Posted on 07/16/2015 9:42:45 AM PDT by SeekAndFind
McDonald's franchisees are terrified for the future of the company, according to a new survey.
The operators' six-month outlook for McDonald's business is the worst in the 12-year history of the survey, which was conducted by former Janney Capital Markets analyst Mark Kalinowski.
"At least half of the operators in my region are on the verge of collapse," one franchisee wrote in response to the survey. "With minimum wage for fast food workers potential increasing to incredibly high levels, we are facing a crisis situation.
Another said: "The operators sit on a cliff right now. With sales going in the wrong direction, all must be conservative in our decisions. It will take only one bad decision to put any operator down and out."
McDonald's same-store sales have declined for the past six straight quarters in the US. The company is battling falling traffic, increasing competition from fast-casual chains like Chipotle and Panera, and an eroded brand perception among American consumers.
For the survey, Kalinowski interviewed 29 franchisees who own and operate 208 restaurants in the US. McDonald's said that represents only a fraction of their franchisees.
"Approximately 3,100 franchisees own and operate McDonald’s restaurants across the US," McDonald's spokeswoman Lisa McComb told us. "Less than 1% of them were surveyed for this report. We value the feedback from our franchisees and have a solid working relationship with them.”
Operators said in the survey that they are squeezed for cash due to high rent, remodeling costs, and new equipment.
(Excerpt) Read more at businessinsider.com ...
“(2) - Your company made Ray Kroc and a lot of franchise holders very wealthy with a menu consisting of less than ten items, all prepared fresh. “
I remember when McDonald’s was just starting, french fries came from bags of potatoes, like Five Guys. Had to be a certain moisture level. They were deep fried right there and were delicious.
Today, they add sugar to their meat. They add sugar to their buns. The food is poor quality.
We quit going there years ago.
The $1 sausage biscuit seems like a lost leader. The problem is that if you want some egg on it, it jumps to $3. I love those sausage burritos too.
Yup! We do too! Makes the best popcorn! We get ours from a company that sells it in bulk as a popping oil...it is pure 76 degree melt coconut oil from either the Philippines or Indonesia.
My family's eating McDonalds has dropped by 90% over the past few years, replaced by Chick-fil-A.
When I walk into a Chipotle's, a Starbucks or even a Chic-Fil-A for lunch, you have all these yuppie types furiously texting on their mobile devices. Yes, they are annoying and many of us older folk make fun of them. But they are basically decent people who mean us no harm. They are busy, industrious and are well-dressed, considering the fashions of the day.
Also, the food product in these establishments are attractively priced and packaged and it tastes good. The people serving up this food are friendly and very, very hard-working. They are usually smiling about it too. They seem happy to be there.
Now back to McDonalds. The people inside can be quite scary. Many of them are dressed like hoodlums. They got the untied sneakers, the loose pants hanging down from the waist, the angry-looking T-shirts with the gold chains and the ballcap twisted sideways or backwards on their heads. Those folks are generally scowling or otherwise seem to be on the prowl for some sort of trouble.
The workers behind the counter appear nervous and not quite so happy to be there. They scurry about, grabbing foil wrapped "sandwiches" from some metal bin that people unseen, from the bowels of the "kitchen", send through the chutes, and shove them into a paper sack.
The food at McDonalds is not so good. I have to order my sandwiches with no condiments because when they are applied, everything looks slimy and gross. The milk shakes seem neither milk or shake, but rather a cup of cold gook that comes from a large stainless steel machine. There is really something "quite off" about the McDonalds menu.
The typical McDonalds is just not a happy place. Some of the larger restaurants have a "play area" for children that is rather quite sad and lonely. No children actually ever play there. It's like looking at the swingset in a neighbor's yard whose kids grew up and moved away.
Then you got the guy with the mop. Why does McDonalds send a guy through the store dragging a dirty mop across the floor? What is up with that? The "mop guy" is always some old, creepy guy, who probably got let out of prison after a 40 year sentence for some sex crime. And mop guy always comes to the table you are sitting at and tries to work the mop around under your feet. Why do they do that?
Yes, if I owned a McDonalds, I'd be nervous too. I don't see them getting their mojo back. There is just too much competition that offers a more cheerful and pleasant atmosphere.
I wish that we had a Chick-fil-A nearby.
gotta say, the one near me, parking lot seems empty an awful lot these days
You raise some excellent points.
I know one McD store in the area that pipes adult standards from the 40’s and 50’s into the parking lot to chase the Amish Yutes away.
Two others downtown were operating more or less as open drug markets. One has since closed.
Many stores have done away with the play area due to liability concerns. My kids used to love them in the early 90’s. McD is no longer seen as a “fun” place for families.
Food is not good as they are continually caving to government demands to cut fat, salt, etc.
Are you referring to the pre-microwaved boiled then flash frozen patties??
“I use coconut oil for popcorn.. Very delicious”
There is “The Pub” in my home town that uses Duck fat to pop and poor over the popcorn like butter. Its the bomb.
You can’t make it affordable at $15/hour. Can’t be done.
Also, the decisions corporate has made in the last four years have been disastrous. They just got rid of their affirmative action CEO recently.
The lost business and construction costs to rebrand all of the McDonald’s restaurants with a new look couldn’t have been cheap.
The more items you offer, the longer the customer is going to spend looking over the menu (I can't read any fast food restaurant menus these days anyway, they jumble the offerings and try to bundle everything, I just want to know what is offered and how much). The more time the customer spends looking at the menu (inside or outside in the drive thru) the longer he or she is going to tie up the line.
The more items you offer, the more likely someone with low skills is going to get something wrong (misheard the order, loaded the wrong thing in the bag, doesn't know how to make it, uncommon or special promotion items...).
strip it down and go for volume. That's what Five Guys does (and they aren't cheap). Chick Fil A has a relatively simple menu too.
Sounds right to me... It's an unpleasant place to eat...
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