#481 McScramble

One more observation from the weekend, but this one is not about the inauguration itself, rather the journey there.  Twice we stopped at McDonald's to partake in their $1 any size beverage promotions.  Twice, at two different McDonald's, we had to weave our way through a construction zone to reach the counter.

Both restaurants were under renovation down to the studs.  The seating areas were entirely temporary tables and folding chairs.  The bathrooms had signs taped to the door and makeshift facilities.  The parking lots were full of cones.  Half of the counter was removed.  It was a serious rehabilitation in progress.

Some of you may know that McDonald's has been struggling with sales recently.  The firm reported its first sales decline in a decade and the worst quarterly sales growth performance in nine years.  It seems that they are responding by renovating their restaurants.

You don't have to have an MBA to do the quick math and realize that when sales are down it is a bad time to have capital expenses increase.  But beyond the cash flow challenges, there is added risk to the timing.

It is much smarter to innovate and remain current to keep your advantage rather than reacting to try and reclaim it.  Take a lesson from McDonald's and avoid becoming complacent with any lead you may have amassed.  The time to invest and invent is when things are good, not when you are playing catch up.

-- beth triplett
leadershipdots.blogspot.com

@leadershipdots
leadershipdots@gmail.com

Source:  Huffington Post Business, McDonald's Sales Fall For First Time in Nearly a Decade, 11/8/12