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Why McDonald's wins in any economy

59 pointsby dkoover 13 years ago

11 comments

hernan7over 13 years ago
Am I the only one that found that French fries illustration to be terrible? Cheesy picture that purports to be a "chart", that shows 2 values, plus the cryptical legend "French fries do not reflect actual earnings-per-share gains." And I'm not even much of a Tufte fanatic myself.<p><a href="http://en.wikipedia.org/wiki/Chartjunk" rel="nofollow">http://en.wikipedia.org/wiki/Chartjunk</a>
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teycover 13 years ago
One thing I admire McDonald's is its willingness to train its workers. One of my colleague's teenage daughter worked for McD's when she was in high school, and later worked for another fast food joint and she was able to identify many operational inefficiencies.<p>Another thing is McDonald's never got stuck in the idea that its core brand is about burgers, or expanding its menu is bad mantra.<p>The McHappy meals for example, guaranteed regular clientelle because of its collectibles. But the parents didn't want burgers. So the business altered its menu to keep the parents happy.<p>In contrast, Burger King's menu has remained static.
shrikantover 13 years ago
Reminds me of this excerpt from <i>Iacocca</i>:<p><i>[...] my father had opened a hot-dog restaurant called the Orpheum Wiener House. It was the perfect business for somebody without much cash. All he really needed to get started were a grill, a bun warmer, and a few stools.<p>My father always drilled two things into me: never get into a capital-intensive business, because the bankers will end up owning you. (I should have paid more attention to this particular piece of advice!) And when times are tough, be in the food business, because no matter how bad things get, people still have to eat. The Orpheum Wiener House stayed afloat all through the Great Depression.</i>
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apaprockiover 13 years ago
Business might be great, but TIL McDonald's borrowed $109M directly from the Fed as part of the Commercial Paper Funding Facility invoked after the Lehman collapse and was in debt to the Fed for 223 days.<p><a href="http://www.bloomberg.com/data-visualization/federal-reserve-emergency-lending#/McDonald%27s_Corp" rel="nofollow">http://www.bloomberg.com/data-visualization/federal-reserve-...</a>
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grimenover 13 years ago
McDonalds has a really bad rumour in Sweden. Yes people eat there, but people are starting to change mindsets I've noticed. Subway and such a bit healthier alternatives are becoming more popular.<p>Wort to notice is that what McDonalds is earning money on is not really the food, it's the real estate and speculation around these. IKEA do the same thing: "We want t build a building here" - who wants to have a store nearby? <i>bids</i> by other companies and regions who want people to come there more often and pay tax.
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typicalruntover 13 years ago
"win" being the operative word here.<p><i>cost-conscious consumers are flocking to fast-food eateries</i><p>The economy isn't doing well at all, and people are flocking to the cheapest alternatives. That's why Walmart, Dollar Stores, and McDonalds will always do well in desperate times.<p>It would be nicer to see people purchasing raw ingredients and cooking food at home. I can't imagine the amount of bad health effects that are going to hit the nation in 10 years if this behaviour continues.
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ww520over 13 years ago
Has anyone own or run a McDonald franchise? How's the experience? Does it require lots of work? Or just require passive monitoring? How's the cost vs payout?
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Gravitylossover 13 years ago
AFAIK they've never been profitable in my country, though it might be an accounting trick...
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chaostheoryover 13 years ago
This reads like a submarine PR article for McDonalds and Jim Skinner.
athstover 13 years ago
I like the idea of supporting your managers in front of employees even if you don't agree. Address it later in private so you don't undermine them.
Tichyover 13 years ago
I wonder how long those salads would hold up before they decay visibly :-/