"WE MAY BE DOOMED "
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 ...
Hell if I owned McD’s franchise, I’d be installing automated order-takers and other machinery as fast as I could and looking forward to record profits.
Bring back the old beef tallow french fries and they will recover within a few months. and also make the 1/4 pounder with cheese taste like it did about 15 years ago.
Three thoughts on this:
MCD never should have gone PC with their menu.
Too many stories of violence in the restaurant, shootings at the drive through window.
The prices make it not worth the trouble.
Don’t eat it often but last time I did, the burger was so salty..couldn’t even eat it. The fries were cold and soggy.
Nothing tasted the same..
Yep. All they have to do is do what they did 30 years ago. Liberal PC and pandering to the health Nazis is killing them.
McDonald’s is too expensive.
I’m not poor and I love a Big Mac from time to time...
But it’s just a lousy value proposition.
Wanna save your restaurant? Make it affordable.
Selling your franchise isn’t easy in McD land. Most of the people you can sell to are already franchise holders, who are in the same boat, probably with the same interpretation, probably hoping you were going to buy theirs.
Way too many McDonalds restaurants dilute their own market.
Way too many food items dilutes what they used to do very well.
They eliminate the old famous good taste with “healthy” ingredients.
The unions and government regulations drive up costs/prices.
Employees with poor skills turns off customers.
“Bring back the old beef tallow french fries and they will recover within a few months.”
The fries would be ever so much more tasty if they were to use coconut oil (naturally refined, w/o the taste or smell of coconut)! Healthiest oil on the planet! And it makes everything taste better...
I use coconut oil for popcorn.. Very delicious.
RE: Then sell your franchise and go get another job
Ahh, but who’s gonna buy when they know your reason for selling is because you’re terrified?
Good riddance !
(1) - People don't come to you because they forgot to dress appropriately for Morton's or Ruth's Chris. They come to you because they want to get some food into the screaming rugrats in the back seat and get some change from a twenty.
(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.
Plus the fact that for just about every menu item the competition is better. Compare a McDonalds burger to Wendy’s, Steak-n-Shake, Five Guys, Hardee’s or anywhere else.
RE: overpaid morons with an attitude
And now in some cities, it will be $15/hour with NO experience.
Robot hamburger factory makes 360 Gourmet Burgers every hour...
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