Yeah, who would have guessed that cutting out the middle-man (Owner/Operator) and letting the corporate suits send offers directly to the customers would be a problem? .
Corporate oversteps like this that attack owner profitability is exactly why operators in Canada, Australia, and Europe are now very actively joining the NOA. They have realized that marketing is out of control and destroying owner equity, and that the feckless NFLA is useless and OPNAD just rubber stamps chicagos every whim, no matter how reckless. The only ones speaking up are the NOA and its members. If you arent a NOA member, you must have a self destructive death wish to pander to corporate. The so called partnership is dead, replaced by corporate greed. Or as one senior member of the MCD SLT stated, “ the owners only RENT the stores!”
Discounting is all this generation of Wall Street analysts have ever known. McDonald’s and the QSR industry in general, didn’t start out discounting. Well… I guess 15-cent hamburgers were a discount, but coupons, discounts, TV commercials with a price point were a rarity. McDonald’s veterans will remember that corporate put constant pressure on Owner/Operators to keep prices low and to avoid doing any discounting. “You’ll get addicted to discounting,” the Operators were told. The burger wars were fought on a local basis.
Eventually, the industry became competitive, and the larger chains, like McDonald’s, became saturated with stores. If my memory is correct, the first time OPNAD advertised a national price point was in the early 1990s. After that, discounting was the only solution to any sales challenge.
So, today’s analysts and reporters weren't around to remember the industry without discounting it. For them, it’s just … how much and for how long? .
6 comments:
Digital double dipping discounting.
Who ever would have guessed?
Certainly not the "marketing" people that don't have to absorb the hit.
Yeah, who would have guessed that cutting out the middle-man (Owner/Operator) and letting the corporate suits send offers directly to the customers would be a problem?
.
Corporate oversteps like this that attack owner profitability is exactly why operators in Canada, Australia, and Europe are now very actively joining the NOA. They have realized that marketing is out of control and destroying owner equity, and that the feckless NFLA is useless and OPNAD just rubber stamps chicagos every whim, no matter how reckless. The only ones speaking up are the NOA and its members. If you arent a NOA member, you must have a self destructive death wish to pander to corporate. The so called partnership is dead, replaced by corporate greed. Or as one senior member of the MCD SLT stated, “ the owners only RENT the stores!”
Why do Chris and Joe still have a job? Stock down 14% past twelve months.
Why do Chris and Joe still have a job? Stock down 14% past twelve months."
Because they have a "plan" that matches the Wall St analysts view of how to run a restaurant for stockholders: DISCOUNT, DISCOUNT, DISCOUNT!
Discounting is all this generation of Wall Street analysts have ever known.
McDonald’s and the QSR industry in general, didn’t start out discounting. Well…
I guess 15-cent hamburgers were a discount, but coupons, discounts, TV commercials with a price point were a rarity. McDonald’s veterans will remember that corporate put constant pressure on Owner/Operators to keep prices low and to avoid doing any discounting. “You’ll get addicted to discounting,” the Operators were told. The burger wars were fought on a local basis.
Eventually, the industry became competitive, and the larger chains, like McDonald’s, became saturated with stores. If my memory is correct, the first time OPNAD advertised a national price point was in the early 1990s. After that, discounting was the only solution to any sales challenge.
So, today’s analysts and reporters weren't around to remember the industry without discounting it. For them, it’s just … how much and for how long?
.
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