The McDonald’s National Owners Association held their annual conference this past November 2024. One of the keynote speakers was to be Larry Light.
If you are unfamiliar with the NOA, on its website, the NOA describes itself as follows:
“The National Owners Association (NOA) will positively impact the McDonald’s system by safeguarding our franchise model, the 3-Legged Stool, growing restaurant and Supplier cash flow, Owner equity, and advancing the McDonald’s Brand that our founders envisioned and entrusted to us.
“Through our focused efforts in Advocacy, Legislative Engagement, Leadership Development, NextGen Preparedness and Registered Applicant Support, the National Owners Association (NOA) will be stewards of the McFamily and provide a voice for every Owner/Franchisee to ensure long- term financial viability of all stakeholders.”
Larry Light was McDonald’s global chief marketing officer during the first McDonald’s turnaround beginning in 2003. When Larry Light arrived at McDonald’s the atmosphere was fairly grim. Some even said the atmosphere was funereal. McDonald’s share price was $12.
Larry was always enthralled by owner-operator conviction and commitment and continued to be moved by owner-operator energy. He recognized that with owner-operator alignment and enthusiasm, McDonald’s could be revitalized and contemporized, once again becoming a great brand.
Also, and importantly, Larry Light revered the principles generated by Ray Kroc, McDonald’s founder. These principles created a unique culture and heritage. Larry not only respected Ray Kroc’s wisdom, Larry lived Ray Kroc’s wisdom.
Unfortunately for the NOA, and for McDonald’s, Larry Light died before he could deliver his NOA speech. But, the speech he delivered to the NOA membership in 2018 is still as relevant as ever and it offers valuable insight for marketing oriented leaders in the quick service restaurant space and beyond.
NOA Speech, December 2018
Thank you for inviting me to your meeting. It is an honor to be here.
It has been a long time since I spoke to a group of McDonald’s owner-operators. I have always believed that you… are indispensable … for making this great brand what it is… and… what it will be.
In 2002… when I arrived at McDonald’s… Reggie Webb extended a hand … by inviting me to speak at the National Leadership Council meeting in January of 2003. At the time… there was pushback from headquarters. I was told the NLC event would be a big risk… it was too soon… I should watch what I said… and … not commit to … ANYTHING. Corporate forgot that there is no operational excellence without you. Marketing brings customers to the door… BUT… operational excellence keeps bringing them back for more.
At that 2003 NLC meeting … I was exhilarated by… your passion for the brand… your passion for the business… your conviction… and… your energy for not just requesting change… but demanding change.
Right now… I sense the same energy… the same get-up-and-go… galvanizing force of universal unity around this great brand.
Your undying dedication to defying the difficulties… to defeating daily distresses… to deftly dealing with the damages of distrust… is what continues to keep McDonald’s afloat. As I felt in 2003… I am still in awe of your endless… everlasting… enthusiasm for keeping the McDonald’s… brand … flame… alive.
Today… your collective… persistent passion is being put to the test.
Facing a crossroads… you have decided to take the high road of leadership… not the low road of followership. Rather than play defense… disagreeing with the decreed decisions… you have decided to take the offense… offering a new strategic path for the brand’s US success.
On this path… it is important to remember that whether corporate… or owner-operator… everyone shares the same goal… the enduring, profitable growth of the McDonald’s brand. McDonald’s is a beloved American brand. It is woven into the fabric of American life. McDonald’s is part of the American lifestyle… and America loves the McDonald’s experience.
But… there appears to be a problem: where is the strategy to make McDonald’s relevant to American customers? Instead of communicating the total brand experience… McDonald’s is confusing customers with a strategy of revenue-growth-at-any-cost. And… sadly… the US brand is told to implement initiatives that are designed for other countries…
Corporate dictates are damaging the brand. Higher prices… put the brand out of reach for its core customers causing a decline in traffic. The decline in traffic is being addressed by multiple product promotions… leading to a deal-based image… and a fickle deal-focused franchise base.
You have a right to be concerned.
You are concerned about the costs… and returns… of multiple re-imaging initiatives.
You are concerned about the complexity of the menu board… even after an initial promise to simplify.
You are concerned about the focus on brand attributes without a focus on brand experience.
You are concerned with lagging innovation relative to competitors. Innovation generates news and reasons to visit McDonald’s.
You are concerned about corporate’s focus on subtracting prices rather adding value. You are concerned that corporate believes price and value are the same.
And… you are concerned with corporate leadership’s … demonstrated… lack of respect for owner-operators … and for the owner-operator role in innovation … and decision-making.
Corporate does not listen to you. This lack of respect for owner-operators goes hand-in-hand with another concern…
Your perception that corporate wants to either circumvent… or obliterate… your owner-operator rights and responsibilities.
You have a right to be concerned about the brand direction… and its US implementation.
You have a right to have your ideas and views listened to … and treated with respect.
You have a right to expect that the McDonald’s way of decision-making… will be… followed.
McDonald’s is a great brand. Great brands have great aspirations. Great brands have great ambitions. Great brands each have a great sense of purpose. McDonald’s purpose is to be the customer’s favorite place and way to eat and drink.
This is a challenging vision of perfection. It will take hard work… persistence… and mutuality. Managing this brand for greatness is an ongoing process. And… there is no greater group of people to take up this pursuit than the McDonald’s owner-operators.
Here are a few things that must be accomplished now… for it is time to tackle the troubling trajectory of our great McDonald’s brand… while keeping its ever lovin’ flame alive.
First: Be Proud Of The McDonald’s Beliefs
Ray Kroc believed in a customer-focused… consistent… business infused with a true entrepreneurial feel….
He demanded self-reliance… and… he demanded that the business reflect individual contribution… with personal responsibility.
He believed that the business should be community involved: not just the community around the store… but the community of the McDonald’s McFamily… the three-legged stool.
Ray Kroc believed that people with extraordinary passion should run the business …
He believed in simple… basic values: honesty… integrity… and… humility. He created an ethical standard… and QSC & V… with TLC. (QSC&V = quality-service-cleanliness-value: Ray Kroc’s mantra)
He believed in continuous improvement… saying we could always do better… whatever we are doing.
He told us to do it first class … and that when we do… everyone else has to play catch-up. When we do it first class… we do not have to do it again.
Ray Kroc believed that it is right… to fight… for achievement. When asked if he was a difficult boss… he said, “Yes… I am an SOB… but I know one when I see one… and so I look for people to work with who are determined… tough… and ready to fight for what they want to believe.”
Remember this when your fight becomes challenging.
We must NEVER compromise nor lose sight of these core values.
Second: Stay Relevant In The U.S.
In 2002… McDonald’s had lost relevance. Our customers … had lost that lovin’ feeling for our brand. They had grown out of our brand… and… we had lost touch with them. The love lights were not shining on us. Customers had changed… and we had not.
Now… we are out of touch once again. We do not communicate who we are. We communicate what products and prices customers can receive. But… we do not communicate our McDonald’s meaningful message.
We are told that package goods initiatives …or initiatives designed for France, the UK, or someplace else… will work here.
Ideas do not care where they come from… BUT… wholesale imposition… and implementation is not a formula for success. Ideas must be adopted… then ADAPTED… before they can be scaled.
One important way to be relevant… is to change the way in which we speak to our customers. Customers do not want to be told what to do.
McDonald’s tends to default to an advertising voice that instructs customers on how they should feel… such as “you deserve a break”… “you are the one”… we do it all for you”… or “we love to see you smile” – so smile… damn it!
Customers’ responses to these dictates are: I do not need your permission… and why should I do it with you?
“i’m lovin’ it was originally presented as “McDonald’s you will love it”. Thankfully… someone a lot younger… and more attuned to Millennials… said “No! Stop telling me what to do!” So… we changed our voice to the I-voice: the voice of our customers expressing what they love about life… and how McDonald’s fits into that life.
Third: Focus On The Total Brand Experience
The McDonald’s core promise is dependable… consistent…familiar… informal. Yet our customers have an optimistic… youthful spirit. Our aim it to be the world’s favorite place to be and way to eat and drink… because we are Forever Young.
FOREVER… is our enduring foundation of familiarity and consistency… QSC&V… our fast and friendly service… our spotlessly clean restaurants… our quality… our wholesome offerings. FOREVER is our customer responsiveness… and our pride in serving. FOREVER is our local neighborhood involvement.
YOUNG… is the joy we bring to the very young … while appealing to those who are young at heart. Our character is fun… youthfully exuberant… modern…playful… positive… hopeful…energetic… entertaining. YOUNG… is our carefree way of having what you want… when you want… wherever you want… in whatever way you want to eat and drink.
FOREVER YOUNG… means we are consistent and always changing. McDonald’s has been there for customers… yet is also where they are in their life-stages.
FOREVER YOUNG… is an attitude… not a price point… not a menu item… not a kiosk.
FOREVER YOUNG… is about a relevant… differentiated… trustworthy… delicious food experience delivered fast.
FOREVER YOUNG… is a mindset about life… in which McDonald’s is a simple… enjoyable… experiential pleasure.
Fourth: Love Your Customers
In 2002… customers were fleeing the brand. The brand bucket was leaking. McDonald’s had trouble attracting new customers… and… keeping current customers. Core customers still visited McDonald’s… but not as frequently. Research showed the majority of McDonald’s most frequent customers did not favor eating at McDonald’s. They visited because we were so convenient… and so cheap.
Visiting McDonald’s because we are convenient … with low prices… is like frequenting your gas station. It means that the brand is a functional fueling station… rather than a delightful eating experience.
For the past five or six years… McDonald’s has… once again been losing core customers. Corporate chased after customers the brand did not have… at the expense of the customers the brand did have. The result? Instead of attracting core customers… we are losing core customers. Instead of expanding the customer base… the customer base is shrinking… and… becoming deal-loyal rather than real-loyal.
Core customers are valuable customers. Losing a small percentage of core customers… will account for a disproportionate amount of lost income for the brand. It will harm the brand’s image… and reputation.
Ray Kroc told us that our customers are king. We must give our customers TLC… the royal treatment… because serving our customer royalty … creates brand loyalty.
Merely promising foods and beverages that are affordable and convenient… is not brand marketing… it is commodity marketing. It is not enough to communicate affordability … and an easy way to have great tasting food.
Core customers connect with the brand … because McDonald’s delivers a surprising… delightful… uniquely McDonald’s … experience for the money… time… and effort. Keeping core customers is critical.
Fifth: Nothing Happens Until It Happens At Retail
In the store… that is where the McDonald’s experience happens. Yes… customers can take food away… or have food delivered…. But… the McDonald’s brand experience is created in the store and at the drive-thru… where the energy… excitement… anticipation… delight… are palpable.
Our restaurants are modern… welcoming… inviting… safe… clean. We create a comfortable… and comforting place… a place so vibrant that delightful moments are possible for everyone.
Ray Kroc said, “We are in the entertainment business”… McDonald’s is more than a piece of property: it is a fun place … a happy place… a hap, hap, happy place.
McDonald’s is a place that is warm and inviting… welcoming and exciting… offering personal experiences for all. McDonald’s is a people place….
Anyone can sell hamburgers… but not everyone can sell the McDonald’s brand experience.
A store is the brand-business frontline… it is where we grow the topline… and the bottom line. Our proud employees are an integral part of our frontline. At McDonald’s… our frontline can outshine any competitor’s. When executed well… our frontline puts our customers on cloud nine… that hap… hap… happy place. And… according to Ray Kroc… catering and serving people… so the people are king … is THE way to do it.
All cash flow begins at the front counter of your restaurant: you are the people closest to the every-single-day brand reality.
[PAUSE]
As I stand here… looking out at all of you owner-operators… I am reminded that working together works best. As a group… be united in your efforts. And… aim for collaboration instead of conflict…. The ultimate goal must be to turn concern… and conflict… into accomplishment… and triumph. We must all be aligned in order to turn brand uncertainty… into brand prosperity.
Now is the time to be decisive… not defensive. Defense alone… is not a winning strategy. It is time to find a creative way to shape the future. You must be creative… not just critical.
You need to stand up for what you stand for. You must no longer stand in the shadows… feeling weakened and worried. You must no longer watch… and wonder as to the brand’s next steps. The McDonald’s brand livelihood begins at your front door. So… you must not be afraid to stand at the brand forefront.
This gathering is all about the McDonald’s brand.
You have asked yourselves about having the commitment to take charge of your future… and you have answered “yes”.
You have asked yourselves about having the will to demonstrate real leadership… not followership… and you have said “yes”.
You have asked yourselves about having the courage to fight … for what is your right… and you have said “yes”.
You have asked yourselves about having the will to do… and the soul to dare… and you have said “yes”.
Everyone wants to win. But… not everyone has the will to win.
Having taken this step… you cannot stand down
You must stand tall. You must stand proud. You must stand together.
You must never sit still… but always stand tall.
In a memo from November 15, 1977… forty-one years ago… Ray Kroc … upon learning that some owner-operators were raising prices too high… wrote the following:
Value at McDonald’s is not only the tangible, but also the intangibles. The more reasons we give our customers to come to us, the more they will come. If we take better care of our customers, they will take care of us.
Let us never lose our humility of being servants to the public. Let’s let our competition make the mistake of seeing how high they can raise their prices while we continue to do what made us successful – QSC&V – plus that great intangible of Tender Loving Care.
Ray Kroc ended his memo, reminding people not to become too cocky and greedy, with this line: “McDonald’s is forever.”
Yes, Ray, McDonald’s is Forever… McDonald’s is Forever Young. And… we are committed to keep the McDonald’s flame alive
Thank you for inviting me into the McFamily… once again. I am so humbled by your gesture.
Larry Light passed away in June of 2024 after a remarkable career that leveled up the marketing discipline. Branding Strategy Insider paid tribute to him here.
Contributed to Branding Strategy Insider by: Joan Kiddon, Partner, The Blake Project, Author of The Paradox Planet: Creating Brand Experiences For The Age Of I
At The Blake Project, we help clients worldwide, in all stages of development, define or redefine and articulate what makes them competitive at critical moments of change. Please email us to learn how we can help you compete differently.
Branding Strategy Insider is a service of The Blake Project: A strategic brand consultancy specializing in Brand Research, Brand Strategy, Brand Growth and Brand Education
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