Miscellaneous

McDonalds corporate sure knows how to “rob Peter to pay Paul”, as the old saying goes. The company hosted a webcast earlier this month to advise its franchisees (Peter) that a long-time company subsidy used to keep the price of a Happy Meal down would end on New Year’s Day 2021. Further, the company is…

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McDonald’s News

McDonald’s reported Quarter 3 sales and profits above estimates earlier this week. US same store sales were plus 4.6%, with a strong September fueled by the Travis Scott meal and the spicy McNuggets LTO.  What got the most attention was a recap of its “Accelerating the Arches” strategy upcoming, which was advertised as the next…

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Competitor News

Starbucks announced last week that it was now testing a new vegan breakfast sandwich, the Plant Powered Breakfast Sandwich in the outskirts of Seattle, Washington. The company also announced that it was tying future executive compensation together with its diversity efforts. Specifically, the company has set a goal of 30% BIPOC (black, indigenous, people of…

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McDonald’s Adds Sweets To Breakfast and Workers

The Golden Arches will be dishing out sweets soon in 2 different directions and for 2 very different reasons. For the first time in eight years, McDonalds said it is adding baked goods to its breakfast menu in the hope of strengthening its weak breakfast daypart. The company announced this week that it would begin…

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Competitor News

In contrast to the more upbeat Dunkin presentation, the Starbucks CFO. Pat Grismer, also appeared before the JP Morgan Consumer Conference. He noted their US same-store sales improved from minus 19% in June to minus 11% in August. They did not expect to get back to even in the US until sometime in early 2021.…

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When It Rains, It Pours

A few weeks ago, we reported on McDonalds suing to recover severance and bonus payments paid to terminated CEO Steve Easterbrook. On the heels of that evolving storm, executives at McDonalds now have an additional matter to deal with – a federal civil rights lawsuit brought by 52 black former franchisees. In the suit, filed…

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McDonald’s Sues Former CEO Easterbrook

McDonald’s announced Monday that it would sue to recover the severance and stock options that it granted to terminated CEO Steve Easterbrook in 2019.  At that time it concluded that he exercised bad judgement only in a relationship with an employee. Evidence later was uncovered that proved he lied and destroyed evidence of more sexual…

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Competitor News

Both McDonald’s and Starbucks hosted earnings calls as well this week and neither event was particularly pretty. In Q2, McDonald’s posted its lowest overall profit in 14 years, and US same-store stores declined 8.7% for the quarter as a whole. Preliminary July same-store sales trends were just barely in positive territory with breakfast daypart sales…

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Competitor News

Over the past few weeks, there have been a number of announcements of one sort or another about some competitor companies that we thought we’d be sure you were aware of. First off, on the politically correct front, Starbucks announced that the company “stood against hate speech” and was therefore pausing all advertising on social…

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Focus on Human Resources: Pandemic challenges the efforts to support employees and nourish the business

The restaurant industry – and particularly the Quick Service Restaurant (QSR) industry – is facing many challenges, among them finding and retaining good, reliable employees. It’s no secret that restaurants have an extremely high turnover rate with employees flowing through the revolving door. Data compiled before the coronavirus pandemic, showed employee turnover ran as high…

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