I recently spoke with a McDonald' Owner/Operator who says it makes her skin crawl when she sees this picture or pictures like it showing both brands literally sharing the same parking lot. She knows what that means for the future of the McDonald's franchise.
4 comments:
I believe that's a corporate restaurant. So not affecting any local Franchisee
The majority of McDonald’s leadership are self-serving ladder-climbing individuals with little restaurant knowledge who care nothing about the owners. We are the ones who are actually doing the work!
The "experts say:"However, it's also worth noting that CosMc's visitation numbers would likely have been much higher if the location had additional capacity to satisfy the overwhelming demand," the report added."
Sure, and when the novelty wears off you'd have a giant, overbuilt albatross that sucks up cash in real estate taxes, heating and cooling costs, maintenance and labor. This doesn't include the costs of plowing and maintaining a bigger parking lot.
SBUX is shrinking its footprints. So are the other copycat coffeeish chains like Dutch Bros, Scooters etc. But, hey, the Corporate suits at MCDs are sure to listen to the sort of advice and double the size of this new folly.
MCD never has succeeded long term with the alternative brand ventures. Ever. Of course, it intends to use franchisee money after these first bogsplshes to drive up the stock price and the value of their cash out options, so no big deal.
Why they can't just work on. the giant brand value of the major brand that already succeeds is not a mystery, I suppose.
McDonald's growth plans and Starbucks growth plans are apples and oranges. Starbucks does not have a vast franchisee network to worry about. They can fill small holes in their marketplaces without concerning themselves with cannibalization.
The similarity betwen MCD and SBUX is the fact they both have to keep their shareholders convinced (fooled) that they are a growth company and that growth will never slow.
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