707 replies to this topic

[aastra]

Isn't the one across from Hillside Mall also closed? Or are they doing a renovation?

[aastra]

McDonalds has been beating a slow retreat for a few years now, due to increased concern about health and too rapid expansion.

http://findarticles....41/ai_n19206450

[FunkyMunky]

Isn't the one across from Hillside Mall also closed? Or are they doing a renovation?

A very slow reno. It seems like the skip has been sitting out in the parking lot there for a long time.

[Coreyburger]

http://findarticles....41/ai_n19206450

A very different story than a few years ago:
http://news.bbc.co.u...ess/4759130.stm
http://query.nytimes...752C1A9649C8B63

McDonalds is very vulnerable to another health crazy like Atkins or the like.

[aastra]

Yeah, but Subway's expansion and the whole mad cow thing are essentially ancient history now (in the minds of the general public, anyway). And "Super Size Me" didn't have anywhere near the negative impact some people thought it would. Joe Public still loves McDonald's, their current expansion is a monster, and the stock price has been on a mighty march up since 2002:

http://www.stockhous...bmit=Draw Chart

Only now in 2008 is the stock price showing signs of reversal. But then everything is showing signs of reversal in 2008, so no surprise there.

[Coreyburger]

I don't disagree that they are on the way up now, but the reality is that what they sell is basically crap in a bun and it doesn't take much to have a health scare when you are serving that. They also use a huge amount of corn, the price of which is spiralling upward due to some misguided notion that corn is good for making biodiesel/ethanol out of (it isn't).

[aastra]

Oh, no argument there (keeping in mind, of course, that all sorts of giant corporations peddle crap...it's not like McDonald's has cornered the market on the strategy).

Sometimes I think the best scare a corporation can have is a health scare, because most people don't know what healthy is when you get right down to it, and because most people also don't really care all that much about health (even if they claim they do) until their problems have become severe.

Fast food is pretty much a license to print money. The problem isn't in figuring out how to make an obscene profit; the problem is in figuring out how to make an ever larger obscene profit. McDonald's has the same problem that Starbucks has: how do you keep on expanding when you've already got a store on every corner?

You go to China. And then India. And then Africa. And then where?

[Ms. B. Havin]

Just on that topic (where do you go?), Tom Peters comments on McDonalds and Starbucks and company: We have met the enemy.... (Not that this solves or addresses the Micky-D question of good food/ bad food or anything; it's just a commentary on the business angle -- almost any business's angle.)

[Mike K.]

I'll take McDonald's over the average diner any day. At least the food served by McD's is prepared under sanitary conditions (in the CRD, at least) which can't be said for a good chunk of run of the mill diners (I've had two recent absolutely terrible experiences).

We often forget just how unsanitary a lot of food places can be as we go after the obvious baddies like McDonald's or Burger King (probably the worst out of the bunch) over the fat/ingredients of the food itself and not necessarily how it is prepared. Is a McDonald's burger less healthy for you than a plate of Chinese food prepared in old oil, doused in a fattening sauce and served up with a side dish of old vegetables? Personally I'd go for the burger.

For the record I haven't eaten at McDonald's for a while and the last time I was in one (several days back, actually) I got cold feet standing in line and bailed out.

[VicHockeyFan]

^ Chinese-hater!

[Caramia]

^ Chicken!

[VicHockeyFan]

^ McChicken or Chicken McNuggets?

[Mike K.]

I finally gave in and went to McDonalds last night, just because of this thread!

Ever noticed how the kids working there are always very professional and on the ball? That can't be said for a lot of Victoria's fast food places where the employment vacancies have led to managers being more lax and more forgiving for stupid behaviour.

[FunkyMunky]

Ever noticed how the kids working there are always very professional and on the ball?

You're kidding, right? Maybe in the 70's but I haven't experienced a great deal of professionalism from a McDonald's employee in years. Generally they have the same lack of hustle as just about any VIHA employee I've ever been forced to engage with. And I would be really happy if they would stop touching their faces or handling money and then putting their hands in the little fry containers to open them up.

[Mike K.]

All things relative, of course, but the service at McDonalds is better than you'll find at most fast food burger joints. If McD's employees are on the same level as VIHA's then that's probably something to commend given the demands VIHA has of its food suppliers.

I should add, though, that Tim Horton's employees are usually a pleasure to deal with but then they ought to be given the typically older clientele they serve.

[Caramia]

Next time I want Mike to do something, now I know how! Just call him a McChicken!

[larrobb]

i think the key to going to fast food joints, if at all, is to only do it during the week during school hours. i was at McDonalds on a weekend and the kid at the grill actually picked up a mop twice and gave the floor a wipe then went back to handling buns....i didn't stay in line to place my order. as for Timmy's, same kind of deal. go to the one on Goldstream on a weekend and it's like a playground in there. the staff are giggling and screwing around and it takes forever. don't managers check on their staff anymore? i'd rather pay a bit extra for java and go to someplace like Teas and Beans to get away from the daycare atmosphere.

[VicHockeyFan]

This just in:

Wanna win a Wii from McDonald's?

Join The Q! on location at the Grand Re-Opening of the Hillside McDonald's from 11am-3pm Saturday, January 26th! Drop off your entry form, stay for the ribbon cutting and more!

[gumgum]

Looks like Duffy's a VV reader:

Another area McDonald's closed for 'business reasons'
UVic marketing expert says giant's growth isn't happening here
Andrew A. Duffy, Times Colonist
Published: Tuesday, January 22, 2008

For the second time in four years, McDonald's has closed the doors on one of its Greater Victoria restaurants.

Saying only that it was a business decision, the fast-food giant closed its location at 101-2000 Cadboro Bay Rd. in Oak Bay earlier this month in order to focus on its 16 other locations in Greater Victoria.

"It occurs from time to time, it's just part of the business," said Chris Stannell, spokesman for McDonald's restaurants.
The Cadboro Bay Road location was what McDonald's called a strategic point of distribution restaurant (SPOD), like its Fisgard Street location which closed in January 2004. These smaller locations, which did not have drive-thru windows, were geared to the take-out market.

Stannell would not comment on whether being a SPOD restaurant played a role in the two closures, saying only "there are a number of factors that would go into a decision like that."

Over the course of the last year, the Cadboro Bay Road location had been cited by health inspectors for a series of minor violations mostly to do with the cleanliness of the location but nothing to do with food safety requiring immediate correction.

The closures may have more to do with the fact McDonald's has used the Victoria and London, Ont. markets as test sites for new products and concepts in the past and the two restaurants just didn't cut it.

University of Victoria marketing professor Brock Smith said McDonald's has had its share of struggles in recent years, and though it continues to see record revenue growth around the world, it hasn't seen the same kind of success in Victoria.

In 2006, McDonald's reported a record $21.6 billion in revenues worldwide. The company is expected to hit another record this year when it reports its year-end results next week.

Last week, McDonald's chief financial officer said the company would be spending $2 billion US to open 1,000 new restaurants and renovate 1,500 more in 2008.

But in Victoria, a market the company has repeatedly said was underserved by its restaurants, the growth has been tempered.

"Victoria was used as a test market because in the past the values of our consumers have been aligned with the Canadian average, but that said, I think Victorians' values are more aligned with health and fitness and we are probably more concerned with what is going into our bodies," said Smith.

That focus on health has something to do with the mild climate and outdoor nature of the people, but it also has to do with a changing demographic which will have a big effect on the fast-food sector.

"As the baby boomers get older, there's a realization there's only so many hamburgers and french fries someone can consume before they realize it's probably not good for them," he said.

And that puts McDonald's in a tough spot.

The company has spent billions to establish itself firmly as the king of the hamburger-and-fry meal.

"And it's really hard to reposition that brand," said Smith, noting that while the restaurant has added healthier items to its menu over the years it's still the first place people think of when they are driving and hungry. "They spend so much money getting into your head, but you probably discount them if you are health conscious."

McDonald's appears to be trying to reposition itself and woo the older audience with the makeover of many of its restaurants. The company intends to re-image 100 of its 1,400 Canadian locations this year with the theme "Forever Young."

The Hillside Avenue location in Victoria just reopened after undergoing the process.

"Basically it's a whole strategy around updating the restaurants and providing our customers with a fresh overall design," said Stannell, noting the makeovers include natural colours, natural materials and modern features like flat screen televisions, fireplaces, leather seating and modern lighting.

Smith says the re-imaging is another in a series of attempts to find a new market for the restaurant.

"You see that struggle reflected in them changing their tagline every few years," he said, noting the "Forever Young" theme is clearly an attempt to go after the older demographic that wants to be young at heart.

But while he said the constant changing becomes confusing to consumers he's not about to suggest McDonald's has lost the battle for their bucks.

"Whether that resonates with anybody I don't know," said Smith. "But for years they've done a lot of things right, and I wouldn't count them out."

aduffy@tc.canwest.com


© Times Colonist (Victoria) 2008

[aastra]

I'm not sure Victorians should be too proud of themselves regarding the closures of the Mcdonald's stores on Foul Bay and on Blanshard Street. If I'm not mistaken, the many contemporaries of those locations include:

- Hillside Mall's food court
- Esquimalt
- T&C Wal-Mart
- Vic West
- a couple in Langford (one in a Wal-Mart?)
- Royal Oak
- Pat Bay Highway
- Douglas Street by Burnside
- Beacon Ave.
- Sooke

All of these were opened in the 1990s or later, yes? Prior to that there were only a few:

- Douglas Street downtown
- Pandora
- Hillside Ave
- Shelbourne
- Colwood
- across from Town & Country

Is this list correct? I think so.

Anyway, up until the late 1980s there were six McDonald's serving a population of about 250,000 (the Hillside Ave location being brand spanking new at that time). Today there are 17 McDonald's serving a population of about 350,000.

Methinks street problems are what killed the Blanshard Street location, in combination with its proximity to the Pandora location.

So did a "focus on health" really contribute to the demise of the Foul Bay store? Maybe. I suspect the absence of a drive-thru was more to blame.