The Hamburglar is happy.
Mcdonalds doesn’t own very may restaurants. They are franchises. And franchisees pay what they want.
I'm sure the ex-employees of the closed restaurants will love their 10% pay raise. NOT.
Are they talking about $15 and hour for management and supervisor types or snotty nose kids just out of puberty, still in high school working part-time asking me if I want two apple pies for a dollar?
Dang! I thought the headline was talking about the caves owned by McDonalds! I wanted to see where they dredged up some of their workers.
;-)
So, McDonald’s decided to pay minimally skilled workers more than they are worth, and now it is closing hundreds of restaurants.
I guess all that money to pay high school kids as if they are college graduates didn’t just appear out of thin air, did it?
It will all be moot pretty soon. More and more fast food restaurants are replacing their low-info workers via automation. It is much more efficient to enter your own order on a keypad (either on the restaurant’s kiosk or, increasingly, on your own smart phone or tablet) rather than trying to explain your order to a semi-literate clerk.
They can now afford to eat there every other week.
This will cave THEM! When you are in trouble, give even your most worthless employees a raise? They need to give the workers incentive. If the store does well,nthe get paid more, if it doesn’t do well, they lose money. What I am seeing these is they don’t even try to make a difference...no “thank you’s” almost like you are intruding in their space. And you “reward” this. Disaster coming.
These will start replacing the over paid “employee” and will offer you better odds at getting what you want with the proper amount charged to your card.
Another nail in McDonald’s coffin.
No more Mickey D’s spit-burgers for me.
From the article: “What can McDonald’s do to right the ship? Three things, he suggests: “accelerate dividend growth, increase the franchise mix and buy back stock.”
More of the Wall Street “advice” that sank McDonalds and has been destroying American industry. Notice he says nothing about product quality, service, or customer satisfaction. All he recommends is more of the financial manipulation that enriches Wall Street investment firms and management through bonuses, but nothing for the customer.
As Ray Kroc, the entrepreneur who built McDonald’s into the number 1 fast food business on the planet, understood, a business creates value by fulfilling customer needs and preferences. If you can identify a market, produce a better product than competition, supply that product at a price representing value to the target customer, and control your costs so you earn generate a profit on sales, you will grow the business and generate a high return on investment. Fail to serve the customer, fail to deliver a quality product, fail to control costs, fail to charge a competitive price, and the business will fail.
Any consumer who has observed McDonalds over a period of years knows what the problems are. The food tastes bad, the restaurants are filthy, the workers are illiterate and are at best indifferent to the customer. As food and conditions in the stores deteriorated, McDonalds increasingly relied on the $1.00 menu to attract customers. Although our government refuses to report the fact, food prices are rising and McDonalds can no longer make money on the $1.00 menu items. Hence some have gone away, some are now $1.29 or more. Without an attractive $1.00 menu, people are going to other fast food restaurants where they pay more but enjoy better tasting food in a more pleasant environment.
If Kroc could be raised from the dead, he would know the answer has nothing to do with paying dividends on declining earnings, converting company stores to franchisees, raising the wages of employees (unless tied to productivity and service improvements) or manipulating the stock price by using cash that should be invested in fixing the business to buy back stock. The answer is to fix the product, fix customer service, and improve the efficiency of the operation.
The highly paid executives running most American corporations need to get out of the ivory tower and actually work in their operations. Talk to customers, talk to good employees on the line serving customers, examine what the competition is doing. The answers are there if you care to look. Barack Obama, labor unions, government bureaucrats, Wall Street analysts, and journalists don’t have the answers. Listen to them, and watch the business continue to die.
These people are aiming too low. If $15 an hour will improve people’s lives, imagine how much better off everyone would be if they made $50 an hour. It would be a paradise on earth.
I am investigating manufacturing robotics in my shop. I already make aircraft parts. Fast food robots can’t be too difficult with the right people. Any programmers out there mail me.
who knew folks still ate at McDonalds?
hard to imagine why.
McDonalds Caves....McConnell Caves...Same Difference
Do you have any idea how many skilled tradesmen don’t make $15/hr.?
