There's New Legal Drama Around McDonald’s Soft Serve Machines

On the alternative, from the Wired article:

(sorry if this is a duplicate link)

Brian

Try having several cans of Coke syrup getting holes punched in them as they roll around on the deck (along with the contents of the salad bar, the coffee pot, the soft-serve machine, and several stowage lockers, plus everything off all the tables) because the boat is surfaced in somewhat heavy seas…

This is almost certainly the case. And the reason McDs looked the other way on Kytch for a time was because Taylor had no answer. Then Taylor closed the gap and McDonald’s chose to comply with the agreement once it wasn’t a burden to do so. This is however NOT some kickback scheme. This is standard white label/OEM language.

This I don’t buy. If Taylor’s machines were so problematic, McDs would have no trouble whatsoever terminating the contract for cause. And I have no doubt that McDs lawyers would kick the Taylor lawyers around like a hackysack if they challenged it. McDs sales volumes are so large that even if a settlement/buyout were the path forward they’d pay it in a heartbeat. A single fiscal quarter’s ice cream sales is going to be more revenue for McDs than Taylor’s entire business, paying them off would be peanuts in the world that McDs plays in. The real problem is that McDs would need to start over again with a new manufacturing partner and they’d have to replace all the machines…which is slow and expensive.

McDonalds has no reason to fight this, the burden is not on them and I seriously doubt it affects their franchising in any meaningful way.

Franchisee’s kick up a percentage of their sales. If sales are down, McDonald’s Corporate makes less. The first cite I’m seeing says they pay 4% of their gross sales (so, before expenses, like fixing their ice cream machine) as a franchise fee PLUS somewhere in the neighborhood of 10% of their sales as rent.

If Omniscient’s suggestion that “A single fiscal quarter’s ice cream sales is going to be more revenue for McDs than Taylor’s entire business,” were even close to being true, I can’t imagine McD’s being okay with losing out on their percentage of those sales. Plus they’re quickly becoming a joke, at least WRT the broken ice cream machines.

If someone assumes the ice cream machine is broken, they may go elsewhere. If a mom, dad and their two kids go to Dairy Queen instead of McDonalds for dinner, McDonalds is losing out on the entire meal for 4 people, not just two ice cream cones.

On a good handful of occasions, Oberweis (dairy & ice cream shops) got my business, despite my displeasure with the owner’s politics, when I wanted a quick drive-through McDonald’s ice cream dessert but the dessert machine was out-of-order and Oberweis was next door. :thinking: It never got to the point that I went straight to Oberweis, but I don’t recall ever successfully getting an ice cream dessert (may have had a pie instead) at McD’s either.