4 ms·

Can you summarize that video? I got about 7 minutes in and it still hadn't answered the question but did get an ad, so I gave up. Too much filler and noise!

kevinventullo 3y ago
From https://www.fastcompany.com/90923565/congress-mcdonalds-ice-cream-machines https://www.fastcompany.com/90923565/congress-mcdonalds-ice-...: The incentives here are all aligned against quick repair: Taylor makes more money when machines are broken. McDonald’s corporate has a lucrative service contract with Taylor. As a result, poor franchisees, who have no choice about what equipment to buy or how to service it, are forced to deal with broken machines and annoyed customers.
- googlryas 3y ago
  Why wouldn't McDonalds just not do that, and charge more to franchisees, and pocket 100% of the amount instead of whatever cut they have to give to Taylor? Surely, franchisees and potential franchisees talk to each other, and if any appreciable amount of money was going out the door to fix the ice cream machine repeatedly, it would be a known cost of doing business.
  - MostlyStable 3y ago
    One possible reasons is that repair fees might not show up in planning the way a guaranteed franchise fee bump would. You can get your franchisees to pay more money if they don't know they are going to be paying it ahead of time, potentially. If the full extent of the repairs necessitated by the behavior were clear, obvious, and known ahead of time, then yeah, this would strictly be worse. But a slightly lower, but secret, fee might be preferable to a higher but obvious fee. That's just me speculating though. Could also just be incompetence or maliciousness, or maybe just once upon a time a particular person in McDonalds corporate took a bribe to make it happen. Who knows.
    - deleted 3y ago
      [deleted]
- qudat 3y ago
  30 min video condensed to 3 sentences. Thank you for saving our time!
jmorenoamor 3y ago
I make and repair machines, you have tons of restaurants. You mandate that franchises have to buy my machines, and only me can service them. We both benefit economically from this agreement. Also, machines enter in service mode without needing it just to give me more business.
SirMaster 3y ago
If I recall some video I watched awhile ago: 1. McD HQ mandates franchises buy a special model Taylor-Made machine (not the same that like Chick-fil-a and others use). This is why McD machines stop working but other companies don't. 2. Every night there is a very specific maintenance routine that needs to be ran to clean and prep the machine for the next day. If it's not followed perfectly, the process will likely fail and the next morning workers will be greeted to a cryptic error code. Sometimes re-running the process will clear it, sometimes it wont. But this can take hours. 3. If re-running it doesn't fix it, then the franchise owner is stuck with the dilemma of bleeding money not having a working ice cream machine for customers, or calling an expensive hourly certified Taylor-Made repair person. 4. So they usually end up calling the repair person. The idea is that McD HQ is working with Taylor-Made to make this problem happen so that franchise owners have to pay for expensive repair people. Apparently the error codes have been reverse-engineered with a USB device that a third party created. But Taylor-Made is said to deny warranty and service etc if you try to use one.
- ixwt 3y ago
  I believe that there is a lawsuit involving the third party devices as well. Pretty interesting saga.
- chongli 3y ago
  A small nitpick: TaylorMade is a manufacturer of golf equipment. They are not related to Taylor Company, the maker of these ice cream machines.
  - skyyler 3y ago
    I took it as they were trying to say tailor-made, in reference to a bespoke-for-McDonald's product.
    - SirMaster 3y ago
      That works haha, but I did get the company name wrong, my bad.

kevinventullo 3y ago

From https://www.fastcompany.com/90923565/congress-mcdonalds-ice-cream-machines https://www.fastcompany.com/90923565/congress-mcdonalds-ice-...: The incentives here are all aligned against quick repair: Taylor makes more money when machines are broken. McDonald’s corporate has a lucrative service contract with Taylor. As a result, poor franchisees, who have no choice about what equipment to buy or how to service it, are forced to deal with broken machines and annoyed customers.

googlryas 3y ago
Why wouldn't McDonalds just not do that, and charge more to franchisees, and pocket 100% of the amount instead of whatever cut they have to give to Taylor? Surely, franchisees and potential franchisees talk to each other, and if any appreciable amount of money was going out the door to fix the ice cream machine repeatedly, it would be a known cost of doing business.
- MostlyStable 3y ago
  One possible reasons is that repair fees might not show up in planning the way a guaranteed franchise fee bump would. You can get your franchisees to pay more money if they don't know they are going to be paying it ahead of time, potentially. If the full extent of the repairs necessitated by the behavior were clear, obvious, and known ahead of time, then yeah, this would strictly be worse. But a slightly lower, but secret, fee might be preferable to a higher but obvious fee. That's just me speculating though. Could also just be incompetence or maliciousness, or maybe just once upon a time a particular person in McDonalds corporate took a bribe to make it happen. Who knows.
  - deleted 3y ago
    [deleted]
qudat 3y ago
30 min video condensed to 3 sentences. Thank you for saving our time!

jmorenoamor 3y ago

I make and repair machines, you have tons of restaurants. You mandate that franchises have to buy my machines, and only me can service them. We both benefit economically from this agreement. Also, machines enter in service mode without needing it just to give me more business.

SirMaster 3y ago

If I recall some video I watched awhile ago: 1. McD HQ mandates franchises buy a special model Taylor-Made machine (not the same that like Chick-fil-a and others use). This is why McD machines stop working but other companies don't. 2. Every night there is a very specific maintenance routine that needs to be ran to clean and prep the machine for the next day. If it's not followed perfectly, the process will likely fail and the next morning workers will be greeted to a cryptic error code. Sometimes re-running the process will clear it, sometimes it wont. But this can take hours. 3. If re-running it doesn't fix it, then the franchise owner is stuck with the dilemma of bleeding money not having a working ice cream machine for customers, or calling an expensive hourly certified Taylor-Made repair person. 4. So they usually end up calling the repair person. The idea is that McD HQ is working with Taylor-Made to make this problem happen so that franchise owners have to pay for expensive repair people. Apparently the error codes have been reverse-engineered with a USB device that a third party created. But Taylor-Made is said to deny warranty and service etc if you try to use one.

ixwt 3y ago
I believe that there is a lawsuit involving the third party devices as well. Pretty interesting saga.
chongli 3y ago
A small nitpick: TaylorMade is a manufacturer of golf equipment. They are not related to Taylor Company, the maker of these ice cream machines.
- skyyler 3y ago
  I took it as they were trying to say tailor-made, in reference to a bespoke-for-McDonald's product.
  - SirMaster 3y ago
    That works haha, but I did get the company name wrong, my bad.