News McDonalds franchishees down in the dumps

Discussion in 'The Howard Stern Show' started by SouthernListen, Jul 16, 2015.

  1. SouthernListen

    SouthernListen I don't follow the crowd. Sorry about that. VIP

    Reputations:
    240,244
    Joined:
    Jan 16, 2012
    Messages:
    38,679
    Likes Received:
    39,394
    http://www.cnbc.com/2015/07/16/mcdonalds-franchisees-have-never-been-this-depressed.html

    Just when you thought it couldn't get much worse for McDonald's, it did.

    The six-month outlook for franchisees is at an all-time low, according to a small survey by Mark Kalinowski, a long-time restaurant industry analyst. (Tweet this).

    Some 29 franchisees, who collectively own and operate 208 McDonald's restaurants in the United States, were asked to give their six-month forecast from 1 (poor) to 5 (excellent). The average response was 1.69, the lowest in the survey's 12-year history.

    Read MoreNo, your Minion toy is not actually swearing

    Previously, the lowest rating was 1.81, which was recorded three months ago.

    Those 29 franchisees said their same-store sales fell 2.3 percent in June—2 full percentage points worse than Wall Street expectations, Kalinowski wrote. The respondents expect sales to fall 1.2 percent more this month, whereas analysts were assuming sales would rise.

    Do you think McDonald’s turnaround is working?
    Yes

    4%

    No

    81%

    Maybe

    5%

    Not Sure

    10%

    Total Votes: 3506
    Not a Scientific Survey. Results may not total 100% due to rounding.

    "Corporate has no answers," one respondent said. "They are throwing ideas at the wall hoping something will stick. Their collective arrogance has come home to roost."

    Read MoreThis fast food chain is the king of big fry sizes

    McDonald's shares fell 1.8 percent Thursday. The company, in a statement, defended its record.

    "Approximately 3,100 franchisees own and operate McDonald's restaurants across the U.S.," McDonald's said. "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."

    Franchisees in the survey cited a range of issues, including weak marketing, poor customer perceptions and corporate ignorance.

    "My numbers are not good due to new competitors," one franchisee said. "Overall, sales are still in a slump and I don't see much to get excited about in 2015."

    Another respondent said, "At least half of the operators in my region are on [the] verge of collapse. With minimum wage for fast food workers potentially increasing to incredibly high levels, we are facing a crisis situation."

    Read MoreMcDonald's has a surprising new burger topping

    McDonald's faces stiff competition in the burger segment as brands likeShake Shack, Sonic and Whataburger expand. Meanwhile, U.S. same-restaurant sales at McDonald's continue to retreat, having fallen 2.4 percent this year as of late June.

    In May, McDonald's announced a massive corporate restructuring initiative aimed at reorganizing the struggling business. According to CEO Steve Easterbrook, the plan is set to save the company $300 million annually.

    As part of this restructuring, only 10 percent of McDonald's stores will be company owned by 2017. Currently, 80 percent of all restaurants are owned by franchisees. The company also plans to report same-store sales numbers on a quarterly basis, rather than monthly, starting in the third quarter.
     
  2. DrivenByDemons

    DrivenByDemons Spinoff Jesus Staff Member

    Reputations:
    259,529
    Joined:
    Sep 16, 2010
    Messages:
    70,109
    Likes Received:
    41,865
  3. Dirty South

    Dirty South Large Member

    Reputations:
    267,947
    Joined:
    Jul 16, 2012
    Messages:
    24,627
    Likes Received:
    25,054
    All of his alleged subways added together aren't worth 1 McDonald's franchise.
     
  4. scoobyla

    scoobyla Well-Known Member

    Reputations:
    35,238
    Joined:
    Oct 29, 2013
    Messages:
    10,800
    Likes Received:
    8,083
    people want to eat healthy nowadays
     
  5. BethSucks

    BethSucks Well-Known Member Staff Member

    Reputations:
    422,927
    Joined:
    Jan 15, 2012
    Messages:
    23,892
    Likes Received:
    46,373
    Maybe making something that looks more appetizing than this would be a good place to start:

    [​IMG]
     
  6. joemama

    joemama Well-Known Member

    Reputations:
    84,629
    Joined:
    Jan 16, 2014
    Messages:
    3,021
    Likes Received:
    8,273
    [​IMG]
     
    unclefreddy and scoobyla like this.
  7. slab0meat

    slab0meat negative creep

    Reputations:
    13,687
    Joined:
    Feb 15, 2012
    Messages:
    3,436
    Likes Received:
    3,422
    Wow, sounds like they'll be out of business by November.
     
    smichal likes this.
  8. Nemo

    Nemo Beer Can Thick Gold

    Reputations:
    339,542
    Joined:
    Sep 7, 2010
    Messages:
    94,550
    Likes Received:
    58,665
    incorrect

    McDonalds shitty advertising campaigns highlight their shitty healthy salads and raps.
     
    ravenrules, smichal, GIRLY and 2 others like this.
  9. scoobyla

    scoobyla Well-Known Member

    Reputations:
    35,238
    Joined:
    Oct 29, 2013
    Messages:
    10,800
    Likes Received:
    8,083
    right, i feel they wasted 100s of million on that.
    they didnt gain the healthy eater anyways(healthy eaters know their 'healthy' items are shlt), and they lost some of the junkfastfood eaters.
    they should go back to core competency; shlt food for shlt prices for ppl who dont give a shlt.
     
  10. iloveyoubut

    iloveyoubut Well-Known Member

    Reputations:
    7,132
    Joined:
    Feb 3, 2015
    Messages:
    1,244
    Likes Received:
    2,007
    Thanks Obama
     
  11. BethSucks

    BethSucks Well-Known Member Staff Member

    Reputations:
    422,927
    Joined:
    Jan 15, 2012
    Messages:
    23,892
    Likes Received:
    46,373
    Yep, trying to be all things to all people never works in restaurants. In and Out is still hugely profitable because they only make burgers and fries, it keeps costs down and the food gets made fast.
     
  12. marswillrule

    marswillrule Active Member

    Reputations:
    1,483
    Joined:
    Jun 14, 2012
    Messages:
    175
    Likes Received:
    187
    [​IMG]
     
  13. Honkey Donkey

    Honkey Donkey Well-Known Member

    Reputations:
    134,115
    Joined:
    Dec 9, 2014
    Messages:
    9,668
    Likes Received:
    19,648
    I blame those hamburgerler ads

     
    smichal, GIRLY and John Sterling like this.
  14. maroon

    maroon Well-Known Member Banned User

    Reputations:
    45,379
    Joined:
    May 1, 2015
    Messages:
    7,818
    Likes Received:
    10,979
    a new slogan has been born.....shlt food for shlt prices for ppl who dont give a shlt.
     
  15. nextlevel

    nextlevel You're so amazing

    Reputations:
    49,642
    Joined:
    Jun 8, 2013
    Messages:
    6,934
    Likes Received:
    3,700
    fast food in general is on its way down, new concepts like chipotle and the habit are all the rage now, people for the most part want better food
     
    ARM likes this.
  16. nextlevel

    nextlevel You're so amazing

    Reputations:
    49,642
    Joined:
    Jun 8, 2013
    Messages:
    6,934
    Likes Received:
    3,700
    depends on the mcdees, there are ones that they are willing to give away, at the end of the day its about profitibility, if a store is losing money its not worth shit, i've been offered to take over several stores already, for less than 20k, but turned them down
     
    ARM and Dirty South like this.
  17. Rodney21a

    Rodney21a Well-Known Member Banned User

    Reputations:
    16,334
    Joined:
    Jan 15, 2013
    Messages:
    4,122
    Likes Received:
    2,701
  18. yahoo

    yahoo Well-Known Member

    Reputations:
    102,161
    Joined:
    Jan 13, 2014
    Messages:
    4,478
    Likes Received:
    8,695
    They are in a tough spot.. too many different burger options right now.

    I think they need to focus on all-day breakfasts and just market the hell out of that.
     
  19. guruhugz

    guruhugz Well-Known Member

    Reputations:
    11,558
    Joined:
    Mar 26, 2012
    Messages:
    1,890
    Likes Received:
    2,911
    they need to lose that clown mascot, too

    clowns make everyone think of serial killers or child molesters
     
    smichal and babybear like this.
  20. EmperorsNewCaps

    EmperorsNewCaps Member

    Reputations:
    77,509
    Joined:
    Jan 15, 2012
    Messages:
    12,184
    Likes Received:
    15,791
    eh I disagree, the article even says, it's got stiff competion from expanding fast food joints.

    Chic-Fil-A cleans up in every city it expands to. They opened one here that has a line that consistently backs up to the freeway exit.