Editor-in-Chief at Restaurant Business Magazine. Egghead. Married up to @HailaMaze. Serving up hand-crafted tweets with a laser-like focus.

Minneapolis, MN
This video drones on. Literally. A drone delivery demo from @wing at FSTEC. The drone itself can go up get 60 mph. Has a range of 12 miles. And a wing span of 3.3 feet. This is the smaller drone that carries up to 2.5 pounds. There is a bigger one that can carry more.
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See that red thing? It's a playground.
McDonald's is spending 8.5 billion dollars to find out why families stopped coming. I can save them the 8.5 billion. They took out the playground. The plan, announced Wednesday at investor day. Better food, faster service, new equipment, AI tools, hospitality training, and a bigger push into chicken and beverages. They call it Next. The goal, they say, is making customers feel more comfortable. Wall Street loved it so much the stock fell 5 percent to its lowest since 2022. Over five years McDonald's shares are down 3 percent. Burger King's parent is up 14. The owner of Taco Bell and KFC is up 13. This is not a hamburger problem. This is a McDonald's problem. So let us talk about who used to eat there. Parents. That was the whole business. Parents at 5:40 on a Tuesday with three kids in the back and nothing thawed at home. You did not go for the burger. You went because your kids could run screaming through a plastic tube for 40 minutes while you sat with a coffee and experienced silence. That was the product. The food was the cover charge. The first PlayPlace opened in 1971 in Birmingham, Alabama, and for fifty years it did one job. It made small children demand to go to McDonald's. Then 2020 arrived, every play area in the country closed, and a great many never came back. The equipment came out during a remodeling program named Experience of the Future. The Experience of the Future turned out to be a touchscreen. Their own chief executive said he did not know if ball pits were in their future. Sir, you were not selling ball pits. You were selling forty minutes. So now there is no counter, no playground, and no reason for a seven year old to want to go. A screen, a window, and a bag. And for that we pay prices that require a moment of reflection in the parking lot. For thin, overcooked, oddly uniform pucks that taste like a memory of beef. I did not love them because they were good. I loved them because I was eight and there was a slide. And have you seen the new buildings. The old ones were unmistakable. Red roof, yellow arches, legible from a highway at 70 to a child who could not yet read. The new ones are a flat gray box with a small logo and a drive through wrapped around it. A regional claims office with a fryer. They removed the color, the characters, the counter, and the playground, and then hired consultants to find out why it no longer feels like anywhere. Which is why, when I have to eat fast food, I go to Chick-fil-A. Not for the politics. For the competence. They have led the customer satisfaction index for fast food eleven years running, and average 8.5 million dollars per location against McDonald's 4 million. More than double, while closed on Sundays. Fifty two days a year with the lights off, and still double. A seventeen year old hands you a bag and says my pleasure and means it about 70 percent, which is 70 percent more than a touchscreen has managed. McDonald's is spending 8.5 billion on hospitality training. Chick-fil-A earns 8.5 million per restaurant by just having some. So here is my consulting proposal, free of charge, on behalf of mothers everywhere. Put the playgrounds back. Not a nostalgia campaign. Not a retro cup. The structure. Tubes, slides, a door the kids cannot open from the inside, and a bench where a tired woman can sit. And understand what you are buying, because it is not lunch. A six year old does not know your food is bad. He has no basis for comparison and no functioning palate. He thinks the burger is incredible because he is standing in a castle made of tubes. That is the window. That is the only window you get. You catch them before the taste buds arrive, and thirty years later they drive past your sign, feel something they cannot explain, and pull in anyway. That is not a menu strategy. That is imprinting, and you shut it down in 2020 to save on cleaning. Eight and a half billion dollars for AI tools and hospitality training. Or a slide. 🦋
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McDonald's stock is up a bit today, which is good. But the company's stock fell nearly 5% yesterday during the Investor Day presentation. Wall Street is skeptical for a few reasons, but the biggest is concern over whether the franchisee base is willing to go along with the modernization initiative. And the company will definitely need to overcome that operator skepticism. The Next upgrades would come along with typical remodels, so the typical store is looking at $1.2 million in upgrades over the coming years. The company believes that its own investments ($8.5 billion worth worldwide over the next decade), efficiency (250bp/$100k in cash flow), and perhaps remodel sales lifts plus market share gains will all help fund it. Efficiency and market share gains are definitely a good thing, and there's no question that McDonald's needs to do things to make itself more competitive in a flat traffic environment. And the previous remodels have made the company's estate look far better than any of its competitors. But cash flow among operators has taken a hit of late, and the weak sales results more recently have not helped. $1.2 million/per store for various remodels and upgrades is a big lift. We told CEO Chris Kempczinski that some operators are still repaying their debt from the previous remodel. Here's what he said. He said a lot of other things also. restaurantbusinessonline.com…
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Maybe I'll just drive home from Dallas ...
JUST IN: U.S. air traffic control system is reportedly running on tech so old that the FAA has resorted to 3D printing & buying replacement parts on eBay, with its administrator saying: “We’re behind 20 years.”
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Does technology reduce the cost of operating a restaurant? Not necessarily. And that's a problem. 28.3% of restaurant operators said technology had "no significant impact" on their operating costs, per @WeRRestaurants. 28.8% said it reduced G&A 27.8% said it reduced food waste 22% said it reduced labor costs 20.4% said it reduced upfront costs 12% said it increased costs overall 7.9% were not sure. So 40%+ of operators say it either had no impact or actually increased costs. A big issue with technology is whether it has actually made the industry more efficient and that hasn't happened as much as you'd think, given just how much technology there is in the industry right now. So technology needs to bring customers in the door. But that isn't entirely evident, either, given the current state of restaurant sales and traffic.
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32% of operators said in April that the economy was their top challenge, per @WeRRestaurants, compared with 25% in August of last year. 19% said "sales volume" was their top challenge.
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15.8 million Americans work in foodservice. @WeRRestaurants expects that to grow to 17.3 million over the next decade.
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39% of consumers say they went to restaurants less compared with three months ago, compared with 23% who said they went more than they did three months ago, per @WeRRestaurants Chief Economist Chad Moutray.
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One-third of restaurant operators reported being unprofitable in the first half of 2026, per Chad Moutray, chief economist of the National Restaurant Association, at the FSTEC Conference. Profitability in the industry remains a major challenge.
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The coolest thing I did at the McDonald's Investor Day was see the archive and listen to the archivist Mike Bullington. Just an absolute thrill and one of the cooler things I’ve done in this job. The archive preserves McDonald’s history, providing key context for one of the most important and influential companies in U.S. history. “It’s not a closet of curiosities,” he said. “This is a business resource that supports all three legs of the stool: our owner-operators, our people here at MHQ and around the world, and our suppliers.” We saw a tape from 1972 on making “our new quarter-pound sandwiches.” When we asked how much stuff he has he said five semi-truck loads. They have all uniforms and Happy Meal toys. They have Ray Kroc’s original multi-mixer. And we saw a letter Ray wrote to company legend Fred Turner praising Fred for his “cooperative spirit.” And a lot more. When we asked what item he does not have but really wants: A 9-piece Chicken McNugget box from 1983. Anyway, ultra cool stuff.
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Here is a somewhat futuristic look at a potential @mcdonalds drive-thru AI. This is a video not an actual demo. And the geofencing technology that recognizes the loyalty members (which they’d opt into) is not in the wild yet. But this is where they’re headed. Drive-thru AI is being tested in 10 stores. The company says this can take 50 hours of labor out of the restaurant per week.
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The boba in @McDonalds drinks like this “Swicy Peach” are not boba but “bursted, or “popping pearls.” They’re smaller so they can fit in the normal straw. The company didn’t want to use a different type of straw to avoid complexity.
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The total cost for McDonald's U.S. store upgrades will be somewhere around $17 billion total, including typical remodels and Next improvements. Some will come from the company. Franchisees will fund the rest. Company planning efficiency improvement. $MCD
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McDonald's same-store sales were "slightly negative" in July and August. Company expects growth in September but expects current quarter comparable store sales will finish slightly negative. $MCD
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McDonald's CEO Chris Kempczinski says he is "100% confident" that the company and franchisees will come together on an "entry-level" value offer to replace the $3 and Under menu. $MCD
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McDonald's expects 4.5% new unit growth in 26 and 27. But that is expected to slow to 3% to 3.5% from 28-30. $MCD
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Here's the cost of McDonald's Next investments: $800k per restaurant in the U.S. But that is on top of the $400k-$450k cost of the normal remodel. The "Next" investments will be "phased" over time. Company says franchisees will get a 4-year payback. $MCD
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McDonald's AUVs are $4 million in the US. Average franchisee cash flow $500,000/restaurant. In its more developed global markets, volumes are $4.5 million, cash flow $400,000. $MCD
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Ian Borden saying that McDonald's is making "the largest upgrade to taste and quality" in the company's history. $MCD
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