The Franchise Owner's most trusted news source


Log In / Register | Jun 24, 2018

McDonalds CEO Interviewed About Success

5 Comments

michael webster's picture

McDonald's Franchisee

Don;

If you listen to this, you will suspect that there is a dumping of corporate stores onto the market.

I heard nothing from this clip that demonstrated a long term commitment to the successful franchisee. 

Michael Webster PhD LLB

Franchise News

RichardSolomon's picture

Are you serious?

McDonalds is the epitomy of long term commitment. No franchise company in history that is not an automobile manufacturer, has brought wealth to its franchisees like McDonalds. That's why every bozo in the industry claims hius company is gonna be the McDonalds of the whatever industry.

Ray Kroc, Elvis and Jesus are forever!--

Richard Solomon, FranchiseRemedies.com,  has 44 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School

michael webster's picture

Fantasy

Richard, I am surprised about your lack of critical thinking here.

I was a big fan of Ray Kroc's work - but that was almost 30 years ago.

I don't see the same attention to operational detail that Kroc had.  Could you explain -in short sentences with reference to facts- why you disagree? 

Michael Webster PhD LLB

Franchise News

FuwaFuwaUsagi's picture

another perspective to consider...

McDonald's corporation and franchisees have had a free ride on the backs of the whole populace for the last two decades in the form of illegal aliens and legal immigrants who work in the stores.   In essence the company owned stores and franchisees pay wages that cannot legitimately support the worker in a first world standard in the communities they work in.    Transfer payments are made in one form or another that act as a subsidy to the business.     

Now with immigration reform on the forefront and more accurate measures of the societal costs for the existence of a "cheap" labor force the writing is on the wall (to their credit the did try an assimilate their workforce with mixed results.  Some embraced the company sponsored English and citizenship classes and others shunned them, which created a level of divisiveness within the stores).  If I was McDonalds I would bail also and stick the franchisees with the likely rise in labor costs while I continued to lease the real estate and collect my royalty without regard to whether it represents a profitable  dollar or not.  

As an aside, McDonalds learned how to automate their processes back in the late 70s (I worked at the test store where they did this), so the problem can be largely addressed via technology.   I suspect they want to force their zees to make the investment rather than corporate. 

FuwaFuwaUsagi

RichardSolomon's picture

Short sentences with fact references to explain myself...

I am a big fan of "relative performance" over time as a short hand measurement of whatever dimension of quality I am exploring.

The adverse criticisms of McDonalds are equally applicable to all its competitors, as they also are to the franchisees of the American auto manufacturers.

McDonalds historical performancce, operationally and financially is, in my judgment, superior to that of all its competitors.

Now I'm not going to go into a dissertation about specific numbers or statistical analysis to try to respond to you, but I have satisfied myself about the quality of this company on comparative terms.

Every company has its detractors for reasons of some personal experience or personal observation at some point in time, and that simply is not of any interest to me - totally anecdotal. I wasn't always in private practice, and one of the things I learnt when I left corporate America is that the warts I could see close up were in retrospect and from a distance merely minor blemishes.

I have tried to approach the evaluation of companies from a more holistic perspective. When I find something of immediate positive interest to suit my current purpose, only then do I start spending time on the details.

As an example of real management intelligence superiority, McDonalds is tough to beat. Maybe, in a younger and smaller model, you could look comparatively at the fantastic job Julia Stewart has done at IHOP, and that I am certain she will accomplish with her new challenge, Applebee's.

With some people in some organizations, there is a chemistry that almost represents magic, because the firm simply outperforms its rivals over significant periods of time. I would almost say that anything Julia Stewart would chose to lead would on its face become investment worthy. Maybe that's because she focuses upon what she is really good at.

Relative superior performance over time is a holy mantra in investment evaluation.  I'm not interested in the vicissitudes of working in a tough world. It's tough for everybody. The good ones suck it up and succeed. Oh! Sorry! I forgot to mention Sam Walton in my personal pantheon of business heroes.I have heard worlds of criticisms directed at WalMart. So bloody what! No one else has come up with a more fantastically performing model that, despite the do gooder whining, has most effectively reached the core of the demand profile for what it does. GOD BLESS AMERICA, AND GOD BLESS TEXAS. 

Richard Solomon, FranchiseRemedies.com,  has 44 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School

About Don Sniegowski

Don Sniegowski's picture

Public Profile

Don Sniegowski is editor of Blue MauMau, the daily news journal for franchise & small business owners. Call him at +1 (270) 321-1268, tweet @bluemaumau or email don@bluemaumau.org.