Just Slap Some Mustard on That Burn! Mcdonald’s Under Fire! - By John Hendrie
Back in the 1960's, I was speaking with a family friend, who happened to manage investments for an Ivy League school. He had recently purchased stock in an 'up and comer - McDonald's Corporation. He thought this was a sage investment. Yes, Sir, it was, and the ivy grew thicker, bolder, nourished, as did McDonald's in our communities and around the globe.
Back in the 1960’s, I was speaking with a family friend, who happened to manage investments for an Ivy League school. He had recently purchased stock in an 'up and comer - McDonald’s Corporation. He thought this was a sage investment. Yes, Sir, it was, and the ivy grew thicker, bolder, nourished, as did McDonald’s in our communities and around the globe.
But, the Brand has been shamed and slammed as of late. There have been several streams which have created the perfect negative storm for the company, forcing a relook at its employee relationships. Kicking and screaming, not altruistically at all, the company has begun to make changes in their operations and compensation practices. Let’s look at some of currents which have pushed the company to increasing the wages, improving benefits and reviewing working conditions.
Harken back to the title of this article, “Just slap some mustard on that burn”. One of the activist groups demanding change, “The fight for $15” (backed by the Service Employees International Union – SEIU), filed health and safety claims against McDonalds, demonstrating, as per NRN.com, “…assembled videos detailing workers’ procedures for emptying grease traps. It also showed graphic pictures of burns, and included a manager’s alleged suggestion that a worker soothe a severe burn with mustard”. As you may know, health and safety violations can be expensive. Throw in to the mix some Wage and Hour concerns, you might as well close the doors of your business. This is a very smart campaign strategy to gain the attention of the company and the public.
The “Fight for $15”, along with other protest groups, has also been very active on the public demonstration front, regarding wages, benefits and the opportunity to engage a union. There have been a number of major protests across the US, targeting McDonald’s and other fast food operations, retail stores and the like, focused primarily on wages. This action has garnered public support and media coverage.
Keeping in mind that the employees who are being represented here are typically minimum wage folks, many having to work two or more jobs, many are internationals, primarily women with little education. They could be called the disenfranchised . Competition for these individuals has become sharp. Retail stores (Walmart, Target) have increased their wages, many independent restaurants have as well, recognizing that the labor pool is ever shrinking. So, there have been market pressures upon McDonald’s.
Lastly, or maybe firstly, - the bottom line. In another article, per NRN.com, “The company is also working to lift U.S. sales out of a two-year slump, including a 4-percent decline in same-store sales in February. Last year the company had $5.6 Billion in overall corporate profits. However, the chain’s domestic system-wide sales fell 1.1 percent in 2014, its first decline in at least 30 years.” Oops!
Well, the company has finally responded, planning to increase the wages of their company owned stores (1,500 operations) by at least a dollar, based upon the local minimum wage, aiming for a new base for all company owned properties of about $10.00 in 2016. They also will now have paid some paid time off and educational benefits for full and part time employees. This is quite an accomplishment, except what about all the franchise McDonald’s in the United States, you know, the remaining 12,000 plus operations (the remaining 90%)? As franchises, they can pay what they wish, even though there is an active case with the National Labor Relations Board now, defining the relationship.
We have not seen the end of this fight. You have to think about without a good employee experience how that affects the experience of your Guest!
John Hendrie is the author of the LRA blog, focusing on anything and everything about customer experience. LRA Worldwide is the leading global provider of Customer Experience Measurement services for multinational companies with complex customer interactions. For over 30 years, LRA’s innovative brand standards audits, quality assurance inspections, mystery shopping programs, research, and consulting services have helped ensure our clients deliver consistent, memorable, and differentiated experiences to their customers. Many of the world's preeminent global hospitality brands, as well as companies in the gaming, dining, healthcare, sports and entertainment, real estate, retail and travel industries choose LRA to help them measure and improve the customer experience. For more information, visit www.LRAWorldwide.com.
But, the Brand has been shamed and slammed as of late. There have been several streams which have created the perfect negative storm for the company, forcing a relook at its employee relationships. Kicking and screaming, not altruistically at all, the company has begun to make changes in their operations and compensation practices. Let’s look at some of currents which have pushed the company to increasing the wages, improving benefits and reviewing working conditions.
Harken back to the title of this article, “Just slap some mustard on that burn”. One of the activist groups demanding change, “The fight for $15” (backed by the Service Employees International Union – SEIU), filed health and safety claims against McDonalds, demonstrating, as per NRN.com, “…assembled videos detailing workers’ procedures for emptying grease traps. It also showed graphic pictures of burns, and included a manager’s alleged suggestion that a worker soothe a severe burn with mustard”. As you may know, health and safety violations can be expensive. Throw in to the mix some Wage and Hour concerns, you might as well close the doors of your business. This is a very smart campaign strategy to gain the attention of the company and the public.
The “Fight for $15”, along with other protest groups, has also been very active on the public demonstration front, regarding wages, benefits and the opportunity to engage a union. There have been a number of major protests across the US, targeting McDonald’s and other fast food operations, retail stores and the like, focused primarily on wages. This action has garnered public support and media coverage.
Keeping in mind that the employees who are being represented here are typically minimum wage folks, many having to work two or more jobs, many are internationals, primarily women with little education. They could be called the disenfranchised . Competition for these individuals has become sharp. Retail stores (Walmart, Target) have increased their wages, many independent restaurants have as well, recognizing that the labor pool is ever shrinking. So, there have been market pressures upon McDonald’s.
Lastly, or maybe firstly, - the bottom line. In another article, per NRN.com, “The company is also working to lift U.S. sales out of a two-year slump, including a 4-percent decline in same-store sales in February. Last year the company had $5.6 Billion in overall corporate profits. However, the chain’s domestic system-wide sales fell 1.1 percent in 2014, its first decline in at least 30 years.” Oops!
Well, the company has finally responded, planning to increase the wages of their company owned stores (1,500 operations) by at least a dollar, based upon the local minimum wage, aiming for a new base for all company owned properties of about $10.00 in 2016. They also will now have paid some paid time off and educational benefits for full and part time employees. This is quite an accomplishment, except what about all the franchise McDonald’s in the United States, you know, the remaining 12,000 plus operations (the remaining 90%)? As franchises, they can pay what they wish, even though there is an active case with the National Labor Relations Board now, defining the relationship.
We have not seen the end of this fight. You have to think about without a good employee experience how that affects the experience of your Guest!
John Hendrie is the author of the LRA blog, focusing on anything and everything about customer experience. LRA Worldwide is the leading global provider of Customer Experience Measurement services for multinational companies with complex customer interactions. For over 30 years, LRA’s innovative brand standards audits, quality assurance inspections, mystery shopping programs, research, and consulting services have helped ensure our clients deliver consistent, memorable, and differentiated experiences to their customers. Many of the world's preeminent global hospitality brands, as well as companies in the gaming, dining, healthcare, sports and entertainment, real estate, retail and travel industries choose LRA to help them measure and improve the customer experience. For more information, visit www.LRAWorldwide.com.
