Sales Increase 25 Consecutive Quarters

[ted mcmeekin]

MIND SET CHANGE:

OK--McDonalds has reported 25 consecutive quarters same store sales increase for those open a year or more.

I don't think they got most of this increase from price increase or taking from competitors--but rather new/improved products.

They have done value meals, mcribs, new beverages, angus wraps etc., etc. And now they are considering see through milk shake cups. None of these changes seem like capital intensive investments.

So why can't we emulate the McDonald strategy/marketing plan at our washes. Thes guys are brilliant---they addict customers to McRibs and then take them away only to reintroduce later and drive sales up again.

We are going to try to think like them for 2011. We need a "Car Wash" 2011 low budget improvement list. Let's get started. It's too easy to blame the economy for sluggish sales.

So What's our equivalent of a see through milk shake cup...........

Ted

 

[Kevin James]

I don’t think you can compare the business model or the sales of MacDonald’s to the car wash world. I can live without washing my car but I can’t live without food. The ROI of car washing is probably the worse of any business that we are involved in. We are hoping that in 2011 we will sell or lease our car wash properties and be done with this chapter.

 

[Whale of a Wash]

I think the McCafe and the idea to take the coffee business back , which would
increase food sales had a lot to do with it. Also during a rough economy the average joe ate more meals with them as $$ were tighter instead of a better place to eat. According to the ica only 50% of the people wash their cars, and the number has went down in this economy. Not sure weather has helped much around the country from floods to snowstorm. At least in my area my weather is about as rough as it gets--- 40 inches of snow by the first day of winter. My apt business is sure alot easier way to make a living.

 

[Reds]

McDonalds is very well managed. That's why their sales and margins are better than Burger King's. As a former owner/operator of 5 Burger Kings I can tell you that I would much rather be in the carwash business than the fast food biz.

 

[Washmee]

McDonalds is very well managed. That's why their sales and margins are better than Burger King's. As a former owner/operator of 5 Burger Kings I can tell you that I would much rather be in the carwash business than the fast food biz.

Same here Red, the fast food business is much tougher than washing cars. Low margins, high food costs, cost of spoiled goods and employee theft are the reasons I got out.

 

[rph9168]

I have worked with several car wash operators that came from the restaurant business that felt the same way. Maybe that is the reason the only business it is harder than a car wash to get a bank to loan you money on is a restaurant.

 

[Reds]

"They have done value meals, mcribs, new beverages, angus wraps etc., etc. And now they are considering see through milk shake cups. None of these changes seem like capital intensive investments."
Nothing that the fast food industry does is cheap. It is a very capital intensive business. New sandwiches require millions of dollars in advertising and merchandising expenses. beverages require more soda heads, etc. Some sandwiches require new cooking/holding equipment. Training and procedures cost time and money. They are brilliant and it would be great if the carwash industry could take a page from their book. All of these new sandwiches, etc. are dreamed up by huge marketing and research depts, tested in "test markets", tweaked, and then presented to the franchise community for scrutiny and a yes or no vote. Some are approved by the franchisees, some get jammed down their throats. Coffee program cost them over 100k per store. But it was a brilliant move to outposition their competition (BK, Wendy's, etc) and stop Dunkin from stealing sales. Ditto dessert, salads, breakfast, drinks, etc. They are very good at what they do. McDonald's prowess in marketing and menu development was one of many, many reasons that I got out of the biz when the timing was right. I started looking at an exit in 2001 and did not get out until 2007

 

[Washmee]

"They have done value meals, mcribs, new beverages, angus wraps etc., etc. And now they are considering see through milk shake cups. None of these changes seem like capital intensive investments."
Nothing that the fast food industry does is cheap. It is a very capital intensive business. New sandwiches require millions of dollars in advertising and merchandising expenses. beverages require more soda heads, etc. Some sandwiches require new cooking/holding equipment. Training and procedures cost time and money. They are brilliant and it would be great if the carwash industry could take a page from their book. All of these new sandwiches, etc. are dreamed up by huge marketing and research depts, tested in "test markets", tweaked, and then presented to the franchise community for scrutiny and a yes or no vote. Some are approved by the franchisees, some get jammed down their throats. Coffee program cost them over 100k per store. But it was a brilliant move to outposition their competition (BK, Wendy's, etc) and stop Dunkin from stealing sales. Ditto dessert, salads, breakfast, drinks, etc. They are very good at what they do. McDonald's prowess in marketing and menu development was one of many, many reasons that I got out of the biz when the timing was right. I started looking at an exit in 2001 and did not get out until 2007

I think its just those evil toys in the Happy meals!