Accounting & Investing Info for San Antonio A & M
Friday July 17, 2015
A survey of some 29 franchise owners covering over 200 outlets reveals expectations at all time lows.
While the increase in minimum wage is cited in the article as a problem apparently that is not a problem for the competitors like Shake Shak and Whataburger. As noted int the article, larger size generates arrogance ala GM.
And once problems and negative perception settle in, it is hard to turn a supertanker size operation around.
Maybe MCD should take a page out of Wal Mart’s play book? Wal Mart has recently started opening smaller, I think far nicer and better staffed, “neighborhood market” stores as a means to continue its growth into more developed and nicer areas where more expensive real estate and the idea of a big box stores don’t sit well. A Trader Joe’s type area. These stores are much nicer, cleaner, properly maintained and not the chaotic mess the larger stores are. Maybe MCD should pursue a similar model of smaller, better customer experience, strip center type restaurants. Cheaper to open which would entice more franchisees. just my two cents.
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Ed
Now that is a true out of the box idea. I doubt it has ever occurred to anyone at MCD.
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Professor Elam 
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