Greg Solomon, CEO, McDonald's S.A., is among the lineup of high profile speakers booked for the event. We interviewed Solomon to explore what his presentation will be about…
“In an ever-changing and competitive landscape, there are questions being asked about the franchisee and franchisor model,” he explains. “To stay abreast of the ever-changing climate, and the troubling times in the local and global economy, franchise systems need to evolve. They need to become more adaptable than ever before.”
Solomon adds: “At McDonald’s we have a value called the three-leg stool: the franchisee, the franchisor and our supplier. We have to be interdependent of each other, not dependent on each other. When the one leg falls down, the stool falls down. We rely heavily on each other.”
“I rely on our franchise partners to innovate…and to have long deep partnerships with the corporation,” he says. “Just like the Nathu brothers, Prakash and Sanjay Nathu, who live the legacy of their father, Diru Nathu. Diru and I started our relationship 17 years ago, when he opened up the KwaZulu-Natal market in Old Fort McDonald’s. Unfortunately, Diru has passed, but he has left his business to his two sons - and they’ve grown his business from five restaurants to ten.
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He adds: “That’s deeper than a relationship between two individuals – it’s a relationship between two families. And when you have that ethos and that value, you have a franchise system that works.”
How Should Franchise Models Evolve?
“Sometimes it’s not about doing different things, it’s doing the same thing differently,” says Solomon. “And the franchisee/franchisor relationship will always exist, it’s just about how flexible we are, and how we look at our return on investment models…”
He notes that certain factors are forcing the old models to change, and these include external pressures such as governance and compliance, competition and growth strategies.
“We’re in the food business, and consumers need to feel comfortable,” he adds. “McDonald’s needs to lead, not only with our great real estate, but we need to be proud of our food. So we will continue to evolve with our food and lead with our menu…”