McDonalds Struggling - Selling "Secret Sauce" for $18k a Bottle | Warrior Forum - The #1 Digital Marketing Forum & Marketplace

9 years ago

"Secret Sauce"? That is too funny. I ordered a hamburger at one of a small group of sit down and be served chain in the area. I asked for the "secret sauce" to be served separately. It was just homemade with mayo and pickle relish, maybe some little bit of onion.

I told the waitress it was just tartar sauce and she said no. I asked her to go back to the kitchen and ask. When she came back she said that yes, it was tartar sauce and seemed totally surprised.

Thanks

{{ DiscussionBoard.errors[9857825].message }}

whateverpedia

9 years ago

Sheesh, some people have more money than sense. You can make your own for a few bucks (if that).

In 2012, McDonald's admitted that the special sauce ingredients were "not really a secret" because the recipe had been available online "for years". It consists of store-bought mayonnaise, sweet pickle relish and yellow mustard whisked together with vinegar, garlic powder, onion powder and paprika. From wikipedia

Thanks
1 reply

Signature

Why do garden gnomes smell so bad?

So that blind people can hate them as well.

{{ DiscussionBoard.errors[9857847].message }}

Richard Van

9 years ago

Originally Posted by whateverpedia

Sheesh, some people have more money than sense. You can make your own for a few bucks (if that).

Yup and here's the ingredients on the MacDonalds website.

BIG MAC SAUCE: Soybean Oil (Antioxidant (330)), Water, Relish [ Pickles, High Fructose Corn Syrup, Sugar, Distilled Vinegar, Preservative (202), Thickener (415), Flavourings], Mustard [Water, Distilled Vinegar, Mustard Seed, Salt, Sugar, Colours (150d, 100), Spice], Salted Egg Yolks, Distilled Vinegar, Onion, Thickeners (1442, 415, 405), Spices, Sugar, Salt, Hydrolysed Protein (Corn Gluten, Soy, Wheat Gluten), Preservative (211), Colours (160c, 150d, 100), Emulsifier (433), Garlic, Antioxidant (385).

https://mcdonalds.com.au/menu/big-mac

Thanks
1 reply

Signature

Wibble, bark, my old man's a mushroom etc...

{{ DiscussionBoard.errors[9858798].message }}

Frank Donovan 9 years ago

Originally Posted by Richard Van

Yup and here's the ingredients on the MacDonalds website.

Bunch of chemicals, additives etc.

If we can't get hold of any "High Fructose Corn Syrup", does it say if there's an equally toxic substance we can use?
- [ 3 ] Thanks
- 1 reply
Signature
{{ DiscussionBoard.errors[9858862].message }}
- Richard Van 9 years ago
  
  Originally Posted by Frank Donovan
  
  If we can't get hold of any "High Fructose Corn Syrup", does it say if there's an equally toxic substance we can use?
  
  I think it's ok to replace that with anything so long as it's banned significantly worldwide Frank.
  
  [ 1 ] Thanks
  
  Signature
  
  Wibble, bark, my old man's a mushroom etc...
  
  {{ DiscussionBoard.errors[9858885].message }}
- Philipevex Banned 9 years ago
  
  [DELETED]
  
  {{ DiscussionBoard.errors[9862179].message }}

HeySal

9 years ago

I always thought McD "special sauce" was nothing really but either mayo mixed with ketchup or tartar mixed with ketchup. Anyway - not sure how that's going to help them to sell their special sauce if people aren't eating their food because they consider it poisonous. If there's logic in there anywhere, I can't find it.

Thanks
1 reply

Signature

Sal
When the Roads and Paths end, learn to guide yourself through the wilderness
Beyond the Path

{{ DiscussionBoard.errors[9857972].message }}

whland

9 years ago

Originally Posted by HeySal

I always thought McD "special sauce" was nothing really but either mayo mixed with ketchup or tartar mixed with ketchup. Anyway - not sure how that's going to help them to sell their special sauce if people aren't eating their food because they consider it poisonous. If there's logic in there anywhere, I can't find it.

That's what I was thinking too. I do remember reading somewhere about the ingredients.

Sure wouldn't pay 18K a bottle for it.

[ 1 ] Thanks

Signature

WebMasterBabble.com Webmaster Forum

{{ DiscussionBoard.errors[9858014].message }}

rondo

9 years ago

Guardian Australia managed to get its hands on a bottle of the stuff, emblazoned with the words: “Everything tastes better when it tastes like the Big Mac.”
But does it? We decided to find out.

http://www.theguardian.com/lifeandst...gross-or-great

Andrew

Thanks

Signature

Online courses

{{ DiscussionBoard.errors[9858105].message }}

rondo

9 years ago

Originally Posted by Jamie Thompson

McDonalds has been getting devastated by organic food trends(rightfully so)

Here in Australia they have opened a new healthier restaurant called The Corner.
http://www.dailytelegraph.com.au/new...-1227168326189

Andrew

Thanks
2 replies

Signature

Online courses

{{ DiscussionBoard.errors[9858120].message }}

Kay King 9 years ago

"In 2012, McDonald's admitted that the special sauce ingredients were "not really a secret" because the recipe had been available online "for years". It consists of store-bought mayonnaise, sweet pickle relish and yellow mustard whisked together with vinegar, garlic powder, onion powder and paprika."

I use lemon juice or pickle juice instead of vinegar and skip the "powders". Tastes the same if not better.
- Thanks
Signature

Saving one dog will not change the world - but the world changes forever for that one dog
***
One secret to happiness is to let every situation be
what it is instead of what you think it should be.
{{ DiscussionBoard.errors[9858156].message }}
Ghoster 9 years ago

Originally Posted by rondo

Here in Australia they have opened a new healthier restaurant called The Corner.
No Cookies | dailytelegraph.com.au

Andrew

It will be funny when this goes out of business. Die McDonald's, die!
- Thanks
Signature

On the whole, you get what you pay for.
{{ DiscussionBoard.errors[9859777].message }}

Kurt

9 years ago

The "secret sauce" is basically the same thing as 1000 Island dressing.

[ 2 ] Thanks
2 replies

Signature

Discover the fastest and easiest ways to create your own valuable products.
Tons of FREE Public Domain content you can use to make your own content, PLR, digital and POD products.

{{ DiscussionBoard.errors[9858300].message }}

perryny 9 years ago

From the chef himself...

"What is in the sauce that is in the Big...
- Thanks
Signature
End procrastination with this simple project time tracker.
{{ DiscussionBoard.errors[9858355].message }}
seasoned 9 years ago

Originally Posted by Kurt

The "secret sauce" is basically the same thing as 1000 Island dressing.

WHICH, BTW, is NOT tarter sauce!!!!!!

Steve
- Thanks
{{ DiscussionBoard.errors[10088135].message }}

Sumit Menon

9 years ago

Funny - I didn't even know that there was a secret sauce.

Thanks

{{ DiscussionBoard.errors[9858529].message }}

HeySal

9 years ago

There might not be over there, Sumit. Every country seems to have differences in what is served at them. McD's might even be made of real food in some countries, who knows.

Good to see you again. Howzitgoin'? (Show that one to your English professor, LMAO).

Thanks
2 replies

Signature

Sal
When the Roads and Paths end, learn to guide yourself through the wilderness
Beyond the Path

{{ DiscussionBoard.errors[9858537].message }}

Sumit Menon

9 years ago

Originally Posted by HeySal

There might not be over there, Sumit. Every country seems to have differences in what is served at them. McD's might even be made of real food in some countries, who knows.

Good to see you again. Howzitgoin'? (Show that one to your English professor, LMAO).

I don't like McD. The patty in their burger is very ordinary and I am not a big fan of the sauce either. I only like their fries and McFloat.

I like KFC. Recently, Taco Bell and Burger King set up shop here. Taco bell is good.. Burger King was not great again.

I've been good. I graduated six months ago and got a job. Been busy lately. How are you doing?

Sumit.

[ 1 ] Thanks
1 reply

{{ DiscussionBoard.errors[9859076].message }}

HeySal

9 years ago

Originally Posted by Sumit Menon

I don't like McD. The patty in their burger is very ordinary and I am not a big fan of the sauce either. I only like their fries and McFloat.

I like KFC. Recently, Taco Bell and Burger King set up shop here. Taco bell is good.. Burger King was not great again.

I've been good. I graduated six months ago and got a job. Been busy lately. How are you doing?

Sumit.

Oh holy cow. Our little Sumit is an adult now? Where does the time go? Glad to hear you're doing well. Me - doing okay, just moved about 500 miles south of where I was and am enjoying the added 10 degrees (f) this time of year!

Thanks

Signature

Sal
When the Roads and Paths end, learn to guide yourself through the wilderness
Beyond the Path

{{ DiscussionBoard.errors[9859865].message }}

Sumit Menon

9 years ago

Originally Posted by HeySal

There might not be over there, Sumit. Every country seems to have differences in what is served at them. McD's might even be made of real food in some countries, who knows.

Good to see you again. Howzitgoin'? (Show that one to your English professor, LMAO).

I don't like McD. The patty in their burger is very ordinary and I am not a big fan of the sauce either. I only like their fries and McFloat.

I like KFC. Recently, Taco Bell and Burger King set up shop here. Taco bell is good.. Burger King was not great again.

I've been good. I graduated six months ago and got a job. Been busy lately. How are you doing?

Sumit.

Thanks

{{ DiscussionBoard.errors[9859087].message }}

thunderbird

9 years ago

I trust A&W more.

Thanks

Signature

Project HERE.

{{ DiscussionBoard.errors[9858754].message }}

kenmichaels

9 years ago

Why did this get moved from offtopic to offline?

Thanks

Signature

Selling Ain't for Sissies!

{{ DiscussionBoard.errors[9858760].message }}

yukon

Banned 9 years ago

Like $28 billion in revenue per year is struggling.

Thanks

{{ DiscussionBoard.errors[9858887].message }}

sbucciarel

Banned 9 years ago

Watch out McDonald's ... Shake Shack is coming. The only thing I ever liked at McDonald's was the fries and shakes. They've destroyed the shakes now and they are typical McD's garbage.

The Untold Story Of Shake Shack's $1.6 Billion Branding | Co.Design | business + design

Last week, Shake Shack went public in an IPO that ballooned to $1.6 billion--cementing the brand's journey from a one-off boutique stand in New York's Madison Square Park to a multinational burger titan with restaurants reaching Moscow, Istanbul, and Dubai.

Shake Shack's eponymous product is its milk shakes, which have been reviewed as some of the best in the industry.[2] As it has grown, the company has also added wine and bottled beers to its beverage menu. In each new location the beverage menu is customized to the local flavors of the city it is operating in.[4]

When the company first began to expand, it became famous for its burgers which are made from Angus beef.[2] Despite this popularity, there were initial problems with the consistency of its sandwiches.[5]

The company originally used pre-made, frozen crinkle-cut french fries because its original location was only 400 sq ft (37 m2) in size, and the limited area disallowed any other style of fry product. As the chain grew, it was praised in multiple reviews for its high quality hamburgers, but its fries were routinely criticized as not being on par as its other products. In response, the company developed a new, fresh cut french fry product in 2007. Since then, all of its french fries are fully prepared in-house, par-cooked and fully fried at the time of ordering.[2]

Thanks
2 replies

{{ DiscussionBoard.errors[9858974].message }}

seasoned

9 years ago

Originally Posted by sbucciarel

Watch out McDonald's ... Shake Shack is coming. The only thing I ever liked at McDonald's was the fries and shakes. They've destroyed the shakes now and they are typical McD's garbage.

The Untold Story Of Shake Shack's $1.6 Billion Branding | Co.Design | business + design

FUNNY THING! If not for the SHAKES, ******NOBODY***** here would likely have EVER heard of MCDONALDS! TRUE STORY! There was once a place called MCDONALDS! It was owned and run by the mcdonald brothers. It seems to be a nice place. I was there several times, but don't know if I ever ate their food.

Anyway, there was a struggling sales person named "RAY KROC". He sold several things, and I guess had moderate success. THEN, at one point, he was selling a "multi mixer". He got this BIG order, and wondered what was going on. He had to check it out. YEP, YOU GUESSED IT! The MCDONALD BROTHERS! Anyway, ray kroc came up with the idea of formulating and franchising it, got the rights to sell it, and THAT is what mcdonalds is TODAY! Back then, mcdonalds had a VERY simple menu, but the SHAKES are what attracted the attention!

The FRIES were ALSO kind of special, and THOSE have changed ALSO!

Steve

Thanks
1 reply

{{ DiscussionBoard.errors[9859139].message }}

ForumGuru

Banned 9 years ago

Originally Posted by seasoned

FUNNY THING! If not for the SHAKES, ******NOBODY***** here would likely have EVER heard of MCDONALDS!

McDonald's started out as a drive-in McDonald's Bar-B-Q in San Bernardino, CA in 1940 and they were doing a healthy $200,000 in sales many of those years in the 40's.

During the late 40's the competition was selling more burgers than barbeque so in 1948 they closed and reopened three months later as McDonalds featuring quick serve burgers.

Dick and Mac McDonald began licensing their SSS in 1952.

The brothers began licensing their Speedee Service System on their own and had their first licensee in 1952. The new restaurant in Phoenix was to be a prototype for the new chain of drive-in restaurants. The initial architect balked at adding the arches to the new building. Once the structure was complete McDonald contacted a sign maker and the “golden arches” were born!

McDonald

Originally Posted by seasoned

Anyway, ray kroc came up with the idea of formulating and franchising it, got the rights to sell it, and THAT is what mcdonalds is TODAY! Back then, mcdonalds had a VERY simple menu, but the SHAKES are what attracted the attention!

The FRIES were ALSO kind of special, and THOSE have changed ALSO!

Steve

It was not Kroc that came up with the Speedee Service System (and licensing it), and it was not Kroc who decided to start franchising. That was the McDonald brothers on both counts and the first franchisee was Occidental Petroleum executive Neil Fox in 1953. The second franchisee was Fox's brothers-in-law and business partners, Roger Williams and Bud Landon in 1953. They also purchased the franchise prior to Kroc's involvement with the company and to my knowledge that is the oldest McDonalds that is still in operation today. My understanding is the Downey, California location still looks almost as it did in 1953.

In 1948, when the McDonald brothers closed and switched to quick serve burgers, french fries and triple thick shakes were not a part of the menu as the menu was reduced to just nine items. The burger was the staple and then in 1949 french fries replaced the chips and the triple thick shakes were introduced to the public.

In 1954 Kroc visited McDonald brothers operation hoping to sell them more Multimixers and became fascinated by the operation. That's when he learned the brothers were looking for a nationwide franchising agent and soon thereafter discovered hamburgers were his future. Once Kroc became a partner he eventually became frustrated with the the brothers as they only wanted to maintain a small number of restaurants so in 1961 he bought them out for $2.7 million and the rest is history.

Kroc (the milkshake guy) opened the first McDonald's franchise east of the Mississippi in Des Plaines, Illinois (1955)

Early Kroc Era Menu

Early McDonald's menus

Cheers

-don

[ 1 ] Thanks
2 replies

{{ DiscussionBoard.errors[9859400].message }}

sbucciarel

Banned 9 years ago

Originally Posted by ForumGuru

McDonald's started out as a drive-in McDonald's Bar-B-Q in San Bernardino, CA in 1940 and they were doing a healthy $200,000 in sales many of those years in the 40's.
Cheers

-don

Lovely charts.

McDonald's Co. (NYSE:MCD) VP Kenneth M. Koziol sold 11,542 shares of the stock in a transaction that occurred on Thursday, January 29th. The shares were sold at an average price of $93.29, for a total value of $1,076,753.18. Following the completion of the sale, the vice president now directly owns 8 shares in the company, valued at approximately $746.32.

McDonald's Co. (NYSE:MCD) insider David L. Hoffmann sold 5,247 shares of the company’s stock in a transaction dated Thursday, January 29th. The stock was sold at an average price of $92.66, for a total transaction of $486,187.02. Following the sale, the insider now directly owns 676 shares of the company’s stock, valued at approximately $62,638.16.

In 2014 - Insiders Selling

Timothy Fenton
COO
Feb 18, 2014
Shares Sold 24,492
Currently owns 37,359 shares
Decrease in Ownership 39.6%

David Hoffmann
President, McDonald's APMEA
Feb 12, 2014
Shares Sold 618
Currently owns 13,739 shares + 28,978 options
Decrease in Ownership 1.4%

Donald Thompson
CEO
Jan 24, 2014
Shares Sold 30,000
Currently owns 59,158 shares
Decrease in Ownership 33.6%

McDonald's Same-Store-Sales Decline - Business Insider

[ 1 ] Thanks
1 reply

{{ DiscussionBoard.errors[9859498].message }}

Midnight Oil

9 years ago

Originally Posted by sbucciarel

Donald Thompson
CEO
Jan 24, 2014
Shares Sold 30,000
Currently owns 59,158 shares
Decrease in Ownership 33.6%

That slide is why Thompson is being "retired" as of March 1st.

Thanks
1 reply

{{ DiscussionBoard.errors[9859524].message }}

sbucciarel

Banned 9 years ago

Originally Posted by Midnight Oil

That slide is why Thompson is being "retired" as of March 1st.

Yeah, they have a tendency to think it's the CEO that caused the decline rather than the food tastes like crap and people's tastes have changed. They can build or buy as many stores as they want, but McDonald's has competitors that are more in tune with how people want to eat now ... rather than how they wanted to eat 50 years ago.

Tough Times For The Golden Arches | On Point with Tom Ashbrook

It's not just burgers flipping these days at McDonald's (MCD). The fast-food giant is busy trying to shake things up in 2015 after a brutal 2014 that saw its reputation sink to new lows and comparable-restaurant sales decline during all four quarters.

Last week the chain announced that a new CEO will be taking over in March. It also kicked off a two-week promotional campaign on Monday whereby select customers will get to pay for their food through random acts of kindness, following last month's emotion-tugging "Signs" campaign that was both praised and widely lampooned.

After seeing revenue and earnings decline last year for the first time in more than a decade, it's easy to see why McDonald's is trying to reposition itself. You have to go all the way back to 2009 to find the last time that the restaurant industry bellwether's profit was lower than the $4.8 billion that it scored in 2014. If a new helmsman and back-to-back months of image-sprucing promotions seem desperate to you, you wouldn't be wrong.

McDonald's Needs More Than Hugs and a New CEO - DailyFinance

The quality of the chain's food has also come under fire. Its signature burger was rated the worst in taste among 21 rival chains in a Consumer Reports survey last year of more than 30,000 fast-food buffs.

lol. McDonald's answer to the problem. Simplify it's menu. In other words, get rid of a bunch of crap they've been trying to sell that nobody wants.

McDonald's August Sales Worst Decline In 10 Years - Business Insider
McDonald
McDonald's Sales Just Continue To Decline In America
Death of a fast-food Goliath: What the decline of McDonald’s really means - Salon.com
McDonald's Sales and Margins Continue On A Declining Trajectory - Forbes
BBC News - McDonald's global sales continue to decline
McDonald

[ 1 ] Thanks
1 reply

{{ DiscussionBoard.errors[9859554].message }}

Dan Riffle

9 years ago

Originally Posted by sbucciarel

Yeah, they have a tendency to think it's the CEO that caused the decline rather than the food tastes like crap and people's tastes have changed.

It's the CEO's job to keep a company profitable/make it more profitable. Part of this is being aware of trends in your industry. He hasn't done that.

That said, I don't think Easterbrook, a McD's insider, is the answer to the problem.

Thanks
1 reply

Signature

Raising a child is akin to knowing you're getting fired in 18 years and having to train your replacement without actively sabotaging them.

{{ DiscussionBoard.errors[9859597].message }}

sbucciarel

Banned 9 years ago

Originally Posted by Dan Riffle

It's the CEO's job to keep a company profitable/make it more profitable. Part of this is being aware of trends in your industry. He hasn't done that.

That said, I don't think Easterbrook, a McD's insider, is the answer to the problem.

I don't know if a CEO has the power to change a company's core business model though. McDonald's is selling really lousy tasting, cheap fast food and that worked for a long time, but trends change.

Fast Casual is now the buzz word with an emphasis on slower food, but higher quality food that tastes a lot better. A lot of the fast casual restaurants also serve alcohol, and that can't hurt.

Fast-casual restaurants: Better burgers, choicer chicken | The Economist
How The Fast Casual Segment Is Gaining Market Share In The Restaurant Industry - Forbes
The Chipotle effect: Why America is obsessed with fast casual food - The Washington Post
Fast-casual food continues its ascent - The Daily Journal: Food And Drink

[ 1 ] Thanks
1 reply

{{ DiscussionBoard.errors[9859619].message }}

Dan Riffle

9 years ago

Originally Posted by sbucciarel

I don't know if a CEO has the power to change a company's core business model though. McDonald's is selling really lousy tasting, cheap fast food and that worked for a long time, but trends change.

Fast Casual is now the buzz word with an emphasis on slower food, but higher quality food that tastes a lot better. A lot of the fast casual restaurants also serve alcohol, and that can't hurt.

Fast-casual restaurants: Better burgers, choicer chicken | The Economist
How The Fast Casual Segment Is Gaining Market Share In The Restaurant Industry - Forbes
The Chipotle effect: Why America is obsessed with fast casual food - The Washington Post
Fast-casual food continues its ascent - The Daily Journal: Food And Drink

If the CEO can't create the leadership, vision, and execution to adjust to market trends, he or she should be fired. Thompson got the job smack dab in the middle of the changing landscape. It was his job to right the ship. He hasn't.

I understand the fast casual issues and the effect it's having on the market. McDonalds also knows the issues and are attempting to weather the storm by making insignificant changes. The error is thinking it's just a storm.

Don can post as many financial charts as he likes, but this isn't an immediate crisis for McDonalds. It's a generational issue. They have all but officially lost Millennials. If they lose their children, or consecutive generations, they'll dry up. Think Arthur Treachers. (Okay, maybe not that bad).

It won't become a flaring issue until investors start thinking that owning a McDonald's franchise isn't a fantastic opportunity. Professionally, I'm seeing that thought creeping in now.

[ 1 ] Thanks
2 replies

Signature

Raising a child is akin to knowing you're getting fired in 18 years and having to train your replacement without actively sabotaging them.

{{ DiscussionBoard.errors[9859674].message }}

ForumGuru

Banned 9 years ago

Originally Posted by Dan Riffle

Don can post as many financial charts as he likes, but this isn't an immediate crisis for McDonalds. It's a generational issue. They have all but officially lost Millennials. If they lose their children, or consecutive generations, they'll dry up. Think Arthur Treachers. (Okay, maybe not that bad).

It won't become a flaring issue until investors start thinking that owning a McDonald's franchise isn't a fantastic opportunity. Professionally, I'm seeing that thought creeping in now.

They have a very, very, very long way to fall as they have three times the systemwide sales as their nearest competitor, and 4 times the systemwide sales of their nearest burger competitor. Shake Shack is nowhere on the map, and they won't be for at least a decade or two, or three, if ever.

If you walk into a McDonald's today, you will see it is filled with a lot of younger people and lower income folks, and that makes up a large percentage of the people eating that stuff.

McDonalds ain't going anywhere, anytime soon, because a large part of that market segment actually likes greasy, low cost, fast food. Yes, a lot of lower income folks do eat at McDonalds, and some say the recent decline may have something to do with the price point of their healthier menu options ---> it is too high for a large percentage of their clientele as much of their clientele are almost broke.

Contrary to what some here are saying, McDonalds does have a some decent healthy menu options, but they are priced out of reach of a large part of their customer base.

I very rarely eat at McDonalds these days (like once every couple of years) but on average year over year, and decade over decade, they get the job done. Sure, if I don't eat at a local mom and pop shop, or fancier restaurant, I much prefer Chipotle, Subway and Chic-fil-a etc. but I can tell you many of the kids don't. In-fact if you ask my brother's kids (and he has 6 of them), they would much prefer going to McDonalds over many of the choices you or I would make.

McDonalds serves a certain market, and they will make a few adjustments and continue on just like the always do.

You don't get in 100 countries and serve 69 million customers a day by doing stuff the wrong way. You get there by doing things the right way, and McDonalds has a long and storied history of doing things the right way.

And yes, I know a bit about CSRs and their customer base as my wife was an 18 year GM for DQ, and opened one the flagship Grill & Chills (the upscale DQ with the extended food menu) for them. In-fact we almost bought a DQ for ourselves a couple of years ago. When we were considering that purchase we had a TON of numbers to compare industry wide, and I can tell you the McDonalds numbers looked pretty good, but were a bit rich for our blood.

I agree with Business Insider and some of the others, they need to make some of their healthier options more affordable. Beyond that, they need keep franchise opportunities within reach (competitive with most) for those who are willing to enter the highly competitive QSR industry.

Cheers

-don

Thanks
1 reply

{{ DiscussionBoard.errors[9859769].message }}

Dan Riffle 9 years ago

Originally Posted by ForumGuru

McDonalds ain't going anywhere, anytime soon,

I kinda said that:

Originally Posted by Dan Riffle

Don can post as many financial charts as he likes, but this isn't an immediate crisis for McDonalds. It's a generational issue.
- Thanks
Signature

Raising a child is akin to knowing you're getting fired in 18 years and having to train your replacement without actively sabotaging them.
{{ DiscussionBoard.errors[9859812].message }}

sbucciarel

Banned 9 years ago

Originally Posted by Dan Riffle

If the CEO can't create the leadership, vision, and execution to adjust to market trends, he or she should be fired. Thompson got the job smack dab in the middle of the changing landscape. It was his job to right the ship. He hasn't.

I understand the fast casual issues and the effect it's having on the market. McDonalds also knows the issues and are attempting to weather the storm by making insignificant changes. The error is thinking it's just a storm.

Don can post as many financial charts as he likes, but this isn't an immediate crisis for McDonalds. It's a generational issue. They have all but officially lost Millennials. If they lose their children, or consecutive generations, they'll dry up. Think Arthur Treachers. (Okay, maybe not that bad).

It won't become a flaring issue until investors start thinking that owning a McDonald's franchise isn't a fantastic opportunity. Professionally, I'm seeing that thought creeping in now.

McDonald's lost millennials, and they've lost children, according to this article by Motley Fool.

Recs
1

How McDonald's Lost Its Most Important Customer

By Jeremy Bowman | More Articles
February 2, 2015 | Comments (0)

McDonald's (NYSE: MCD ) just reported its first full-year sales decline in 30 years, and analysts have offered up a million reasons why: The food is not healthy; they have failed to embrace technology; the menu is too big; speed of service is too slow; and the brand has lost its meaning.

The list goes on and on, but critics may be ignoring the biggest factor in the decline of the Golden Arches. McDonald's has lost its grip on the most important customer base -- kids.

Known for its iconic Happy Meal, McDonald's has been a favorite treat for kids since its early history. Ray Kroc, the man who built the McDonald's empire, understood the power of marketing to children, saying, "If you have one dollar to spend on marketing, spend it on kids." Not only are kids easy targets for tasty fast food chains like McDonald's, but they bring their parents to the restaurant with them and often go on to become lifelong customers.

Kroc was innovative with marketing to children, creating a cast of well-known characters, including Ronald McDonald and adding "playlands" to restaurants to make McDonald's even more of a kids destination. Like Disney, with its movies and theme parks, McDonald's was a brand children could easily fall in love with.

A good reason to grimace
A lot has changed since the days when Kroc ruled the fast food chain. Selling to children, which was once one of McDonald's biggest strengths, has become a vulnerability as concern has grown among parents and governments about obesity and food quality.

In 2006, Disney refused to renew its Happy Meal partnership with McDonald's, ending a 10-year co-branding deal that was said to be worth $1 billion to the media giant. Like many others, Disney backed away from Mickey D's in order to maintain its family friendly image and avoid being associated with a company many see as a leading cause of childhood obesity.

Fast-food children's meals have declined across the industry since 2007, but McDonald's seems to have been bested by the competition. Last year, for the first time in 25 years, the company lost its #1 ranking as the fast-food chain with the most "kid appeal," according to research by Sandelman & Associates, falling to Chick-Fil-A.

Visits from families also continue to decline. Last year, families with a child under the age of 12 made up just 14.6% of customers, down from 18.6% in 2011. Food options have improved for all Americans, including children, and kids are more sophisticated and adventurous eaters than their parents were.

How McDonald's Lost Its Most Important Customer (MCD)

The thing is ... CEOs are not autonomous by any stretch of the imagination. Take for example the difference of opinion in the direction of the company that George Zimmerman founded, Men's Wearhouse. George disagreed with the Board of Directors on company vision, a company that he founded. He lost the argument and was fired.

Though the brief press release did not cite reasons for Zimmer's termination, Zimmer himself did shed a little light on the issue to CNBC. "Over the last 40 years, I have built MW into a multibillion-dollar company with amazing employees and loyal customers who value the products and service they receive at MW. Over the past several months I have expressed my concerns to the Board about the direction the company is currently heading. Instead of fostering the kind of dialogue in the Boardroom that has in part contributed to our success, the Board has inappropriately chosen to silence my concerns through termination as an executive officer."

Thanks
1 reply

{{ DiscussionBoard.errors[9859783].message }}

Dan Riffle

9 years ago

Originally Posted by sbucciarel

The thing is ... CEOs are not autonomous by any stretch of the imagination. Take for example the difference of opinion in the direction of the company that George Zimmerman founded, Men's Wearhouse. George disagreed with the Board of Directors on company vision, a company that he founded. He lost the argument and was fired.

Yeah, it happened to Steve Jobs, too., and it happens to nearly all CEOs at some point. Because the boards of these companies lose faith in the CEO's ability to foster the leadership to do their jobs. Rare is the CEO who gets fired when the stock price is rising.

I get that you're saying CEO's are always directly responsible for corporate decline. I get it. But, when profit goes down and things need changed, who do you fire? The janitor?

Thanks
1 reply

Signature

Raising a child is akin to knowing you're getting fired in 18 years and having to train your replacement without actively sabotaging them.

{{ DiscussionBoard.errors[9859825].message }}

sbucciarel

Banned 9 years ago

Originally Posted by Dan Riffle

Yeah, it happened to Steve Jobs, too., and it happens to nearly all CEOs at some point. Because the boards of these companies lose faith in the CEO's ability to foster the leadership to do their jobs. Rare is the CEO who gets fired when the stock price is rising.

I get that you're saying CEO's are always directly responsible for corporate decline. I get it. But, when profit goes down and things need changed, who do you fire? The janitor?

Yeah ... I'm really in agreement, while conceding that CEOs don't have autonomous power, but I have no objections to changes in upper management. Just don't know if it will be effective if the company as a whole cannot come to terms with changes in trends and people's tastes.

What would happen to the new CEO, for example, if he said McDonald's must go fast casual. Clear the menu. Upgrade the food. Make everything taste great. Make custom order burgers. Buyer gets to choose what goes on it. Put in a big ole healthy salad bar. Go back to real milkshakes. Keep the fries. Make kid's meals healthier.

Thanks
1 reply

{{ DiscussionBoard.errors[9859871].message }}

seasoned

9 years ago

Originally Posted by sbucciarel

Yeah ... I'm really in agreement, while conceding that CEOs don't have autonomous power, but I have no objections to changes in upper management. Just don't know if it will be effective if the company as a whole cannot come to terms with changes in trends and people's tastes.

What would happen to the new CEO, for example, if he said McDonald's must go fast casual. Clear the menu. Upgrade the food. Make everything taste great. Make custom order burgers. Buyer gets to choose what goes on it. Put in a big ole healthy salad bar. Go back to real milkshakes. Keep the fries. Make kid's meals healthier.

Doing that all at once is problematic. The custom orders, and salad bar wil slow things down, and franchisees may not like it At least the OTHER stuff could be done with a relatively minor change in the supply chain.

Steve

Thanks

{{ DiscussionBoard.errors[9860576].message }}

seasoned

9 years ago

Originally Posted by ForumGuru

McDonald's started out as a drive-in McDonald's Bar-B-Q in San Bernardino, CA in 1940 and they were doing a healthy $200,000 in sales many of those years in the 40's.

During the late 40's the competition was selling more burgers than barbeque so in 1948 they closed and reopened three months later as McDonalds featuring quick serve burgers.

Dick and Mac McDonald began licensing their SSS in 1952.

McDonald

It was not Kroc that came up with the Speedee Service System (and licensing it), and it was not Kroc who decided to start franchising. That was the McDonald brothers on both counts and the first franchisee was Occidental Petroleum executive Neil Fox in 1953. The second franchisee was Fox's brothers-in-law and business partners, Roger Williams and Bud Landon in 1953. They also purchased the franchise prior to Kroc's involvement with the company and to my knowledge that is the oldest McDonalds that is still in operation today. My understanding is the Downey, California location still looks almost as it did in 1953.

In 1948, when the McDonald brothers closed and switched to quick serve burgers, french fries and triple thick shakes were not a part of the menu as the menu was reduced to just nine items. The burger was the staple and then in 1949 french fries replaced the chips and the triple thick shakes were introduced to the public.

In 1954 Kroc visited McDonald brothers operation hoping to sell them more Multimixers and became fascinated by the operation. That's when he learned the brothers were looking for a nationwide franchising agent and soon thereafter discovered hamburgers were his future. Once Kroc became a partner he eventually became frustrated with the the brothers as they only wanted to maintain a small number of restaurants so in 1961 he bought them out for $2.7 million and the rest is history.

Kroc (the milkshake guy) opened the first McDonald's franchise east of the Mississippi in Des Plaines, Illinois (1955)

Early Kroc Era Menu

Early McDonald's menus

Cheers

-don

As I recall, Kroc was the one that stated the story I gave, and he later became so much of the mcdonalds story that one might wonder if the brothers even existed. The menu and the store look as I remember them. That was in california. It may have been downey. As I recall, I heard they had 2 restaurants at the time.

Whatever, the deal with the milkshakes and coverage stands. THAT is why Kroc got interested, and his interest led to its expansion. Was that a GOOD thing? NO! Do I respect and/or admire the guy? NO!

As for the original plan covering how things should be setup and the like, that WAS from the mcdonalds brothers. The icon and arches changed, but the look/feel, association/handholding and turnkey potential are why ANY decent franchise is even offered, much less bought.

Steve

Thanks
1 reply

{{ DiscussionBoard.errors[9859828].message }}

ForumGuru

Banned 9 years ago

Originally Posted by seasoned

As I recall, Kroc was the one that stated the story I gave, and he later became so much of the mcdonalds story that one might wonder if the brothers even existed.

You are a tad bit mistaken on the story. The brothers "invented" and first licensed the Speedee Service System, and they sold the first couple of full concept franchises before Kroc became involved. FWIW, the brothers were also the guys that hired Meston to design the golden arches. Once Kroc got involved the brothers wanted to remain relatively small and fairly local, but Kroc wanted to take them nationwide in a big way so he bought them out.

I used to be California guy myself. I was born out there and have lived in Sacramento, Roseville, L.A., San Diego, Vellejo and Chula Vista/San Ysidro.

That said, the OP's assumption is beyond ridiculous. As I mentioned before, all of the proceeds from the EBAY sauce auctions are going to Ronald McDonald House Charities! McDonalds is still king of the QSR systemwide revenue hill by a very, very wide margin.

Cheers

-don

Thanks

{{ DiscussionBoard.errors[9859856].message }}

ForumGuru

Banned 9 years ago

Originally Posted by sbucciarel

Watch out McDonald's ... Shake Shack is coming.

They may be coming but they still have a long, long, long way to go..

Since that summer of 2001, Shake Shack has become a 63-restaurant mini-empire with outposts in London, Dubai, Turkey and Las Vegas. Its ambitions extend much further: The company intends to expand to at least 450 restaurants by opening 10 new ones each year.

http://dealbook.nytimes.com/2015/01/...-market-debut/

McDonalds is in 100 countries, with more than 36,000 restaurants, and they serve roughly 69 million people every day.

Cheers

-don

Thanks

{{ DiscussionBoard.errors[9859368].message }}

NRabosa

9 years ago

For 18K I would rather have the Krabby Patty Recipe!

[ 1 ] Thanks

{{ DiscussionBoard.errors[9859101].message }}

TLTheLiberator

9 years ago

Nowadays you couldn't force me to eat one of their burgers even under threat of torture.

But,

I remember when the burgers tasted like real burgers - back in the 60s and 70s - or was that me in my youth not knowing any better?

[ 1 ] Thanks
2 replies

Signature

"It's easier to fool people than to convince them that they have been fooled. -- Mark Twain

{{ DiscussionBoard.errors[9859424].message }}

seasoned

9 years ago

Originally Posted by TLTheLiberator

Nowadays you couldn't force me to eat one of their burgers even under threat of torture.

But,

I remember when the burgers tasted like real burgers - back in the 60s and 70s - or was that me in my youth not knowing any better?

SAME HERE! I used to LOVE the quarter pounders! A LOT of things CHANGED in the 70s, and NOT for the better! My mother had a late 60s bettle, and an "uncle" had an early 70s bettle, and his looked CHEAPER than hers! The plastic and all, YEECH! Oscar meyer meat used to taste decent and later tasted like overly seasoned bad meat. So maybe it IS the period, and not your taste.

Admittedly, food USED to be such that a few days could cause it to be noticeably degraded. TODAY, just adding hydrogen to some fats can make them keep almost forever and stabilize them. It was used for LOTS of things, including the fat to fry french fries. Of course, they change from fats that are considered GOOD for you to ones that are considered BAD for you. They can bromate vegetable oil to have the same effect WITHOUT changing the consistency, but that is a known POISON! And THAT is used for lots of things, including as a "flavor stabilizer, for mountain dew.

Steve

Thanks

{{ DiscussionBoard.errors[9859863].message }}

hamellr

9 years ago

Originally Posted by TLTheLiberator

Nowadays you couldn't force me to eat one of their burgers even under threat of torture.

But,

I remember when the burgers tasted like real burgers - back in the 60s and 70s - or was that me in my youth not knowing any better?

They tasted better to me in the 80's too.

Thanks

{{ DiscussionBoard.errors[9866242].message }}

ForumGuru

Banned 9 years ago

I got a big ol' chart for you right here.

Best Fast Food Restaurant Brands By US System Wide Sales Data - QSR magazine

Cheers

-don

Thanks

{{ DiscussionBoard.errors[9859517].message }}

ForumGuru

Banned 9 years ago

When talking CSRs on the decline you gotta talk pizza.

Lucky number 13 on the QSR 50 report in 2000, Little Caesars dropped 1,000 outlets and $600 million in sales over the last decade. Chuck E. Cheese’s, once a top 25 player, has fallen into the background of other “eatertainment” options. Described as a “dynamo” in the 2000 QSR 50 with AUV approaching $1.9 million, Pizzeria Uno watched its parent company, Uno Chicago Grill, file for Chapter 11 bankruptcy protection in January 2010. Sbarro remained relatively stagnant, a product of ownership changes and declining mall traffic, while larger regional operations such as Pizza Inn, a one-time QSR 50 member, face consistent challenges from deeper-pocketed national brands and local independents.

Segment champion Pizza Hut claims 500 fewer units today and flat sales. In 2009, the Yum! Brands entity watched its sales fall 9 percent despite a new ad agency, upgraded online ordering, and a flashy $10 pizza promotion.

In 2006, CiCi’s Pizza, one of the category’s biggest up-and-comers and still a hard-charging player, projected it would crack the 1,000-unit barrier in 2010 with the addition of 400 new outlets. Four years and one recession later, CiCi’s store count remains in the mid-600s, a sign of just how much the recession slowed even those with promise, passion, and a plan.

Declining Pizza Sales Threaten Industry as Competition Closes In - QSR magazine

Yeah, Chipolte and a few others are rockin' the numbers big time. I know Chipotle reported a 19.8 percent comparative sales increase in third quarter of 2014, and a 31.1 percent revenue increase.

Cheers

-don

Thanks

{{ DiscussionBoard.errors[9859551].message }}

ForumGuru

Banned 9 years ago

McDonald’s Corporation - - Fortune

Cheers

-don

Thanks

{{ DiscussionBoard.errors[9859606].message }}

Rod Cortez

9 years ago

Interesting thread: McDonald's has more competition today than ever before. In my neck of the woods places like Umami Burger, El Toro Burger, In-N-Out Burger, Five Guys, The Counter, G-Burger, The Habit, and several others, are cutting into their market here. If memory serves me correct their 3rd Quarter 2014 revenues were down over 30% from last year. Yes, they still make billions, but that's a big chunk of their profits.

I haven't eaten a McDonald's burger in ages because I'd rather go to one of the places mentioned above. Ever since they got rid of their Swiss and Mushroom Angus burger, I stopped going there. I do love their French fries though but won't go there just for their fries. I'd rather hit the Del Taco across the street.

When I want a good fast food burger, I head over to In N Out, Five Guys, or Toro Burger since those are the three closest to my home.

RoD

[ 2 ] Thanks

Signature

"Your personal philosophy is the greatest determining factor in how your life works out."

- Jim Rohn

{{ DiscussionBoard.errors[9859607].message }}

Kurt

9 years ago

From a marketing perspective, the "$18,000 bottle of secret sauce" isn't about selling secret sauce. It's a marketing ploy called "barnumizing", named after PT Barnum. Barumizing is creating something very outrageous to try to get free publicity. McDs created this "product" for the sole purpose of getting free publicity from the press and social media. They won't sell a single bottle, but this very post is a good example of why this campaign will probably be successful.

Thanks
1 reply

Signature

Discover the fastest and easiest ways to create your own valuable products.
Tons of FREE Public Domain content you can use to make your own content, PLR, digital and POD products.

{{ DiscussionBoard.errors[9859755].message }}

ForumGuru Banned 9 years ago

Originally Posted by Kurt

They won't sell a single bottle, but this very post is a good example of why this campaign will probably be successful.

While I don't disagree with your Barnum speaks, they will sell a few bottles. As mentioned in the OP's link, the current bid for bottle #1 of 200 is currently at AU $23,100.00.

Mcdonald'S Limited Edition BIG MAC Special Sauce Bottle 1 OF 200 | eBay

According to the bid history, it appears as if at least a few of the bidders are legit.

http://offer.ebay.com.au/ws/eBayISAP...p2047675.l2565

They are also selling small bottles for 50 cents each at 950 Austrailian locations.

The proceeds from the eBay auctions are going to Ronald McDonald House Charities. As many of you know, RMHC helps seriously ill children and their families.

Cheers

-don
- Thanks
{{ DiscussionBoard.errors[9859809].message }}

Ghoster

9 years ago

I worked at McDonald's. The "secret sauce" is based on thousand island dressing. It's not hard to make at home.

Personally, I hope fast food dies.

Thanks

Signature

On the whole, you get what you pay for.

{{ DiscussionBoard.errors[9859765].message }}

Ghoster

9 years ago

There is a lot of research coming out now that says that saturated fats aren't dangerous. Saturated fat doesn't affect cholesterol levels in most people. For 70% of the population, the body regulates cholesterol levels just fine. The other 30% have to be a bit more careful.

This doesn't really surprise me. There is a famous story among statisticians about Ancel Keys and his lipid hypothesis. This is the guy who first suggested that saturated fats were killing everyone. (Around the time that McDonald's was taking off)

The thing is, he rejected data that didn't fit his hypothesis, and no one questioned him.

The U.S. government ran with this presumably because it's cheaper to feed a civilization bread and grains than beef, bacon and eggs. (just ask the Egyptians) Prior to this, it was common knowledge that spaghetti and bread would make you fat.

The problem is, your liver has to process all that sugar, and the result is inflammation of the arteries.

What effect will this new research have once it enters the collective conscious?

Thanks
1 reply

Signature

On the whole, you get what you pay for.

{{ DiscussionBoard.errors[9859873].message }}

HeySal

9 years ago

Originally Posted by Ghoster

There is a lot of research coming out now that says that saturated fats aren't dangerous. Saturated fat doesn't affect cholesterol levels in most people. For 70% of the population, the body regulates cholesterol levels just fine. The other 30% have to be a bit more careful.

This doesn't really surprise me. There is a famous story among statisticians about Ancel Keys and his lipid hypothesis. This is the guy who first suggested that saturated fats were killing everyone. (Around the time that McDonald's was taking off)

The thing is, he rejected data that didn't fit his hypothesis, and no one questioned him.

The U.S. government ran with this presumably because it's cheaper to feed a civilization bread and grains than beef, bacon and eggs. (just ask the Egyptians) Prior to this, it was common knowledge that spaghetti and bread would make you fat.

The problem is, your liver has to process all that sugar, and the result is inflammation of the arteries.

What effect will this new research have once it enters the collective conscious?

The fat issue was one majorly damaging hoax on the people. Your body needs fat because each cell is coated with fat - those transfats (read: fake) don't allow nutrients past them into the cells, and do other damages - no fat/low fat doesn't give you anything you need. Just for an aside - consider this. Your body can make fuel from either carbs or from fat. Cancer can't. It needs carbs, so good high quality fat is a cancer deterrent. Yeah - find a doctor to tell you about that, huh? For some reason a lot of high quality research on this issue never made it into the medical journals. Go figure.

It is, however, reaching collective consciousness. Slowly but surely. People are learning about GMOs, about fake sugar, pesticides, and the whole ball of wax. It takes time to get people to un-learn propaganda. Most don't understand that in the US we have a medical industrial complex - not health care. Merck is about to be sued crapless AGAIN for vaccines and the general public will never even hear about it. Go figure.

[ 1 ] Thanks

Signature

Sal
When the Roads and Paths end, learn to guide yourself through the wilderness
Beyond the Path

{{ DiscussionBoard.errors[9860626].message }}

Joe Stewart

9 years ago

My wife used to work at Mcdonalds and knows it inside out. At one time we started ordering double cheeseburgers, hold the ketchup & mustard and add Mac sauce. What you get is basically a Big Mac without the lettuce and extra slice of bread. Plus it was a lot cheaper. They got wise though, and started charging us for Mac sauce. Suck!

[ 1 ] Thanks

Signature

My New "Share All" Blog Is Coming Soon! Online & Offline Marketing, More!

http://www.UnCENTSored.com

{{ DiscussionBoard.errors[9860595].message }}

thunderbird

9 years ago

I guess there is more new competition in China now.

Thanks

Signature

Project HERE.

{{ DiscussionBoard.errors[9860645].message }}

HeySal

9 years ago

Probably a little of both, TL. Most food was real food until a few decades ago. Not sure when they started putting plaster of paris in the buns or making the meat from pink slime. I used to love Burger King - back when the whoppers were actually huge. Now they taste like a big wad of MSG.

Thanks

Signature

Sal
When the Roads and Paths end, learn to guide yourself through the wilderness
Beyond the Path

{{ DiscussionBoard.errors[9866474].message }}

Cam Connor

9 years ago

You can also go to any local super market and get the "secret sauce" for a few dollars... it's called Thousand Island dressing. lulz

Edit: Looks like someone beat me to it!

Thanks

{{ DiscussionBoard.errors[10088242].message }}

bojan92

9 years ago

I don't think that McDonalds are pulling out some desperate tactics because $18k for a 500ml bottle it is a lot no matter what it is. They are just making more money 

Thanks

{{ DiscussionBoard.errors[10181219].message }}

McDonalds Struggling - Selling "Secret Sauce" for $18k a Bottle

Trending Topics

Clickbank low cost recurring

How much does the rebranding affect CR ?

Boat and Jet Ski Rentals...... Door Hangers Effective?

A Very Strange Internet Problem

Let's dissect the genius behind Nike's 'Just Do It' slogan. What makes it so powerful and timeless?