Competitor News

Starbucks announced earlier this week that it is making enhancements to its loyalty program in order to attract new members to their program and engage them more quickly. Effective April 16, Starbucks Rewards members will be able to redeem rewards once they’ve accumulated 25 points vs. the current threshold of 125 points. The company claims…

Read More »

Dunkin’ and the No-Poach Clause

Many franchisors utilize so-called “no-poach” clauses in their franchise agreements, and such clauses may be structured in a way that limits a franchisee’s ability to hire employees of other, same-brand franchisees and/or employees of the franchisor. Recently, a group of state attorneys general and prominent legislators began pressing franchisors to cease use of so-called “no-poach”…

Read More »

Competitor News

McDonald’s announced Q1 financials on Tuesday of this week, and its focus on all day breakfast, $1 coffee /$2 espresso drinks and the Big Mac promotion are acknowledged to have gained market share. Their Same Store Sales were up 1.7% as it continues to work its McCafé platform with new advertising and baked goods coming…

Read More »

When A Brand Is Sold!

As long expected, Tim Hortons Canada franchisee problems with the Burger King (RBI) franchisor have finally boiled up – with store support and supply chain problems at the fore. The franchise owners have set up an association for the first time ever and hired Canada’s leading franchisee-focused legal firm to begin corrective negotiations. All of…

Read More »

Miscellaneous

One of the bigger news items this week was the $1.8 Billion acquisition of Popeyes by Tim Horton’s and Burger King parent, Restaurant Brands International. That announcement was followed shortly thereafter by another confirming that the acquisition was being investigated for possible breaches of fiduciary duty! Notwithstanding, both of those items have received plenty of…

Read More »

Competitor News

With Q1 earnings calls being held over the past week or so, DDIFO restaurant analyst John Gordon of Pacific Management Consulting Group noted much about competitors:  Starbucks (SBUX) reported very solid Q1 earnings results last week with same store sales +7% (2% in traffic and +5% in ticket value). They also introduced a boatload of…

Read More »

Competitor December Doldrums

Dunkin’ wasn’t alone in their weak December report – McDonald’s conducted a special investor call, detailing their “build your own taste theme” and more decentralization in corporate functions, to hopefully be more nimble and more local in its business focus. McDonald’s announced its breakfast sales were still positive. McDonald’s will take some time to change. …

Read More »

US Treasury Restricts Tax Inversions

While the Burger King acquisition of Tim Horton’s a few weeks ago caught many unaware, seemingly none more so than the United States Treasury Department.  A few weeks after BK acquired Tim’s and undertook a tax inversion that will save the company significant money in tax liability, the Treasury has promulgated new rules that make…

Read More »

Debt on the Menu at Burger King

Steve Rosenbush writes at Portfolio.com here’s something for Burger King Franchisees to consider as the restaurant chain is sold to yet another private equity owner. Who will pay for the $2.8 billion in bank loans that are financing the buyout, worth an estimated $4 billion, including debt and equity?

Read More »