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McDonald's temporarily shuts US offices, prepares layoff notices

I can't find an analysis of workplace shootings, but it seems that as many are disgruntled current employees as former employees or people who feel a particular business did them some kind of harm or wrong.

And the highly personal ones seem to involve handguns, not semi-automatic weapons, rifles, etc. But that may vary depending on the licensing and purchasing regulations in each jurisdiction.
Yeah, it gets lumped into "current or former" disgruntled employees.

But---as someone who's been covering mass shootings for 40+ years, I'm unable to come up with one where the former employee started shooting the day they were let go. It's probably happened, but it's not frequent.
 
Yeah, it gets lumped into "current or former" disgruntled employees.

But---as someone who's been covering mass shootings for 40+ years, I'm unable to come up with one where the former employee started shooting the day they were let go. It's probably happened, but it's not frequent.
It seems that, as the incident festers in the mind of the "disgruntalee" the possibility of revenge actions increases. And the shootings are more specific than random; the person who did the ex-employee wrong and, sometimes, their perceived allies are targeted.

I think journalists covering these incidents should have some accurate data before making conclusions. The fact that the available statistic state "current or former" all lumped together is a serious shortcoming from an analytical perspective. That is like doing radio research on "current and former listeners" where we see that the two have very little in common.

Of course, it points out most American's inability to understand statistics and surveys.
 
The fact that the available statistic state "current or former" all lumped together is a serious shortcoming from an analytical perspective. That is like doing radio research on "current and former listeners" where we see that the two have very little in common.
Totally agree. Unfortunately, it's how the government (in this case, OSHA) compiles the stats.

It is a little more finely tuned than your example, though, David. The commonality in the OSHA study is that they are disgruntled employees. Some are still employed, some aren't. The comparison in radio is "dissatisfied listeners". Some have tuned out, some haven't yet.
 
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Watched an interesting discussion this morning on CNBC regarding the McDonald's layoffs. One pundit thought the way McDonald's is handling this is a 'masterclass on how to layoff employees'. Her point was:
* McDonald's announced this possibility in writing months ago.
* Closing offices and sending people home allows for those who get their layoff notices to be in a more comfortable space, avoiding any potential 'walk of shame', having to collect personal items and walk past colleagues.
* Sending everyone home to await their fate reduces what amounts to herd anxiety, where office chatter increases the overall tension level among employees otherwise in an office setting.
 
Where McDonald's makes money is in their real estate holdings and ongoing purchasing (i.e. store locations). Store profit margins are very slim.
 
Where McDonald's makes money is in their real estate holdings and ongoing purchasing (i.e. store locations). Store profit margins are very slim.
This is like supermarkets where margins are often below 2%. This is why some of the chains are closing in areas where the shrinkage is so high that there is no remaining profit.

But there is no profit in real estate until you close the store and sell or sell the property and rent it back.

Of course, in both grocery and fast food, most properties are rented. And in fast foods the franchisee generally rents a "pad" which is unimproved, but zoned, land where the renter builds to their own specifications the building, lighting, parking and all the other details.
 
This is like supermarkets where margins are often below 2%. This is why some of the chains are closing in areas where the shrinkage is so high that there is no remaining profit.

But there is no profit in real estate until you close the store and sell or sell the property and rent it back.

Of course, in both grocery and fast food, most properties are rented. And in fast foods the franchisee generally rents a "pad" which is unimproved, but zoned, land where the renter builds to their own specifications the building, lighting, parking and all the other details.
Yes, it's the renting of the land that McDonald's own, where the money is made, and they own a lot! More than just store locations.

But with the prices they charge for their food, $8 for a Big Mac, $14 for a combo meal, apparently they still can't make money with the purchasing of food.
 
Yes, it's the renting of the land that McDonald's own, where the money is made, and they own a lot! More than just store locations.

But with the prices they charge for their food, $8 for a Big Mac, $14 for a combo meal, apparently they still can't make money with the purchasing of food.
Wow! Where do you live?

I just pulled up the one nearest work (Sacramento near Sac State University) and I'm seeing $5.79 for a Big Mac, $9.99 for the combo.

Don't get me wrong---that's insane (the just plain humble hamburger is now $2.49), but it's a pretty big leap to $8/$14.
 
Wow! Where do you live?

I just pulled up the one nearest work (Sacramento near Sac State University) and I'm seeing $5.79 for a Big Mac, $9.99 for the combo.
San Diego..the University Ave Hillcrest location..7.99 for a single Big Mac, 13.89 for the Big Mac combo meal. This location is a franchise, so maybe the prices are higher. This is why if I get a burger and fries, for a few dollars more I'll go to a better spot, Burger Lounge, or 5 guys, and for a few dollars less, the best of all... In N' Out.
 
San Diego..the University Ave Hillcrest location..7.99 for a single Big Mac, 13.89 for the Big Mac combo meal. This location is a franchise, so maybe the prices are higher. This is why if I get a burger and fries, for a few dollars more I'll go to a better spot, Burger Lounge, or 5 guys, and for a few dollars less, the best of all... In N' Out.
Damn.

Yeah. As I spouted off about in the last 24 hours or so, I'm not a fan of McDonalds' at any price, but dear God, In-N-Out for less money is a deal you do all day long.
 
Watched an interesting discussion this morning on CNBC regarding the McDonald's layoffs. One pundit thought the way McDonald's is handling this is a 'masterclass on how to layoff employees'. Her point was:
* McDonald's announced this possibility in writing months ago.
* Closing offices and sending people home allows for those who get their layoff notices to be in a more comfortable space, avoiding any potential 'walk of shame', having to collect personal items and walk past colleagues.
* Sending everyone home to await their fate reduces what amounts to herd anxiety, where office chatter increases the overall tension level among employees otherwise in an office setting.
These are all reasonable steps to manage risks. In the physical security world, there's an emerging "insider threat" discipline, whose objective is to not just to detect adverse actions of employees (or contractors, etc.) but also to determine the risks that individuals will execute such actions. One could argue that this indicates a basic distrust of employees and, to be sure, there are all sorts of employee-relations issues to be worked out. In particular, unions, where present, will have to be at least consulted. But there are multiple issues to be concerned about: workplace violence, the safety of other employees, data security of employees and customers, maintaining operational integrity of critical infrastructure, just to name a few. The management of insider-threat risks bridges physical security and cybersecurity risks in some new ways. Corporate physical security organization have heretofore often been staffed by retired law-enforcement officers. But the addition of cybersecurity risks into threats to workplace security has pointed physical security organizations into new directions - as a consequence, the insider threat specialization has come about. It's not the warmest, friendliest subject to consider and the logic runs sometimes counter to emotions, but those risks have to be managed.
 
But there is no profit in real estate until you close the store and sell or sell the property and rent it back.
As I understand it, McD's owns most of their store locations, and rents the buildings and equipment to its franchisees. I looked at property records for three McD's stores in my city and they are all listed as owned by "McDonald's Corporation."

All the profit on selling food goes to the franchisees.
 
As I understand it, McD's owns most of their store locations, and rents the buildings and equipment to its franchisees. I looked at property records for three McD's stores in my city and they are all listed as owned by "McDonald's Corporation."
I looked up some others, all in my area, and none were corporate owned. Nearly all were "pads" in shopping and commercial centers, which do not sell individual lots. Those that were in central city office and commercial buildings were rented from the building management.
All the profit on selling food goes to the franchisees.
Yes, but before the "profit" (EBITDA) goes to the franchise holder, but the licensing fee which is a percentage of sales as well as profits from sale of equipment, supplies and foodstuffs goes to McDonalds. They make their money on the franchise "cut" of sales and the provision of all supplies.
 
I looked up some others, all in my area, and none were corporate owned. Nearly all were "pads" in shopping and commercial centers, which do not sell individual lots. Those that were in central city office and commercial buildings were rented from the building management.

Yes, but before the "profit" (EBITDA) goes to the franchise holder, but the licensing fee which is a percentage of sales as well as profits from sale of equipment, supplies and foodstuffs goes to McDonalds. They make their money on the franchise "cut" of sales and the provision of all supplies.
Good friend of mine owns two McDonald's franchises. To become a franchisee, you need to have at least $3M in liquid assets (for each restaurant), go through a pretty in depth vetting process, have McDonald's Property Division approve, or suggest land location, and as a franchisee, you must follow all the workflows and purchase food and materials from McDonald's. Essentially McDonald's gets X-percent of your gross reoccurring revenue, plus up front franchising fees which include purchase of fixtures, signage, and architectural fees. Franchisee's are responsible for purchasing the property, constructing the building, parking lot paving/marking, etc.
I'd actually thought of applying for a Mickey D franchise a few years ago. Once you get established, and depending on location, it's a license to print money. That said, real success stories come from franchisees who own more than one store. At the time, I thought that commitment was more than I'd wanted to tackle, given I've been still doing the broadcast radio and TV thing.
 
There hasn't been much news on the outcome of the McDonald's communication to their employees this week, aside from the fact that some employees were terminated, others were offered different job titles that came with lesser pay and perks, others were offered a reduction in pay and they'll be closing 10 field offices, having those employees work remotely, at least for now:

McDonald's is closing its field offices in the U.S. as it moves to a national model​

The Chicago-based fast-food giant is keeping its 10 U.S. field support teams that work with operators across the country. But those employees will work remotely as the teams go virtual. And they will now operate under the guidance of a single, national field office.
The number of layoffs remains uncertain, but a source with knowledge of the moves said the number was in the “hundreds.” The number was further clarified to “less than 1,000.”
McDonald’s has long overseen its field offices in two zones, one East and one West. Its move to a single, national structure is generating some of the layoffs being announced.
McDonald’s field offices are in Columbus, Ohio; Dallas; Denver; Long Beach, Calif.; Walnut Creek, Calif.; Nashville; Bethesda, Md.; Chicago; and Stamford, Conn.
McDonald’s also changed the roles of nine executives within the U.S. business. And the company is eliminating a team that coordinates health benefits for licensees, though it plans to keep those benefits.
 
There hasn't been much news on the outcome of the McDonald's communication to their employees this week, aside from the fact that some employees were terminated, others were offered different job titles that came with lesser pay and perks, others were offered a reduction in pay and they'll be closing 10 field offices, having those employees work remotely, at least for now:
So in other words; mission accomplished!
 
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