I still don't understand why McDonald's is accepting a 10-20% "broken" status as remotely acceptable. Especially when its clear its solvable.
Is there more on this? If they can dig up CEO's emails surely they can dig up the financial arrangements between them and mcdonalds?
2. That attitude is dangerously close to "unfalsifiable claim" territory. There's no evidence for your conspiracy? Well duh, it's all-powerful conspirators that we're dealing with. Of course there's going to be no evidence because they hid it all!
The prosecution even argued that the defendents were using Mafia-like language, according to TFA.
From what I'm seeing, besides the monthly rent (in most cases paid to McDonalds), and the required supply purchases, franchisees also have to kick 4% of sales up to corporate.
So corporate is indeed losing money when the machine isn't working (also, they're probably not going to be buying supplies for a broken machine, either).
What's more profitable? Kicking out a dozen Big Macs in the same time it takes to make one McFlurry? As an owner, I'm going to focus on where my profits are so that I can maximize those areas that are generating the most profit. Anything with ice cream is a net loss for my profit column so anything I can do to discourage people from increasing those sales which will then cut into my overall profits is just fine with me.
Their McFlurry ice cream items were created to compete with Dairy Queens Blizzard items. I'm not sure why they decided they could compete with DQ, but they thought they would siphon some of that market share from them - which I don't think they ever did, but it didn't lose enough money for them to take the item off of their menus.
They don't go there for ice cream. Yeah, they won't go back for ice cream which has a minimal impact. You can bet they'll still come back for burgers, shakes and fries though.
It just confirms people fall into the trap of not going there for ice cream, which reduces the burden of the people having to use so much time to make ice cream for customers and can instead focus on the stuff that keeps the lights on and the profits coming in.
ChatGPT summary:
> The video investigates why McDonald's ice cream machines are frequently broken. It reveals that the machines undergo a complex, four-hour cleaning cycle, often misinterpreted as a breakdown. Franchise owners are contractually obliged to use a specific machine model (C602) made by Taylor, which has a high failure rate. The malfunctioning machines, with cryptic error messages and user-unfriendly interfaces, necessitate expensive repairs by Taylor-authorized technicians. An entrepreneur developed an alternative device providing better feedback and reducing breakdowns, but McDonald's allegedly discouraged its use, favoring a less effective solution from a company related to Taylor.
Every day GPT-4 becomes more useful for wading through the swath of bullshit.
So no, not a fan neither.
1) The most important one being: "This machine sterilizes itself without removing the feedstock"
The sanitization of these machines is not dependent upon being cleaned by someone who cares or is competent. This minimizes the possibility of food poisoning and the attendant lawsuit.
2) The alternative device had no indemnification associated with it.
If somebody adjusted the machine and then a customer got food poisoning, who was going to be on the hook for the lawsuit?
Practically everything about these machines is defined by lawsuit avoidance combined with the fact that these machines are manufactured in low volume and not that profitable by themselves.
These machines are primarily a legal liability transfer mechanism. The fact that they serve ice cream is completely incidental.
* A complicated machine that will hurt people if configured improperly can't have the operating parameters changed by the end user? Yeah, I'd do that too, the end users are literally children and unskilled workers, and the business is liable if they mess it up. What exactly does the author think that a food service worker is going to do in the service menu of these machines?
* Franchisees can't modify the equipment as they choose? Yeah, that's the way it works, it's not their decision to make.
* Business partners having to choose a product or service as a result of a contractual obligation? Welcome to B2B product sales. This happens everywhere.
I haven't looked at a McDonalds franchise contract, but every QSR franchise contract I've seen requires the franchisee to pay the brand a percentage of each location's gross sales.
Broken ice cream machine = less gross sales. Less gross sales = less money going to the brand.
It's also not great for customer satisfaction.
QSR franchisees are famous for cutting every corner they can get away with (as well as cutting even more corners until they get caught by the brand or local health/labor inspectors), so maintaining quality and consistency is a very real concern for these brands.
Yes, that could explain why McDonalds execs would try to discourage franchisees from using Kytch.
It doesn't, however, explain why McDonalds execs seem not to have a problem with 20% of their locations not being able to sell a product that people apparently like enough to complain when they can't get it, which is what the top-level comment was talking about.
It's surprising they cannot build a machine that does not break that easily.
They're fleecing the franchisees via repairs.
The repairs are handled by local distributors of Taylor machines. Taylor itself makes money on replacement parts and machines.
There haven't been any allegations of kickbacks to McDonald's corporate, so I don't get it.
So no, it doesn't mean less gross sales.
me: "I'll have a milkshake please"
McD: "ice cream machine's broke"
me: "ugh. Ok, I'll just have a coke"
It’s why institutions so quickly fall - no one gives a shit. Five Guys and Shake Shack do, and they’re eating McDonald’s lunch