Word: burgers
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...Fallon likes to take the status quo and just shake the hell out of it." But being risky doesn't necessarily mean being effective. Fallon's work for McDonald's Arch Deluxe featured kids frowning at the prospect of an "adult" hamburger. So too did the grownups. The burger bombed. McDonald's parted company with the upstart and picked a new agency: Leo Burnett, big, conventional and in downtown Chicago...
...disease, cattle prices plummeted. Along with 12 other ranchers, cattle feeder Paul Engler (who lost $6.7 million as a result) is now suing Winfrey under a 1995 Texas law that protects agricultural products from slander. Her fateful words? "It has just stopped me cold from eating another burger!" No point in horsing around. Winfrey may be able to settle the dust by promoting burger magnate Dave Thomas' opus "Well Done" on her next Book Club show...
...carries an unlikely pedigree--he was an attorney and accountant at Arthur Young who moved over to his client, McDonald's, as chief financial officer in 1982. He spent lots of time building the financial structures needed for the company's overseas development, but has little experience in burger warfare. That's part of his charm. "I don't feel defensive," he says...
...dissidents are most vocal about a corporate-expansion strategy that they claim has flooded some markets with stores. "I can put up with a Burger King but not with another McDonald's down the road," says Bob Srygley, a consortium member based in Monticello, Ark. Complains LuAnn Perez, whose store on Route 50 in Cameron Park, Calif., is flanked by others: "Business was great until four other McDonald's were built between Sacramento and us." She and her husband are suing the company over the sale of their business...
McDonald's store owners have always paid a steep price for access to burger riches: they can operate no other businesses, they have no exclusive territories, and they generally take orders from headquarters in Oak Brook, Ill. Franchisees own nothing other than a 20-year agreement, renewable at the company's option, to equip and run a restaurant in return for 12.5% off the top in royalty and rent. (The rates can be higher for some sites.) They spend a minimum of 4% of sales for marketing. Last year McDonald's got $1.8 billion from its U.S. franchisees...