EXCELLENT ANALYSIS. But the corporation is tone deaf and will not listen. The NFLA and OPNAD are rendered mute. The outlook does not have a happy ending for owners. No wonder so many are getting out, with more to follow. Stockholders should bail and sell, NOW! .
Go read the history and comments in this Blog. NFLA and OPNAD have sold their souls for more restaurants. While normal Owner/Operators get brow beat with excessive visits and inspections with unrealistic standards. Chris K. and Joe E. think they can walk on water. Chris K. now has all the keys as CEO and Chairman. Real bad times are ahead as his plans are not achieving good results.
Do you think he has a plan? Beyond Accelerating the Arches which is pretty much McSpin for Wall Street. When MCD watchers ask me about this management team and what franchisees think, I usually respond that I don't know if this team has been tested yet. It may seem like they've been around forever, but it's only been a little over four and a half years. And those have been unusual years. Keep in mind they took over in November 2019. The COVID-19 pandemic hit the following March. The next two years were oddities, and I don't remember corporate people doing anything special. MCD USA survived the pandemic due to the heroic efforts of MCD Owners and their drive-thrus. Weren't the next two years (2022 and 2023) driven by the inflation of menu prices? And now that we are back in the real world their only solution is to do the same kind of discounting that management was selling Operators in the mid-1990s? Are "his plans" having an impact?
Spot on analysis, Richard. Hopefully, the existence of the NOA in the present can help to right the ship. The real voice of the real owners of the brand.
WHY would anyone risk investing in mcd and becoming a operator to get SUBSTANDARD RETURNS?? Corp has openly stated that they want to get per store cash flow down to $350k which will further destroy equity.
Excessive reinvestment on perfectly good assets like 10 year dining rooms destroys owner equity and cash flow Meanwhile savvy competitors like CFA are investing in much needed drive thru enhancements.
When the pandemic hit, CK and the entire company sheltered in place while *we* worked in our restaurants and kept the business running alone. That period was one of the most rewarding times of my career. We learned the rules, implemented CDC guidelines, and took every step to keep operations going, we did all of it without their help. Their help came, maybe 2 months in, in the form of a 17 page compliance manual. Rather than help, they created rules.
Then came the most profitable run in our history, achieved completely without their help. They were too busy on Zoom calls, talking about what we were actually doing.
During this time, we learned how expensive the dining room is and how efficiently we can operate with proper staffing in our DT. Our current business model is broken, they simply take too much out to allow us to staff for growth. This is an absolute fact.
The lack of value current leadership brings became painfully clear. They don't help—they complicate things, creating problems where there are none. I’ll never forget the perfect COVID commercial Blake/NOA produced. It hit every right note, yet it was ignored and instead ran terrible commercials, missed a golden opportunity to truly connect in an emotional way with the American public who at the time were absolutely glued to their TVs. Why? Because they hated the NOA. They sacrificed a golden moment for their own lack of emotional control.
It’s obvious: the current senior leadership team has backed itself into a corner, outsourcing everything, even their own jobs to 3rd party vendors and volunteer owner-operators. They’ve squeezed every dollar with minimal effort, decimated institutional knowledge, and eliminated any perceived threats to their power. The culture is nearly destroyed and it’s on purpose, it makes no sense in any world.
We need real leadership—leaders who love what we do, serves others, and values the business as more than a transaction. Our leadership, our restaurants, our teams are the engine that powers this entire system. Every dollar is earned in our restaurants, and the SLT only adds hurdles, not solutions. They take, they do not give. They take and give nothing but a competing brand using money earned by us.
If we stand together—align with the NOA, set clear demands that remove barriers, and push for leadership that works *with* us—there’s a path forward.
The brand isn’t broken, the systems are outdated, and corporate leadership is the biggest threat to our future.
United, we can fix what's wrong and move this business forward. The future is bright if we get out of our own way, if those who play games stop, if the ones who must have their way just sit down, listen and help. If everyone agrees to disagree at times, but remains united in building what we are capable of being we have plenty of room for incremental and sustainable growth.
So long as the subjects are fighting each other, the king can pop his next bottle of Champagne and go about his day, going for his run, checking ESPN scores, and figuring out how to squeeze more out of the efforts of others with as little effort as possible while claiming credit for all that is good while blaming others for mistakes.
Just another day at the office, restaurants are beneath him.
Who knows? Latest rumor is they've got thousands of foreigners with lots of cash just lining up waiting to be approved and become "operators." (they NEVER EVER say the "owner" part.)
And don't forget the latest I've heard- from Las Vegas, when Myra told her beautiful story about how we are nothing more than TENANTS with a 20 year lease.
Why would that even be considered as a topic to bring up in a room with most of us there?
It's extreme fear. They are afraid that we might actually figure out that the power is actually on our side. The only thing holding us back is personal wants, bickering and nonsense.
I don't know why a stockholder would sell, there's plenty more coming. Raise rent every time a store changes hands, as much as 50% plus the 20% increase in service fees, their staffing cuts are just now hitting their stride affecting their profitability, every new store is 20% to them (and they don't have to lift a finger)- a lot of this stuff is incremental and will take time to seed in. I'd hang on for a long time, as long as this bunch are there nothing is off limits.
15 comments:
EXCELLENT ANALYSIS. But the corporation is tone deaf and will not listen. The NFLA and OPNAD are rendered mute. The outlook does not have a happy ending for owners. No wonder so many are getting out, with more to follow. Stockholders should bail and sell, NOW! .
Chris and Joe believe operators are easily replaced, “ like Uber drivers ” Actual quote
As the article suggests, there are unfortunately far too many operators who will shut up and take this without a word They have a death wish.
If I were looking for a franchise investment today, no way would I go with mcd.
Go read the history and comments in this Blog. NFLA and OPNAD have sold their souls for more restaurants. While normal Owner/Operators get brow beat with excessive visits and inspections with unrealistic standards. Chris K. and Joe E. think they can walk on water. Chris K. now has all the keys as CEO and Chairman. Real bad times are ahead as his plans are not achieving good results.
Do you think he has a plan? Beyond Accelerating the Arches which is pretty much McSpin for Wall Street.
When MCD watchers ask me about this management team and what franchisees think, I usually respond that I don't know if this team has been tested yet. It may seem like they've been around forever, but it's only been a little over four and a half years. And those have been unusual years.
Keep in mind they took over in November 2019. The COVID-19 pandemic hit the following March. The next two years were oddities, and I don't remember corporate people doing anything special.
MCD USA survived the pandemic due to the heroic efforts of MCD Owners and their drive-thrus.
Weren't the next two years (2022 and 2023) driven by the inflation of menu prices?
And now that we are back in the real world their only solution is to do the same kind of discounting that management was selling Operators in the mid-1990s?
Are "his plans" having an impact?
Where am I off base?
.
crumble cookies?
Spot on analysis, Richard. Hopefully, the existence of the NOA in the present can help to right the ship. The real voice of the real owners of the brand.
WHY would anyone risk investing in mcd and becoming a operator to get SUBSTANDARD RETURNS?? Corp has openly stated that they want to get per store cash flow down to $350k which will further destroy equity.
Excessive reinvestment on perfectly good assets like 10 year dining rooms destroys owner equity and cash flow Meanwhile savvy competitors like CFA are investing in much needed drive thru enhancements.
You’re right.
When the pandemic hit, CK and the entire company sheltered in place while *we* worked in our restaurants and kept the business running alone. That period was one of the most rewarding times of my career. We learned the rules, implemented CDC guidelines, and took every step to keep operations going, we did all of it without their help. Their help came, maybe 2 months in, in the form of a 17 page compliance manual. Rather than help, they created rules.
Then came the most profitable run in our history, achieved completely without their help. They were too busy on Zoom calls, talking about what we were actually doing.
During this time, we learned how expensive the dining room is and how efficiently we can operate with proper staffing in our DT. Our current business model is broken, they simply take too much out to allow us to staff for growth. This is an absolute fact.
The lack of value current leadership brings became painfully clear. They don't help—they complicate things, creating problems where there are none. I’ll never forget the perfect COVID commercial Blake/NOA produced. It hit every right note, yet it was ignored and instead ran terrible commercials, missed a golden opportunity to truly connect in an emotional way with the American public who at the time were absolutely glued to their TVs. Why? Because they hated the NOA. They sacrificed a golden moment for their own lack of emotional control.
It’s obvious: the current senior leadership team has backed itself into a corner, outsourcing everything, even their own jobs to 3rd party vendors and volunteer owner-operators. They’ve squeezed every dollar with minimal effort, decimated institutional knowledge, and eliminated any perceived threats to their power. The culture is nearly destroyed and it’s on purpose, it makes no sense in any world.
We need real leadership—leaders who love what we do, serves others, and values the business as more than a transaction. Our leadership, our restaurants, our teams are the engine that powers this entire system. Every dollar is earned in our restaurants, and the SLT only adds hurdles, not solutions. They take, they do not give. They take and give nothing but a competing brand using money earned by us.
If we stand together—align with the NOA, set clear demands that remove barriers, and push for leadership that works *with* us—there’s a path forward.
The brand isn’t broken, the systems are outdated, and corporate leadership is the biggest threat to our future.
United, we can fix what's wrong and move this business forward. The future is bright if we get out of our own way, if those who play games stop, if the ones who must have their way just sit down, listen and help. If everyone agrees to disagree at times, but remains united in building what we are capable of being we have plenty of room for incremental and sustainable growth.
So long as the subjects are fighting each other, the king can pop his next bottle of Champagne and go about his day, going for his run, checking ESPN scores, and figuring out how to squeeze more out of the efforts of others with as little effort as possible while claiming credit for all that is good while blaming others for mistakes.
Just another day at the office, restaurants are beneath him.
Brilliant review and analysis of current trend
Who knows? Latest rumor is they've got thousands of foreigners with lots of cash just lining up waiting to be approved and become "operators." (they NEVER EVER say the "owner" part.)
And don't forget the latest I've heard- from Las Vegas, when Myra told her beautiful story about how we are nothing more than TENANTS with a 20 year lease.
Why would that even be considered as a topic to bring up in a room with most of us there?
It's extreme fear. They are afraid that we might actually figure out that the power is actually on our side. The only thing holding us back is personal wants, bickering and nonsense.
I don't know why a stockholder would sell, there's plenty more coming. Raise rent every time a store changes hands, as much as 50% plus the 20% increase in service fees, their staffing cuts are just now hitting their stride affecting their profitability, every new store is 20% to them (and they don't have to lift a finger)- a lot of this stuff is incremental and will take time to seed in. I'd hang on for a long time, as long as this bunch are there nothing is off limits.
Do you mean hang on as a stockholder?
.
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