

Some have observed that we've been paying a little more attention to the stock market lately, particularly McDonald's (MCD) shares. That would be correct.

Over the decades, when McDonald's was a growth company, the factors that impacted the MCD share price have been numerous and complex. Be it new products, more new stores, fewer new stores, drive-thrus, playplaces, promotions, pandemics, etc.

But these days, it's pretty simple. The most important thing will be same-store sales in the United States. International markets will play a part, but Wall Street will judge the company's performance based on what happens in the USA. It's doubtful new products will be a factor, and major remodels will be impossible to sell, so it comes down to one thing - how much discounting will domestic Owners/Operators be willing to accept?

It will be easy to draw a straight line between U.S. same-store sales and MCD share price. It's going to be a simpler but more interesting time.

Wall Street Bulls Look Optimistic about McDonald's - Zacks

July 31, 2024

Big Arch Included in the $5.00 Meal?

 

Promoting a large, expensive new sandwich is odd when everything else is about "value." The food cost on such a sandwich will necessitate a substantial retail price.

However, investors demand a new product pipeline and this will keep them satisfied for a while. Very few MCD watchers understand that the system can't sell high-end products while distracting customers with deep discounts.

McDonald's bigger burger



Video: McDonad's CEO at Paris Olympics

I'm sure he enjoyed the opening ceremony - YouTube

July 28, 2024

No Beef For You!

The topic, particularly on red meat, has resurfaced since Harris became the presumptive Democratic nominee for the presidency.

Kamala's campaign against red meat

July 11, 2024

Anonymous McGossip on X

@McFranchisee (Twitter - formerly @MCDtruth) claims that the typical

U.S. store will receive one case of 250 Black Garlic packets. Is that worth

while of a promotion? Sounds like a half-day supply.

                               Picture courtesy of @mcfranchisee - click to enlarge

July 9, 2024

Barbell Strategies

During one of the previous burger wars, a QSR corporate head (I think he was from Burger King) coined the phrase "Barbell Menu." The term was used to describe pricing that brought customers into the restaurant with the hope they'd forego the discount and move up to more profitable menu items. 


Today, we have a different "barbell menu" this one is more of a corporate strategy. The only "new" idea the corporate guys can come up with is discounting. But they can't admit to investors that price-off is their only idea, so they'll try to deflect attention to new product promotions. This works well because analysts and reporters are always expecting new product news. And, if there is no new product news, they'll criticize management for not having a "healthy product innovation pipeline".


If the discounting works, management will credit the new products. If sales haven't improved, they’ll blame the American consumer.


And everyone else in the system will be left asking, “How did our menu get so big and complicated?”

McDonald's has a very busy week planned - NRN

July 8, 2024

Opinion by Andy Puzder

Blame Bidenflation for holiday food costs

McDonald's NASCAR Chicago Street Race

 

Well, it wasn't really a "McDonald's" race, the first Chicago NASCAR race (2023) just looked that way based on photos and videos. I watched most of last year's race live and was surprised at how much visibility the McDonald's logo received. McDonald's banners covered many of the walls and barriers that made up the racecourse. These banners always seemed to be on camera. I couldn't help but wonder how much this cost.

Later, I learned the facts. Because it rained for much of the race, the TV cameras installed on high-up scaffolding or on the sides of buildings were temporarily disabled, leaving the ground-level cameras to cover the race. This meant shooting straight across the course with the racecars in the foreground and the McDonald's banners constantly in the background.

It sure looked like a race entirely sponsored by McDonald's.

June 24, 2024

‘Zarco Law Awarded “Best Law Firms” National Tier 1 in Franchise Law by Best Lawyers of America© as listed in US News and World Report’



MCD Insider Sales Continue

Pres MCD USA sells 1,098 shares - Yahoo

June 18, 2024

Is Anyone Watching the MCD Stock Price?

This year, the price has drifted from $300 to $250. Only two things can turn that around: * several miracles in international markets or * McDonald's Owner/Operators in the USA can discount their menus and invest in promotions until same-store sales turn around.