Armed Polite Society
Main Forums => The Roundtable => Topic started by: Don't care on October 10, 2008, 12:01:07 PM
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Venezuela's government has shut all branches of restaurant chain McDonald's for 48 hours, citing tax irregularities, officials have said.
For the story:
http://news.bbc.co.uk/2/hi/americas/7663951.stm
Chavez often pulls stunts as this, just before he nationalizes that particular business or industry. I suspect that he uses his "tax audit" as a means to get a look at the business financials. However, given the unique makeup of McDonald's products, how would he plan to replenish the product without significantly changing it?
The United States has yet in recent times, gone to war with any country that has invested a significant FDI in a U.S. based corporation. I suspect that this may just be another warning signal of an armed conflict between the United States and Venezuela.
Not that Chavez won't deserve getting his ass kicked.
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Not a political topic.
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Chavez nationalizes McDonalds. McDonalds stops sending in proprietary supplies necessary to the operation of their business. All the nationalized McDonalds outlets then shut down. Chavez is left with squat. Too bad.
Although it will be hard on the folks that earn a wage working in those places.
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But then, if McD really cheated taxes or conducted other financial irregularities, it deserves to be punished. *shrugs*
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Chavez nationalizes McDonalds. McDonalds stops sending in proprietary supplies necessary to the operation of their business. All the nationalized McDonalds outlets then shut down. Chavez is left with squat. Too bad.
Although it will be hard on the folks that earn a wage working in those places.
And if Hugo just subbed in local equivalents? I mean really, how "proprietary" can burgers and fries be?
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But then, if McD really cheated taxes or conducted other financial irregularities, it deserves to be punished. *shrugs*
Sure, but I would trust the honesty of the McDonalds folks before I'd trust Chavez about anything.
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And if Hugo just subbed in local equivalents? I mean really, how "proprietary" can burgers and fries be?
Your basic burger patties and french fries aren't. But there are many proprietary supplies used in a typical chain eatery that are crucial to its brand and image. Those would go away, and so would the brand and image.
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And if Hugo just subbed in local equivalents? I mean really, how "proprietary" can burgers and fries be?
"Que es este carne?"
"Este carne es de rata."
"Rat? This is a rat burger?"
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Your basic burger patties and french fries aren't. But there are many proprietary supplies used in a typical chain eatery that are crucial to its brand and image. Those would go away, and so would the brand and image.
Like what? I'm honestly curious about what McD's stuff would be irrevocably damaged by creative subbing. Esp in a 3rd world situation where you don't have a lot of options.
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Sure, but I would trust the honesty of the McDonalds folks before I'd trust Chavez about anything.
A strategy of the second order could then mean that the company will do creative accounting or inventive taxes because everyone will think it is a wrong accusation of Chavez anyways. (My own opinion in this matter is 'more data needed', I just hate tax-cheaters)
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He's pulling a variant of the Jesse Jackson funding model: give me what I want and I'll go away.
He shuts down Mickey D's due to "irregularities." Mickey D's says "we're terribly sorry, what is the dollar value of the irregularities?" Chavez responds with a figure which Mickey D's pays, and the stores are reopened. Chavez's rainy day fund gets expanded.
Typical third world (or Chicago) shakedown.
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A strategy of the second order could then mean that the company will do creative accounting or inventive taxes because everyone will think it is a wrong accusation of Chavez anyways. (My own opinion in this matter is 'more data needed', I just hate tax-cheaters)
The problem is two fold.
One, the local restaurant branches are likely not owned by McD - it operates on a franchise system. Do you think it is okay to screw over the local owners because of something the company did?
Second, McD is likely being attacked not just because it is a restaurant, but because it is a symbol.
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A strategy of the second order could then mean that the company will do creative accounting or inventive taxes because everyone will think it is a wrong accusation of Chavez anyways. (My own opinion in this matter is 'more data needed', I just hate tax-cheaters)
The counter argument is that given who Chavez is, screwing around is likely to get someone (i.e. the local individuals who would need to be in on "cooking" the books) killed.
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The problem is two fold.
One, the local restaurant branches are likely not owned by McD - it operates on a franchise system. Do you think it is okay to screw over the local owners because of something the company did?
If the knowingly cooperated, otherwise not.
Second, McD is likely being attacked not just because it is a restaurant, but because it is a symbol.
Well, maybe, OTOH, I am probably guided by fear. If such a symbol made real tax and or balance fraud, the trust in the big companies would dwindle even further. Thus, I guess I imagined the worst case. As I said. I was only speculating.
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Smells like a shakedown to me.
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Language, Micro...
We all need to watch our language...
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He'll kick out the owners, nationalize it, and reopen. It will still say McDonalds and will serve a facsmile of the current product, only it will all be produced and supplied by Chavez. Not only will he get money from the supplies, he takes all the money from the retail side.
He doesn't give a rats rip whether or not McDonalds corporate has a problem with it. He's a shakedown artist writ large who, unfortunately, has enough power to get away with it. The only way to make him go away is to truly make him "go away".
Brad
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Like what? I'm honestly curious about what McD's stuff would be irrevocably damaged by creative subbing. Esp in a 3rd world situation where you don't have a lot of options.
There are proprietary food receipes and ingredients, I'm sure, but many of those could be creatively substituted for over the short term.
The branded non-food items are often more important to the image that a chain eatery projects. Everything from advertising to signage, packaging materials, cups and cutlery, interior decorations, etc. The list can be very extensive.
For some companies, there are special tools and equipment used to prepare food items unique to that establishment. If those tools cannot be repaired or replaced, then signature food items go off the menu.
If important brand-establishing items go away, then so does the brand. If the brand goes away, then so does much of the original appeal for patronizing an establishment.
In this case the only thing left would be the "McDonalds" sign over the door. Everything else about the place would be different, non-brand. It wouldn't be "McDonalds" anymore.
Edited to add:
Mind you, I am not saying Mickey D's is a good place to eat. In truth, I can hardly stand the joint, and eat there only in extremis.
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There are proprietary food receipes and ingredients, I'm sure, but many of those could be creatively substituted for over the short term.
The branded non-food items are often more important to the image that a chain eatery projects. Everything from advertising to signage, packaging materials, cups and cutlery, interior decorations, etc. The list can be very extensive.
For some companies, there are special tools and equipment used to prepare food items unique to that establishment. If those tools cannot be repaired or replaced, then signature food items go off the menu.
You presume that the populace would know the difference (which they should) and that they have the power do do a damn thing about it (which they don't).
Brad
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You presume that the populace would know the difference (which they should) and that they have the power do do a damn thing about it (which they don't).
Brad
True. Whether they would choose to continue patronizing the local McD's after Chavez makes them his own, is one of those "We'll have to wait and see what happens" things.
Hmmm...I wonder if suggestions would be made to the locals that continued patronage is...advisable? Would Chavez stoop that low?
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Hmmm...I wonder if suggestions would be made to the locals that continued patronage is...advisable? Would Chavez stoop that low?
Yes.
Brad
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RocketMan: I worked in a McDonald's for about two years during high school. This was around 4-6 years ago. There really isn't any equipment that couldn't be copied or subbed out, and copying a logo isn't that hard.
The quality might change a bit, but other than that, I don't see anything stopping Chavez if that's what he wanted to do.
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RocketMan: I worked in a McDonald's for about two years during high school. This was around 4-6 years ago. There really isn't any equipment that couldn't be copied or subbed out, and copying a logo isn't that hard.
The quality might change a bit, but other than that, I don't see anything stopping Chavez if that's what he wanted to do.
You'll notice that I said, "For some companies there are special...". When I wrote that I was not refering to McDonalds in particular. However, the rest does still apply. It just may not be readily apparent when one is flipping burgers. (Not meant as a dig at you, Regolith.)
If you stay with a company long enough to move up from the trenches, these things eventually become understood.
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It is fitting, in a way.
The chain was just taken over by a new clown.
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It is fitting, in a way.
The chain was just taken over by a new clown.
That gets a chuckle. :D
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You'll notice that I said, "For some companies there are special...". When I wrote that I was not refering to McDonalds in particular. However, the rest does still apply. It just may not be readily apparent when one is flipping burgers. It becomes very apparent when one gets into management or ownership of a brand.
You're going to have to be more specific as to what you're talking about, then. The food can be copied easily, as the equipment and ingredients used to make it are all fairly standard fair. And like I said before, its not hard to put a fake logo on a bunch of off-brand cups and cutlery, and the advertising isn't really that hard to pull off.
In fact, faking a restaurant chain would be fairly easy, as you can let the actual corporation to do all your thinking for you; all you have to do is imitate them. China does it all the time with US-produced gadgets - they had a working copy of the iPhone mere months after it came out, and in some cases it was better than the original. If it's that easy to reverse engineer a complicated piece of electronics, it shouldn't be all that hard to reverse engineer a franchise.
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It is fitting, in a way.
The chain was just taken over by a new clown.
:lol:
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You're going to have to be more specific as to what you're talking about, then. The food can be copied easily, as the equipment and ingredients used to make it are all fairly standard fair. And like I said before, its not hard to put a fake logo on a bunch of off-brand cups and cutlery, and the advertising isn't really that hard to pull off.
In fact, faking a restaurant chain would be fairly easy, as you can let the actual corporation to do all your thinking for you; all you have to do is imitate them. China does it all the time with US-produced gadgets - they had a working copy of the iPhone mere months after it came out, and in some cases it was better than the original. If it's that easy to reverse engineer a complicated piece of electronics, it shouldn't be all that hard to reverse engineer a franchise.
What you say is true to some extent. There is still an awful lot involved. Would Chavez go to all that trouble? Maybe, if he thought the return justified it.
Then again, he probably has very little real business sense, being a tried-and-true socialist. Those things may not even enter into his calculations.
In any event, a tempest in a teapot for us here in the USA. But it might be interesting to watch from afar.
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What you say is true to some extent. There is still an awful lot involved. Maybe, if he thought the return justified it.
Absolutely.
He's a tried and true socialist only to the extent that it gives him power. He has absolutely no qualms about squashing anyone when it comes to lining his own pockets.
Brad