"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"
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.
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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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.
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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