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From https://www.fastcompany.com/90923565/congress-mcdonalds-ice-cream-machines https://www.fastcompany.com/90923565/congress-mcdonalds-ice-...: The incentives
by 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 agoWhy 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 agoOne 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 ago30 min video condensed to 3 sentences. Thank you for saving our time!