Polar Vortex and Speed

Dear Fellow Owners,

We hope everyone got through the Polar Vortex safely. There is nothing like Mother Nature reminding us who is really in charge. McDonald’s announced earnings this week. It’s good to see our franchisor doing well. As many of us are stockholders, it’s good the stock remains strong. We also appreciate Steve’s comments regarding the relationship and getting to better outcomes. That he and his team welcome the dialogue that has bubbled up. NOA does too.

There is still much work to do. Much to resolve. Juan has asked that we move on from the SAM Wall discussion, our members disagree. We feel there is much more SAM Wall debate required. More discussion about the quality of our MRP’s. If net Owner Cashflow is our number one priority, we can’t allow any unnecessary investments nor structural changes that make our operating platform more labor intense. SAM Walls are the most egregious in the “bad idea” category. We are faced with incredible labor pressures as it is, we can’t make our jobs harder. We need to be looking at ways to reduce labor in our restaurants. Not add more. The GEL position and the new VHL guidelines both fall under the “bad idea” category. As do the complexities of our production system (ADB, HOTG).

The “good idea” category is finding ways to make it easier to operate our restaurants. Making it easier to do it right than wrong. Simplification needs to be priority one. This means having a Food Improvement Team led by restaurateurs. Restaurateurs understand the challenges of operating restaurants and what our customers want from us. Why everything must support the moment of truth. They also have to manage a P&L and make a payroll. We need restauranteurs back in charge at McDonalds (when Mother Nature is not).

Delivery Economics are being reviewed by the SET team. Thank you to Jamie Straza and Dorothy Stingley for doing the deep dive. The company’s position is that there is no additional labor required for Uber Eats. We beg to differ. Once you add labor into the equation, there is no cashflow for the owners. This must be addressed.

Lastly but most importantly...our crew and managers, our All Americans. They are executing at the moment of truth. They are the face of McDonald’s. Everything we do must be with them in mind. How do we make their lives better? How do we make it easier for them to wow our customers? How do we shave seconds from the process? America is in a hurry. We can help.

Below is how the McDonald’s brothers did it (or Hollywood’s version). We need to get back to the basics. Steve said it well this week, we need to get back to being fast. America loves speed. America loves McDonald’s.

Speedy Shining,
The NOA Board