McDonald’s Dollar Menu & More (click here) may be popular with customers but some of the chain’s operators are voicing unhappiness that these low-price options lower checks, complicate kitchen operations and slow service according to the latest (61st) McDonald’s Franchisee Survey conducted by Janney Montgomery Scott restaurant analyst Mark Kalinowski.
Says one operator: “Only thing we are advertising is Dollar Menu & More. We have 25 items on the Dollar Menu with breakfast and lunch. Why would a customer order anything else? Can get a beef, chicken, potato, soda, or coffee. It kills service time with orders of 2-3 sandwiches at a time. Cannot hit service times.”
Franchisees are traditionally grumpy toward franchisors but bad winter weather that has depressed sales may be exacerbating the discontent. Kalinowski has lowered his estimate of McDonald’s December U.S. same-store sales by 100 basis points to -0.3%. For January, where much of the U.S. has seen negative temperatures, Kalinowski sees negative sales growth, lowering his forecast for the month by 420 basis points to -2.2% based on franchisees’ reports....
The minimum wage IS a McDonald's issue. The McDonald CEO, Don Thompson (click here) does not practice a good business model, he practices Wall Street profit model doomed to fail.Wall Street always turns to technology and higher automation to improve stockholder profits. He's another Roger Smith. Rather than paying good wages to American employees while increasing circulating capital in the economy, he is going to contract (make less) the cost of labor by investing in technology. He will lose customers.
...To improve kitchen efficiency, McDonald’s is testing a “High Density Kitchen” solution, Kalinowski says. It adds more refrigerated and heated holding trays and pots to accommodate the expanded menu. But with sales slow, asking operators to invest in more new kitchen equipment is a tough—and unpopular—sell. One operator calls the High Density Kitchen “lipstick on a pig.”
Says another: “The High Density Kitchen will help organize all products, but it won’t fix our problem. The math doesn’t work as it relates to production time or service time.”
The real problem is discounting, according to some operators. “Won’t help. No matter what. There is no way to make all those $1 or $2 sandwiches fast. We could do it when it was just the McDouble and the McChicken. But now with 25 total items, no. If you add crew it doesn’t cover the cost to make all the Dollar Menu crap. Haven’t sold a wrap in so long. No one remembers how to make one.”
When Wall Street uses outsourcing and/or automation to improve returns to stockholders, hence, CEO bonuses it CONTRACTS the US economy. How many fast food restaurants does McDonald's have around the USA? Then realize AT LEAST one person per shift will be eliminated by this new automation. How many people nationally will be out of the income they now earn through work at McDonalds?
What will happen when Mr. Thompson pockets his bonus after returns to stockholders? There will be less and less circulating capital in the USA economy and he will lose customers, increase poverty in the country and McDonalds doesn't accept EBT. Nor should they be allowed to accept EBT either. Shame on Wall Street and shame on Mr. Thompson.
GROW THE LOCAL ECONOMIES ACROSS THIS GREAT COUNTRY and PUT PEOPLE BACK TO WORK!
What will happen when Mr. Thompson pockets his bonus after returns to stockholders? There will be less and less circulating capital in the USA economy and he will lose customers, increase poverty in the country and McDonalds doesn't accept EBT. Nor should they be allowed to accept EBT either. Shame on Wall Street and shame on Mr. Thompson.
GROW THE LOCAL ECONOMIES ACROSS THIS GREAT COUNTRY and PUT PEOPLE BACK TO WORK!
