McDonald’s on Improving Business Operations and Performance

2022-05-19 by Ronn Torossian

Recently Mcdonald’s announced that it would be introducing a brand new system in the next year that would be assessing how each of its franchise restaurants is performing. According to the announcement, this new assessment system is meant to help the fast food chain better support its objectives regarding the growth plan.

Response

After the announcement, many franchisees expressed their opinion to the public, with plenty of them questioning the timing of this new system while the entire country is undergoing a labor shortage which has also impacted the operations of many Mcdonald’s franchises. In fact, according to two different surveys, many franchisees stated their concerns that the regular yearly visits to their restaurants from the company, as well as third-party assessors. This is because the franchisees already undergo local regulatory inspections throughout the year, and getting more inspections can quickly result in a much less collaborative approach to the franchise operations. The franchisees also expressed their concerns about the employee morale, which has consistently been decreasing, to a point where one employee has told the public that the franchise that they worked at couldn’t be improved simply by telling the managers that they failed at what they were doing. However, according to Mcdonald’s, the company is focused on maintaining its standards of excellence in all its franchisees with the help of the new and comprehensive performance management system. The new system was designed with input from the franchisees themselves and is made to provide personalized coaching and support to different restaurants so the company can provide its consumers with positive experiences in the future too. In addition to the assessments, the restaurants would also get tailored resources that would help each franchise owner improve the everyday performance of their restaurants while driving consumers, sales, as well as profitability.

Future action

Throughout the pandemic, McDonald’s franchises faced some controversy regarding the way that COVID-19 safety regulations, which is why it’s completely understandable for the fast food brand to introduce this new performance assessing framework to monitor the progress of each franchise. The two surveys that were conducted with franchisees weren’t explained by Mcdonald’s regarding how they were conducted or how the feedback that the fast-food chain incorporated the feedback it received through them for the new assessment framework initiative. Additionally, although the new initiative is aimed at improving the overall operations of every franchise, McDonald’s still hasn’t explained how it would be providing the personalized recommendations and resources to every franchise owner, or what the information in them would be based on.

Ronn Torossian founded 5WPR, a leading PR agency.

Ronn Torossian: Insights from a Native New Yorker and CEO of 5WPR

Ronn Torossian is the founder and CEO of 5W Public Relations, one of the largest independently-owned PR firms in the United States. With over 20 years of experience crafting and executing powerful narratives, Torossian is one of America's most prolific and well-respected Public Relations professionals. Since founding 5WPR in 2003, he has led the company's growth, overseeing more than 250 professionals in the company's headquarters in midtown Manhattan. With clients spanning corporate, technology, consumer and crisis, in addition to digital marketing and public affairs capabilities, 5WPR is regularly recognized as an industry leader and has been named "PR Agency of the Year" by the American Business Awards on multiple occasions. Throughout his career, Torossian has worked with some of the world's most visible companies, brands and organizations. His strategic, resourceful approach has been recognized with numerous awards including being named the Stevie American Business Awards 2020 Entrepreneur of the Year, the American Business Awards PR Executive of the Year, twice over, an Ernst & Young Entrepreneur of the Year semi-finalist, Metropolitan Magazine's Most Influential New Yorker, a 2020 Top Crisis Communications Professional by Business Insider, and a recipient of Crain’s New York 2021 Most Notable in Marketing & PR. Torossian is known as one of the country's foremost experts on crisis communications, and is called on to counsel blue chip companies, top business executives and entrepreneurs both in the United States and worldwide. Torossian has lectured on crisis PR at Harvard Business School, appears regularly on CNN & CNBC, is a contributing columnist for Forbes and the New York Observer, and has authored two editions of his book, "For Immediate Release: Shape Minds, Build Brands, and Deliver Results With Game-Changing Public Relations," which is an industry best-seller. A NYC native, Torossian lives in Manhattan with his children. He is a member of Young Presidents Organization (YPO), and active in numerous charities