Coalition of Franchisee Associations

December 13, 2024

McDonald's Ends Year on Strange Note - Maze

Trump, Ecoli, CosMc's, Altoona, $5 Meal Deal etc, etc.

Ecoli - "It prompted the company to invest $100 million, including $35 million for marketing and the rest to help franchisees whose sales were hurt the most." 

5 comments:

Anonymous said...

The media got it wrong. The $65 mill the company supposedly provided to assist owners was actually a deferred loan, with interest attached. It had to be paid back. The company actually contributed nothing, plus it got interest on the deferred loan

Anonymous said...

CosMcs is a direct assault on existing McDonalds stores and should be stopped.

Anonymous said...

Did anybody besides Corporate make a dime off of the $5 meals???

Anonymous said...

Does anybody have the gifts to stand up and say that the absurd app discounting equates to completely unprofitable transactions. The last few days have resulted in 10 percent guest count increases with no sales increases and a rise in base food of over .3 percent to basically give away chicken nuggets and double cheeseburgers. All done to fix their mistakes on faulty McCafĂ© machines and bad supply chain that caused Ecoli…. Can’t wait for the new mcvalue menu!

Anonymous said...

I’ve observed firsthand how the app is driving trade-down behavior 30-50% of the time. It’s being used by customers who have already decided to visit us, rather than attracting new ones. This issue is solvable—it could be reduced by as much as 80%—but unless it aligns with McDonald’s priorities, which seem focused on maximizing their cash flow at our expense, nothing will change.

I spoke up about this in a business meeting, addressing field office senior leadership. (I wonder how valued they feel...no office, forced to work at home?) I made it clear that this situation is unsustainable and hurts us short and long term. What followed was eye-opening and demonstrated just how unwilling leadership is to accept dissent. Let’s just say that resistance to their agenda is met with incredible pressure, though not directly aimed at me in this instance.

The fixes are clear, but they won’t happen unless we, as O/O’s, unite for the greater good instead of angling for personal advantage, whether it’s next-gen approval or additional stores. We’re the ones bringing in each dollar, and we have the leverage. If we act in unison, we can reshape the system to work for everyone. Expecting SLT to devise solutions that don’t disproportionately benefit them is futile. They serve their own interests, and their tenure is conditional. They’ve overstayed their welcome.

We need to take back control of the app, the offers, and the decisions that impact our business. Those who know the customers and do the real work—the ones who interact daily and see the outcomes—must lead this charge. Leadership is out of touch. They’re tied up in WebEx meetings and metrics, disconnected from the realities of the customer experience. They are a drain, not a solution.

We already know what works: foam cups drive 5% incremental growth. Beef tallow could set us apart from the competition and even be perceived as a healthier choice in today’s market. Reviving proven products from the past could be a game-changer. But these decisions are being made by people who don’t understand the basics, let alone the nuances of customer satisfaction. They prioritize optics over outcomes.

That’s all I can say for now without compromising myself further. There’s more to tell, but for now, it’s up to us to take the lead.