New emails released in the McDonald’s ice cream machine lawsuit
wired.com
wired.com
"There was a concerted effort to not only obtain and copy our device and follow everything we were doing, but then also, when it hit a critical mass, to actually put us out of business," - that's pretty much textbook definition of market competition, not an indication of anything shady.
"Kytch argued in its initial legal complaint that the company didn't truly copy Kytch's device to try to fix McDonald's ice cream machines, but simply to have a competing product it could tout to McDonald's—and McDonald's franchisees—in order to prevent Kytch from fixing those machines." - again, it's perfectly legitimate to try and make a competing product to tout to McDonalds; unless they're violating a specific patent, it's their right to do so; more competition is a good thing to have.
"Who mitms their own machine?!" Well, did Taylor fire the engineers that built this? Or they just want to keep the same limited hw and work the diagnostics part around it?
If I wanted to lose money there are less painful ways than being a McD franchisee.
McD's actual business is on real estate/franchise fees. The food business is secondary and is a justification for the first. Guess which part is risky and complicated?
Strangling is not a prerogative of the strongest.
Its more costly and vastly more negative from a PR perspective, for McDonalds to force franchisees to change ice cream machinery vendors.
Same thing for Taylor upgrading their own machines - with the added cost that they don't have any goodwill to start.
There's an added incentive here that McD wants the legal shield up at all times - they are incentivized to keep machine error rate very low, to the cost of $$ in sales lost.
Consumers greatly benefit from it - we get worse availability of ice cream when we walk in, and we are paying slightly more in menu prices, but the risk of getting poisoned from eating ice cream at McD ends up extremely low.
And that's where the intrigue and accusations of foul play are coming in. It seems like McD's has mandated this model of Machine and Taylor agreed to make it worse (they supply better machines without these issues to other fast food chains). Taylor profits from the service calls and I'd bet some McD's exec are getting kickbacks to keep it that way (by mandating a worse machine that makes franchise owners less money). The Kytch device came along and upset that status quo.
1. McDonald's forced all franchise owners to use this machine that would break often, and could only be fixed by this other company McDonalds had close ties to.
2. McDonald's didn't allow franchise owners to allow this other tool that allowed franchise owners to keep their machines up and working
3. (What you mention) now the other company just copied this tool for themselves.
1 and 2 is much more problematic, given the close ties between McDonalds and Taylor Company.
There's no fundamental difference between McDonalds franchise contract saying that franchises must use only this ice cream machine and the same contract saying that franchises must make BigMacs only according to this exact recipe. If the franchise operator thinks that the BigMac recipe sucks, they don't get to change it or demand a fix - if McDonalds thinks that's good enough, they can take it or leave it and stop being a McDonalds franchise. The same is regarding McDonalds ice cream process; it may legitimately suck, but it's part of the package deal. If McDonalds wants to buy from Taylor and not from Kytch, that's their choice, effectively McDonalds (and not the franchise operator) is the customer here; and if they are a lousy customer, there are other customers to fight for - IIRC McDonalds bought 25% of Taylor machines, so there are many others out there.
And #3 is not a bad or even a neutral thing - reverse engineering other products is great, please everyone do more of it! Good features should be copied and adopted across the whole market (both in hardware and in software), that's the exact kind of competition that benefits the community; and that's a manifestation of the hacker spirit that should be celebrated, not get shamed about. While legal restrictions such as the excessive patent regime and the excessive length of copyright often prevents people from doing that, in cases where it is not prohibited, this is a good thing to do.
While it's in the shop, it falls off the lift: $10,000 damage. Now your formerly "broken" car is even more broken? Is the situation still the same?
Defamatory? I don't think so, but I guess the courts will decide.
It was safe enough that they decided to literally copy it. Unless they can provide contemporaneous evidence that they felt there was a specific aspect of it that was harmful.
At this point it seems like the only reason they said it was harmful was to avoid franchisees from using it, which would quite clearly qualify as defamation.
They "copied" parts of it. We don't know they "copied" it all. I don't know how the device could be harmful, but presumably the harmful parts were not "copied".
Note that i used quotes around copied. I wouldn't use that term because it implies something that is protected by copyright and that doesn't seem to be the case.
A contract between two parties can unfairly harm a 3rd party. Especially if one of the two parties is abusing its market power to push anticompetitive clauses. For example requiring "authorized" car mechanics to buy only overpriced Ford-branded repair tools. This way Ford uses its car marketshare to push into the repair tool market. Tool manufacturers that don't have a car manufacturer backing them simply can't compete.
Of course Ford would probably argue that the markets are related, and that it has a legitimate interest in ensuring its mechanics use adequate tools. That only its own tools qualify as good enough is just a big coincidence..
McDonald's Franchisees are independent business owners. McDonald's is refusing to fix a problem, and has pushed a potential fix for the problem "out of business".
Not sure what the chances of this succeeding, but now we have Taylor and McDonald's hands dirty in trying to "buy this device and copy it's features and user interface". And lying about it when they said they had "no interest in the device". It's not pretty.
Hard disagree. I'm finding this saga fascinating. You don't think Taylor lying to Wired journalists, and being called out for doing so, is interesting?
Say what you want about the China social credit system but if there was a way the associated press could blackball Taylor/the spokesperson for Taylor from ever publishing another statement I think the world would be a better place.
That is NOT market competition...at all and it is 100% shady. Competition is "I make something, you make something better". It's not "You make something. I make something to make it better. YOU try to put me out of business by LEGAL means." That is not competition.
I don't think the WIRED article isn't really doing justice to what Kytch is trying to show. The important argument is whether or not McDonald and Taylor conspired to prevent Kytch from selling / franchisees from purchasing this equipment, essentially a 'right to repair' argument.
If Kytch wins, there could be ramifications for the tractor debate in the agricultural world as well.
Their "gourmet" burgers are now only available from 10:30am to 10:30pm, even in 24 hour joints.
Their "all day breakfast" they spent a lot of money advertising now ends at midday. This was notably not advertised. When I rocked up at 12:15pm looking for my regular Sunday McMuffin, and was informed of the new policy, I kinda understood that famous scene in Falling Down[1].
They have vanilla shakes! Sometimes, maybe. Plenty of the other shakes, but vanilla is hit and miss.
The Monty Python and Pulp Fiction quotes, though... Yes I hope that they figure those out some day!
When was this?
https://en.wikipedia.org/wiki/FEBO
Eating from the wall is like late night window shopping in Amsterdam's culinary red light district.
https://uncloggedblog.com/2013/12/10/five-ways-to-see-amster...
>Window-shopping for fast food at FEBO.
>If you must, eat from the wall at FEBO, an inexplicably popular Dutch tradition that satisfies appetites 24/7 with automated fast food displayed in tiny windows. No telling how long those mayo-slathered frikandel and burgers have been sitting there under heat lamps, but if you’re starving in the wee hours, they may be your only snack option.
And I'm not sure that that wasn't on the money with respect to what goes into their frikandellen and kroketten.
But their fries are pretty good.
Too bad we lost Broodje van Kootje to the chains.
I know a few people who go to McD because "you know what you'll get", but I personally never felt the need, the competition is better in taste more often than not, and McD are not even cheaper than most of the alternatives, sometimes even more expensive. The last time I was at McD was when I was stranded at some small train station some years ago and didn't have the time to look around and just settled with the McD located right in the station building (I would have gone with the Burger King in the same building, but it was closed for renovations). That's when I found out that the quality of their fries took a slump, at least in my humble opinion.
Personally, I'd rather have a Dürüm from a Döner shop, or Pho Tron from one of the Asia places, or maybe some Masala from an Indian place.
Funny that the last times I did that, I didn't get what I expect. Broken machines (not only ice-cream), missing products, and it seems it was harder on the stomach as well, etc.
I just gave up on it if it doesn't even do that anymore.
There are better choices, even around BK, AW, Quick in Europe, etc
I always get a stomach ache, and possibly the runs. Something in those burgers just doesn't agree with me..
I don't eat there at home, I'm not interested in trying them in other countries.
Right... I am convinced now :P
> tourists seemed to prefer them
Interestingly, in studies tourists actually do not prefer the food from McDonalds over local cuisine in almost every market studied. What they did prefer was the consistency: knowing what they are going to get.Other poster lists some tangible changes made to their menu but for me the difference is simply that I was a kid with a working-class single parent and my tastes were simpler. Hamburger + small fries + small Coke was an affordable "treat" for us.
Perhaps marketing is as responsible for killing McDonald's image: when small disappeared and it was "regular" size. Super-size dinks.... "Would you like fries with that?" Or when giant burgers (Bic Mac, Quarter-pounder, Double Quarter-pounder, Double cheeseburger) started dominating the menu and the small hamburger took a back seat.
I see nothing wrong with Taylor wanting to improve their own remote monitoring UX. That's just how competition works. Kytch make a good app, and what is Taylor supposed to do, not improve theirs? That part of Kytch's argument is bull. Kytch can MITM and reverse engineer Taylor's machines, but then they don't like it when Taylor does it back to them? Seems like a pretty weak argument. Both companies just need to focus on engineering a better product.
One might expect franchisees have the right to repair their purchased equipment, even if forced to purchase specific food sevice equipment as part of their franchise agreement. One would not expect their equipment provider and franchisor to collude against them.
The missing piece is the kickback to McDonald’s, or a similar financial incentive from Taylor to maintain the status quo. I imagine that’d be a component of discovery or information requested by a federal regulator.
If it's the first (and I think it is), then Taylor has every incentive to make the machines as reliable as possible. Service calls are expensive and most companies don't make a lot of money doing them. OTOH, a service contract (e.g., maintenance contract in software) is often lucrative because the customer is buying peace of mind. Years can go by in which the contract isn't needed and the seller (Taylor) pockets the cash, but the buyer keeps paying for it because it's cheap insurance.
It makes money leasing real estate, and equipment to franchisees.
Companies with small, insular lock-in arrangements don't cede territory willingly. Be it squeezing in on the dominant grocery in a small town, the used car dealers in a county, or the inkjet printer ink cartridge supply chain, find a damn good lawyer who's excited for a fight early in your company's life.
McDonald's + Taylor: 1990s Wintel alliance
Kytch: 1990s AMD (plucky underdog)
thats so cool to read about the innovations of their machine. text message alerts, ingredient monitoring in the hopper -- there is so much meat on the bone in so many markets.
i sometimes think of what a better mcdonalds would look like. i imagine it would have equipment like this ice-cream machine that is highly automated and designed for very low maintenance. so one area of arbitrage is reducing staff count and burden with the machinery. then another aspect is getting rid of indoor seating. even before the pandemic i always noticed that the drive-through always seemed to get more traffic than the inside. i think you could just get rid of the inside and do a scaled-up version of the parking-lot delivery that mcdonalds has started doing recently. a medium sized parking lot with a large amount of numbered spaces, and some of the area could be used as a buffer for people to wait for open spaces. and a walk-up window for people who dont have a smart phone or are on foot. and this plays into the largest source of employee friction in my opinion. imagine you work at mcdonalds, you are face to face with random strangers all day. not only is it embarrassing to show your face and be recognized as a person who works at mcdonalds, its stressful dealing with people who are rude and sometimes crazy. i think if you could cut out this aspect of working at mcdonalds that it would be a much more attractive job and you would have much higher employee quality and retention which matter a lot. and one way you might do this is to have a very simple robot deliver the food. the active parking spots could all be on the outer edge of the parking lot and wrapping around the edge could be a track with protrusions between each parking space. it would be covered for rain and snow and surrounded by standard railings so that nobody would wander into the track, no cars could intrude into the track and nobody could interfere with the robot easily since it would be quite heavy. the robot would be a large box about the height of a car door window with a large battery and four large wheels and a camera and a radio. the robot would travel between the building and cars, having multiple food orders put on top of its head and then positioned directly in front of the driver window. it would be simple to drive, impossible to drive into a place it wasnt supposed to be, and driven on shifts, perhaps as a break from the more laborious jobs or by other people remotely. and the nice thing is that if the backup robots all failed or there is some problem, the workers could just use the track to deliver orders by hand like dairy queen. a high tech fast food company with delicious food, an app that works, fast and efficient user experience and a massive improvement in employee satisfaction.
I think a better McDonalds looks a lot like In and Out. If the Founder is accurate, McDonalds was a lot like In and Out at one time and operated like it. Chick-fil-a operates similarly.
One thing that is always fascinating to me when I go to either of those two fast food restaurants is the army of workers they have on staff at any time. Usually each doing one very specific job and doing it well. They seem to make up for the extra labor cost by having higher sales per store.
Otherwise, better quality, prices, and service (and staff pay and treatment).
But it's taste, I suppose.
Nobody is forcing you to go to McDonald's, stick with INO if it makes you feel good. I love it too (CFA, not so much) but each restaurant has its own niche and each chain has found the style that works for them.
Interestingly, Chick-fil-a has learned to scale and maintain quality.
Every INO is company-owned, overall I think it manages to keep quality pretty high at all it's stores. Of course part of that is due to the extremely limited menu, and also that INO has never been known for fast service. INO basically tells customers up front, we aren't convenient and we aren't fast and we don't sell anything except burgers... that's 3 areas of potential customer dissatisfaction that they take off the table. All that is left is price, which is good not great, and taste/quality, which, to its credit, INO is pretty fanatical about. Edit: and cleanliness/service, also strong points for INO
And this is exactly the source of the problem: the idea that the purpose of McDonald's (or any other company) is to provide Number Go Up thrills to its stockholders, rather than to produce a good product, with the profit being the reward for doing so well.
McDonald's goal isn't to produce the greatest burger in the world. It succeeds at the best combination of pretty tasty food, high menu variety, very convenient, generally quick, and low price. It is not #1 at any single attribute (maybe convenience) but the best overall combination.
Gone.
https://en.wikipedia.org/wiki/Spudulike
https://spudulikebyjamesmartin.com/
Check out that "Bad Boy Hot Dog".
Ever wondered why McDonald’s tastes like cardboard everywhere in the world? That’s why.
https://www.origenonline.es/index.php/2017/01/05/mcdonalds-a...
Do you know how expensive McDonald's would be if this were true?
Not to put too fine a point on it, but the quality in the US is, shall we say, not at the top of the list.
My personal feeling is they are overused, but I'm not entirely ready to say they shouldn't exist entirely.
The one thing socialism gives you that capitalism doesn't in this case is that you're guaranteed a job if you are made redundant whereas in a capitalist system, you're out of a job unless you made your own arrangements.
The RIAA was tossing lawsuits left and right to try to stem the tide of piracy. Companies tried to build up digital marketplaces, but the studios and labels owned the rights and didn't want to play ball. And most of the companies shot themselves in the foot by also not playing ball; after all, the RIAA was wrong, they were dinosaurs, they didn't understand tech and their demands were anachronistic nonsense.
Along came Apple, and they basically sat down with the RIAA and did nothing but play ball. Exclusive deals? Got it. Our best cryptography folks working on a cipher algorithm to keep your music "secure" on a device someone else owns? Yes, we'll tell you we can do that and invest time and money into making it plausibly true. A revenue-sharing agreement so lopsided it would make a used car salesman blush? Here's our vein; open us up and leave us with as much as you think we need.
And that lasted for a couple years. Then Apple unilaterally announced they were dropping the encryption. It was, after all, a pain in the ass for end-users.
And the RIAA screamed.
And Apple just stared them down and said "You killed all the alternatives. Where else but iTunes will you go? You can't even go back to CDs; customers liked digital so much they stopped buying them and the machines that play them."
And for a brief period, Apple became de-facto owners of music distribution overnight by simply giving the previous owners everything they thought they wanted.
This type of person isn’t the majority, at least in my experience, but their minority is large enough that you reliably encounter them when you start working with large organizations.
In an optimization problem, there can be global optimum and local optimums. He says that global optimum is not enough for supply chain, because lower layers money will be sucked by upper layers and chain will break, because owner of sucked business will park his money somewhere else, so each level must operate at a local optimum.
Except that they're always wrong about that ...
The real problem is that the managerial authority to cut the check of the correct size is 4 political levels higher than the manager whose ass is getting kicked by your startup.
Once your startup is kicking the CEO's ass, then you can expect a buyout.