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Richard Adams

Richard Adams
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  • McDonald's And Menu Simplification: Part 1 Of 3 Ways To Tell When The Worst Is Over [View article]
    Menu complexity is not just about the time it takes to order food.
    That's about 10% of the problem. The real problem is what happens in the
    kitchen. I've tried the new Clubhouse sandwich twice. Both times I went
    inside and ordered at the counter. There was no line and only a few
    customers in the dining room. From the time on my receipt to the time I
    got my sandwich was four minutes. This is a system built on speed and
    Apr 28, 2014. 02:34 PM | Likes Like |Link to Comment
  • McDonald's And Menu Simplification: Part 1 Of 3 Ways To Tell When The Worst Is Over [View article]
    You make a great point about actually visiting the restaurants. It’s too bad
    the McDonald’s corporate executives don’t do that more. It was obvious
    5 years ago thatmenu complexity was becoming a problem.

    Simplifying the menu at McDonald’s is going to be very difficult because:

    * Everybody in McDonald’s leadership has their favorites, whether the favorite
    sells well or not.

    * Many items are on the menu for political or public relations reasons.

    * When sales are soft it’s tough to reduce the offerings. Even if an item only sells a few a day at least it’s contributing something to sales.

    * Very few decision makers at McDonald’s have any real restaurant experience.
    When franchisees express concerns over the menu they are told to work harder
    at it or add more crew to the kitchen.

    * Wall Street types will continue to demand “innovation” which leads management to boast about their new product pipeline and every new product is more complex than the previous menu item.
    Apr 28, 2014. 01:13 PM | 2 Likes Like |Link to Comment
  • Breakfast And Coffee Wars: McDonald's Can't Win Everywhere [View article]
    As an industry veteran I can tell you that the harsh winter had a huge impact on McDonald's because of the high concentration of restaurants in the East and Northeast. The first quarter tells us very little about sales trends at McDonald's in the USA.

    If there is a sales problem at McDonald's it's because of an overly large menu and an increasingly complex operation. Trying to serve breakfast all day would be a disaster leading to real sales decreases. It's not going to happen.
    Apr 25, 2014. 02:06 PM | Likes Like |Link to Comment
  • McDonald's pricing gets even more interesting [View news story]
    McDonald's will always have "scattered" pricing because they have the most franchisees with the most stores and those franchisees set their menu prices. McDonald's can make suggestions, and they do so through an arms-length consulting company, but in the end the franchisees make the pricing decisions.
    Mar 27, 2014. 01:53 PM | 1 Like Like |Link to Comment
  • Don't Sell McDonald's Stock Because Of 2 Minimum Wage Myths [View article]
    Tom - there are 2300 (aprox.) individual MCD franchisees in the USA running some 13,000 plus restaurants so once in a while somebody will screw up. But, it's not an epidemic. The MCD franchise agreement says that the franchisee will comply with all laws, local and federal so if someone does screw up they are responsible for any penalties and usually end up leaving the McDonald's system. Also, keep in mind, unlike BKW & WEN and most other chains a MCD franchisee in the USA is likely a local business person who is well known in the communities they serve. If they were cheating their employees word would get around very fast and it would become tough to get help. And they'd lose a lot of customers.
    Mar 25, 2014. 07:32 PM | Likes Like |Link to Comment
  • Don't Sell McDonald's Stock Because Of 2 Minimum Wage Myths [View article]
    Absolutely right John - franchisees can't be left to absorb every negative impact. If that's allowed the entire system suffers. Not only remodels slow down but marketing $$$ are squeezed, staffing is reduced hurting service,
    etc. etc. It's called a franchise "system for this reason.
    Mar 25, 2014. 07:09 PM | Likes Like |Link to Comment
  • Busy week for McDonald's attorneys [View news story]
    This is simply a transparent campaign by the labor unions and coordinated with the White House. There will be some negative press along the way but they are not going to unionize any McDonald's. And, a McDonald's franchisee would be crazy to break labor laws. Their franchise agreement requires the obey all laws, federal and local. So it would be very short sighted to nickle and dime your employees and put your entire business at risk. It is funny that the CEO of McDonald's gave Obama $30K in 2008. And now Obama sends the SEIU after McDonald's. Thanks pal!
    Mar 13, 2014. 06:40 PM | 1 Like Like |Link to Comment
  • McDonald's: Americans Aren't 'Lovin' It' Like They Used To [View article]
    Good work on this article. Sales trends in the USA since the "Dollar Menu and More" tell us nothing because of the bad winter. Snow and ice have a huge impact on traffic and most of us are surprised that February wasn't down 3% or 4%. Everyone is making far too much of this millennial thing. Every generation is different but writers are acting like they are a new species of human. And the millennials are enjoying all the attention.
    Mar 12, 2014. 06:43 PM | Likes Like |Link to Comment
  • McDonald's: The Present Scenario [View article]
    This writer is something of a drama queen. Frantically seeking top line growth can be very destructive for a chain that already has higher average unit volumes far above the other publicly held competitors.
    Mar 11, 2014. 02:02 PM | Likes Like |Link to Comment
  • McDonald's: Business Model, Valuation And Minimum Wage Legislation [View article]
    The minimum wage was never meant to be a "living wage". It's a starting point or entry level. If the leftists (driven by the unions) get their way and make it a living wage and keep pushing it up the inflation will do great damage to the country.
    Feb 26, 2014. 07:25 PM | 11 Likes Like |Link to Comment
  • The fast-food breakfast war is on [View news story]
    You are right, McDonald's will continue to be the leader and that's why there is so much press coverage when a competitor makes a move. The headlines use words like "battle" or "war".
    Feb 25, 2014. 01:16 PM | Likes Like |Link to Comment
  • The fast-food breakfast war is on [View news story]
    Wendy's has started and stopped a breakfast roll-out three times. Don't think it's ever going to happenn.
    Feb 24, 2014. 03:03 PM | 1 Like Like |Link to Comment
  • The fast-food breakfast war is on [View news story]
    Due to already high volumes McDonald's will not be able to make extended breakfast operations work without further slowing service. It appears that McDonald's executives are so far removed from of what's really going on in the restaurants that they'll actually consider destructive changes like extending breakfast.
    Feb 24, 2014. 02:38 PM | Likes Like |Link to Comment
  • McDonald's eyes longer breakfast hours [View news story]
    Many McDonald's serve breakfast in the over night-hours. It works there because the customer traffic is low and easy to handle. When customers are in the morning commute or have a half hour for lunch - speed of service is everything.
    Feb 24, 2014. 01:03 PM | Likes Like |Link to Comment
  • McDonald's eyes longer breakfast hours [View news story]
    Can't be done. If MCD management was foolish enough to pursue this it will drive away customers, not attract them. And please don't respond with "Jack in the Box does it". The average MCD does twice the sales of a JIB and is struggling to keep up with the customer traffic and operational complexities. Yes, there are a few people who would buy and Egg McMuffin for lunch but McDonald's cannot be all things to all people.
    Feb 24, 2014. 12:00 PM | 2 Likes Like |Link to Comment