Competitor News

Tim Horton’s has been in the news over the past several weeks for a number of reasons. First, the Canadian coffee chain announced a few weeks ago that it was introducing flatbread pizzas as a new limited time offer at about 20 locations in the Toronto market. They followed that up by announcing the brand’s…

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Competitor News

McDonald’s had a complicated worldwide situation to report last week on its earnings call with the sale of its Russian business and a large tax settlement paid in France. Notwithstanding, it beat earnings but missed on revenue by modest amounts. In the all-visible US market, same-store sales were up 3.7 percent – just short of…

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Franchisee Problems at McDonald’s US

Last week, the National Operators Association (NOA), the independent franchisee association for those in the McDonald’s system, polled its members in the wake of Corporate announced changes to franchisee contract renewals beginning next year. That polling echoed a similar vote by the National Black McDonalds Operators Association the prior week with 87% of NOA members…

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Franchise Fractures

Tensions have been building of late between McDonald’s and many of its franchisees over proposed new standards for US contract renewals. Word of the new franchise standards began circulating back in May but the company has been plowing ahead with the revisions. Saying that the right to operate one of its restaurants is “earned, not…

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Competitor News

Last week, McDonalds reported Q1 earnings with overall stable conditions except for the increased costs for food and labor. U.S. same-store sales rose 3.5%, sequentially lower than the last several quarters, in part due to using 2021 as the base. The company reported traffic was minus 1% and while US guests were generally spending and…

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Competitor News

McDonalds reported Q4 and full year 2021 earnings yesterday. While absolute sales and profit levels were higher in 2021 versus 2020, both sales and earnings missed analyst’s projections in Q4. Both food and labor costs have become a very difficult problem and McD is forecasting food and paper costs in the “high single digit to…

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Competitor News

Aside from its growing union issues, Starbucks this week reversed course on its own previously announced employee vaccine-or-test mandate after the U.S. Supreme Court rejected the Biden administration vaccine-or-test mandate. Starbucks told employees this week that the company will no longer require its US workers to be vaccinated or undergo weekly testing as it had…

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McDonald’s News

A blockbuster story dropped early this week when it was announced that McDonald’s had finally reached a settlement with franchisee Herb Washington is his lawsuit alleging racial discrimination against the Golden Arches. It was reported that in exchange for dropping his lawsuit against the company, McDonald’s would purchase Washington’s 13 stores for a total of…

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Competitor News

You know about the unionizing issues that Starbucks is confronting, but it also has been hit with a class action lawsuit alleging that the company’s youth recruitment program equated to “a blatant campaign of age discrimination in hiring”. A 59-year-old former manager filed a proposed class action to include all individuals over the age of…

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Pay Equity Issues

With much fanfare last week, McDonalds announced that it had reached gender pay equity for its employees at its corporate US stores. In an emailed statement, the company declared that women in were currently paid 99.16% as much as men for comparable work and that in 2022 the company expects that globally, women will receive…

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