How McDonald's stole Christmas
The fast-food giant suggests franchisees open for the holiday after seeing Thanksgiving sales jump.
Merry Christmas from McDonald's (MCD)! Now put on a smock, suggest some fries with that and help Ronald make his sales goal this quarter.
McDonald's, which once used the starving homeless child pictured in this clip from 1985's "Santa Claus: The Movie" to sell seasonal tie-in Happy Meals and story books, is getting its franchisees into the holiday spirit by not-so-subtly suggesting they stay open through the holidays. As AdAge reported, a Nov. 8 memo from McDonald's USA chief operating officer Jim Johannesen explains why it's imperative to keep the Golden Arches lit through the new year:
“Starting with Thanksgiving, ensure your restaurants are open throughout the holidays. Our largest holiday opportunity as a system is Christmas Day. Last year, [company-operated] restaurants that opened on Christmas averaged $5,500 in sales."
Gawker writer Hamilton Nolan so aptly and bluntly notes that McDonald's Dickensian stance just put a $5,500 price tag on a franchisee's Christmas Day and turned a holiday closure in deference to franchisee and employee families into an "opportunity." Asked whether employees would at least get a little more holiday cheer with their paycheck, a McDonald's spokesperson -- scarcely audible over the clattering of chains forged during a life of indifference and inhumanity -- replied that "when our company-owned restaurants are open on the holidays, the staff voluntarily sign up to work. There is no regular overtime pay." McDonald's didn't comment on their employees' potential holiday alternatives, including prisons and workhouses.
So how did Ronald McDonald go from holiday commercials of him teaching kids how to skate to pulling their parents out of the house on Christmas morning and shoving them in front of the fryers for no additional pay? Somebody messed with his cash flow.
Even after expanding hours and tinkering with its menu, McDonald's reported a 3.5% drop in revenue last quarter. Back in October, sales at U.S. stores dropped 2.2%. When the company recovered with a 2.5% sales increase last month, it declared open season on holidays by crediting Thanksgiving hours for the boost. Johanssen sent out another memo on Dec. 12 saying that not only did company-owned restaurants bring in $6,000 a pop on Thanksgiving Day, but that McDonald's opened 6,000 more stores that day than it did a year ago.
McDonald's doesn't see its franchisees, its employees, or even $5,500 to $6,000 when those stores stay open: It sees an extra $80 million or so to pad this quarter's figures. It also sees that it's not alone in seizing some holiday "opportunity," despite being among the few who don't pay extra to do so.
Target (TGT) and Wal-Mart (WMT) were among the other major retailers to open on Thanksgiving Day this year and watched sales on that day soar and bolster otherwise slumping November numbers. Panda Express, Sonic (SONC), Yum Brands' (YUM) Taco Bell and DineEquity's (DINE) Applebee's all leave it up to franchisees to decide whether or not they'll open on Christmas Day. Jack In The Box, Starbucks (SBUX), Dunkin' Donuts (DNKN) and IHOP also tend to keep the doors open that day. Not only is Denny's (DENN) open for the holiday, but Christmas Day is one of the biggest sales days on its calendar as folks flock in for a holiday breakfast they don't have to make.
Movie theater chains like Regal Entertainment (RGC) and Carmike (CKEC) are going to be open, too, as Quentin Tarantino's slavery revenge fantasy "Django Unchained," the Seth Rogen/Barbara Streisand mother-son comedy "Guilt Trip," Judd Apatow's coming-of-middle-age story "This Is 40" and the musical "Les Miserables" are all being released on or around Christmas Day.
Not only is McDonald's larger and more widespread than just about all of the aforementioned companies, but it's also making it quite clear that it's doing an about-face on its holiday policy simply to pad the stats. While some employees will work around it and may have a need for the extra cash that their colleagues at Denny's and Regal make each year, McDonald's memos prompting franchisees to turn the Arches on weren't penned with the employees in mind. McDonald's sales losses in October were its first in nine years. After learning on Thanksgiving that taking away a holiday is the easy answer, McDonald's isn't above pulling Christmas dinner off employees' plates and replacing it with a value meal if it means a few more presents under the company tree.
Consider it just a friendly way of telling employees and their families that Santa doesn't buy their gifts. Ronald does, and the clown's got to get paid.
More from Money Now
Fascist Pro-corporate Republican wage-busting is aging Americans and has reduced our citizens abilities to raise families. Who can afford to have a family nowadays when low-wages are starving us to death.
America's birthrates will never recover as long as we live in a wealth-divided, low-wage poverty for the masses society.
Capitalism is threatening the future survival of America.
Capitalism is killing us.
McDonalds is one of the worst places to work on this planet. My Daughter worked in Whitesburge, Ky. They were treated worse than prisoners in jail are. Here are a few of the things my Daughter had to do. She was made to scrub the floor under the tables with a scrub brush with clorox and water on her hands and knees ever lay down on her stomach, when she went to get a breath of air from the fumes she was jumper for opening the door. She was made to work all kinds of weird shifts. She was hired for mornings, She worked back to back shifts, the Manager changed her schedules from day to day she had to call every night to see when she worked the next day. Then get to work and be told your schedules was changed come back later. Breaks were not given or added to adjust Manger hours. If you got to 39 hours and did not tell the Manager you were wrote up for something. She was put on suspend for 5 days for not getting to work with 10 inches of snow on the ground, at 4a.m.
I was so proud of my Daughter for willing to take the abuse to try to keep a job ,they hope no one will report them. The Manager did this to almost all the workers. I tried to get my Daughter to take them to the Labor Board but she was afraid it would make it harder on friends she made there.
Jesus would be water-boarded to find out who he works for.
America's true 'god', the Almighty Dollar makes a mockery of the Christian 'religion' on a daily basis here in America.
Jesus is Capitalism's unwanted, socialist stepchild.
Jesus' most consistent message throughout the new testament was that the wealthy are supposed to give ALL of their wealth away for the greater good of mankind, to be our brothers keeper, to care for the sick, weak, elderly, and poor among us.
Capitalism raises 2 gigantic middle fingers toward everything that Jesus spoke of in the new testament.
Profits trump people in capitalism. 100% contrary to the bible's new testament.
All Christians should be focused on overthrowing capitalism, not supporting it.
Who in the corporate hell decides that people need to work on the Holiday that many enbjoy alll year long for? What is wrong with McWierdo's? Is the all mighty dollar chase that strong that youy have no heart? As I drive to my families home this Christmas - I will not patronize your franchisees in protest of this most ignorant of thoughts. In fact, because of poorer service received over the past year, I'll spend my money elsewhere - like at the grocery store to epurchase food for a real Holiday Meal - and no, there won't be any fries with that.
And for my new years resolution - no more patronizing McDonalds.
Oh yeah, before I forget to tell you greedy corporate bastards, you just fell one notch below Walmart in the social ladder.
My point is that, while many people have families to go home to (and therefore it would be wrong to make them work), some people have different circumstances. I pray nobody has to ever spend a holiday alone, but if you ever have then you know what I am talking about. Of course it should always be voluntary, but you can't categorize everyone, and some WOULD be happy for the work.
I can't speak for Mc D's. But given the state of economy and cost of doing business. Utilities, insurance, food cost, rents, wages, etc. It's part of operating in America these days. My small franchise business still has rent, repairs, year end taxes to consider. And it's all higher than last year! Menu prices are not keeping up though.
Landlord, the lender, insurance company, utilities still get paid. There is no day off discount from any of them! It's still a full months payment!
Other than saving a few bucks on the electric bill, I am considering it myself. People travel and not all have a place to go. If I have employees that want to operate and many do, we may be open in the future. And I will be with them.
It's just a fact. I do not like it but I understand.
I wish more people could understand the cost of operating any type of small business. And the responsibility we have to all the expenses associated with it.
I am not a scrouge. We actually sponsor several kids every year for shop with a cop. We offer thousands of dollars a year to silent auctions for local churches, schools and fundraising. My staff gets a .10 per hour rate increase through December and another .20 if we meet sales goals. It's not a lot but I'm doing what the business allows.
There is another side of every story.
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
Economists find that as women grow more self-reliant, marriages become more about wanting commitment than needing it.
- Obamaphone program: Dialing for fraud?
- Lone Signal lets you tweet aliens for a fee
- Russell Brand swings at 'Morning Joe' -- and scores
- 7-Eleven targeted in human smuggling raid
- Why 'Dumb Ways to Die' became a viral hit
- Red Robin ad doesn't go down well with vegetarians
- Pity the millionaire: Mansions in short supply
- Bloomberg's new crusade: Food scraps
- China eyes stockings that shoo away perverts
[BRIEFING.COM] The major averages ended higher across the board as the S&P 500 advanced 0.8%.
Equities climbed steadily since the opening bell as investors prepared for tomorrow's policy decision from the Federal Reserve. Although chatter in recent weeks has included speculation the Fed would look to taper its asset purchases, today's broad gains suggest investors expect mostly reassuring words from Chairman Bernanke at tomorrow's press conference.
All ten sectors ended with ... More
More Market News
Increasing yields can bring both risk and reward for these stocks, but that doesn't mean you have to miss out on earning consistent dividends.