Coalition of Franchisee Associations

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

2 comments:

Anonymous said...

It amazes me that operators in the whole industry are rushing to the non profitable, and sometimes negative cash flow extreme discounts. Only the franchisor wins . Top line vs bottom line.

Richard Adams said...

Investors judge the management of these companies on EPS and same-store sales. The franchisee's bottom line rarely gets discussed. This is why the industry has evolved to focus on larger operators. Twenty years ago, this was a ma and pa industry; today, management prefers franchisees to have 20/30/100s of stores. That makes it much easier to force deep discounts into marketing programs. A CEO who can't produce same-store sales increases doesn't last very long.
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