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Strategies & Market Trends : Value Investing

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To: Bob Rudd who wrote (15435)	9/12/2002 1:55:46 PM
From: Mark Marcellus	Read Replies (1) of 78744

Do you agree with the idea that they are sacrificing speed of service, a critical element in customer preference, IMO, for less important differentiated offerings? I agree absolutely. Not only that, they are instituting systems which marginally improve food quality but are much more prone to breakdowns. The new shake machines are a good example. They do make a better shake, but half the time they're not working. When they are working, the flavors from the last shake tend to bleed into the new one, meaning the shake has to be thrown out and a new one made. One common suggestion is that MCD should offer "breakfast all day", which sounds like a great idea. The response has supposedly been that breakfast requires a different grill which has to be broken down before they can do the rest of the day's offerings. That is probably true, but if they had spent all their time and money coming up with a solution to that problem instead of that Rube Goldberg inspired "Made for You" system, they would have actually improved the operation instead of throwing sand into the gears of a money machine. MCD has no problems that couldn't be solved if we could get Ray Kroc's ghost to return for about a week.

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