UNITED STATES OF AMERICA
BEFORE THE NATIONAL LABOR RELATIONS BOARD
ADMINISTRATIVE LAW JUDGE LAUREN ESPOSITO
McDONALD’S USA, LLC
and
FAST FOOD WORKERS COMMITTEE AND
SERVICE EMPLOYEES INTERNATIONAL
UNION, CTW, CLC, et al.
Cases 02-CA-093893, et al.
04-CA-125567, et al.
13-CA-106490, et al.
20-CA-132103, et al.
25-CA-114819, et al.
31-CA-127447, et al.
REPLY IN SUPPORT OF GENERAL COUNSEL’S MOTION FOR AN ORDER
COMPELLING MCDONALD’S COMPLIANCE WITH THE PARTIES’ PROTECTIVE
ORDER
Counsel for the General Counsel (“General Counsel”) submits this reply in support of his
motion for an order compelling McDonald’s USA, LLC (“McDonald’s”) to comply with the
Protective Order entered in this matter April 9, 2015 and modified upon consent of the parties
April 27, 2015 (“Order”). McDonald’s opposition brief fails to come to grips with the arguments
advanced in the General Counsel’s initial filing, mischaracterizes or misapprehends the
arguments made by the General Counsel,1 and attempts to distract the Court with irrelevancies.2
1
In particular, McDonald’s erroneously claims that the legal positions taken by the General
Counsel in two other disputes are inconsistent with its current motion contesting McDonald’s
“confidential” designations under the Protective Order : first, the General Counsel argued in a
subpoena enforcement proceeding that McDonald’s was not entitled to redact subpoenaed
documents at the time of production given that the Protective Order by its terms shields
McDonald’s documents that qualify as “confidential”; and, second, the General Counsel argued
that for purposes of admitting documents into evidence at trial (whether “sealed” or “unsealed”
under the Order), McDonald’s cannot plausibly refuse to acknowledge the authenticity of those
documents it has produced under subpoena and designated as “confidential”. In making this
accusation McDonald’s ignores the fundamental and obvious differences between the legal
obligation to produce subpoenaed documents in unredacted form, the evidentiary significance of
producing subpoenaed documents with a “confidential” designation, the question whether certain
documents or categories of documents qualify for “confidential” status under the terms of the
Protective Order, and the potential redaction of certain trial exhibits in the event that only
1
Notably, McDonald’s filing omits any mention of its violation of the Order by designating nearly
its entire production as confidential, contrary to the plain language of the Order. Accordingly, at
the very least the General Counsel’s request for a ruling on McDonald’s indiscriminate, mass
designation—with an appropriate remedy—stands unopposed and is effectively conceded.
Moreover, to the extent McDonald’s does attempt to address the propriety of the confidentiality
designations assigned to particular categories of documents, McDonald’s opposition fails to
accept that the terms of the Order—and common sense—preclude protecting as “confidential”
selected portions of those documents are found to warrant protection as “confidential” under the
Order.
As for the substance of McDonald’s inconsistency accusation, there is obviously no
inconsistency in arguing that for purposes of production pursuant to the subpoena and subject to
the Protective Order, redacting supposedly sensitive information is inconsistent with the purpose
of a protective order (in addition to being contrary to established legal principles and the terms of
the subpoena) and, on the other hand, arguing that the supposedly sensitive information is not
entitled to protection. McDonald’s attempts to recast the General Counsel’s argument as a
representation that McDonald’s “should not worry about public disclosure,” (Opp. at 1), is
contradicted by the content of the filings; your Honor is respectfully referred thereto for the
argument the General Counsel actually made (and which is accurately summarized above).
McDonald’s second assertion, regarding the conflict between its confidentiality designations and
its refusal to admit the authenticity of the documents for which it claims confidentiality, reduces
to the position, “The designations cannot be both inappropriate for purposes of this Motion but
the foundation of his [General Counsel’s] arguments in the Authenticity Motion.” (Opp. at 3,
n.1.) That statement, however, is simply false; the designations can easily play both roles. One
of General Counsel’s authenticity arguments is that McDonald’s act of designating documents as
confidential demonstrates that McDonald’s claims the documents belong to it. That claim of
ownership is inconsistent with the refusal to admit that the documents are authentic, but is not
inconsistent with the General Counsel’s claim that the designations are being inappropriately
applied to non-confidential information.
2
Whether the Service Employees International Union “has demonstrated outward [sic] hostility”
toward McDonald’s is obviously analytically independent of whether McDonald’s has properly
designated documents as confidential under the terms of the Order. (Opp. at 3.) The SEIU’s
purported attitudes therefore provide no basis for denying the General Counsel’s motion.
Proceeding from irrelevance to non sequitur, McDonald’s further argues that because OUR
Walmart may have disobeyed the terms of a protective order in a different case, McDonald’s has
reason to extend the confidentiality protections of the Order in this case to all the documents at
issue here. Id.
2
information that is readily available.
First, General Counsel anticipates that most of the documents identified in his January 6,
2016 letter to counsel for McDonald’s, attached as Exhibit 1 to General Counsel’s Motion for an
Order Finding Authenticity, will be admitted into evidence as exhibits in this matter and hence
constitute “judicial documents.” Those documents will therefore fall somewhere on the
spectrum “ranging from an “especially strong” presumption requiring “extraordinary
circumstances to justify restrictions,” United States v. Myers (In re Nat'l Broadcasting Co.), 635
F.2d 945, 952 (2d Cir.1980), to merely “one of the interests” that may bow before “good
reasons” to deny the requested access. Belo Broadcasting Corp. v. Clark, 654 F.2d 423, 434 (5th
Cir. Unit A 1981).” U.S. v. Amodeo, 71 F.3d 1044, 1048 (2d Cir. 1995) (emphasis in original).
For those documents, even if properly designated in accordance with the terms of the Order,
McDonald’s will have to show at least “good cause” to preclude their disclosure. McDonald’s
has not, in its opposition, come close to making the particular and specific demonstration of fact
required under the law to preclude disclosure. In re Parmalat Secs. Litig., 258 F.R.D. 236, 243
(S.D.N.Y. 2009); Wright, Miller & Marcus, Federal Practice and Procedure § 2035 (2d ed.
1994).
But independent of whether the documents are ever offered into evidence, the central fact
of the matter, which McDonald’s opposition fails to address, is that the documents at issue are
not entitled to protection under the terms of the Order because Section 2 of the Order exempts
publicly available information from those protections. Because each of the classes of documents
identified is readily available, McDonald’s designation of those documents as confidential or
highly confidential directly contradicts the terms of the Order and the documents do not merit the
special procedures set forth in that Order.
3
Starting with the franchise agreements, though McDonald’s fails to so admit, there is
simply no question that every term other than the specific dollar amount of the rent charged is a
matter of public record.3 As made plain in the Franchise Disclosure Document attached as
Exhibit 3 to the General Counsel’s initial Motion, every financial term of McDonald’s franchisee
agreement is specified in Items 5 and 6. Note 1 of the chart in McDonald’s Franchise Disclosure
Document specifies that every fee in that chart, other than the advertising fee of at least 4% of
gross revenues and the $79.80 e-mail fee, is “non-refundable and uniform,” indicating that those
fees are non-negotiable. Further, contrary to what McDonald’s suggests at page 9 of its
Opposition, the testimonial excerpt of Mr. Steinhilper attached thereto as Exhibit 2 undermines
the conclusion that rent amounts are open to negotiations; the cited testimony instead discusses
how the rent is “calculated” based on a formula Mr. Steinhilper is unable to describe. Indeed, it is
extremely puzzling that if, as counsel for McDonald’s suggests, rent is negotiable between
McDonald’s and a franchisee, Mr. Brethauer fails to explicitly say so in his declaration. Instead,
the opening sentence of paragraph six of his declaration is so vague it precludes drawing any
inferences therefrom.4
3
It is therefore quite puzzling what Mr. Brethauer can possibly mean when he says, in paragraph
six (6) of his sworn declaration, “McDonald’s maintains strict confidentiality of its franchise
agreements because they…contain confidential and proprietary business information, including
financial terms.” Not only are the franchise agreements, together with the incorporated operator
leases, set forth in McDonald’s own publicly distributed Franchise Disclosure Document, but as
Mr. Brethauer should be aware, McDonald’s franchise agreements are available in various court
records open to the public. Operator Lease form from 2014 Franchise Disclosure Document
attached hereto as Exhibit 1; Order Granting in Part and Denying in Part Defendants’
Administrative Motion to Seal, attached hereto as Exhibit 2, tabs 27–31 (denying motions to seal
five franchise agreements).
4
Succeeding sentences in that paragraph are equally uninformative. For instance, Mr.
Steinhilper there says, “Certain terms are subject to negotiations between McDonald’s and its
franchisees and certain portions are different for each franchisee.” That sentence would be true
if the only aspect of McDonald’s standard franchise agreement subject to negotiation were the
4
At any rate, even if one were to accept that McDonald’s has established that (i) its
franchise agreement rental amounts are open to negotiation and (ii) keeping its franchisees in the
dark about the rent terms it offers to other franchisees merits protection,5 that would only entitle
McDonald’s to have that specific term treated as subject to the Order; the remainder of the
franchise agreement merits no confidentiality whatsoever because it is already in the public
domain. Your Honor is under no obligation to join McDonald’s in ignoring this basic,
dispositive fact.
McDonald’s is equally wrong about QSC Playbook Version 6.0, which is in fact publicly
available. Indeed, McDonald’s should be aware of that fact, since the Playbook is part of the
public docket in Wilson v. McDonald’s Corp., 5:14-CV-11082 (E.D. Mich. Mar. 24, 2014) (Doc.
11-6, Exh. 1 to Decl. of Darin Dalmat). A copy of that document, with the court’s stamp
thereupon, is attached hereto as Exhibit 3. Further, the undersigned was able to access another
copy of the same QSC Playbook at
http://web.archive.org/web/20120417121941/http://dcclee.info/web_documents/qsc_playbook_2
011.pdf as recently as Saturday, January 23, 2016. Hence, because the QSC Playbook is fully in
starting date and such bargaining were limited to a five-day period. That assertion therefore
comes nowhere close to establishing that any of the economic terms of the franchise agreements
and leases are negotiable. The deposition testimony of Mr. Steinhilper comes much closer to
establishing the opposite.
5
“[D]isclosure would harm McDonald’s interests in negotiations with other franchisees.” (Opp.
at 8.) Because McDonald’s is, as it says in its 10-K filing with the Securities and Exchange
Commission, “primarily [] a franchisor,” its franchisees are its primary customers and the rents
charged those entities are part of the fee McDonald’s charges those customers. As Judge
McMahon has noted, if disclosure of those fees “allows other customers…to better understand
their rights vis a vis their licensor, that is not a “competitive disadvantage” of the sort that
protective orders and Rule 26 were intended to prevent.” Saks, Inc. v. Attachmate Corp., No. 14
CIV. 4902 CM, 2015 WL 1841136, *18 (S.D.N.Y. Apr. 17, 2015).
5
the public domain, the Order provides that confidentiality designations are inapplicable to it.6
The same is therefore true of Evolving Action Plans and Full and Short Operations
Reviews, all of which are fully discussed in that publicly available Playbook. (Exh. 3, pp. 48–
49, 50–97, and 98–119.) Indeed, complete instructions and both types of reviews are set out in
full therein and are hence in the public domain. Further, all three types of documents, as well as
Business Reviews, versions of McDonald’s National Franchising Standards, and versions of
McDonald’s National Restaurant Building and Equipment Standards are publicly available on
the docket in the Ochoa matter. Copies of such are attached hereto as Exhibits 4–14.
McDonald’s assertion that the order to unseal documents in the Ochoa matter was “inconsistent
with the view of a majority of federal courts,” (Opp. at 12), is entirely beside the point.7 Because
these documents are demonstrably available to the public, the terms of the Order compel the
conclusion that they are ineligible for the designations McDonald’s has given them in this case.
In short, there is very good reason to grant the General Counsel’s motion to “dedesignate” the foregoing classes of documents. McDonald’s contention otherwise, especially in
the context of its pervasive violation of the Order in designating nearly every document it has
6
Because QSC Playbook Version 7 is all but identical to Version 6.0, it is similarly ineligible for
designation as confidential or highly confidential.
7
Similarly off the mark is McDonald’s argument that because the documents in the Ochoa case
relate to franchises that are not respondents in this matter, those documents are not relevant to
the confidentiality designations claimed here. (Opp. at 12.)
6
produced in response to the subpoena as confidential or highly confidential, is strong evidence of
bad faith and vexatious conduct designed only to delay this proceeding.
Dated: New York, New York
January 25, 2016
________________________________
Jamie Rucker, Esq.
National Labor Relations Board, Region 2
26 Federal Plaza, Room 3614
New York, NY 10278
jamie.rucker@nlrb.gov
(212) 264-0355
Rachel V. See, Esq.
National Labor Relations Board
1015 Half Street, SE
Washington DC 20570
rachel.see@nlrb.gov
(202) 273-3848
Counsel for the General Counsel
7
Exhibit 1
EXHIBIT G
OPERATOR’S LEASE
[CITY, STATE]
[Address]
L/C: __________
File: __________
EXHIBIT A TO FRANCHISE AGREEMENT
OPERATOR’S LEASE
TABLE OF CONTENTS
Article 1
Sec.
SUMMARY OF FUNDAMENTAL LEASE PROVISIONS
1.01 Term
1.02 Rent
1.03 Legal Description
1.04 Liability Insurance Limits
1.05 Attachments, Exhibits and Addenda
1
1
1
1
1
Article 2
Sec.
PREMISES AND TERM
2.01 Premises
2.02 Term
2.03 Quiet Enjoyment
2.04 Use of Premises
2.05 Rule Against Perpetuities
2.06 Construction and Delivery of Building and Other Improvements
2.07 Acceptance of Premises
2.08 Tenant’s Compliance With Various Requirements
1
2
2
2
2
2
2
3
Article 3
Sec.
RENT, TAXES, RECORDS AND REPORTS
3.01 Rent
3.01 (A) Basic Rent and Pass Thru Rent
3.01 (B) Percentage Rent
3.01 (C) Definition of “Gross Sales”
3.01 (D) Taxes and Assessments
3.01 (E) Other Charges and Expenses
3.01 (F) Method and Proof of Payment
3.02 Records
3.03 Reports
3.03 (A) Default in Reporting
3.03 (B) Inspection of Records by Landlord
3.04 No Abatement of Rent
3.05 Interest on Delinquencies
3.06 Lien for Rent
3
3
3
4
4
5
5
5
5
6
6
6
6
6
i
TABLE OF CONTENTS (Continued)
Article 4
Sec.
OBLIGATIONS OF TENANT
4.01 Utilities
4.02 Maintenance and Repair
4.03 Alterations
4.04 Surety
4.05 Liens Against Property
4.06 Assignment by Tenant
4.07 Franchise Agreement
6
7
7
7
7
7
8
Article 5
Sec.
FIXTURES AND EQUIPMENT
5.01 Fixtures
5.02 Removal of Tenant’s Property
8
8
Article 6
Sec.
INSURANCE AND DAMAGE TO PROPERTY
6.01 Liability Insurance
6.02 Rental Insurance
6.03 Property Insurance
6.04 Placement and Policies of Insurance
6.05 Repair and Replacement of Buildings
8
8
8
9
9
Article 7
Sec.
RIGHTS OF LANDLORD
7.01 Inspection by Landlord
7.02 Indemnity for Litigation
7.03 Waiver of Claims
7.04 Re-entry Upon Default
7.05 Holding Over
7.06 Remedies Cumulative
7.07 Waiver
7.08 Accord and Satisfaction
7.09 Right to Perform for Tenant
7.10 Condemnation
7.11 Subordination and Non-Disturbance
10
10
10
11
12
12
12
12
12
12
13
Article 8
Sec.
MISCELLANEOUS
8.01 No Agency Created
8.02 Recording of Lease
8.03 Force Majeure
8.04 Paragraph Headings
8.05 Invalidity of a Provision
8.06 Law Governing
8.07 Entire Agreement
8.08 Parties Bound
8.09 Notices or Demands
14
14
14
14
14
14
14
15
15
ii
OPERATOR’S LEASE
THIS LEASE shall be considered effective the same date as the Franchise Agreement to which
it is attached (the “Franchise Agreement”). The term “Landlord,” when used in this Lease, shall
refer to McDonald’s USA, LLC, a Delaware limited liability company, and the term “Tenant,”
when used in this Lease, shall refer to the undersigned Tenant.
In consideration of the mutual promises contained in this Lease, the parties agree as follows:
ARTICLE 1 SUMMARY OF FUNDAMENTAL LEASE PROVISIONS
1.01 Term: (See Article 2.02) The term of this Lease will begin on ______________ and
end on ______________.
1.02 Rent: See Article 3.01 and Schedule B, attached.
1.03 Legal Description: See Schedule A and Article 2.01.
1.04 Liability Insurance Limits: $5,000,000 per occurrence/$5,000,000 aggregate.
1.05 Attachments, Exhibits and Addenda:
This Lease includes the following
Attachments, Schedules and Addenda which will take precedence over conflicting provisions (if
any) of this Lease, and they are made an integral part of this Lease and are fully incorporated
into it by this reference.
(i)
Schedule A – Legal Description
(ii)
Schedule B – Rent
(iii)
Schedule C – Landlord’s Interest Addendum
(iv)
Schedule D – Head Lease dated ______________ with amendments dated
______________.
(v)
Schedule E – ______________________________________________
References in this Article to the other Articles in this Lease are for convenience and to
designate some of the other Articles where references to particular Fundamental Lease
Provisions will be made. If there is any conflict between a Fundamental Lease Provision and
the balance of the Lease, the former will control.
ARTICLE 2 PREMISES AND TERM
2.01 Premises: Landlord leases to Tenant the real estate described in Schedule A,
attached, together with all easements and appurtenances and all buildings and improvements
located on the real estate (all of which are collectively referred to in this Lease as “the
Premises”).
The Premises are subject to any easements, conditions, encumbrances,
restrictions, and party wall agreements, if any, of record and roads and highways and zoning
and building code restrictions existing on the date of this Lease.
1
2.02 Term: The term of this Lease will be as indicated in Article 1.01, subject, however, to
any rights set forth in this Lease for the earlier termination of the Lease term. At the request of
either party, a supplement establishing the beginning and ending dates of this Lease shall be
executed. Landlord may establish the beginning date by notifying the Tenant in writing of the
date it recognizes as the beginning date of the term.
2.03 Quiet Enjoyment: Landlord promises that Tenant, upon paying the rent and all other
charges provided for in this Lease, and upon observing and keeping all Tenant’s obligations, will
lawfully and quietly hold, occupy and enjoy the Premises during the term of this Lease, without
hindrance or interference by anyone claiming by, through or under Landlord, subject to the
terms of this Lease and any mortgage or encumbrance now or hereafter placed on the
Premises by Landlord.
2.04 Use of Premises: Tenant will use and occupy the Premises solely for a McDonald’s
Restaurant selling only such products and operating in a manner that may be designated by
McDonald’s USA, LLC. Tenant agrees to continuously occupy the Premises during the term of
this Lease and agrees not to vacate them. A breach of this provision will be deemed to be
substantial. If Tenant vacates the Premises during the term of this Lease, Landlord will have
the right, in addition to its other rights and remedies, to enter the Premises for the purpose of
continuing the operation of the McDonald’s Restaurant; and, if Landlord so elects, Landlord
shall be entitled to all profits, if any, from the operation of the restaurant. Tenant further agrees
to conduct its restaurant business in a manner that will maximize Gross Sales. Tenant agrees
to purchase, install and maintain, all at its own expense, signs and trade fixtures and equipment
in accordance with the plans, specifications and layouts of McDonald’s USA, LLC, or any of its
subsidiaries, unless these items have been furnished by Landlord.
2.05 Rule Against Perpetuities: If the term of this Lease or the accrual of rent have not
commenced within one (1) year from date of execution of this Lease, this Lease will become null
and void and of no further force and effect. The sole remedy of Tenant in such case is the
return of any monies paid to Landlord in anticipation of this Lease.
2.06 Construction and Delivery of Building and Other Improvements: Landlord will
construct or have others construct or remodel or otherwise prepare the Premises for a
McDonald’s Restaurant in accordance with the then current plans and specifications of
McDonald’s USA, LLC. The Premises will be delivered to Tenant when they are sufficiently
completed to allow Tenant to install, at Tenant’s sole cost and expense, the signs, trade fixtures,
equipment and other personal property and improvements necessary to complete the Premises
for the operation of a McDonald’s Restaurant, unless otherwise provided in Article 1.03. Tenant
will promptly and diligently perform its work in accordance with the plans and specifications
previously submitted by or to Tenant and approved by Landlord and in compliance with all
applicable federal, state and local statutes, codes and regulations. Tenant will do all that is
reasonably necessary to promptly open the restaurant as soon as possible after delivery of the
Premises to the Tenant.
2.07 Acceptance of Premises:
By taking possession of the Premises, Tenant
acknowledges that Tenant has inspected the Premises and the improvements thereon and
found them to be in a safe, satisfactory, and completed condition, ready for occupancy and the
installation of trade fixtures, equipment and signage. All warranties as to the condition of the
Premises or its fitness for use, either expressed or implied, are expressly waived by Tenant.
Tenant may, however, receive certain warranties and guarantees, by separate agreement, from
2
McDonald’s USA, LLC or one of its subsidiaries; but those warranties will be personal
covenants, only, and will not be binding upon the successors and assigns of Landlord.
2.08 Tenant’s Compliance With Various Requirements: Tenant may not use or permit
any person to use the Premises or any part of it for any use in violation of federal, state or local
laws, including, but not limited to, present and future ordinances or other regulations of any
municipality in which the Premises are situated. Tenant will not use or permit any person to use
the Premises or any building thereon for the manufacture or sale of intoxicating liquor of any
kind whatsoever. Except as provided below, Tenant may not operate any coin or token
operated vending or similar device for the sale of any goods, wares, merchandise, food,
beverages or services, including but not limited to, pay telephones, pay lockers, pay toilets,
scales, amusement devices, and machines for the sale of beverages, foods, candy, cigarettes
or other commodities. One coin operated newspaper vending machine, Playplace games and
one pay telephone may be installed, if they are in compliance with Landlord’s current written
policy on the installation and maintenance of these items. During the term of this Lease, Tenant
will keep the Premises and all buildings in a clean and wholesome condition and repair and will
maintain the Premises so that they fully comply with all lawful health and police regulations.
Tenant will conduct the McDonald’s Restaurant on the Premises strictly in accordance with the
terms and provisions of the Franchise Agreement. Tenant will minimize all cooking odors and
smoke, maintain the highest degree of sanitation and comply with all ordinances, orders,
directives, rules and regulations of all governmental bodies, bureaus and offices having
jurisdiction over Tenant and over the Premises.
Landlord makes no warranties or
representations as to the state of such ordinances, rules, orders and directives, regulations, and
Tenant acknowledges that Tenant has independently investigated them and will comply with
them. Landlord makes no warranties or representations that the Premises, when accepted by
Tenant, conform with the Federal, State or Industrial Safety Codes. Tenant will obtain, keep in
full force and effect, and strictly comply with, all governmental licenses and permits which may
be required for Tenant’s use and occupancy of the Premises and the operation of the
McDonald’s Restaurant.
ARTICLE 3 RENT, TAXES, RECORDS AND REPORTS
3.01 Rent: Tenant promises to pay rent to Landlord, without offset or deduction, as follows:
A.
Basic Rent and Pass Thru Rent: Tenant will pay monthly to Landlord the Basic Rent
and any Pass Thru Rent, if applicable, as indicated in Schedule B, attached. The first payment
of Basic Rent and Pass Thru Rent, if applicable, will be due and payable on the commencement
date of the term, and the subsequent monthly rental payments, including any Pass Thru Rent,
will be due thereafter, in advance, on or before the first day of every succeeding calendar
month. If the date of commencement of rent occurs on a day other than the first day of the
month, the first rental payment (of Basic Rent, Pass Thru Rent, if any, and Percentage Rent, if
any) will be adjusted for the proportionate fraction of the whole month so that all rental
payments, other than the first, will be made and become due and payable on the first day of
each month.
B.
Percentage Rent: In addition to the Basic Rent and Pass Thru Rent, if applicable,
Tenant promises to pay Percentage Rent to Landlord in the amount and during the periods set
forth in Schedule B, attached, on all Gross Sales from the Premises in excess of the Monthly
Base Sales set forth in Schedule B, attached. See Article 3.03 for the manner of payment of
Percentage Rent.
3
C. Definition of “Gross Sales”: For the purposes of this Lease, the term “Gross Sales”
will mean all receipts (cash, cash equivalent, credit or redeemed gift certificates) or revenue
from sales by Tenant, and of all others, from all business conducted upon or from the Premises,
whether such sales be evidenced by check, cash, credit, charge account, exchange or
otherwise, and will include, but not be limited to, the amount received from the sale of goods,
wares and merchandise, including sales of food, beverages and tangible property of every kind
and nature, promotional or otherwise, and for services performed at the Premises, together with
the amount of all orders taken or received at the Premises, all as may be prescribed or
approved by the Franchise Agreement. Gross Sales will not include sales of merchandise for
which cash has been refunded, or allowances made on merchandise claimed to be defective or
unsatisfactory, provided that such returned or exchanged merchandise will have been
previously included in Gross Sales. Gross Sales will not include the amount of any sales tax
imposed by any federal, state or other governmental authority directly on sales and collected
from customers, provided that the amount of the tax is added to the selling price and actually
paid by Tenant to such governmental authority. Each charge or sale upon installment or credit
will be treated as a sale for the full price in the month during which such charge or sale is made
irrespective of the time when Tenant receives payment (whether full or partial). In addition,
Landlord may, from time to time, permit or allow certain other items to be excluded from Gross
Sales. However, any such permission or allowance may be revoked or withdrawn at the
discretion of Landlord and will not stop Landlord from requiring strict compliance with the terms
of this Lease.
D. Taxes and Assessments: In addition to the Basic Rent, the Pass Thru Rent, if
applicable, and the Percentage Rent, Tenant will pay directly to the taxing authority, when due,
all real estate taxes and special and general assessments that are levied or assessed against
the Premises during the term or any extension of this Lease. Tenant agrees to provide to
Landlord, if requested, copies of paid invoices and such other documentation evidencing
payment of taxes as may be reasonably requested by Landlord. If Tenant shall default in the
payment of any obligation herein required to be paid by Tenant, then Landlord may pay the
same together with any penalty or interest levied on the tax bill, and Tenant will be obligated to
repay Landlord on demand for such payment, together with interest on all past due obligations,
including interest on the penalty and interest levied under this provision.
(a) First and Last Year: All real estate taxes and general and special assessment
payments of every nature paid during the first and last year of the term of this Lease will be
prorated. This tax proration will be based upon the fiscal year of the taxing authority levying
the tax, using the percentage of the taxes payable during the first or last tax fiscal year that
Tenant actually occupies, or had the right to occupy, the demised Premises. The party
paying such taxes shall be entitled to reimbursement from the other party for its pro rata
share upon demand and the presentation of an itemized statement with copies of all
appropriate documentation evidencing payment.
(b) Rent Taxes: Tenant will also pay promptly, when due, any tax which is levied or
assessed against the rental, real or tangible personal property, whether or not called a rental
tax, excise tax, sales tax, gross receipts tax, tax on services or otherwise; and Tenant will
promptly reimburse Landlord for any similar tax which Landlord is required to pay or, in fact,
does pay. Such payment or reimbursement will not be deducted from Gross Sales.
(c) Personal Property Taxes: Tenant agrees to pay all personal property taxes levied
upon the fixtures, equipment and other improvements located on the Premises whether
installed and paid for by Tenant or Landlord. The personal property taxes for the first and
4
last year of the term of this Lease will be prorated in the same manner as the real estate
taxes and assessments.
(d) Appeal: Subject to Landlord’s rights, Tenant, at Tenant’s sole expense, is authorized
and hereby permitted to contest and appeal property tax assessments on the demised
Premises, and Landlord will cooperate with and assist Tenant in any reasonable manner.
E.
Other Charges and Expenses: Any other charge or expense of any nature which
Landlord may be required to pay by virtue of Landlord’s interest in the Premises (including, but
not limited to, common area maintenance charges, merchant’s association’s dues, utility
charges, fees and taxes and security service fees – collectively referred to as “other charges”)
will be promptly paid by Tenant to the party to whom they are due as additional charges.
Landlord will provide Tenant with information necessary for Tenant to pay the other charges
prior to, or as soon as possible after, the commencement of the term of this Lease. Until Tenant
receives this information, Tenant will not be responsible for the other charges.
F.
Method and Proof of Payment:
(a) Tenant shall, at all times, participate in Landlord’s automatic debit/credit transfer
program as specified by Landlord from time to time for the payment of all amounts due
Landlord pursuant to this Lease. Tenant shall execute and deliver to Landlord such
documents and instruments as may be necessary to establish and maintain said automatic
debit/credit transfer program.
(b) With respect to Articles 3.01(D) and (E), above, or any other provision in this Lease
which requires or contemplates Tenant first paying other charges or expenses, Landlord
may, at its exclusive option, elect to make such payments directly to the taxing authority,
Head Landlord (if applicable), utility company or other party due a payment for which Tenant
is liable under this Lease. If Landlord wishes to exercise this option, Landlord will notify
Tenant in writing of its election. From that time on, Landlord shall make such payments
directly, and all penalties and expenses thereafter accruing shall be the responsibility of
Landlord. If Landlord elects to make any payment directly, Tenant shall, nonetheless, be
responsible for making payment to Landlord for any payment Landlord will make, or makes,
within ten (10) days of Tenant’s receipt of a billing advice from Landlord.
3.02 Records: Tenant will keep and preserve upon the Premises complete written records
of all Gross Sales conducted in any calendar or business year for a period of three (3) years, in
a manner and form satisfactory to Landlord. Tenant will permit Landlord or Landlord’s
representatives to examine or audit the records at any and all reasonable times, and will, upon
Landlord’s request, explain the method of keeping records. The books and records will include
cash register tapes, properly identified, over-ring slips, sales journals, general ledger, profit and
loss statements, balance sheets, purchase invoices, bank statements with canceled checks and
deposit advices, corporate books and records, management company books, including, but not
limited to, minute books and stock certificate books, state sales tax returns, federal income tax
returns, retailer’s occupation tax returns or similar returns required to be filed by the state in
which the Premises are located.
3.03 Reports: By 11:00 a.m. Central Standard Time of the first business day of each
month, Tenant will deliver to Landlord, in the manner specified by Landlord from time to time, a
statement by Tenant or Tenant’s authorized representative, reflecting Gross Sales during the
preceding month. Tenant will pay to Landlord on or before ten (10) days after the end of each
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calendar month during this Lease all sums due based upon Gross Sales as shown in the
statement for the period covered by the statement. Within thirty (30) days following the
expiration of each calendar year of the term of this Lease, Tenant will deliver to Landlord at the
place last fixed for the payment of rent, a statement of Gross Sales for the preceding calendar
year (certified, at Tenant’s expense, if requested by Landlord, by a Certified Public Accountant
of good standing and reputation in the state in which the Premises are located) which will show
Gross Sales separately for each monthly period during the preceding year.
A.
Default in Reporting: Upon failure of Tenant to prepare and deliver promptly any
monthly or annual statement required by this Lease or to make any required payment, Landlord
may elect to treat Tenant’s failure as a substantial breach of this Lease entitling Landlord to
terminate this Lease and Tenant’s right to possession of the Premises.
B.
Inspection of Records by Landlord: If Landlord is dissatisfied with statements
furnished by Tenant, Landlord may notify Tenant, and Landlord, at its option, may then examine
Tenant’s books or have a Certified Public Accountant selected by Landlord examine Tenant’s
books. If such examination discloses any underpayment of Percentage Rent, Tenant will
promptly pay the deficient amount. If Tenant contests such deficiency, Landlord will then
appoint an independent auditor to examine Tenant’s books and records. If the independent
audit confirms that there has been an underpayment exceeding two percent (2%) of the
Percentage Rent, as represented by Tenant, Tenant will, in addition to the above, reimburse
Landlord for the cost of the auditor’s examination.
3.04 No Abatement of Rent: Except as provided in this Lease, damage to or destruction
of any portion or all of the buildings, structures and fixtures upon the Premises, by fire, the
elements or any other cause, whether with or without fault on the part of Tenant, will not
terminate this Lease or entitle Tenant to surrender the Premises or entitle Tenant to any
abatement of or reduction in the rent payable, or otherwise affect the respective obligations of
the parties, any present or future law to the contrary notwithstanding, subject to Article 6.05 in
this Lease.
3.05 Interest on Delinquencies: If the Tenant is past due on the payment of any amount
due Landlord, under this Lease, including accrued interest, the Tenant shall be required, to the
extent permitted by law, to pay interest on the past due amount to the Landlord for the period
beginning with the original due date for payment to the date of actual payment at an annual rate
equal to the highest rate allowed by law or, if there is no maximum rate permitted by law, then
fifteen percent (15%). Such interest will be calculated on the basis of monthly compounding
and the actual number of days elapsed divided by 365.
3.06 Lien for Rent: Tenant grants to Landlord a lien upon all Tenant’s property located on
the Premises, from time to time, for all rent and other sums due from Tenant to Landlord under
the provisions of this Lease.
ARTICLE 4 OBLIGATIONS OF TENANT
4.01 Utilities: Tenant will pay directly all charges for gas, electricity, or other utilities, sewer
charges, taxes and driveway fees, if applicable, and for all water used on the Premises as such
charges become due. Tenant’s obligation to pay the foregoing charges will commence five (5)
days after Tenant’s equipment is delivered to the Premises.
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4.02 Maintenance and Repair: Tenant will, at its expense, (a) keep the entire Premises,
all improvements, utility lines and Tenant’s or Landlord’s fixtures and equipment at all times in
good repair, order or condition; (b) replace all broken, damaged or missing personal property,
fixtures or equipment; and (c) at the expiration of the term of this Lease, whether by lapse of
time or otherwise, surrender the Premises in good repair, order and condition, ordinary wear
and tear excepted, and loss by fire and other casualty excepted to the extent that provision for
such exception may elsewhere be made in this Lease. Upon request of Landlord, Tenant will
remove all signs and other identifying features from the Premises. Tenant’s obligation to make
repairs to the Premises will include all repairs, whether ordinary or extraordinary, including
structural repairs to the foundation, floors, walls and roof.
4.03 Alterations: Tenant shall not make any change in, alteration of, or addition to any
part of the Premises, or remove any of the buildings or building fixtures without, in each
instance, obtaining the prior written consent of Landlord and complying with all governmental
rules, ordinances and regulations.
4.04 Surety: Before commencement of any construction or installation of any structure,
fixture, equipment or other improvement on the Premises, or of any repairs, alterations,
additions, replacement or restoration in, on or about the Premises, Tenant will give Landlord
written notice specifying the nature and location of the intended work and the expected date of
commencement. Tenant will deposit with Landlord, if requested by Landlord, a certificate or
other evidence satisfactory to Landlord that Tenant has obtained a bond or that Tenant’s
building contractor, if any, has furnished a bond in favor of Landlord, with a surety approved by
Landlord, guaranteeing the performance and completion of all work free and clear of all liens
arising from such work. Landlord reserves the right to withhold its approval of any proposed
construction, improvement, repair, alteration or replacement and, without limiting the generality
of the foregoing, may require as a condition of its approval that it be permitted to review and
approve any contract entered into by Tenant regarding such notices as may be necessary to
protect Landlord against liability for liens and claims.
4.05 Liens Against Property: Nothing in this Lease will authorize Tenant to do any act
which will in any way encumber the title of Landlord to the Premises. The interest or estate of
Landlord or the fee owner in the Premises, if Landlord is not the fee owner, will not in any way
be subject to any claim by lien or encumbrance, whether by operation of law or by virtue of any
express or implied contract by Tenant. Tenant will not permit the Premises to become subject
to any mechanics’, laborers’ or materialsmen’s lien for labor or material furnished to Tenant in
connection with work of any character performed or claimed to have been performed on the
Premises by or at the direction of, or sufferance of, Tenant.
If any lien is filed against the Premises or Tenant’s interest in this Lease, at Landlord’s
option, Tenant will either pay the amount of the lien in full or will, upon demand of Landlord,
provide and pay for a non-cancelable bond, placed with a reputable company, approved by
Landlord, in an amount deemed sufficient by Landlord, insuring the interest of Landlord and any
mortgagee from any loss by reason of the filing of such lien. Tenant will immediately pursue in
good faith its legal remedies to remove a lien on the Premises.
4.06 Assignment by Tenant: Tenant will not allow or permit any transfer of this Lease or
any interest in this Lease by operation of law, or assign, convey, mortgage, pledge or encumber
this Lease or any interest in this Lease, or permit the use or occupancy of the Premises or any
part thereof without, in each case, obtaining Landlord’s prior written consent. No assignment
(with or without Landlord’s consent) will release Tenant from any of its obligations in this Lease.
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Notwithstanding the foregoing, Landlord shall consent to an assignment by Tenant of his rights
and interest in this Lease if the Tenant complies with the terms and conditions of the Franchise
Agreement pertaining to the assignment of the Franchise Agreement.
4.07 Franchise Agreement: Tenant will comply with and perform all covenants contained
in the Franchise Agreement. Tenant’s breach of any of the terms and covenants of the
Franchise Agreement will also constitute a breach of this Lease. Termination, expiration,
default or revocation of the Franchise Agreement for any reason, either in whole or in part, will
also terminate this Lease, without further notice being required.
ARTICLE 5 FIXTURES AND EQUIPMENT
5.01 Fixtures: All buildings and improvements and all plumbing, heating, lighting, electrical
and air conditioning fixtures and equipment and all other articles of property which, at the date
Tenant takes possession of the Premises, are the property of Landlord or of the fee owner of
the Premises are and will remain a part of the real estate and be considered to be leased in this
Lease. Any additions, alterations or remodeling of improvements made to the Premises will
immediately become the property of Landlord and will not be removed by Tenant at the
termination of this Lease by lapse of time or otherwise.
5.02 Removal of Tenant’s Property: At or prior to the termination of this Lease, whether
by lapse of time or otherwise, Tenant will, subject to any rights of Landlord under the Franchise
Agreement, remove all of its personal property and trade fixtures from the Premises and will
repair any damage to the Premises which may have been caused by such removal.
ARTICLE 6 INSURANCE AND DAMAGE TO PROPERTY
6.01 Liability Insurance: Tenant will pay for and maintain during the entire term of this
Lease the following insurance:
A.
Worker’s Compensation Insurance prescribed by law in the state in which the
Premises are located and Employer’s Liability Insurance with $100,000/$500,000/$100,000
minimum limit. If the state in which the Premises are located allows the option of carrying no
Worker’s Compensation, and Tenant chooses to exercise that option, Tenant shall nonetheless
carry and maintain other insurance with coverage and limits as approved by the Landlord.
B.
Commercial General Liability Insurance in a form approved by Landlord, on an
occurrence basis, with limits as described in Article 1.04.
C.
Fire Legal Liability Insurance with minimum limits of $500,000 per occurrence.
6.02 Rental Insurance: Tenant will maintain and keep in force rental insurance in an
amount equal to not less than the total of one (1) year’s Basic Rent and Pass Thru Rent, if
applicable, as specified in Article 1.02 of this Lease.
6.03 Property Insurance: Tenant will maintain and keep in force, all risk insurance,
including flood, earthquake and earth movement coverage, upon the Premises, fixtures,
operational equipment, signs, furnishings, decor, plate glass and supplies, in a full replacement
cost form obligating the insurer to pay the full cost of repair or replacement. It is intended that
neither Landlord nor Tenant will be a co-insurer, and to that end, if the insurance proceeds are
not adequate to rebuild the building or other improvements located on the Premises, Tenant will
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be obligated for the difference between the proceeds obtained and the actual cost of the
restoration of the Premises, fixtures, operational equipment, signs, furnishings, decor, plate
glass and supplies.
6.04 Placement and Policies of Insurance: All insurance policies required to be carried in
this Lease will name Landlord and any party designated by Landlord as additional insured. All
policies will be effective on or prior to the date Tenant is given possession of the Premises for
the purpose of installing equipment, and evidence of payment of Premiums and duplicate copies
of policies of the insurance required in this Lease will be delivered to Landlord at least thirty (30)
days prior to the date that Tenant opens for business or thirty (30) days prior to the expiration
dates of an existing policy of insurance. All policies of insurance will include as an additional
insured any mortgagee, as its interest may appear, and will include provisions prohibiting
cancellations or material changes to the policy until thirty (30) days prior written notice has been
given to Landlord.
If Tenant should fail to obtain the required insurance, Landlord may, but is not obligated to,
purchase the insurance, adding the premiums paid to Tenant’s monthly rent. Tenant may
authorize Landlord to purchase and to administer the required minimum insurance on Tenant’s
behalf. However, Landlord, by placement of the required minimum insurance, assumes no
responsibility for premium expense nor guarantees payment for any losses sustained by
Tenant. Landlord may relieve itself of all obligations with respect to the purchase and
administration of the required insurance coverage by giving ten (10) days written notice to
Tenant.
All insurance will be placed with a reputable insurance company licensed to do business in
the state in which the Premises are located and having a financial size category equal to or
greater than IX and a policyholders rating of “A +” or “A”, as assigned by Alfred M. Best and
Company, Inc., unless otherwise approved by Landlord. Tenant further agrees to increase the
various insurance coverages specified above from time to time upon the written request of
Landlord to meet changing economic conditions and requirements imposed upon Landlord
under the Landlord’s Head Lease (if applicable) and loan agreements, if any.
6.05 Repair and Replacement of Buildings: If the building on the Premises is damaged
by fire or any other casualty, Landlord will, within a reasonable time from the date of the
damage or destruction, repair or replace the building so that Tenant may continue in occupancy.
Landlord’s obligation to rebuild or restore the Premises will, however, be only to the extent of
insurance proceeds recovered. Basic Rent and any Pass Thru Rent required to be paid in this
Lease will not abate during the period of untenantability. If the building cannot be replaced or
repaired within a reasonable time due to the inability of Landlord to obtain materials and labor,
or because of strikes, acts of God or governmental restrictions that would prohibit, limit or delay
the construction, then the time for completion of the repair or replacement will be extended
accordingly. However, in any event, if the repair or replacement of the building has not been
commenced within a period of one (1) year from the date of the damage or destruction, Tenant
or Landlord may, at their option, terminate this Lease. If any damage or destruction occurs
during the last five (5) years of the term of this Lease to the extent of fifty percent (50%) or more
of the insurable value of the building, Landlord may, by notice to Tenant within forty (40) days
after the occurrence of the damage or destruction, in lieu of repairing or replacing the building,
elect to terminate this Lease as of the date of the damage or destruction. Tenant hereby
expressly waives and releases any and all claims against Landlord for damages in case of
Landlord’s failure to rebuild or restore the building in accordance with the provisions of this
Article. Tenant’s sole remedy for any such failure will be to elect to terminate this Lease as of
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the date of occurrence of the damage or destruction. If the building and other improvements are
not repaired, restored or replaced, for any reason, all proceeds of the all risk coverage
insurance applicable to the building and other permanent improvements will be paid and given
to Landlord. Tenant agrees to execute and deliver any release or other document Landlord may
request to obtain the release or control of the proceeds.
If Landlord repairs and restores the Premises, as required above, Tenant agrees to promptly
repair, replace, restore or rebuild Tenant’s leasehold improvements, equipment and furnishings
(“Tenant’s Improvements”) in accordance with the current standards and specifications for
McDonald’s Restaurants upon notice from Landlord that the Premises are ready for Tenant’s
Improvements. Tenant agrees to submit for Landlord’s approval, all plans and specifications for
Tenant’s Improvements to Landlord within thirty (30) days after Landlord delivers its plans and
specifications for the restored Premises to Tenant.
ARTICLE 7 RIGHTS OF LANDLORD
7.01 Inspection by Landlord: Landlord or any authorized representative of Landlord may
enter the Premises at all times during reasonable business hours for the purpose of inspecting
the Premises.
7.02 Indemnity for Litigation: If Landlord becomes subject to any claim, demand or
penalty or becomes a party to any suit or other judicial or administrative proceeding by reason
of any act occurring on the Premises, or by reason of an omission with respect to the business
or operation of the McDonald’s Restaurant, Tenant will indemnify and hold Landlord harmless
against all judgments, settlements, penalties, and expenses, including reasonable attorney’s
fees, court costs and other expenses of litigation or administrative proceeding incurred by or
imposed on Landlord in connection with the investigation or defense relating to such claim or
litigation or administrative proceeding. At the election of Landlord, Tenant will also defend
Landlord.
Tenant will pay all costs and expenses, including reasonable attorney’s fees, which may be
incurred by Landlord in enforcing any of the covenants and agreements of this Lease. All such
costs, expenses and attorney’s fees will, if paid by Landlord, together with interest, be additional
rent due on the next rent date after such payment or payments.
7.03 Waiver of Claims: Landlord and Landlord’s agents and employees will not be liable
for, and Tenant waives claims for, damage to persons or property sustained by Tenant or any
person claiming through Tenant resulting from any accident or occurrence in or upon the
Premises or the building of which they are a part, including, but not limited to, claims for damage
resulting from: (a) equipment or appurtenances becoming out of repair; (b) Landlord’s failure to
keep the building or the Premises in repair; (c) injury done or occasioned by wind, water or other
natural element; (d) any defect in or failure of plumbing, heating or air conditioning equipment,
electric wiring or installation thereof, gas, water and steam pipes, stairs, porches, railings or
walks; (e) broken glass; (f) the backing up of any sewer pipe or downspout; (g) the bursting,
leaking or running of any tank, tub, washstand, water closet, waste pipe, drain or any other pipe
or tank in, upon or about such building or Premises; (h) the escape of steam or hot water (it
being agreed that all the foregoing are under the control of Tenant); (i) water being upon or
coming through the roof, skylight, trapdoor, stairs, walks or any other place upon or near such
building of the Premises or otherwise; (j) the falling of any fixture, plaster or stucco;
(k) interruption of service of any utility.
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7.04 Re-entry Upon Default: If (a) Tenant defaults in the payment of any installment of
Basic Rent, Pass Thru Rent or Percentage Rent or any additional sum due in this Lease;
(b) Tenant defaults in any of the covenants, agreements, conditions or undertakings to be
performed by Tenant other than the payment of rent (Basic Rent, Pass Thru Rent, Percentage
Rent or additional charges) and such default continues for ten (10) days after notice in writing to
Tenant; (c) Tenant defaults in any of the terms of the Franchise Agreement or if the Franchise
Agreement should terminate, whether by lapse of time or otherwise; (d) proceedings in
bankruptcy or for liquidation, reorganization or rearrangement of Tenant’s affairs are instituted
by or against Tenant; (e) a receiver or trustee is appointed for all or substantially all of Tenant’s
business or assets on the grounds of Tenant’s insolvency; (f) a trustee is appointed for Tenant
after a petition has been filed for Tenant’s reorganization under the Bankruptcy Act of the United
States; (g) Tenant makes an assignment for the benefit of its creditors; or (h) Tenant vacates or
abandons the Premises, then in any of the above events, Landlord, at its election, may declare
the term of this Lease ended and, either with or without process of law, re-enter, expel, remove
and put out Tenant and all persons occupying the Premises under Tenant, using such force as
may be necessary in so doing, and repossess and enjoy the Premises. Such re-entry and
repossession will not work a forfeiture of the rents to be paid or terminate the covenants to be
performed by Tenant during the full term of this Lease.
Upon the expiration of the term of this Lease by reason of any of the events described
above, or in the event of the termination of this Lease or right to possession by summary
dispossession proceedings or under any provision of law now or at any time in force, whether
with or without legal proceedings, Landlord may, at its option, relet the Premises or any part for
the account of Tenant and collect the rents therefor, applying them first to the payment of
expenses Landlord may have in recovering possession of the Premises, including legal
expenses and attorney’s fees, and for putting the Premises into good order or condition or
preparing or altering the same for re-rental, expenses, commissions and charges paid, assumed
or incurred by Landlord in reletting the Premises, and then to the fulfillment of the covenants of
Tenant in this Lease. Any such reletting may be for the remainder of the term of this Lease or
for a longer or shorter period. In any case and whether or not the Premises or any part thereof
is relet, Tenant will pay to Landlord the Basic Rent, Pass Thru Rent, if applicable, Percentage
Rent, any additional charges, and all other charges required to be paid by Tenant up to the time
of termination of this Lease, or of recovery of possession of the Premises by Landlord, as the
case may be. Thereafter, Tenant covenants and agrees, if required by Landlord, to pay to
Landlord, until the end of the term of this Lease, the equivalent of the amount of all the Basic
Rent and Pass Thru Rent, if applicable, reserved in this Lease, Percentage Rent, and all other
charges required to be paid by Tenant, less the net income of reletting, if any. These payments
will be due and payable by Tenant to Landlord on the rent days above specified. In any of the
circumstances described above, Landlord will have the election to recover against Tenant, as
damages for loss of the bargain and not as a penalty, an aggregate sum which, at the time of
such termination of this Lease, or of such recovery of possession of the Premises by Landlord,
represents the then present worth of the excess, if any, of the aggregate of the Basic Rent,
Pass Thru Rent, if applicable, Percentage Rent, and all other charges payable by Tenant in this
Lease that would have accrued for the balance of the term over the aggregate rental value of
the Premises for the balance of the term. Percentage Rent for purposes of this Article shall be
deemed to mean the Percentage Rent which Landlord can show could be generated from the
Premises but in no event less than the greatest amount of Percentage Rent paid by Tenant
during any year. Nothing in this Lease contained will limit or prejudice Landlord’s right to prove
and obtain as liquidated damages arising out of such breach or termination the maximum
amount allowed by any statute or rule of law which may govern the proceeding in which such
damages are to be proved.
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7.05 Holding Over: Tenant will not hold over beyond the expiration or sooner termination
of the term of this Lease. If Tenant does hold over, it will give rise to a tenancy at the sufferance
of Landlord upon the same conditions as are provided for in this Lease with a monthly rental for
the period of such holding over which is double the Basic Rent, Pass Thru Rent, if applicable,
and Percentage Rent last paid by Tenant during the term of this Lease, and interest thereon, as
liquidated damages, and not as a penalty. Landlord’s acceptance of any rent after holding over
begins does not renew this Lease. This provision does not waive Landlord’s rights of re-entry or
any other right in this Lease resulting from Tenant’s breach of the covenant not to hold over or
any other breach in this Lease.
7.06 Remedies Cumulative: The remedies in this Lease granted to Landlord will not be
exclusive or mutually exclusive, and Landlord will have such other remedies against Tenant as
may be permitted in law or in equity at any time. Any exercise of a right of termination by
Landlord will not be construed to eliminate any right of Landlord to damages on account of any
default of Tenant.
7.07 Waiver: No delay or omission of Landlord to exercise any right or power arising from
any default will impair any such right or power or will be construed to be a waiver of any such
default or an acquiescence under this Lease. No waiver of any breach of any of the covenants
of this Lease will be held to be a waiver of any other breach or waiver, acquiescence in or
consent to any further or subsequent breach of the same covenant. The rights in this Lease
given to receive, collect or sue for any rent, monies or payments or to enforce the terms,
provisions and conditions of this Lease, or to prevent the breach or non-observance thereof, or
to exercise any right or remedy in this Lease, will not in any way affect the right or power of
Landlord to declare the term ended and to terminate this Lease because of any default in or
breach of any of the covenants, provisions or conditions of this Lease.
7.08 Accord and Satisfaction: No payment by Tenant or receipt by Landlord of a lesser
amount than the monthly rent in this Lease stipulated will be deemed to be other than on
account of the earliest stipulated rent, nor will any endorsement or statement on any check or
any letter accompanying any check or payment as rent be deemed an accord and satisfaction.
Landlord may accept such check or payment without prejudice to Landlord’s right to recover the
balance of such rent or pursue any other remedy provided for in this Lease.
7.09 Right to Perform for Tenant: If Tenant should fail to perform any of its obligations
under the provisions of this Lease, Landlord, at its option, may (but will not be required to) do
the same or cause the same to be done. In addition to any and all other rights and remedies of
Landlord, the cost incurred by Landlord in connection with such performance by Landlord will be
an additional charge due from Tenant to Landlord, together with interest thereon at the
maximum rate permitted by law in the state in which the Premises are located on the next rent
date after such expenditure or, if there is no maximum rate permitted by law, at fifteen percent
(15%) per annum.
7.10 Condemnation: If the entire Premises are condemned under eminent domain, or
acquired in lieu of condemnation, for any public or quasi-public use or purpose, all rentals and
taxes or other charges will be paid to that date, and Tenant will have the right to make a claim
for the value of its leasehold estate. Tenant will, also, have the right to claim and recover such
compensation as may be separately awarded for any and all damage to Tenant’s business by
reason of the condemnation and for any cost or loss to which Tenant might be put in removing
Tenant’s merchandise, furniture, equipment and other personal property. Tenant specifically
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waives and releases any claim it may have, however, for the value of the building, fixtures and
other improvements on the Premises whether or not installed or paid for by Tenant. Tenant
further agrees to subordinate any claim it may have to Landlord’s claim for the value of the
improvements.
If only a part of the Premises is taken or condemned and Landlord determines that the
operation of a McDonald’s Restaurant on the Premises is no longer economically feasible or
desirable, Landlord may at any time, either prior to or within a period of sixty (60) days after the
date when possession of the Premises will be required by the condemning authority, elect to
terminate this Lease. If Landlord fails to exercise its option to terminate this Lease or will not
have any such option, Landlord will (1) with reasonable promptness, make necessary repairs to
and alterations of the improvements on the Premises for the purpose of restoring it to
substantially the same use as that which was in effect immediately prior to such taking, to the
extent that may be necessary by the condemnation; and (2) be entitled to the entire award for
such partial taking. If Landlord does not elect to terminate this Lease, Tenant’s Basic Rent and
Pass Thru Rent, if applicable, will be reduced by a fraction, the numerator of which will be the
total condemnation award or settlement and the denominator of which will be the fair market
value of the Premises, prior to the taking, as determined by an independent appraiser selected
by the Landlord.
7.11 Subordination and Non-Disturbance: This Lease and all of Tenant’s rights, title and
interest under the Lease will be subject, subordinated and inferior to the lien of any and all
mortgages and to the rights of all parties under any sale and leaseback of the Premises and to
any and all terms, conditions, provisions, extensions, renewals or modifications of any such
mortgage or mortgages or sale and leaseback which Landlord or any grantee of Landlord
(collectively hereafter called “Fee Owner”) has or may place upon the Premises and the
improvements thereon, in the same manner and to the same extent as if this Lease had been
executed subsequent to the execution, delivery and recording of such mortgage or of the deed
and lease under the sale and leaseback. This provision is intended to include the right of any
grantee or Landlord under a sale and leaseback to further encumber the property with one or
more mortgages, all of which are declared to be superior to the interest of Tenant in this Lease.
If a mortgagee or any other person acquires title to the Premises pursuant to the exercise of
any remedy provided for in such mortgage, or in the event of the default under the Lease related
to a sale and leaseback of the Premises, Tenant’s right of possession will not be disturbed
provided (a) Tenant is not then in default under this Lease and (b) Tenant attorns to such title
holder. Tenant agrees that upon a mortgage foreclosure it will attorn to any mortgagee or
assignee or any purchaser at the foreclosure sale (collectively called “Purchaser”) as its
Landlord and in the case of a default under the terms of the lease used in a sale and leaseback,
it will attorn to the Fee Owner of the Premises as its new Landlord and, in either event, this
Lease will continue in full force and effect as a direct Lease between Tenant and such party
under all of the terms of this Lease. If there is a foreclosure of a mortgage placed on the
property by a grantee under a sale and leaseback, such attornment will be required only if, at
the time of such foreclosure, the Lease used in the sale and leaseback is also in default.
The subordination of this Lease to any mortgagee of Fee Owner provided for in this Lease
or to any Lease under a sale and leaseback arrangement will be automatic and self-operative,
and no special instrument of subordination will be necessary. Without limiting such automatic
and self-operative subordinations, however, Tenant will, on demand, at any time or times,
execute, acknowledge and deliver to Fee Owner, without expense to Fee Owner, any and all
instruments that may be necessary or proper to evidence the subordination of this Lease and all
13
rights in this Lease to the lien of any such mortgage, or to any such lease under a sale and
leaseback arrangement. If Tenant fails, at any time, to execute, acknowledge and deliver any
such subordination instrument within five (5) days after receipt of the notice, in addition to any
other remedies available, Landlord may execute, acknowledge and deliver the same as the
attorney-in-fact on Tenant’s behalf; and Tenant hereby irrevocably makes, constitutes and
appoints Landlord, its successors and assigns, such attorney-in-fact for that purpose.
ARTICLE 8 MISCELLANEOUS
8.01 No Agency Created: Tenant will have no authority, express or implied, to act as
agent of Landlord or any of its affiliates for any purpose. Tenant is, and will remain, an
independent contractor responsible for all obligations and liabilities of, and for all loss or
damage to, the Premises, including any personal property, equipment, fixtures or real property
connected with them and for all claims or demands based on damage or destruction of property
or based on injury, illness or death of any person or persons, directly or indirectly, resulting from
the operation of the McDonald’s Restaurant located on the Premises.
8.02 Recording of Lease: Tenant will not record this Lease without the written consent of
Landlord. However, upon the request of either party, the other party will join the execution of a
memorandum or a so-called “short-form” of this Lease for the purpose of recordation. The
memorandum or short form of this Lease will describe the parties, the Premises and the term of
this Lease and will incorporate this Lease by reference. The party requesting execution of the
memorandum will bear all costs for recording it.
8.03 Force Majeure: Whenever a period of time is provided in this Lease for either party to
do or perform any act or thing, except the payment of monies, neither party will be liable for any
delays due to strikes, lockouts, casualties, acts of God, war, governmental regulation or control
or other causes beyond the reasonable control of the parties, and in any event the time period
for the performance of an obligation in this Lease will be extended for the amount of time of the
delay. This Article will not apply to, or result in, an extension of the term of this Lease.
8.04 Paragraph Headings: Headings in this Lease are for convenience only and are not to
be construed as part of this Lease and will not be construed as defining or limiting in any way
the scope or intent of the provisions of this Lease.
8.05 Invalidity of a Provision: If any term or provision of this Lease will to any extent be
held invalid or unenforceable, the remaining terms and provisions of this Lease will not be
affected, but each term and provision of this Lease will be valid and be enforced to the fullest
extent permitted by law. If any material term of this Lease is stricken or declared invalid,
Landlord reserves the right to terminate this Lease at its sole option.
8.06 Law Governing: The terms and provisions of this Lease will be governed by the laws
of the State of Illinois.
8.07 Entire Agreement: This Lease and the Franchise Agreement will be deemed to
include the entire agreement between the parties, and it is agreed that neither Landlord nor
anyone acting in its behalf has made any statement, promise or agreement or taken upon itself
any engagement whatever, verbally or in writing, in conflict with the terms of this Lease, or that
in any way modifies, varies, alters, enlarges, or invalidates any of its provisions, or extends the
term of this Lease, and that no obligations of Landlord will be implied in addition to the
obligations expressed in this Lease. This agreement cannot be changed orally but only by an
14
agreement in writing signed by Landlord and Tenant. Nothing in this Lease or in any related
agreement, however, is intended to disclaim the representations made in the Franchise
Disclosure Document furnished to Tenant.
8.08 Parties Bound: The terms of this Lease will extend to and be binding upon the
administrators, executors, heirs, assigns and successors of the parties, subject to the terms of
Article 4.06.
8.09 Notices or Demands: All notices to or demands upon Landlord or Tenant given
under any of the provisions of this Lease will be in writing. Any notices or demands from
Landlord to Tenant will be deemed to have been duly and sufficiently given if a copy has been
delivered personally or mailed by United States registered or certified mail in an envelope
properly stamped and addressed to Tenant at the address of the Premises. Any notices or
demands from Tenant to Landlord will be deemed to have been duly and sufficiently given if
mailed by registered or certified mail in an envelope properly stamped and addressed to
Landlord at One McDonald’s Plaza, Oak Brook, Illinois 60523, Attention: Director, U.S. Legal
Department. Mailed notices shall be deemed received three (3) business days after being
deposited in the U.S. Mail. Either party, by notice, may change the address to which notice will
be sent, but all notices mailed to Tenant at the address of the restaurant on the Premises will be
deemed sufficient.
To indicate their consent to this Operator’s Lease the parties, or their authorized
representatives or officers, have signed this document.
LANDLORD: McDONALD’S USA, LLC
TENANT:
By:
Date Signed:
Location Code:
Prepared by:
15
Addition to Schedule A if there is excess property:
[CITY, STATE]
[Address]
L/C: __________
File #: __________
EXCESS PROPERTY ADDENDUM
1. Landlord and Tenant acknowledge that the Premises includes excess property which will not be
used in the operation of the McDonald’s Restaurant developed on the Premises. The excess
property is included in the legal description described on Schedule A of this Lease.
2. If the Landlord, in its sole discretion, is able to sell or lease the excess property during the term of
this Lease, Tenant agrees to amend this Lease to accomplish the following:
A. The Premises shall be amended to delete the excess property so that it will no longer be
leased to Tenant.
B. The Premises will be made subject and subordinate to easements that may be needed for
access, utilities, drainage, signs or any other necessary use to properly or conveniently
develop the excess property. Landlord agrees that no such easements or reservations shall
unreasonably interfere with the continuing operation of the McDonald’s Restaurant, and all
costs, expenses and liabilities associated with the easements or any other use of the Premises
shall be assumed by the Landlord.
3. Notwithstanding the deletion of the excess property from the Premises, the Tenant’s rent shall
remain as stated in this Lease and shall not be reduced. However, Tenant shall be reimbursed by
Landlord for an amount equal to approximately all of Tenant’s costs for real estate taxes,
insurance and maintenance of the excess property up to an amount not to exceed the Landlord’s
gain on any sale or disposition of the excess property. The gain or loss on the disposition of the
excess property shall be determined by subtracting the net book value of the excess property from
the net proceeds of the Landlord’s sale or other disposition of the excess property. If the excess
property is leased by Landlord, the gain or loss shall be determined by subtracting the net present
value of the rental payments to be received by Landlord from the net present value of all of
Landlord’s rental payments or Landlord’s net book value associated with the excess property.
4. If the excess property is developed in such a manner as to provide for common access, parking,
utilities or other easements that benefit both the Premises and the excess property, Tenant agrees
to pay a pro rata share of the cost of maintaining and repairing such common access, parking,
utilities or other easements as set forth in the written agreements.
5. The effective date of the above described amendment shall be the date of closing of the sale of
the excess property, if sold, or the date the rent commences, if it is leased.
SCHEDULE A
R3067 LT RBFL
SITE
FILE
SEQ
REGION
STORE:
RE:
INITIAL
1
0050 L
:
:
:
:
PROJECTED
RENT TERMS
COMMENCEMENT DATE
EXPIRATION DATE
MONTHLY
BASIC
RENT
PERCENT
RENT
MONTHLY
BASE
SALES
PASS THRU
RENT #
ADDL PROP
RENT #
COMMENCEMENT OF TERM
REMAINDER OF TERM
#
If rental amounts are shown in these columns, these amounts are to be paid monthly.
SCHEDULE B
REACQUISITION/
RENEGOTIATION
RENT #
[CITY, STATE]
[Address]
L/C: __________
File #: __________
LANDLORD’S INTEREST ADDENDUM
(McDonald’s USA, LLC Leased Property)
1. LANDLORD’S INTEREST IN PREMISES: Landlord holds a leasehold interest in the Premises or
a portion of the Premises under the Head Lease described in Article 1.05.
2. COMPLIANCE WITH HEAD LEASE: Tenant acknowledges and agrees that the terms and
conditions of this Lease are subject and subordinate to the terms and conditions of the Head
Lease and any subsequent amendments to it. If there are any inconsistencies between this Lease
and the Head Lease, the more restrictive obligations of the Head Lease will prevail. Tenant will
not, in its use and enjoyment of the Premises, suffer or permit any condition to exist, or do, or omit
to do, anything which would give rise to any right of the landlord under the Head Lease (“Head
Landlord”) to terminate the Head Lease or any rights of Landlord. Tenant will perform, comply
with and discharge all obligations which Landlord is required to comply with and discharge under
the Head Lease, including, but not limited to, payment of all charges, costs and expenses as set
forth in Article 3.01 of this Lease. Such payments shall not, however, include payment of
Landlord’s basic monthly rental obligations under the Head Lease.
3. TENANT’S STATEMENTS AND CERTIFICATES: Without limiting the generality of the foregoing,
Tenant agrees to promptly provide to Landlord insurance policies or certificates, off-set
statements, statements of sales, mechanic’s lien waivers, notices, releases and any other
statement, record or document which may be required, from time to time, by the Head Landlord
under the terms of the Head Lease. All certificates or policies of insurance so required will also
name the Head Landlord as co-insured or additional insured, as the case may be.
4. ENFORCEMENT OF LANDLORD’S RIGHTS UNDER HEAD LEASE: It is acknowledged that
the Head Landlord may have certain obligations under the Head Lease to maintain and repair the
Premises and adjoining areas, pay real estate taxes, assessments and special charges and
impositions, restore, replace or rebuild the Premises and adjoining areas in the event of damage
by fire and other causes, carry and pay for certain types of insurance policies and perform other
obligations set forth in the Head Lease. If these obligations exist, Landlord agrees to make a
good faith effort to obtain the timely and faithful performance of Head Landlord’s obligations, but
Landlord will not be in default or breach of any of its covenants and duties under this Lease or be
liable for any resulting loss or claim of Tenant if Landlord is not able to enforce its rights under the
Head Lease. With respect to Landlord’s obligation to repair and restore the Premises in the event
of damage or destruction by fire or any other cause, Landlord’s obligations are conditioned upon
Landlord obtaining the cooperation and approval of the Head Landlord, as it may be required, and
the compliance of Head Landlord with all of Head Landlord’s duties under the Head Lease; and
Landlord will not be liable to Tenant for any damage, claim or injury resulting from Landlord’s
inability to repair or restore the Premises due to a default or breach of the Head Lease by the
Head Landlord.
5. INTENT OF THE PARTIES: It is the intent of the parties to enter into a sublease between
Landlord and Tenant and not to make an assignment of the Head Lease. The parties further
acknowledge that it is their intent that there be no merger of either Landlord’s or Tenant’s interest
in this Lease and fee title if either party acquires a fee interest in the Premises at any time after the
execution of this Lease. In such event, this Lease will remain in full force and effect and will
determine the rights, duties and obligations of the parties.
SCHEDULE C
[CITY, STATE]
[Address]
L/C: __________
File #: __________
LANDLORD’S INTEREST ADDENDUM
(McDonald’s Corporation Leased Property)
1. LANDLORD’S INTEREST IN PREMISES: Landlord holds a leasehold interest in the Premises or
a portion of the Premises through an internal lease(s) with McDonald’s Corporation and/or its
affiliated companies (McDonald’s Corporation and/or its affiliated companies are hereafter referred
to as “McDonald’s”) (“McDonald’s Internal Lease Documentation”) as may be amended from time
to time. The McDonald’s Internal Lease Documentation does not increase Tenant’s obligations
under this Lease. The McDonald’s Internal Lease Documentation requires Landlord to meet all of
the obligations of the tenant under the Head Lease described in Article 1.05.
2. COMPLIANCE WITH HEAD LEASE: Tenant acknowledges and agrees that the terms and
conditions of this Lease are subject and subordinate to the terms and conditions of the Head
Lease and any subsequent amendments to it. If there are any inconsistencies between this
Lease, McDonald’s Internal Lease Documentation and the Head Lease, the more restrictive
obligations of the Head Lease will prevail. Tenant will not, in its use and enjoyment of the
Premises, suffer or permit any condition to exist, or do, or omit to do, anything which would give
rise to any right of the landlord under the Head Lease (“Head Landlord”) to terminate the Head
Lease or any rights of Landlord and/or McDonald’s. Tenant will perform, comply with and
discharge all obligations which Landlord is required to comply with and discharge under the Head
Lease, including, but not limited to, payment of all charges, costs and expenses as set forth in
Article 3.01 of this Lease. Such payments shall not, however, include payment of the basic
monthly rental obligations under the Head Lease.
3. TENANT’S STATEMENTS AND CERTIFICATES: Without limiting the generality of the foregoing,
Tenant agrees to promptly provide to Landlord, insurance policies or certificates, off-set
statements, statements of sales, mechanic’s lien waivers, notices, releases and any other
statement, record or document which may be required, from time to time, by the Landlord or the
Head Landlord under the terms of the Head Lease. All certificates or policies of insurance so
required will, in addition to Landlord, also name the Head Landlord and McDonald’s as
co-insureds or additional insureds, as the case may be.
4. ENFORCEMENT OF LANDLORD’S RIGHTS UNDER HEAD LEASE: It is acknowledged that
the Head Landlord may have certain obligations under the Head Lease to maintain and repair the
Premises and adjoining areas, pay real estate taxes, assessments and special charges and
impositions, restore, replace or rebuild the Premises and adjoining areas in the event of damage
by fire and other causes, carry and pay for certain types of insurance policies and perform other
obligations set forth in the Head Lease. If these obligations exist, Landlord agrees to make a
good faith effort to obtain the timely and faithful performance of Head Landlord’s obligations, but
Landlord will not be in default or breach of any of its covenants and duties under this Lease or be
liable for any resulting loss or claim of Tenant if Landlord is not able to enforce the rights of tenant
under the Head Lease. With respect to Landlord’s obligation to repair and restore the Premises in
the event of damage or destruction by fire or any other cause, Landlord’s obligations are
conditioned upon Landlord obtaining the cooperation and approval of the Head Landlord, as it
may be required, and the compliance of Head Landlord with all of Head Landlord’s duties under
the Head Lease; and neither Landlord nor McDonald’s will be liable to Tenant for any damage,
claim or injury resulting from Landlord’s inability to repair or restore the Premises due to a default
or breach of the Head Lease by the Head Landlord.
5. INTENT OF THE PARTIES: It is the intent of the parties to enter into a subleasing agreement
between Landlord and Tenant and not to make an assignment of the Head Lease or McDonald’s
Internal Lease Documentation. The parties further acknowledge that it is their intent that there be
no merger of either Landlord’s or Tenant’s interest in this Lease and fee title if either party
acquires a fee interest in the Premises at any time after the execution of this Lease. In such
event, this Lease will remain in full force and effect and will determine the rights, duties and
obligations of the parties.
SCHEDULE C
[CITY, STATE]
[Address]
L/C: __________
File #: __________
LANDLORD’S INTEREST ADDENDUM
(McDonald’s Corporation or McRec Fee Owned Property)
1. LANDLORD’S INTEREST IN PREMISES: Landlord holds a leasehold interest in the Premises or
a portion of the Premises through an internal lease(s) with McDonald’s Corporation and/or its
affiliated companies (McDonald’s Corporation and/or its affiliated companies are hereafter referred
to as “McDonald’s”) (“McDonald’s Internal Lease Documentation”) as may be amended from time
to time. The McDonald’s Internal Lease Documentation between McDonald’s and Landlord does
not increase Tenant’s obligations under this Lease. Tenant acknowledges and agrees that under
the terms of this Lease, Tenant will perform, comply with and discharge any and all obligations
related to the Premises and its use, including, but not limited to, the payment of all charges, costs
and expenses as set forth in Article 3.01 of this Lease.
2. TENANT’S INSURANCE POLICIES AND CERTIFICATES: All certificates and policies of
insurance so required under this Lease will, in addition to Landlord, name McDonald’s as an
additional insured.
3. INTENT OF THE PARTIES: It is the intent of the parties to enter into a subleasing agreement
between Landlord and Tenant and not to make an assignment of the McDonald’s Internal Lease
Documentation. The parties further acknowledge that it is their intent that there be no merger of
either Landlord’s or Tenant’s interest in this Lease and fee title if either party acquires a fee
interest in the Premises at any time after the execution of this Lease. In such event, this Lease
will remain in full force and effect and will determine the rights, duties and obligations of the
parties.
SCHEDULE C
[CITY, STATE]
[Address]
L/C: __________
File #: __________
LANDLORD’S INTEREST ADDENDUM – OIL
(Oil Partner as Head Landlord and McDonald’s USA, LLC is tenant
under a Ground Lease and Operating Agreement with an oil partner)
1. LANDLORD’S INTEREST IN PREMISES: Landlord holds a leasehold interest in the Premises or
a portion of the Premises under the Head Lease described in Article 1.05. The Head Lease
provides for the joint operation of a fuel facility, McDonald’s Restaurant and convenience store,
and if provided for in the Head Lease, the operation of a car wash, at the property as defined in
the Head Lease.
2. COMPLIANCE WITH HEAD LEASE: Tenant acknowledges and agrees that the terms and
conditions of this Lease are subject and subordinate to the terms and conditions of the Head
Lease and any subsequent amendments to it. If there are any inconsistencies between this Lease
and the Head Lease, the more restrictive obligations of the Head Lease will prevail. Tenant will
not, in its use and enjoyment of the Premises, suffer or permit any condition to exist, or do, or omit
to do, anything which would give rise to any right of the landlord under the Head Lease (“Head
Landlord”) to terminate the Head Lease or any rights of Landlord. Tenant will perform, comply
with and discharge all obligations which Landlord is required to comply with and discharge under
the Head Lease, including but not limited to, payment of all charges, costs and expenses set forth
in Article 3.01 of this Lease. Such payments shall not, however, include payment of Landlord’s
monthly basic rental obligations under the Head Lease.
3. TENANT’S STATEMENTS AND CERTIFICATES: Without limiting the generality of the foregoing,
Tenant agrees to promptly provide to Landlord insurance policies or certificates, off-set
statements, statements of sales, mechanic’s lien waivers, notices, releases and any other
statement, record or document which may be required, from time to time, by the Head Landlord
under the terms of the Head Lease. All certificates or policies of insurance so required will also
name the Head Landlord as co-insured or additional insured, as the case may be.
4. ENFORCEMENT OF LANDLORD’S RIGHTS UNDER HEAD LEASE: It is acknowledged that
the Head Landlord may have certain obligations under the Head Lease to maintain and repair the
Premises and adjoining areas, pay real estate taxes, assessments and special charges and
impositions, restore, replace or rebuild the Premises and adjoining areas in the event of damage
by fire and other causes, carry and pay for certain types of insurance policies and perform other
obligations set forth in the Head Lease. If these obligations exist, Landlord agrees to make a
good faith effort to obtain the timely and faithful performance of Head Landlord’s obligations, but
Landlord will not be in default or breach of any of its covenants and duties under this Lease or be
liable for any resulting loss or claim of Tenant if Landlord is not able to enforce its rights under the
Head Lease. With respect to Landlord’s obligation to repair and restore the Premises in the event
of damage or destruction by fire or any other cause, Landlord’s obligations are conditioned upon
Landlord obtaining the cooperation and approval of the Head Landlord, as it may be required, and
the compliance of Head Landlord with all of Head Landlord’s duties under the Head Lease; and
Landlord will not be liable to Tenant for any damage, claim or injury resulting from Landlord’s
inability to repair or restore the Premises due to a default or breach of the Head Lease by the
Head Landlord.
1
5. INTENT OF THE PARTIES: It is the intent of the parties to enter into a subleasing agreement
between Landlord and Tenant and not to make an assignment of the Head Lease. The parties
further acknowledge that it is their intent that there be no merger of either Landlord’s or Tenant’s
interest in this Lease and fee title if either party acquires a fee interest in the Premises at any time
after the execution of this Lease. In such event, this Lease will remain in full force and effect and
will determine the rights, duties and obligations of the parties.
2
[CITY, STATE]
[Address]
L/C: __________
File #: __________
LANDLORD’S INTEREST ADDENDUM – OIL
(Oil Partner as Head Landlord and McDonald’s Corporation is tenant
under a Ground Lease and Operating Agreement with an oil partner)
1. LANDLORD’S INTEREST IN PREMISES: Landlord holds a leasehold interest in the Premises or
a portion of the Premises through an internal lease(s) with McDonald’s Corporation and/or its
affiliated companies (McDonald’s Corporation and/or its affiliated companies are hereafter referred
to as “McDonald’s”) (“McDonald’s Internal Lease Documentation”) as may be amended from time
to time. The McDonald’s Internal Lease Documentation does not increase Tenant’s obligations
under this Lease. The McDonald’s Internal Lease Documentation requires Landlord to meet all of
the obligations of the tenant under the Head Lease described in Article 1.05. The Head Lease
provides for the joint operation of a fuel facility, McDonald’s Restaurant and convenience store,
and if provided for in the Head Lease, the operation of a car wash, at the property as defined in
the Head Lease.
2. COMPLIANCE WITH HEAD LEASE: Tenant acknowledges and agrees that the terms and
conditions of this Lease are subject and subordinate to the terms and conditions of the Head
Lease and any subsequent amendments to it. If there are any inconsistencies between this
Lease, McDonald’s Internal Lease Documentation and the Head Lease, the more restrictive
obligations of the Head Lease will prevail. Tenant will not, in its use and enjoyment of the
Premises, suffer or permit any condition to exist, or do, or omit to do, anything which would give
rise to any right of the landlord under the Head Lease (“Head Landlord”) to terminate the Head
Lease or any rights of Landlord and/or McDonald’s. Tenant will perform, comply with and
discharge all obligations which Landlord is required to comply with and discharge under the Head
Lease, including but not limited to, payment of all charges, costs and expenses set forth in
Article 3.01 of this Lease. Such payments shall not, however, include payment of Landlord’s
monthly basic rental obligations under the Head Lease.
3. TENANT’S STATEMENTS AND CERTIFICATES: Without limiting the generality of the foregoing,
Tenant agrees to promptly provide to Landlord insurance policies or certificates, off-set
statements, statements of sales, mechanic’s lien waivers, notices, releases and any other
statement, record or document which may be required, from time to time, by the Landlord or the
Head Landlord under the terms of the Head Lease. All certificates or policies of insurance so
required will, in addition to Landlord, also name the Head Landlord and McDonald’s as
co-insureds or additional insureds, as the case may be.
4. ENFORCEMENT OF LANDLORD’S RIGHTS UNDER HEAD LEASE: It is acknowledged that
the Head Landlord may have certain obligations under the Head Lease to maintain and repair the
Premises and adjoining areas, pay real estate taxes, assessments and special charges and
impositions, restore, replace or rebuild the Premises and adjoining areas in the event of damage
by fire and other causes, carry and pay for certain types of insurance policies and perform other
obligations set forth in the Head Lease. If these obligations exist, Landlord agrees to make a
good faith effort to obtain the timely and faithful performance of Head Landlord’s obligations, but
Landlord will not be in default or breach of any of its covenants and duties under this Lease or be
liable for any resulting loss or claim of Tenant if Landlord is not able to enforce its rights under the
Head Lease. With respect to Landlord’s obligation to repair and restore the Premises in the event
of damage or destruction by fire or any other cause, Landlord’s obligations are conditioned upon
Landlord obtaining the cooperation and approval of the Head Landlord, as it may be required, and
the compliance of Head Landlord with all of Head Landlord’s duties under the Head Lease; and
1
neither Landlord nor McDonald’s will be liable to Tenant for any damage, claim or injury resulting
from Landlord’s inability to repair or restore the Premises due to a default or breach of the Head
Lease by the Head Landlord.
5. INTENT OF THE PARTIES: It is the intent of the parties to enter into a subleasing agreement
between Landlord and Tenant and not to make an assignment of the Head Lease or McDonald’s
Internal Lease Documentation. The parties further acknowledge that it is their intent that there be
no merger of either Landlord’s or Tenant’s interest in this Lease and fee title if either party
acquires a fee interest in the Premises at any time after the execution of this Lease. In such
event, this Lease will remain in full force and effect and will determine the rights, duties and
obligations of the parties.
2
[CITY, STATE]
[Address]
L/C: __________
File #: __________
CO-BRANDED DEVELOPMENT ADDENDUM
(McDonald’s entity is landlord under a Ground Lease and Operating Agreement with an oil partner)
1. GROUND LEASE AND OPERATING AGREEMENT: Tenant acknowledges that Landlord or
McDonald’s Corporation or an affiliated company of McDonald’s Corporation has entered into a
Ground Lease and Operating Agreement (“Agreement”) with that oil partner set forth in the
Agreement. The Agreement provides for the joint operation of a fuel facility, McDonald’s
Restaurant and convenience store, and if provided for in the Agreement, the operation of a car
wash, at the property as defined in the Agreement.
2. COMPLIANCE WITH THE AGREEMENT: Tenant acknowledges receipt of a copy of the
Agreement, will abide by its terms and agrees that Tenant is obligated to perform any and all
obligations of Landlord set forth in the Agreement. Tenant further agrees that these obligations
are in addition to any obligations that Tenant may have under the terms of this Lease or Franchise
Agreement with Landlord. If there are any inconsistencies between the Agreement and this Lease
or Franchise Agreement, the more restrictive obligations of the Agreement will prevail. If there are
any inconsistencies between the Agreement and the Head Lease, if any, as described in
Article 1.05, the more restrictive obligations of the Head Lease will prevail.
[CITY, STATE]
[Address]
L/C: __________
File #: __________
McDONALD’S INTEREST ADDENDUM
(McDonald’s USA, LLC holds interest in Master Agreement – interest is not a leasehold)
THIS McDONALD’S INTEREST ADDENDUM is attached to and made a part of the Operator’s Lease
(“Agreement”) between McDONALD’S USA, LLC, a Delaware limited liability company
(“McDonald’s”) and __________________________ (hereafter, for purposes of this Addendum,
called “Grantee”).
1. McDONALD’S INTEREST IN PREMISES: McDonald’s has obtained the right to use the
Premises pursuant to the ______________________________ described in Article 1.05 (“Master
Agreement”).
2. COMPLIANCE WITH THE MASTER AGREEMENT: Grantee acknowledges and agrees that the
terms and conditions of this Agreement are subject and subordinate to the terms and conditions of
the Master Agreement and any subsequent amendments to it. If there are any inconsistencies
between this Agreement and the Master Agreement, the more restrictive obligations of the Master
Agreement will prevail. Grantee will not, in its use and enjoyment of the Premises, suffer or permit
any condition to exist, or do, or omit to do, anything which would give rise to any right of the
grantor of McDonald’s interest under the Master Agreement (“Master Grantor”) to terminate the
Master Agreement or to prejudice or limit any rights of McDonald’s under the Master Agreement.
Grantee will perform, comply with and discharge all obligations which McDonald’s is required to
perform, comply with and discharge pursuant to the Master Agreement including, but not limited
to, the payment of all charges, costs and expenses as set forth in Article 3.01 of this Agreement.
Such payments shall not, however, include payment of McDonald’s basic monthly fee obligation
for its interest under the Master Agreement.
3. GRANTEE’S STATEMENTS AND CERTIFICATES: Without limiting the generality of the
foregoing, Grantee agrees to promptly provide the insurance policies or certificates, off-set
statements, statements of sales, mechanic’s lien waivers, notices, releases and any other
statement, record or document which may be required from time to time by McDonald’s under the
terms of the Master Agreement. All certificates or policies of insurance so required will name the
Master Grantor as co-insured or additional insured, as the case may be.
4. ENFORCEMENT OF McDONALD’S RIGHTS UNDER MASTER AGREEMENT:
It is
acknowledged that the Master Grantor may have certain obligations under the Master Agreement
to maintain and repair the Premises and adjoining areas, pay real estate taxes, assessments and
special charges and impositions, restore, replace or rebuild the Premises and adjoining areas in
the event of damage by fire and other causes, carry and pay for certain types of insurance policies
and perform other obligations set forth in the Master Agreement. If these obligations exist,
McDonald’s agrees to make a good faith effort to obtain the timely and faithful performance of the
Master Grantor’s obligations, but McDonald’s will not be in default or breach of any of its
covenants and duties under this Agreement or be liable for any resulting loss or claim of Grantee if
McDonald’s is not able to enforce its rights under the Master Agreement. With respect to
McDonald’s obligation, if any, to repair and restore the Premises in the event of damage or
destruction by fire or any other cause, McDonald’s obligations are conditioned upon McDonald’s
obtaining the cooperation and approval of the Master Grantor, as it may be required, and the
compliance of the Master Grantor with all of the Master Grantor’s duties under the Master
Agreement; and McDonald’s will not be liable to Grantee for any damage, claim or injury resulting
1
from McDonald’s inability to repair or restore the Premises due to a default or breach of the Master
Agreement by the Master Grantor.
5. INTENT OF THE PARTIES: It is the intent of the parties to enter into a sub-agreement between
McDonald’s and Grantee and not to make an assignment of the Master Agreement. The parties
further acknowledge that it is their intent that there be no merger of either McDonald’s or
Grantee’s interest in this Agreement and the fee interest if either party acquires the fee interest in
the Premises at any time after the execution of this Agreement. In such event, this Agreement will
remain in full force and effect and will determine the rights, duties, and obligations of the parties.
In addition, notwithstanding anything contained in this Agreement to the contrary, if McDonald’s
does not hold a leasehold interest in the Premises, this Agreement shall not be deemed a
sublease but a sub-conveyance allowed by McDonald’s rights under the Master Agreement. It is
further agreed that the designation of this document as an “Operator’s Lease” is merely for
convenience and does not purport to transfer greater rights to Grantee than those held by
McDonald’s pursuant to the Master Agreement.
2
[CITY, STATE]
[Address]
L/C: __________
File #: __________
McDONALD’S INTEREST ADDENDUM
(McDonald’s Corporation holds interest in Master Agreement – interest is not a leasehold)
THIS McDONALD’S INTEREST ADDENDUM is attached to and made a part of the Operator’s Lease
(“Agreement”) between McDONALD’S USA, LLC, a Delaware limited liability company (“McDonald’s
USA”) and ______________________________ (hereafter, for purposes of this Addendum, called
“Grantee”).
1. McDONALD’S USA’S INTEREST IN PREMISES: McDonald’s USA has obtained the right to use
the Premises through an internal agreement(s) with McDonald’s Corporation and/or its affiliated
companies (McDonald’s Corporation and/or its affiliated companies are hereafter referred to as
“McDonald’s”) (“McDonald’s Internal Agreement Documentation”) as may be amended from time
to time. The McDonald’s Internal Agreement Documentation does not increase Grantee’s
obligations under this Agreement. The McDonald’s Internal Agreement Documentation requires
McDonald’s USA to meet all of the obligations of McDonald’s under the Master Agreement
described in Article 1.05.
2. COMPLIANCE WITH THE MASTER AGREEMENT: Grantee acknowledges and agrees that the
terms and conditions of this Agreement are subject and subordinate to the terms and conditions of
the Master Agreement and any subsequent amendments to it. If there are any inconsistencies
between this Agreement, McDonald’s Internal Agreement Documentation and the Master
Agreement, the more restrictive obligations of the Master Agreement will prevail. Grantee will not,
in its use and enjoyment of the Premises, suffer or permit any condition to exist, or do, or omit to
do, anything which would give rise to any right of the grantor of McDonald’s interest under the
Master Agreement (“Master Grantor”) to terminate the Master Agreement or to prejudice or limit
any rights of McDonald’s under the Master Agreement. Grantee will perform, comply with and
discharge all obligations which McDonald’s is required to perform, comply with and discharge
pursuant to the Master Agreement including, but not limited to, the payment of all charges, costs
and expenses as set forth in Article 3.01 of this Agreement. Such payments shall not, however,
include payment of McDonald’s basic monthly fee obligation for its interest under the Master
Agreement.
3. GRANTEE’S STATEMENTS AND CERTIFICATES: Without limiting the generality of the
foregoing, Grantee agrees to promptly provide the insurance policies or certificates, off-set
statements, statements of sales, mechanic’s lien waivers, notices, releases and any other
statement, record or document which may be required from time to time by McDonald’s USA,
McDonald’s or the Master Grantor under the terms of the Master Agreement. All certificates or
policies of insurance so required will, in addition to McDonald’s USA, also name the Master
Grantor and McDonald’s as co-insureds or additional insureds, as the case may be.
4. ENFORCEMENT OF McDONALD’S RIGHTS UNDER MASTER AGREEMENT:
It is
acknowledged that the Master Grantor may have certain obligations under the Master Agreement
to maintain and repair the Premises and adjoining areas, pay real estate taxes, assessments and
special charges and impositions, restore, replace or rebuild the Premises and adjoining areas in
the event of damage by fire and other causes, carry and pay for certain types of insurance policies
and perform other obligations set forth in the Master Agreement. If these obligations exist,
McDonald’s USA agrees to make a good faith effort to obtain the timely and faithful performance
of the Master Grantor’s obligations, but McDonald’s USA will not be in default or breach of any of
its covenants and duties under this Agreement or be liable for any resulting loss or claim of
1
Grantee if McDonald’s USA is not able to enforce its rights under the Master Agreement. With
respect to McDonald’s USA’s obligation, if any, to repair and restore the Premises in the event of
damage or destruction by fire or any other cause, McDonald’s USA’s obligations are conditioned
upon McDonald’s USA’s obtaining the cooperation and approval of the Master Grantor, as it may
be required, and the compliance of the Master Grantor with all of the Master Grantor’s duties
under the Master Agreement; and neither McDonald’s USA nor McDonald’s will be liable to
Grantee for any damage, claim or injury resulting from McDonald’s USA’s inability to repair or
restore the Premises due to a default or breach of the Master Agreement by the Master Grantor.
5. INTENT OF THE PARTIES: It is the intent of the parties to enter into a sub-agreement between
McDonald’s USA and Grantee and not to make an assignment of the Master Agreement. The
parties further acknowledge that it is their intent that there be no merger of either McDonald’s
USA’s or Grantee’s interest in this Agreement and the fee interest if either party acquires the fee
interest in the Premises at any time after the execution of this Agreement. In such event, this
Agreement will remain in full force and effect and will determine the rights, duties, and obligations
of the parties. In addition, notwithstanding anything contained in this Agreement to the contrary, if
McDonald’s USA does not hold a leasehold interest in the Premises, this Agreement shall not be
deemed a sublease but a sub-conveyance allowed by McDonald’s rights under the Master
Agreement. It is further agreed that the designation of this document as an “Operator’s Lease” is
merely for convenience and does not purport to transfer greater rights to Grantee than those held
by McDonald’s pursuant to the Master Agreement.
2
OPERATOR EXTENSION OF TERM LANGUAGE
If Landlord extends its leasehold interest or acquires the fee interest in the Premises so that
the Landlord’s tenure extends beyond ____________________, the term of this Lease shall be
automatically modified for a term consistent with the Landlord’s real estate interest in the Premises,
but in no event beyond ____________________. This Lease shall also be amended to reflect any
new terms and conditions in the new or extended Lease or in the acquisition documents executed by
Landlord and its landlord or seller. The Basic Rent and Percentage Rent may be increased to reflect
Landlord’s total real estate acquisition and development costs for the Premises by applying Landlord’s
then current rental formula using the Percentage Rent then in effect for similar McDonald’s
Restaurants.
EARLY TERMINATION DUE TO NO ADDITIONAL REAL ESTATE TENURE
Tenant acknowledges that Landlord is in negotiations with the party that controls the real
estate interest in the Premises (“Head Landlord”) to obtain additional real estate tenure for the
Premises (as defined below). As of the date of this Lease, Landlord does not have real estate tenure
at the Premises, but the Head Landlord has agreed to allow Landlord to occupy the Premises while
negotiations continue. The Head Landlord may revoke its agreement at any time; therefore, Landlord
and Tenant agree that, notwithstanding the term in this Article, Landlord may terminate this Lease
upon the following: (i) negotiations with the Head Landlord cease or (ii) the Head Landlord requires
Landlord to vacate the Premises. In either case, this Lease will terminate when McDonald’s right to
occupy the Premises terminates.
Exhibit 2
Case 3:14-cv-02098-JD Document 155 Filed 06/05/15 Page 1 of 26
1
2
3
4
UNITED STATES DISTRICT COURT
5
NORTHERN DISTRICT OF CALIFORNIA
6
7
STEPHANIE OCHOA, et al.,
Plaintiffs,
8
v.
9
10
MCDONALD’S CORP., et al.,
Defendants.
United States District Court
Northern District of California
11
12
Case No. 14-cv-02098-JD
ORDER GRANTING IN PART AND
DENYING IN PART DEFENDANTS'
ADMINISTRATIVE MOTION TO SEAL
Re: Dkt. No. 100
This order addresses defendants’ April 20, 2015, administrative motion to seal portions of
13
plaintiffs’ motion for class certification and various documents associated with it. See Dkt. No.
14
100. Plaintiffs oppose the motion almost in its entirety. See Dkt. No. 102. The Court grants the
15
motion in part and denies it in part.
16
17
I. GOVERNING STANDARD
In our circuit, in evaluating a motion to seal, two different standards apply depending on
18
whether the request is being made in connection with a dispositive motion or a non-dispositive
19
motion.
20
For dispositive motions, the historic, “strong presumption of access to judicial records”
21
fully applies, and a party seeking sealing must establish “compelling reasons” to overcome that
22
presumption. Kamakana v. City and County of Honolulu, 447 F.3d 1172, 1178-80 (9th Cir. 2006)
23
(quoting Foltz v. State Farm Mutual Auto Insurance Co., 331 F.3d 1122, 1136 (9th Cir. 2003)).
24
This standard presents a “high threshold,” and “a ‘good cause’ showing will not, without more,
25
satisfy” it. Id. at 1180 (citations omitted). When ordering sealing in this context, the district court
26
must also “articulate the rationale underlying its decision to seal.” Apple Inc. v. Psystar Corp.,
27
658 F.3d 1150, 1162 (9th Cir. 2011).
28
Case 3:14-cv-02098-JD Document 155 Filed 06/05/15 Page 2 of 26
1
The non-dispositive motion context is different. There, “the usual presumption of the
2
public’s right of access is rebutted,” the “public has less of a need for access to court records
3
attached only to non-dispositive motions,” and the “public policies that support the right of access
4
to dispositive motions, and related materials, do not apply with equal force to non-dispositive
5
materials.” Kamakana, 447 F.3d at 1179-80 (citations omitted). Therefore, in that context,
6
materials may be sealed so long as the party seeking sealing makes a “particularized showing”
7
under the “good cause” standard of Federal Rule of Civil Procedure 26(c). Id. at 1180 (quoting
8
Foltz, 331 F.3d at 1138).
In our district, in addition to meeting the applicable standard under Kamakana, all parties
United States District Court
Northern District of California
9
10
requesting sealing must also comply with Civil Local Rule 79-5, including that rule’s requirement
11
that the request must “establish[] that the document, or portions thereof, are privileged, protectable
12
as a trade secret or otherwise entitled to protection under the law” (i.e., is “sealable”). Civil L.R.
13
79-5(b). The sealing request must also “be narrowly tailored to seek sealing only of sealable
14
material.” Id.
15
II.
16
DISCUSSION
This sealing request relates to a motion for class certification. Although certification
17
motions may lead, as a practical matter, to a case-ending result, the “vast majority” of courts in
18
this circuit apply the “good cause” standard when evaluating associated administrative motions to
19
seal. See In re High Tech Employee Antitrust Litig., 2013 WL 163779, at *2 n.1 (N.D. Cal.
20
Jan.15, 2013). The Court applies that standard here.
21
Defendants have submitted declarations from Savan Vaghani, see Dkt. No. 100-1, and
22
Michael Smith, see Dkt. No. 100-2, to justify their requests to seal. By and large, the reasons
23
provided in these declarations do not come close to meeting the “good cause” standard -- and on
24
the scant occasions when they do, the proposed redactions are often not “narrowly tailored to seek
25
sealing only of sealable material.” See Civil L.R. 79-5(b). For example, with respect to the
26
franchise agreements for each of the restaurants at issue in this case, the Vaghani declaration
27
simply says that the documents “contain confidential and proprietary business information,
28
including financial terms” that if disclosed “may be exploited by competitors.” Vaghani Decl. ¶ 6
2
Case 3:14-cv-02098-JD Document 155 Filed 06/05/15 Page 3 of 26
1
at 6:1-13. But as the Court has explained previously, see Dkt. No. 99, establishing good cause to
2
seal a portion of a document requires a “particularized showing” that “specific prejudice or harm”
3
will result if the information is disclosed. See Kamakana, 447 F.3d at 1180, 1186. “An
4
unsupported assertion of ‘unfair advantage’ to competitors without explaining ‘how a competitor
5
would use th[e] information to obtain an unfair advantage’ is insufficient.” Hodges v. Apple, Inc.,
6
No. 13-cv-01128-WHO, 2013 WL 6070408, at *2 (N.D. Cal. Nov. 18, 2013) (quoting Dunbar v.
7
Google, Inc., No. 5:12-cv-003305-LHK, 2012 WL 6202719, at *4-5 (N.D. Cal. Nov. 18, 2013)).
8
With respect to other documents, the declarations claim that “[t]he information sought to
United States District Court
Northern District of California
9
be sealed is not available to the public and could not be recreated from publically available
10
sources.” See, e.g., Vaghani Decl. ¶ 6 at 7:13-15; Smith Decl. ¶ 5 at 3:19-20. The mere fact that
11
information was not previously available cannot be sufficient to seal a document; if it were, the
12
requirement that a party must show “good cause” to seal a document even if it has produced it
13
pursuant to a protective order would be a dead letter. See Kamakana, 447 F.3d at 1180 (requiring
14
a particularized showing of “good cause” even for “preserving the secrecy of sealed discovery
15
material”); Civil L.R. 79-5(d)(1)(A) (“Reference to a stipulation or protective order that allows a
16
party to designate certain documents as confidential is not sufficient to establish that a document,
17
or portions thereof, are sealable.”).
18
And as detailed in the following table, the Court finds the grounds for sealing to be
19
implausible in several instances. For example, the Vaghani declaration makes the conclusory
20
assertion that merely disclosing the features of its In-Store Processor would allow McDonald’s
21
competitors a free ride on McDonald’s work. See Vaghani Decl. ¶ 7, at 9:6-18. This is
22
overblown. A competitor might possibly derive unfair benefits if details about the implementation
23
of those features were disclosed, but the fear that McDonald’s would suffer competitive harm
24
from simply describing them is not plausible. It is also hard to see how information about the
25
format in which Smith Family Partnership records time periods in its billing records could cause
26
any competitive harm, as Smith broadly claims. See Smith Decl. ¶ 10. Defendants claim that this
27
type of information is sealable simply because it relates to payroll data, see Dkt. No. 100 at 4, but
28
good cause to seal a document cannot be satisfied by “[s]imply mentioning a general category of
3
Case 3:14-cv-02098-JD Document 155 Filed 06/05/15 Page 4 of 26
1
privilege, without any further elaboration or any specific linkage with the documents . . . .”
2
Martin v. Wells Fargo Bank N.A., No. CV 12-06030 SI, 2013 WL 5441973, at *2 (N.D. Cal. Sept.
3
30, 2013) (quoting Kamakana, 447 F.3d at 1180, 1184). That kind of sealing request appears to
4
be geared more towards hiding information that plaintiffs claim is evidence of wrongdoing from
5
the public than hiding truly sensitive information.
The Court addresses each specific request to seal in the following table. While defendants’
United States District Court
Northern District of California
6
7
motion suggests that they seek sealing of Exhibits 65 and 81 to the Declaration of Matthew J.
8
Murray in Support of Plaintiffs’ Motion for Class Certification, see Dkt. Nos. 84-4, 84-10, neither
9
of their declarations address these two documents, and the Court consequently denies the request
10
to seal them. In light of the guidance provided in this order, the Court strikes the remaining
11
pending motions to seal, see Dkt. Nos. 101, 106, 120, 128, 142, and orders defendants to refile a
12
single motion by June 12, 2015, covering any remaining materials it believes are sealable given
13
the standards set forth in this order. Any materials that defendants no longer believe are sealable
14
should be filed in the public record at that time. With respect to the documents or portions of
15
documents with respect to which the administrative motion to seal is denied, below, the party
16
submitting the document must comply with Civil Local Rule 79-5(f)(3) and file revised redacted
17
versions of the document within 7 days, or else the documents sought to be sealed will not be
18
considered by the Court.
19
20
Tab
Exact Portions to be
Sealed
Particularized Reason for Sealing
21
22
23
24
25
1
2:8-9
26
27
28
2:11-18; 3:3, 6-7
This portion of Plaintiffs’ Motion cites
to and relies on confidential payroll
data, public disclosure would provide
competitors with a detailed account of
Smith’s internal operations. See Smith
Declaration, ¶ 9 (10:4-10:6).
This portion of Plaintiffs’ Motion
discusses confidential terms of the
Franchise Agreement between Smith
and McDonald’s USA; disclosure of
which would undermine McDonald’s
4
Grant or Denial of
Request
Denied. No good
cause has been
shown to seal
information
relating to the
number of
individuals
employed by
Smith.
Denied. Not only
has no good cause
been shown to seal
this material, but
both of the quotes
Case 3:14-cv-02098-JD Document 155 Filed 06/05/15 Page 5 of 26
1
Tab
Exact Portions to be
Sealed
Particularized Reason for Sealing
USA’s ability to negotiate future
franchise agreements and compete in
the marketplace. See Vaghani
Declaration, ¶ 8 (12:13-14:10).
2
3
4
5
6
7
8
9
10
United States District Court
Northern District of California
11
12
13
14
15
16
17
18
19
3:19-26; 4:2-6; 4:13-14;
5:3-11; 5:21-23
20
21
22
23
24
25
7:6, 8, 11-13, 17, FN10;
9:1-2, 4-5
26
27
28
9:9-13
This portion of Plaintiffs’ Motion
discusses the ISP and POS systems,
proprietary hardware and software
applications developed by McDonald’s
specifically for use in running a
McDonald’s restaurant business. The
franchise agreement between
McDonald’s and the Smith’s provides
that McDonald’s “own[s] all
proprietary rights in and to the
McDonald’s system,” and that required
operations procedures and methods
“constitute confidential trade secrets.”
Information relating to POS and ISP
functionality, along with the output of
such systems (e.g., sales data, order
data, product mix, etc.), has commercial
value to competitors and would provide
them with an unfair business advantage,
including knowledge of how to imitate
and/or duplicate the McDonald’s
System. See Vaghani Declaration, ¶ 8
(14:11-15:21); Smith Declaration, ¶ 9
(10:7-10:18).
This portion of the Plaintiffs’ motion
cites to and relies on confidential
payroll data, this information is not
available to the public and could not be
recreated from publicly-available
sources. Public disclosure would
provide competitors with a detailed
account of Smith’s internal operations
See Smith Declaration, ¶ 9 (10:1811:1).
This portion of Plaintiffs’ Motion
discusses the ISP and POS systems,
proprietary hardware and software
applications developed by McDonald’s
specifically for use in running a
5
Grant or Denial of
Request
appear in a version
of the McDonald’s
standard franchise
agreement that has
been publicly filed
in another case.
See Dkt. No. 103-6.
Denied. No good
cause has been
shown to seal this
information, which
relates to general
requirements
McDonald’s
imposes on the
Smith Family
Partnership,
general features of
Smith’s payroll
system, and
features of
defendants’ InStore Processor.
Denied. No good
cause has been
shown to seal the
results of plaintiffs’
expert analysis.
The mere fact that
this information is
not currently public
does not constitute
good cause.
Denied. Good
cause has not been
shown to seal what
types of meal and
rest breaks are
Case 3:14-cv-02098-JD Document 155 Filed 06/05/15 Page 6 of 26
1
Tab
Exact Portions to be
Sealed
McDonald’s restaurant business. The
franchise agreement between
McDonald’s and the Smith’s provides
that McDonald’s “own[s] all
proprietary rights in and to the
McDonald’s system,” and that required
operations procedures and methods
“constitute confidential trade secrets.”
Information relating to POS and ISP
functionality, along with the output of
such systems (e.g., sales data, order
data, product mix, etc.), has commercial
value to competitors and would provide
them with an unfair business advantage,
including knowledge of how to imitate
and/or duplicate the McDonald’s
System. See Vaghani Declaration, ¶ 8
(15:22-16:5).
2
3
4
5
6
7
8
9
10
11
United States District Court
Northern District of California
Particularized Reason for Sealing
12
13
14
15
16
17
18
19
20
10:15-16, FN18
21
22
23
24
25
26
27
28
13:22
This portion of the Plaintiffs’ Motion
cites to and relies on confidential
payroll data, this information is not
available to the public and could not be
recreated from publicly-available
sources. Public disclosure would
provide competitors with a detailed
account of Smith’s internal operations.
See Smith Declaration, ¶ 9 (10:1811:1).
This portion of Plaintiffs’ Motion
discusses the ISP and POS systems,
proprietary hardware and software
applications developed by McDonald’s
specifically for use in running a
McDonald’s restaurant business. The
franchise agreement between
McDonald’s and the Smith’s provides
that McDonald’s “own[s] all
proprietary rights in and to the
McDonald’s system,” and that required
operations procedures and methods
“constitute confidential trade secrets.”
Information relating to POS and ISP
6
Grant or Denial of
Request
flagged by
defendants’ InStore Processor.
Denied. No good
cause has been
shown to seal
information
relating to the
number of
individuals
employed by
Smith. The mere
fact that this
information is not
currently public
does not constitute
good cause.
Denied. The
information sought
to be sealed simply
relates to the
format in which
Smith transmitted
payroll data to its
payroll vendor, and
no good cause has
been shown to seal
it.
Case 3:14-cv-02098-JD Document 155 Filed 06/05/15 Page 7 of 26
1
Tab
Exact Portions to be
Sealed
2
3
4
5
6
7
8
9
10
United States District Court
Northern District of California
11
15:21; 16:7-8
12
13
14
15
16
17
18
19
20
21
22
23
24
16:11-12
25
26
27
28
2
¶¶ 2-3 (1:9-15)
Particularized Reason for Sealing
functionality, along with the output of
such systems (e.g., sales data, order
data, product mix, etc.), has commercial
value to competitors and would provide
them with an unfair business advantage,
including knowledge of how to imitate
and/or duplicate the McDonald’s
System. See Smith Declaration, ¶ 9
(10:18-11:1).
This portion of Plaintiffs’ Motion cites
to and relies on confidential payroll
data, this information is not available to
the public and could not be recreated
from publicly-available sources. Public
disclosure would provide competitors
with a detailed account of Smith’s
internal operations See Smith
Declaration, ¶ 9 (10:18-11:1).
This portion of Plaintiffs’ Motion
discusses the ISP and POS systems,
proprietary hardware and software
applications developed by McDonald’s
specifically for use in running a
McDonald’s restaurant business. The
franchise agreement between
McDonald’s and the Smith’s provides
that McDonald’s “own[s] all
proprietary rights in and to the
McDonald’s system,” and that required
operations procedures and methods
“constitute confidential trade secrets.”
Information relating to POS and ISP
functionality, along with the output of
such systems (e.g., sales data, order
data, product mix, etc.), has commercial
value to competitors and would provide
them with an unfair business advantage,
including knowledge of how to imitate
and/or duplicate the McDonald’s
System. See Vaghani Declaration, ¶ 8
(16:6-16:17).
This portion of the Amissah-Aidoo
declaration cites to and discusses the
contents of confidential McDonald’s
reports generated exclusively for Smith
based on Smith payroll data and related
7
Grant or Denial of
Request
Denied. No good
cause has been
shown to seal these
rough estimates of
the number of
alleged meal and
rest break
violations.
Denied. Good
cause has not been
shown to seal what
types of meal and
rest breaks are
flagged by
defendants’ InStore Processor.
Denied. No good
cause has been
shown to seal this
information. The
mere fact that the
Case 3:14-cv-02098-JD Document 155 Filed 06/05/15 Page 8 of 26
1
Tab
Exact Portions to be
Sealed
Particularized Reason for Sealing
employee data. See Smith Declaration,
¶ 8 (9:15-9:19).
2
3
4
5
6
7
8
¶¶ 4-5 (1:17-18, 20-24,
26-27)
9
¶¶ 7-8 (2:9-10, 12-13,
15-16)
This portion of the Amissah-Aidoo
declaration cites to and discusses the
contents of a confidential McDonald’s
report generated exclusively for Smith
based on Smith payroll data and related
employee data. See Smith Declaration,
¶ 8 (9:15-9:19).
This portion of the Amissah-Aidoo
declaration cites to and discusses the
contents of confidential McDonald’s
reports generated exclusively for Smith
based on Smith payroll data and related
employee data. See Smith Declaration,
¶ 8 (9:15-9:19).
¶ 9 (2:18-21)
This portion of the Amissah-Aidoo
declaration cites to and discusses the
contents of a confidential McDonald’s
report generated exclusively for Smith
based on Smith payroll data and related
employee data. See Smith Declaration,
¶ 8 (9:15-9:19).
10
United States District Court
Northern District of California
11
12
13
¶ 6 (2:1-4)
14
15
16
17
This portion of the Amissah-Aidoo
declaration cites to and discusses the
contents of confidential McDonald’s
reports generated exclusively for Smith
based on Smith payroll data and related
employee data. See Smith Declaration,
¶ 8 (9:15-9:19).
18
19
20
21
22
23
24
25
26
27
28
This portion of the Amissah-Aidoo
declaration cites to and discusses the
contents of a confidential McDonald’s
report generated exclusively for Smith
based on Smith payroll data and related
employee data. See Smith Declaration,
¶ 10 (2:24-28)
¶ 8 (9:15-9:19).
¶¶ 11-12 (3:2-3, 5-6, 8-9) This portion of the Amissah-Aidoo
8
Grant or Denial of
Request
information relates
to payroll data does
not constitute good
cause.
Granted with
respect to the
names of the
employees for
privacy reasons,
and otherwise
denied.
Denied. No good
cause has been
shown to seal this
information. The
mere fact that the
information relates
to payroll data does
not constitute good
cause.
Granted with
respect to the
names of the
employees for
privacy reasons,
and otherwise
denied.
Denied. No good
cause has been
shown to seal this
information. The
mere fact that the
information relates
to payroll data does
not constitute good
cause.
Denied. No good
cause has been
shown to seal this
information. The
mere fact that the
information relates
to payroll data does
not constitute good
cause.
Granted with
Case 3:14-cv-02098-JD Document 155 Filed 06/05/15 Page 9 of 26
1
Tab
Exact Portions to be
Sealed
Particularized Reason for Sealing
declaration cites to and discusses the
contents of a confidential McDonald’s
report generated exclusively for Smith
based on Smith payroll data and related
employee data. See Smith Declaration,
¶ 8 (9:15-9:19).
2
3
4
5
6
¶ 13 (3:11-13)
This portion of the Amissah-Aidoo
declaration cites to and discusses the
contents of a confidential McDonald’s
report generated exclusively for Smith
based on Smith payroll data and related
employee data. See Smith Declaration,
¶ 8 (9:15-9:19).
Employee Data
Generated by Report
Exhibit A to the Amissah-Aidoo
declaration is a confidential
McDonald’s report generated
exclusively for Smith based on Smith
payroll data and related employee data.
See Smith Declaration, ¶ 7 (8:14-9:5).
7
8
9
10
United States District Court
Northern District of California
11
12
13
14
15
16
17
3
18
19
20
21
22
23
4
Employee Data &
Analysis Generated by
Report
5
Employee Data
Generated by Report
24
25
26
27
28
Exhibit B to the Amissah-Aidoo
declaration is a confidential
McDonald’s report generated
exclusively for Smith based on Smith
payroll data and related employee data.
See Smith Declaration ¶ 7 (9:6-9:14).
Exhibit C to the Amissah-Aidoo
declaration is a confidential
McDonald’s report generated
exclusively for Smith based on Smith
payroll data and related employee data.
9
Grant or Denial of
Request
respect to the
names of the
employees for
privacy reasons,
and otherwise
denied.
Denied. No good
cause has been
shown to seal this
information. The
mere fact that the
information relates
to payroll data does
not constitute good
cause.
Granted with
respect to the
employee names
and the IDs in the
second column for
privacy reasons,
and otherwise
denied. The mere
fact that the
information relates
to payroll data does
not constitute good
cause.
Granted with
respect to the
employee names
and the IDs in the
first column for
privacy reasons,
and otherwise
denied. The mere
fact that the
information relates
to payroll data does
not constitute good
cause.
Granted with
respect to the
employee names
and the IDs in the
second column for
Case 3:14-cv-02098-JD Document 155 Filed 06/05/15 Page 10 of 26
1
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Exact Portions to be
Sealed
Particularized Reason for Sealing
See Smith Declaration ¶ 7 (8:14-9:5).
2
3
4
5
6
7
8
9
10
United States District Court
Northern District of California
11
12
13
6
Employee Data &
Analysis Generated by
Report
Exhibit D to the Amissah-Aidoo
declaration is a confidential
McDonald’s report generated
exclusively for Smith based on Smith
payroll data and related employee data.
See Smith Declaration ¶ 7 (9:6-9:14).
14
15
16
17
18
19
20
21
7
22
23
24
8
25
26
27
28
9
Exhibit E to the Amissah-Aidoo
declaration is a confidential
McDonald’s report generated
exclusively for Smith based on Smith
Employee Data
payroll data and related employee data.
Generated by Report
See Smith Declaration ¶ 7 (8:14-9:5).
Exhibit F to the Amissah-Aidoo
declaration is a confidential
McDonald’s report generated
Employee Data &
exclusively for Smith based on Smith
Analysis Generated by
payroll data and related employee data.
Report
See Smith Declaration ¶ 7 (9:6-9:14).
This portion of the Breshears
¶¶ 7-15 (2:21-22, 24-25, Declaration cites to and relies on
2:27-3:1, FN; 23:4, 6, 11; confidential payroll data, this
FN3; 3:12, 16-18; FN4;
information is not available to the
FN5; 4:5-7, 9-11; 4:18public and could not be recreated from
19, 21-22; FN5; FN7)
publicly-available sources. See Smith
10
Grant or Denial of
Request
privacy reasons,
and otherwise
denied. The mere
fact that the
information relates
to payroll data does
not constitute good
cause.
Granted with
respect to the
employee names
and the IDs in the
first column for
privacy reasons,
and otherwise
denied. The mere
fact that the
information relates
to payroll data does
not constitute good
cause.
Granted with
respect to the
employee names
and the IDs in the
second column for
privacy reasons,
and otherwise
denied. The mere
fact that the
information relates
to payroll data does
not constitute good
cause.
Denied. The mere
fact that the
information relates
to payroll data does
not constitute good
cause.
Denied. The mere
fact that defendants
have designated
this information
confidential and
that it is not
Case 3:14-cv-02098-JD Document 155 Filed 06/05/15 Page 11 of 26
1
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Exact Portions to be
Sealed
Particularized Reason for Sealing
Declaration ¶ 11 (11:2-11:6).
2
3
4
¶ 16 (5:3-7; FN 8)
This portion of the Breshears
Declaration cites to and relies on
confidential payroll data, this
information is not available to the
public and could not be recreated from
publicly-available sources. See Smith
Declaration, ¶ 11 (11:2-11:6).
¶ 17 (5:11-15; FN10,
FN11, FN12)
This portion of the Breshears
Declaration cites to and relies on
confidential payroll data, this
information is not available to the
public and could not be recreated from
publicly-available sources. See Smith
Declaration, ¶ 11 (11:2-11:6).
¶ 18 (5:19-20)
This portion of the Breshears
Declaration cites to and relies on
confidential payroll data, this
information is not available to the
public and could not be recreated from
publicly-available sources. See Smith
Declaration, ¶ 11 (11:2-11:6).
5
6
7
8
9
10
United States District Court
Northern District of California
11
12
13
14
15
16
17
18
19
20
21
22
23
24
¶¶ 20-21 (6:9-11, 14-15;
FN14; FN15)
25
26
27
28
¶¶ 22-25 (6:20-24;
FN16; 7:3, 5-6, 8-10, 13)
This portion of the Breshears
Declaration cites to and relies on
confidential payroll data, this
information is not available to the
public and could not be recreated from
publicly-available sources. See Smith
Declaration, ¶ 11 (11:2-11:6).
This portion of the Breshears
Declaration cites to and relies on
confidential payroll data, this
information is not available to the
public and could not be recreated from
publicly-available sources. See Smith
Declaration, ¶ 11 (11:2-11:6).
11
Grant or Denial of
Request
currently public
does not constitute
good cause.
Denied. The mere
fact that defendants
have designated
this information
confidential and
that it is not
currently public
does not constitute
good cause.
Denied. The mere
fact that defendants
have designated
this information
confidential and
that it is not
currently public
does not constitute
good cause.
Denied. The mere
fact that defendants
have designated
this information
confidential and
that it is not
currently public
does not constitute
good cause.
Denied. The mere
fact that defendants
have designated
this information
confidential and
that it is not
currently public
does not constitute
good cause.
Denied. The mere
fact that defendants
have designated
this information
confidential and
that it is not
currently public
Case 3:14-cv-02098-JD Document 155 Filed 06/05/15 Page 12 of 26
1
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Exact Portions to be
Sealed
Particularized Reason for Sealing
2
3
4
5
6
¶¶ 26-30 (7:20-22; 8:2-5,
7-23; FN17, FN18; 8:24
– 9:1-2, 5, 7-8)
¶¶ 33-47 (10:1-3, 7-10,
12-19, 22-23, 26; 11:1, 6,
8-11, 13, 16, 25; FN 20;
FN 23; 12:1, 5-8; FN24;
FN25; 12:10-13; FN26;
FN27; 12:15-17; FN28;
FN29; 12:20-21)
7
8
9
10
United States District Court
Northern District of California
11
12
¶¶ 51-64 (13:16-19, 2124, 26; 14:1-11, 13-21,
24, 26, FN31, 15:1, 6, 911, 13, 15, 18, 20, 23,
FN33)
13
14
15
16
¶¶ 66-71 (16:4, 6-7, 9-12,
14-17, 19-20, 21-22,
FN34, FN35, FN36,
FN37, FN38, FN39,
FN40, FN41; 17:1-2, 412, 14, 16-18, FN42,
FN43, FN44, FN45,
FN46)
17
18
19
20
21
22
23
24
25
¶74 (Page 18, Chart)
26
27
28
This portion of the Breshears
Declaration cites to and relies on
confidential payroll data, this
information is not available to the
public and could not be recreated from
publicly-available sources. See Smith
Declaration, ¶ 11 (11:2-11:6).
Grant or Denial of
Request
does not constitute
good cause.
Denied. The mere
fact that defendants
have designated
this information
confidential and
that it is not
currently public
does not constitute
good cause.
10
¶ 9 (4:9-12); ¶11 (5:1-4);
Appendix 2
This portion of the Breshears
Declaration cites to and relies on
confidential payroll data, this
information is not available to the
public and could not be recreated from
publicly-available sources. See Smith
Declaration, ¶ 11 (11:2-11:6).
This portion of the Breshears
Declaration cites to and summarizes
confidential payroll data and related
employee data, this information is not
available to the public and could not be
recreated from publicly-available
sources. See Smith Declaration, ¶ 11
(11:2-11:6).
This portion of the Drogin Declaration
cites to and summarizes confidential
payroll data and related employee data,
this information is not available to the
12
Denied. The mere
fact that defendants
have designated
this information
confidential and
that it is not
currently public
does not constitute
good cause.
Denied. The mere
fact that defendants
have designated
this information
confidential and
that it is not
currently public
does not constitute
good cause.
Denied. The mere
fact that defendants
have designated
this information
Case 3:14-cv-02098-JD Document 155 Filed 06/05/15 Page 13 of 26
1
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Exact Portions to be
Sealed
Particularized Reason for Sealing
public and could not be recreated from
publicly-available sources. See Smith
Declaration, ¶ 11 (11:2-11:6).
2
3
4
5
6
7
8
9
10
United States District Court
Northern District of California
11
12
13
14
15
16
17
18
11
58:11-64:1; 76:1-4
19
20
21
22
23
24
25
26
27
28
110:21 – 112:14
This portion of the Michael Smith
Deposition Transcript discusses the
ISP and POS systems, proprietary
hardware and software applications
developed by McDonald’s specifically
for use in running a McDonald’s
restaurant business. The franchise
agreement between McDonald’s and
the Smith’s provides that McDonald’s
“own[s] all proprietary rights in and to
the McDonald’s system,” and that
required operations procedures and
methods “constitute confidential trade
secrets.” Information relating to POS
and ISP functionality, along with the
output of such systems (e.g., sales data,
order data, product mix, etc.), has
commercial value to competitors and
would provide them with an unfair
business advantage, including
knowledge of how to imitate and/or
duplicate the McDonald’s System. See
Smith Declaration, ¶ 6 (6:17-7:5);
Vaghani Declaration ¶ 7 (9:21-10:19).
Grant or Denial of
Request
confidential and
that it is not
currently public
does not constitute
good cause.
Denied. No good
cause has been
shown to seal
general information
relating to
defendants’ InStore Processor.
Denied. No good
cause has been
shown to seal
general information
relating to
defendants’
franchise
This portion of the Michael Smith
agreement.
Deposition Transcript discusses details Moreover,
and confidential terms of the franchise
defendants did not
agreements between Smith and
designate this
McDonald’s USA, disclosure of which portion of the
would undermine McDonald’s USA’s
transcript as
ability to negotiate future franchise
confidential
agreements and compete in the
pursuant to the
marketplace. See Smith Declaration, ¶ 6 protective order,
(7:6-7:13).
waiving their claim
13
Case 3:14-cv-02098-JD Document 155 Filed 06/05/15 Page 14 of 26
1
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Exact Portions to be
Sealed
Particularized Reason for Sealing
2
3
4
5
6
7
8
9
117:9-121:25
10
United States District Court
Northern District of California
11
12
13
14
15
16
17
18
19
20
21
22
23
24
133:1-15; 137:13-25;
159:1-162:8
25
26
27
28
12
132:25 – 139:25
This portion of the Michael Smith
Deposition Transcript discusses details
and confidential terms of the franchise
agreements between Smith and
McDonald’s USA, including specific
fee arrangements between Smith and
McDonald’s USA, disclosure of which
would undermine McDonald’s USA’s
ability to negotiate future franchise
agreements and compete in the
marketplace. See Vaghani Declaration,
¶ 7 (10:20-11:7).
This portion of the Michael Smith
Deposition Transcript discusses the
functionality of ISP and POS systems,
proprietary hardware and software
applications developed by McDonald’s
specifically for use in running a
McDonald’s restaurant business, and
reports generated through these
systems. The franchise agreement
between McDonald’s and the Smith’s
provides that McDonald’s “own[s] all
proprietary rights in and to the
McDonald’s system,” and that required
operations procedures and methods
“constitute confidential trade secrets.”
Information relating to POS and ISP
functionality, along with the output of
such systems (e.g., sales data, order
data, product mix, etc.), has commercial
value to competitors and would provide
them with an unfair business advantage,
including knowledge of how to imitate
and/or duplicate the McDonald’s
System. See Vaghani Declaration, ¶ 7
(11:8-11:22); Smith Declaration, ¶ 6
(7:13-7:20).
This portion of the Guadalupe Ortega
Deposition Transcript discusses the
functionality of ISP and POS systems,
proprietary hardware and software
applications developed by McDonald’s
14
Grant or Denial of
Request
that it is
confidential. See
Dkt. No. 103-5.
Denied. No good
cause has been
shown to seal this
information
generally
concerning to the
relationship
between
McDonald’s and
Smith.
Denied. The
declarations’
claims of
competitive harm
from the disclosure
of this information
are conclusory, and
do not constitute
good cause.
Granted for
privacy reasons
with respect to the
name at 139:18, 23,
and otherwise
Case 3:14-cv-02098-JD Document 155 Filed 06/05/15 Page 15 of 26
1
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Exact Portions to be
Sealed
2
3
4
5
6
7
8
9
10
United States District Court
Northern District of California
11
12
13
14
15
16
17
18
13
Response to Special
Interrogatory No. 2 (2:19
– 2:26; 3:4 - 5:20)
19
20
21
22
23
24
25
26
27
28
Response to Special
Interrogatory No. 3 (6:4
– 6:19)
Particularized Reason for Sealing
specifically for use in running a
McDonald’s restaurant business, and
the contents of reports generated
through these systems. The franchise
agreement between McDonald’s and
the Smith’s provides that McDonald’s
“own[s] all proprietary rights in and to
the McDonald’s system,” and that
required operations procedures and
methods “constitute confidential trade
secrets.” Information relating to POS
and ISP functionality, along with the
output of such systems (e.g., sales data,
order data, product mix, etc.), has
commercial value to competitors and
would provide them with an unfair
business advantage, including
knowledge of how to imitate and/or
duplicate the McDonald’s System. See
Vaghani Declaration, ¶ 7 (11:23-12:7).
This portion of the Smith Interrogatory
Responses lists the names of Smith
employees, their job titles and, in some
instances, their dates of employment.
These individuals are not parties to this
lawsuit and have not consented to the
public disclosure of their employment
information. See Smith Declaration, ¶ 5
(2:13-3:4).
This portion of the Smith Interrogatory
Responses discusses in detail the
functionality of the ISP and POS
systems, proprietary hardware and
software applications developed by
McDonald’s specifically for use in
running a McDonald’s restaurant
business. The franchise agreement
between McDonald’s and the Smith’s
provides that McDonald’s “own[s] all
proprietary rights in and to the
McDonald’s system,” and that required
operations procedures and methods
“constitute confidential trade secrets.”
Information relating to POS and ISP
functionality, along with the output of
such systems (e.g., sales data, order
15
Grant or Denial of
Request
denied. No good
cause has been
shown to seal this
information, and
the request is not
narrowly tailored.
In addition, to the
extent defendants
move to seal other
portions of the
Ortega deposition
transcript not
included in their
proposed order,
see, e.g., Dkt. 1002 ¶ 6, at 7:13-22,
that request is
denied.
Granted for
privacy reasons.
Denied. No good
cause has been
shown to seal
general
functionality of
defendants’ Point
of Sale and InStore Processor
systems.
Case 3:14-cv-02098-JD Document 155 Filed 06/05/15 Page 16 of 26
1
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Exact Portions to be
Sealed
2
3
4
5
6
7
8
9
10
United States District Court
Northern District of California
11
12
13
14
15
16
17
Response to Special
Interrogatory No. 5 (7:17
– 7:21)
18
19
20
21
22
23
24
25
26
27
28
Response to Special
Interrogatory No. 7 (8:13
– 8:16)
Particularized Reason for Sealing
data, product mix, etc.), has commercial
value to competitors and would provide
them with an unfair business advantage,
including knowledge of how to imitate
and/or duplicate the McDonald’s
System. See Smith Declaration, ¶ 5
(2:13-3:4).
This portion of the Smith Interrogatory
Responses discusses in detail the
functionality of the ISP system and a
specific report. The franchise
agreement between McDonald’s and
the Smith’s provides that McDonald’s
“own[s] all proprietary rights in and to
the McDonald’s system,” and that
required operations procedures and
methods “constitute confidential trade
secrets.” Information relating to POS
and ISP functionality, along with the
output of such systems (e.g., sales data,
order data, product mix, etc.), has
commercial value to competitors and
would provide them with an unfair
business advantage, including
knowledge of how to imitate and/or
duplicate the McDonald’s System. See
Smith Declaration, ¶ 5 (2:13-3:4).
This portion of the Smith Interrogatory
Responses discusses in detail the
functionality of the ISP system. The
franchise agreement between
McDonald’s and the Smith’s provides
that McDonald’s “own[s] all
proprietary rights in and to the
McDonald’s system,” and that required
operations procedures and methods
“constitute confidential trade secrets.”
Information relating to POS and ISP
functionality, along with the output of
such systems (e.g., sales data, order
data, product mix, etc.), has commercial
value to competitors and would provide
them with an unfair business advantage,
including knowledge of how to imitate
and/or duplicate the McDonald’s
System. See Smith Declaration, ¶ 5
16
Grant or Denial of
Request
Denied. No good
cause has been
shown to seal
general
functionality of
defendants’ Point
of Sale and InStore Processor
systems.
Denied. No good
cause has been
shown to seal
general
functionality of
defendants’ Point
of Sale and InStore Processor
systems.
Case 3:14-cv-02098-JD Document 155 Filed 06/05/15 Page 17 of 26
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Exact Portions to be
Sealed
Exhibit A (in its entirety)
(2:13-3:4).
This portion of the Smith Interrogatory
Responses lists the names of both
Smith and McDonald’s employees, and
in many instances, their job titles.
These individuals are not parties to this
lawsuit and have not consented to the
public disclosure of their employment
information. See Smith Declaration, ¶ 5
(2:13-3:4).
Exhibit A to the Smith Interrogatory
Responses lists Smith employee names,
positions, dates of hire and wage rates.
These individuals are not parties to this
lawsuit and have not consented to the
public disclosure of their personal
information related to their employment
with Smith. See Smith Declaration, ¶ 5
(2:13-3:4).
Response to
Interrogatory No. 2 (8:312)
This portion of McDonald’s USA’s
Interrogatory Responses summarizes in
detail the terms included in the
franchise agreements between Smith
and McDonald’s USA, disclosure of
which would undermine McDonald’s
USA’s ability to negotiate future
franchise agreements and compete in
the marketplace. See Vaghani
Declaration, ¶ 6 (3:9-3:28).
Response to
Interrogatory No. 5
(11:18 – 12:7); Response
to Interrogatory No. 6
(12:25 – 13:14)
Response to
This portion of McDonald’s USA’s
Interrogatory Responses summarizes in
detail the terms included in the
franchise agreements between Smith
and McDonald’s USA and the benefits
provided to Smith as a McDonald’s
USA franchisee, disclosure of which
would undermine McDonald’s USA’s
ability to negotiate future franchise
agreements and compete in the
marketplace. See Vaghani Declaration,
¶ 6 (3:9-3:28).
This portion of McDonald’s USA’s
2
3
4
5
Response to Special
Interrogatory No. 10
(10:10 – 10:18; 10:20 –
13:7; 13:14 – 13:17)
6
7
8
9
10
United States District Court
Northern District of California
11
12
Particularized Reason for Sealing
13
14
15
16
17
18
19
20
14
21
22
23
24
25
26
27
28
17
Grant or Denial of
Request
Granted for
privacy reasons.
Granted for
privacy reasons
with respect to the
names and
employee number
columns, and
otherwise denied.
Denied. No good
cause has been
shown to seal
general information
regarding
McDonald’s USA’s
responsibilities
with respect to
Smith. No
concrete evidence
of potential
competitive harm
has been provided.
Denied. No good
cause has been
shown to seal
general information
regarding services
McDonald’s
provides with
respect to Smith.
No concrete
evidence of
potential
competitive harm
has been provided.
Denied. No good
Case 3:14-cv-02098-JD Document 155 Filed 06/05/15 Page 18 of 26
1
Tab
2
3
Exact Portions to be
Sealed
Interrogatory No. 7
(14:11 – 15:1; 15:3 –
15:27)
4
5
6
7
8
9
10
United States District Court
Northern District of California
11
12
13
14
15
16
17
18
19
20
21
22
23
24
15
Individual Names and
Phone Numbers
16
Entire Document
Excluding Cover Page,
Confidentiality
Disclaimers and Table of
Contents/Headers
25
26
27
28
Particularized Reason for Sealing
Interrogatory Responses discusses in
detail the functionality of the POS, ISP
and R2D2 software and the reports
generated by these tools, including
specific reports received by Smith.
The franchise agreement between
McDonald’s and the Smith’s provides
that McDonald’s “own[s] all
proprietary rights in and to the
McDonald’s system,” and that required
operations procedures and methods
“constitute confidential trade secrets.”
Information relating to POS and ISP
functionality, along with the output of
such systems (e.g., sales data, order
data, product mix, etc.), has commercial
value to competitors and would provide
them with an unfair business advantage,
including knowledge of how to imitate
and/or duplicate the McDonald’s
System. This portion further discusses
confidential terms on the franchise
agreement with Smith and the contents
of tools offered to Smith pursuant to its
franchise relationship with McDonald’s
USA. See Vaghani Declaration, ¶ 6
(3:9-3:28).
Exhibit 5 to the Murray Declaration, the
VES Crew Rules and Regulations,
includes the name of a Smith employee
and her title. This individual is not a
party to this lawsuit and has not
consented to the public disclosure of
her employment information. This
document further contains the personal
telephone number of Michael Smith,
who has not consented to the disclosure
of this information. See Smith
Declaration, ¶ 5 (3:4-3:8).
Exhibit 45 to the Murray Declaration is
the People Practices section of the
Operations and Training Manual. The
franchise agreement specifically grants
Smith access to business manuals, such
as this document, with detailed
information, including operational
18
Grant or Denial of
Request
cause has been
shown to seal
general information
regarding the
relationship
between
McDonald’s and
Smith and the tools
provided by
McDonald’s.
Granted for
privacy reasons
with respect to the
name of the Smith
employee and
Michael Smith’s
telephone number.
Denied. This
request is not
“narrowly tailored
to seek sealing only
of sealable
material.” See
Civil L.R. 79-5(b).
Case 3:14-cv-02098-JD Document 155 Filed 06/05/15 Page 19 of 26
1
Tab
Exact Portions to be
Sealed
2
3
4
5
6
7
8
9
10
United States District Court
Northern District of California
11
12
13
14
15
16
17
18
17
Employee Data &
Analysis Generated by
Report
19
20
21
22
23
24
25
26
27
28
18
Entire Document
Particularized Reason for Sealing
procedures, methods of inventory
control, business practices and policies
and advertising policies for
informational purposes. Disclosure of
the information contained in this
document would provide competitors of
McDonald’s and Smith a detailed
account of McDonald’s business
strategies, policies, and practices that
are available only to McDonald’s
employees and McDonald’s
franchisees, who have paid fees to
obtain these materials as a unique and
valuable benefit of their franchise
relationship with McDonald’s. See
Vaghani Declaration, ¶ 6 (4:1-4:22).
Exhibit 46 to the Murray Declaration is
a report generated exclusively for Smith
based on Smith payroll data and related
employee data. The contents,
information and analysis provided in
this report are derived from Smith
employee data and have commercial
value to competitors and would provide
them with an unfair business advantage,
including knowledge of how to imitate
and/or duplicate the McDonald’s
System. See Smith Declaration, ¶5 (3:83:16).
Exhibit 48 to the Murray Declaration
describes in detail procedures and
information in connection with the use
of the ISP software, disclosure would
risk the likelihood that competitors will
reap the benefits of this document
without incurring the administrative
costs of development. The franchise
agreement between McDonald’s and
the Smith’s provides that McDonald’s
“own[s] all proprietary rights in and to
the McDonald’s system.” Information
relating to POS and ISP functionality,
along with the output of such systems
(e.g., sales data, order data, product
mix, etc.), has commercial value to
competitors and would provide them
19
Grant or Denial of
Request
Granted for
privacy reasons
with respect to the
names and
employee number
columns, and
otherwise denied.
Denied. This
request is not
“narrowly tailored
to seek sealing only
of sealable
material.” See
Civil L.R. 79-5(b).
Good cause has not
been shown to seal
numerous portions
of this document -for example,
general information
on how to use the
In-Store Processor.
Case 3:14-cv-02098-JD Document 155 Filed 06/05/15 Page 20 of 26
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Exact Portions to be
Sealed
2
3
4
5
6
7
8
9
10
United States District Court
Northern District of California
11
12
13
14
15
16
17
19
Substantive information
in Table of Contents and
pgs. 1-25
18
19
20
21
22
23
24
25
26
27
28
20
Substantive information
in pgs. 1-4
Particularized Reason for Sealing
with an unfair business advantage,
including knowledge of how to imitate
and/or duplicate the McDonald’s
System. This portion further discusses
confidential terms on the franchise
agreement with Smith and the contents
of tools offered to Smith pursuant to its
franchise relationship with McDonald’s
USA. See Vaghani Declaration, ¶ 6
(4:23-5:13).
Exhibit 52 to the Murray Declaration is
a Business Review Report containing
specifics on Smith business operations
and suggested guidance from
McDonald’s USA as how to maximize
profits. Disclosure of the information
contained in this document would
provide competitors of the McDonald’s
Defendants a strategic and unfair
business advantage by allowing
competitors a detailed and firsthand
account of the key business strategies
and profit-driving factors considered
and offered as optional guidance
exclusively to franchisees of
McDonald’s USA during the interactive
business review process. See Smith
Declaration, ¶ 5 (3:16-4:6).
Exhibit 53 to the Murray Declaration is
a communication between McDonald’s
USA and Smith contains specifics on
Smith business operations and
suggested guidance from McDonald’s
USA as how to maximize profits.
Disclosure of the information contained
in this document would provide
competitors of the McDonald’s
Defendants a strategic and unfair
business advantage by allowing
competitors a detailed and firsthand
account of the key business strategies
and profit-driving factors considered
and offered as optional guidance
exclusively to franchisees of
McDonald’s USA during the interactive
business review process. See Vaghani
20
Grant or Denial of
Request
Granted.
Although the Smith
declaration does
not provide
specificity as to the
competitive harm
defendants might
suffer from public
disclosure of this
information, the
information
appears to be of the
type that might be
exploitable by
competitors.
Granted.
Although the Smith
declaration does
not provide
specificity as to the
competitive harm
defendants might
suffer from public
disclosure of this
information, the
information
appears to be of the
type that might be
exploitable by
competitors.
Case 3:14-cv-02098-JD Document 155 Filed 06/05/15 Page 21 of 26
1
Tab
Exact Portions to be
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2
Declaration, ¶ 6 (5:14-5:28).
3
Employee Data
Generated by Report
Exhibit 54 to the Murray Declaration is
a confidential McDonald’s report
generated exclusively for Smith based
on Smith payroll data and related
employee data. See Smith Declaration,
¶ 5 (4:7-4:15).
Exhibit 55 to the Murray Declaration is
a spreadsheet of Smith employee data,
including employee names, ID
numbers, dates and hours of
employment. These individuals are not
parties to this lawsuit and have not
consented to the public disclosure of
their employment information. See
Smith Declaration, ¶ 5 (4:16-4:20).
Employee Data
Generated by Report
Exhibit 56 to the Murray Declaration is
a confidential McDonald’s report
generated exclusively for Smith based
on Smith payroll data and related
employee data. See Smith Declaration,
¶ 5 (4:7-4:15).
4
5
6
21
Employee Data
Generated by Report
7
8
9
10
11
United States District Court
Northern District of California
Particularized Reason for Sealing
22
12
13
14
15
23
16
17
18
19
24
Employee Data
Generated by Report
20
21
22
23
24
25
26
27
28
25
Employee Data
Generated by Report
Exhibit 57 to the Murray Declaration is
a confidential McDonald’s report
generated exclusively for Smith based
on Smith payroll data and related
employee data. See Smith Declaration,
¶ 5 (5:1-5:7).
Exhibit 58 to the Murray Declaration is
a spreadsheet of Smith employee data,
including employee names, rates of
pay, dates and hours of employment.
These individuals are not parties to this
lawsuit and have not consented to the
public disclosure of their employment
information. Furthermore, this
spreadsheet contains wage rates,
earnings amounts and check numbers.
Public disclosure of this information
grants competitors of Smith an unfair
advantage by providing insight into
Smith’s wage structure. See Smith
Declaration, ¶ 5 (5:7-5:13).
21
Grant or Denial of
Request
Granted for
privacy reasons
with respect to the
names and
employee number
columns, and
otherwise denied.
Granted for
privacy reasons
with respect to the
names and badge
number columns,
and otherwise
denied.
Granted for
privacy reasons
with respect to the
names and
employee number
columns, and
otherwise denied.
Granted for
privacy reasons
with respect to the
names and
employee number
columns, and
otherwise denied.
Granted for
privacy reasons
with respect to the
name column, and
otherwise denied.
Case 3:14-cv-02098-JD Document 155 Filed 06/05/15 Page 22 of 26
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2
3
4
5
6
7
8
9
10
26
Employee Data
Generated by Report
27
Entire Document
28
Entire Document
United States District Court
Northern District of California
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Particularized Reason for Sealing
Exhibit 59 to the Murray Declaration is
a spreadsheet of Smith employee wage
history, including employee names,
rates of pay, dates and hours of
employment. These individuals are not
parties to this lawsuit and have not
consented to the public disclosure of
their employment information.
Furthermore, this spreadsheet includes
pay rates, earnings amounts and check
numbers. Public disclosure of this
information grants competitors of
Smith an unfair advantage by providing
insight into Smith’s wage structure. See
Smith Declaration, ¶ 5 (5:13-5:19).
Grant or Denial of
Request
Granted for
privacy reasons
with respect to the
names and
employee number
columns, and
otherwise denied.
Denied. The
standard agreement
on which this
document was
based was filed in
the public docket in
another case. See
Wilson v.
McDonald’s Corp.,
No. 5:14-cv-11082JCO-MJH (E.D.
Exhibit 60 to the Murray Declaration is Mich.), ECF. No.
the 800 Market Street Franchise
45-14, available at
Agreement, disclosure of this document Dkt. No. 103-6.
would undermine McDonald’s USA’s
Defendants have
ability to negotiate future franchise
not shown good
agreements and compete in the
cause to seal this
marketplace. See Smith Declaration, ¶ 5 particular version
(5:20-6:6).
of the agreement.
Denied. The
standard agreement
on which this
document was
Exhibit 61 to the Murray Declaration is based was filed in
the 6623 San Pablo Franchise
the public docket in
Agreement, disclosure of this document another case. See
would undermine McDonald’s USA’s
Wilson v.
ability to negotiate future franchise
McDonald’s Corp.,
agreements and compete in the
No. 5:14-cv-11082marketplace. See Vaghani Declaration, JCO-MJH (E.D.
¶ 6 (6:1-6:13).
Mich.), ECF. No.
22
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Exact Portions to be
Sealed
Particularized Reason for Sealing
2
3
4
5
6
7
8
9
10
United States District Court
Northern District of California
11
12
Entire Document
Exhibit 62 to the Murray Declaration is
the 2301 MacDonald Ave Franchise
Agreement, disclosure of this document
would undermine McDonald’s USA’s
ability to negotiate future franchise
agreements and compete in the
marketplace. See Vaghani Declaration,
¶ 6 (6:1-6:13).
Entire Document
Entire Document
Exhibit 63 to the Murray Declaration is
the 4514 Telegraph Ave Franchise
Agreement, disclosure of this document
would undermine McDonald’s USA’s
ability to negotiate future franchise
agreements and compete in the
marketplace. See Vaghani Declaration,
¶ 6 (6:1-6:13).
Exhibit 64 to the Murray Declaration is
13
14
15
16
29
17
18
19
20
21
22
23
24
25
26
27
28
30
31
23
Grant or Denial of
Request
45-14, available at
Dkt. No. 103-6.
Defendants have
not shown good
cause to seal this
particular version
of the agreement.
Denied. The
standard agreement
on which this
document was
based was filed in
the public docket in
another case. See
Wilson v.
McDonald’s Corp.,
No. 5:14-cv-11082JCO-MJH (E.D.
Mich.), ECF. No.
45-14, available at
Dkt. No. 103-6.
Defendants have
not shown good
cause to seal this
particular version
of the agreement.
Denied. The
standard agreement
on which this
document was
based was filed in
the public docket in
another case. See
Wilson v.
McDonald’s Corp.,
No. 5:14-cv-11082JCO-MJH (E.D.
Mich.), ECF. No.
45-14, available at
Dkt. No. 103-6.
Defendants have
not shown good
cause to seal this
particular version
of the agreement.
Denied. The
Case 3:14-cv-02098-JD Document 155 Filed 06/05/15 Page 24 of 26
1
Tab
Exact Portions to be
Sealed
2
3
4
5
6
7
8
9
10
United States District Court
Northern District of California
11
12
13
14
15
16
17
32
Portions of Pgs. 1-2
33
Entire Document
18
19
20
21
22
23
24
25
26
27
28
Grant or Denial of
Request
the 1330 Jackson Street Franchise
standard agreement
Agreement, disclosure of this document on which this
would undermine McDonald’s USA’s
document was
ability to negotiate future franchise
based was filed in
agreements and compete in the
the public docket in
marketplace. See Vaghani Declaration, another case. See
¶ 6 (6:1-6:13).
Wilson v.
McDonald’s Corp.,
No. 5:14-cv-11082JCO-MJH (E.D.
Mich.), ECF. No.
45-14, available at
Dkt. No. 103-6.
Defendants have
not shown good
cause to seal this
particular version
of the agreement.
Portions of Exhibit 66 to the Murray
Granted for
Declaration contains specific
privacy reasons
information on training tools offered to with respect to
Smith in improving the operations of its individual email
restaurant and the frequency with which addresses, but
Smith takes advantage of these tools.
otherwise denied.
Public disclosure of this information
No particularized
would put Smith and McDonald’s at a
showing of
competitive disadvantage. See Vaghani competitive harm
Declaration, ¶ 7 (6:1-6:21).
has been made.
Granted for
privacy reasons
with respect to the
names and ID
numbers, and
otherwise denied.
Exhibit 67 to the Murray Declaration is The mere fact that
a report containing commercially
the information has
sensitive information made available
been made
exclusively to franchisees of
available
McDonald’s USA in furtherance of
exclusively to
confidential business strategies. This
franchisees does
document is a tool to be used by
not constitute good
franchisees as an optional resource in
cause to seal it, and
developing scheduling practices and
the allegations of
staffing practices and is unique to the
competitive harm
McDonald’s restaurant business. See
are too conclusory
Vaghani Declaration, ¶ 6 (8:24-9:11).
to constitute good
Particularized Reason for Sealing
24
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1
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Exact Portions to be
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2
3
4
5
6
7
8
9
34
Entire Document
35
Restaurant Operations
Data Generated by
Report
36
Employee Data
Generated by Report
37
Entire Document
10
United States District Court
Northern District of California
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Grant or Denial of
Request
cause to seal.
Denied with
respect to the
portion attached at
Dkt. No. 92-10.
Exhibit 70 to the Murray Declaration
The mere fact that
contains specific information on
the information has
training tools offered to Smith in
been made
improving the operations of its
available
restaurant and the frequency with which exclusively to
Smith takes advantage of these tools.
franchisees does
See Vaghani Declaration, ¶ 6 (8:11not constitute good
8:23).
cause to seal it.
Granted.
Although the Smith
declaration does
not provide
specificity as to the
Exhibit 71 to the Murray Declaration is competitive harm
a confidential report containing detailed defendants might
sales data and related information
suffer from public
regarding the daily operations of a
disclosure of this
Smith restaurant. The information in
information, the
this report (e.g., sales data, order data,
information
transaction time, etc.), has commercial
appears to be of the
value to competitors and would provide type that might be
them with an unfair business advantage. exploitable by
See Smith Declaration, ¶ 5 (6:7-6:13).
competitors.
Granted for
privacy reasons
with respect to the
names and ID
numbers, and
otherwise denied.
The fact that a
report was
Exhibit 73 to the Murray Declaration is generated
a confidential report generated
exclusively for
exclusively for Smith based on Smith
Smith does not
payroll data and related employee data. constitute good
See Smith Declaration, ¶ 5 (5:1-5:7).
cause.
Exhibit 82 to the Murray Declaration
Denied.
contains a specific list of training
Defendants have
curriculum made available exclusively
not made a
to franchisees of McDonald’s USA.
particularized
The McDonald’s Defendants have
showing that they
Particularized Reason for Sealing
25
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1
Tab
Exact Portions to be
Sealed
2
3
4
5
6
7
8
9
10
Grant or Denial of
Request
expended substantial time, effort and
will suffer
resources to develop this curriculum.
competitive harm if
Disclosure of the information contained their competitors
in this document would provide
are aware of the
competitors of McDonald’s and Smith a general topics that
detailed account of McDonald’s
form part of their
business strategies, policies, and
restaurant
practices that are available only to
management
McDonald’s employees and
curriculum.
McDonald’s franchisees, who have paid
fees to obtain these materials as a
unique and valuable benefit of their
franchise relationship with
McDonald’s. See Vaghani Declaration,
¶ 6 (8:24-9:11).
Particularized Reason for Sealing
United States District Court
Northern District of California
11
12
13
IT IS SO ORDERED.
Dated: June 5, 2015
14
________________________
JAMES DONATO
United States District Judge
15
16
17
18
19
20
21
22
23
24
25
26
27
28
26
Exhibit 3
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 2 of 153
Pg ID 188
Version 6.0
January 2011
All Operating Systems Edition
Table Of Contents
Letter from Jeff Stratton
i
Letter from Jim Johannesen
ii
Restaurant Operations Improvement
Process Overview
The Link Between Restaurant Systems
and Business Results
McDonald’s Restaurant System Overview,
System Day Steps and Restaurant System Maps
1-10
11
12-14
Production
15-16
Service
17-18
Shift Management
19-20
Food Safety
21-22
Inventory Management
23-24
Inventory Management
– Restaurant Order Proposal [ROP]
25-26
People Practices
27-28
Planned & Daily Maintenance
29-30
Safety & Security
31-32
Training
33-34
Business Planning
35-36
Crew & Management Scheduling
37-38
Internal Communication
39-40
QSC Travel Path, Restaurant Systems
Review, Evolving Action Plan
42-49
Full Operations Review Instruction
51-56
Full Operations Review
57-97
Short Operations Review Instruction
99-102
Short Operations Review
103-119
McDonald’s in Walmart
121-122
Gold Standard Quality Reference Material
125-141
Index of Resources and ORC
142-146
Proprietary information. Unauthorized use is prohibited.
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 3 of 153
Pg ID 189
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Pg ID 190
January 1, 2011
Hello Everyone,
I am pleased to introduce the Global Restaurant Operations Improvement Process (GROIP) - Cycle 6 QSC
Workbook. GROIP continues to play an integral role in delivering our Brand Promise to our customers.
Each time we deliver an exceptional customer experience, it brings our customers back, increases their
brand loyalty, and makes the entire McDonald’s system more profitable.
Based on the results we have achieved as a system, it is evident that GROIP is working. Our systemwide focus on operational improvement supports our core values, and is evidenced by our strong sales
and guest counts, as well as our CSO improvement in every area of the world.
In Cycle 6, the process remains largely intact with some minor modifications to address changing
business needs. Our challenge is to build upon the momentum we have created across the system to
raise our level of QSC, People and Food Safety in every restaurant.
This QSC workbook serves as a guide to identify and address restaurant specific opportunities.
You will find the following fundamental areas highlighted throughout the workbook:
•
•
•
•
calibration and training of all levels of Operations Staff
focused Consultant time in the restaurants
measuring our progress in operations performance
developing effective action plans
By executing these fundamentals, we make consistent delivery of QSC to our guests “real in the
restaurants” every day. Thank you for all the hard work you do every day to improve restaurant QSC,
and truly differentiate McDonald’s from our competition.
Jeff Stratton
McDonald’s Chief Restaurant Officer
2011-2012 | Letter From Jeff Stratton
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Pg ID 191
January 1, 2011
To the McDonald’s Team:
Thanks to your leadership and focus on operations excellence, 2010 was another great year for the
McDonald’s brand. In an increasingly challenging environment, your teams help differentiate McDonald’s
from everyone else and created even greater brand loyalty by providing outstanding customer service to
every guest.
As you read from Jeff Stratton, on a global level, ROIP continues to play a critical role in helping our
teams deliver our Brand Promise to our customers. In the US, we are embarking on ROIP Cycle 6 – the
next step in ensuring that our restaurant teams have the information, resources and support needed to
execute our Plan to Win to the highest level. To that end, your role is even more important as we work to
build upon the success of ROIP Cycle 5 to get the best results possible.
Operational excellence is the foundation upon which we will deliver outstanding customer service. Let’s
use ROIP Cycle 6 as an opportunity to lead our restaurants into the future by leveraging the opportunities
that will increase the distance between us and the competition. By working together, and increasing our
dialog, we can build an even better relationship and profitably grow our business.
It really is a great time to be at McDonald’s. I am proud to be your partner.
Jim Johannesen
Executive Vice President
Chief Operating Officer
McDonald’s USA, LLC
2011-2012 | Letter From Jim Johannesen
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Restaurant Operations Improvement Process (ROIP)
Ultimate Objective: Build the Business
Consulting Roadmap
Inputs
• O/O Business
& Restaurant
Action Plans
Preparation and
Planning Phase
• Business Review
• 1-800 number
Cycle
Planning
Session
• Employee
commitment
survey
• Mystery shops
Systems
Day
Execution Phase
Evolving
Restaurant
Action Plan
Short
Operations
Reviews
(SOR)
Full
Operations
Review
(FOR)
Menu of
Targeted
Help Visits
Follow-up
to Failed
Visits
Other
Support
Visits
Guideline:
60 to 150 days
between scored visits
On-going
Status
Review
Outputs
• Separate Q, S, C, People
and Food Safety results
• Recognition/reinforcement
of strengths
. . . by ensuring every shift runs better
• Identification of root causes
to improve on opportunities
• Evolving Action Plan
• Satisfied guests through
improved operations
2011-2012 | Restaurant Operations Improvement Process Overview | ROIP 1
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What is the Restaurant Operations Improvement Process (ROIP)?
ROIP is a holistic approach to building our business. It is a process that provides consulting and evaluates the performance
of our restaurants. ROIP enables us to make changes that improve the guest experience and our business results.
The Consulting Roadmap describes the ROIP cycle. The Consultant and Owner
Operator plan and execute ROIP together. While the Owner Operator is responsible
for the operation of the restaurant(s), the Consultant and Owner Operator share
responsibility for all components of ROIP: Cycle Planning, Systems Day, Full
Operations Review (FOR), Short Operations Reviews (SORs), Support Visits,
On-going Status Reviews, and the Evolving Action Plan.
Why do we do ROIP?
We execute the entire ROIP cycle to strive for superior operations leading
to the best guest experience leading to the best business results.
Only some components of the process involve evaluation. The scores in these
components are simply a means to an end—identifying restaurant improvement
opportunities so that you can act on them. Remember, the focus of ROIP is on
the “I”—Improvement.
How do we do ROIP?
Consultants, Owner Operators, and Restaurant Managers work together to
complete ROIP activities. We each fulfill the responsibilities associated with
our roles and support others in fulfilling their responsibilities. We work the
process together. We know we all benefit from improvements in operations,
the guest experience, and business results. We are a team.
When do we do ROIP?
ROIP Cycle 6 begins January 1, 2011 and ends September 30, 2012.
There are two major phases to ROIP: the Preparation and Planning
Phase and the Execution Phase. Please refer to the Consulting
Roadmap on the previous page for a recommendation on when
visits should occur.
What are the roles in ROIP?
The Consultant’s primary role is to consult with the Owner
Operator and to coach the restaurant team to improved results by
helping to identify issues and being a resource for potential solutions.
The Owner Operator’s primary role is to use the results of ROIP
consulting activities to make improvements in the restaurant to
enhance the guest experience.
What if a restaurant opens, changes
ownership, relocates* or is rebuilt*
during the cycle?
If the event occurs:
Complete This:
12-21 months prior to
the end of the cycle
The Entire Cycle
10-11 months prior to
the end of the cycle
1 Systems Day
1 FOR
1 SOR
1 Help Visit
6-9 months prior to
the end of the cycle
1 Systems Day
1 FOR
1 Help Visit
Less than 6 months
prior to the end of
the cycle
1 Systems Day
1 Help Visit
The Restaurant Manager’s primary role is to implement the
Evolving Action Plan to enhance the guest experience.
What behaviors can we expect of each other during ROIP?
Every one of us—Consultants, Owner Operators, and Restaurant
Managers—benefits by practicing the following behaviors during
every part of ROIP, each committing to one another that:
• I will maintain and enhance my expertise in operational
standards and procedures.
• I will be prepared for all scheduled ROIP activities.
• I will participate in operations reviews with fairness
and professionalism.
* Relocation and rebuild events are considered as occurring
only upon completion.
• I will understand the key issues facing the restaurant.
• I will develop, execute and/or support the Evolving Action Plan to improve
QSC, Food Safety, and People, and will evaluate the status of the plan.
• I will treat others with respect and dignity.
• I will listen thoroughly and speak honestly.
• I will work collaboratively with others.
• I will be receptive to change and new ideas.
• I will acknowledge outstanding achievements and provide timely positive feedback.
• I will keep the end goal of ROIP in mind—improvement in operations, the guest experience, and business results.
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What is the Cycle Planning Session?
The Cycle Planning Session is a required face-to-face meeting between the Owner
Operator and the Consultant. In the meeting the Owner Operator and Consultant
plan how to use the ROIP activities in the restaurant(s) throughout the cycle to
build the business. It is an open dialogue based on the needs of the organization
as identified in the Business Plan or Business Review.
Why do we do the Cycle Planning Session?
There are three purposes for the Cycle Planning Session:
• For the Consultant to understand the Owner Operator’s current business goals.
• For the Owner Operator and Consultant to establish strategies to achieve
business results.
• To develop a Cycle 6 Plan and a schedule of ROIP Cycle 6 consulting
activities that support the organization’s plan to build the business.
The expected outcome of the Cycle Planning Session is the Cycle 6 Plan. This plan
provides the restaurant with a roadmap for future success through mutual planning,
shared expectations, and clear goals for the organization.
How do we do the Cycle Planning Session?
To ensure the success of the Cycle Planning Session, the Owner Operator
and Consultant:
• Meet face-to-face.
• Schedule enough time and an appropriate location.
• Prepare for the meeting in advance, including recognition and appreciation.
In the meeting, the Consultant and the Owner Operator thoroughly discuss:
• The current Business Plan and the on-going Evolving Action Plan.
• The needs of the business from the Owner Operator’s and Consultant’s perspective.
• How the Consultant can best support the Owner Operator.
• How and when the various ROIP activities can be leveraged to support improvement plans.
When do we do the Cycle Planning Session?
The session is held before any other ROIP activities; it is part of the Preparation and Planning Phase.
What are the roles and responsibilities before the Cycle Planning Session?
In preparation for the session, the Consultant has the following responsibilities:
• Work with the Owner Operator to select a date, time, location, participants, and agenda for the meeting.
• Review the most current data for the restaurant and organization: Owner Operator Business Plan, Performance Matrix, Evolving
Action Plan, marketplace, profitability and people data.
• Become expert on enhancements to ROIP Cycle 6.
• Reflect on how to continuously improve his/her consulting skills for ROIP Cycle 6.
In preparation for the session, the Owner Operator has the following responsibilities:
• Work with the Consultant to select a date, time, location, participants, and agenda for the meeting.
• Review the most current data for the restaurant and the organization: Owner Operator Business Plan, Performance
Matrix, Evolving Action Plan, marketplace, profitability and people data.
• Document trends and needs to identify business opportunities within the restaurant, the organization, and the trading area.
• Reflect on what the restaurant and organization can do to improve results over the previous cycle.
• Prepare to discuss how to work with the Consultant to improve the business.
What are the roles and responsibilities during the Cycle Planning Session?
During the session, the Consultant has the following responsibilities:
• Facilitate the session in a collaborative manner. Use active listening techniques, ask open-ended questions, and take good notes.
• Inquire more and talk less. Listen for understanding and gain the Owner Operator’s perspective on his/her business and
business needs.
• Clarify roles and responsibilities so both parties are clear and in agreement.
• Ask for feedback on how the Consultant can be more effective in Cycle 6.
• Discuss any questions about ROIP Cycle 6 enhancements.
• Schedule ROIP activities as appropriate.
During the session, the Owner Operator has the following responsibilities:
• Be an active part of the ROIP planning process.
• Be open and honest about the business and needs of the business.
• Clarify roles and responsibilities so both parties are clear and in agreement.
• Provide candid feedback on the Consultant’s performance.
• Ask questions to understand ROIP Cycle 6 enhancements.
• Schedule ROIP activities as appropriate.
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What is Systems Day?
Systems Day is a scheduled activity which provides the opportunity to review all
or some of the 12 restaurant systems. The intent is for 2-way dialogue between
the Consultant and Owner Operator about what is working well and what can be
improved to build the business. One Systems Day is required per Owner
Operator organization.
Why do we do Systems Day?
The purpose of Systems Day is to ensure that the Owner Operator and
Consultant are aligned on the actions needed to drive improvement in
the restaurant systems.
How do we do Systems Day?
Systems Day may review all 12 restaurant systems or only some of the
systems. The Systems Improvement Guides or Workshops may be used
to focus on those systems most in need of attention, as identified in the
previous ROIP cycle.
It is highly recommended that when the restaurant is new or has changed
ownership, the Owner Operator and Consultant complete a full Systems
Day to get a thorough understanding of all 12 restaurant systems.
The Consultant and Owner Operator decide together which approach is most
appropriate based on the needs of the organization.
When the 12 restaurant systems are being reviewed, the Systems Maps are used to:
• Provide a guide to compare the restaurant systems versus the ideal
• Identify missing key success factors
• Gain commitment from the Owner Operator to put missing key success factors in place
• Help identify areas of opportunity and create actions for improvement
Refer to the Systems Day section in this QSC Play Book for more detailed information on how to complete a full Systems Day.
When do we do Systems Day?
Systems Day is completed after or in conjunction with the Cycle Planning Session and before the first scored visit.
It may be part of the Planning and Preparation Phase or the Execution Phase.
What are the roles and responsibilities during Systems Day?
The Consultant and Owner Operator work side-by-side with the Restaurant Manager to complete one or more of the following:
• Full Systems Review
• Partial Systems Review
• Improvement Guide
• Workshop – this may include the management team as appropriate
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What is the Full Operations Review (FOR)?
The FOR is a comprehensive assessment of the execution of McDonald’s
operational standards in the areas of Quality, Service, Cleanliness, People,
and Food Safety. It provides the Consultant the opportunity to consult with
the Owner Operator and coach the restaurant team. It also determines
progress made toward the Evolving Action Plan. It is a required,
announced, and scored visit.
Why do we do the FOR?
The expected outcome of the FOR is improved results in QSC, People and
Food Safety based on FOR observations, dialogue, consulting and coaching,
leading to a review and adjustment of the restaurants Evolving Action Plan.
How do we do the FOR?
The standard FOR is conducted over a 2-day period covering 3 day parts—
breakfast, lunch, and dinner. Overnight operations are not reviewed during
the FOR. Accompanied by the Owner Operator, the Consultant uses the
Full Operations Review form to evaluate restaurant operations following
the Observation to Action Process Flow. The Evolving Action Plan is
updated as a result of the FOR. There are two options in addition to the
standard FOR. There is an option to conduct a 1-day FOR covering 2 day
parts and/or a self-scored FOR. The Owner Operator and Consultant
decide on this during the Cycle Planning session.
1-Day FOR Guiding Principles:
The decision to conduct a 1-day FOR is restaurant-specific, not organization-specific.
When making the decision, consider these guiding principles:
• The restaurant met or exceeded all QSC and Food Safety thresholds in the previous cycle
• The Management Team is stable
• The ownership of the restaurant and consultant are the same from the previous cycle
• The restaurant is not experiencing any dramatic change in business climate or operations
1-Day FOR Requirements:
• Must review 2 day parts
• A full People Review must be conducted
• The General Quality, Service and Cleanliness sections must be completed
• The Food Safety Procedures Verification must be completed
Self-Scored FOR Requirements:
The decision to conduct a self-scored FOR is restaurant-specific, not organization-specific. To conduct a self-scored FOR,
the restaurant must meet these requirements.
• The restaurant had no failed visits in any QSC or Food Safety in Cycle 5 and in Cycle 6.
• The Owner Operator or McOpCo Operations Manager/Supervisor has been trained and certified by Field Service
For more detailed information on how to complete the FOR, refer to the Full Operations Review Instruction in the QSC Play Book.
When do we do the FOR?
The date of the FOR is scheduled during the Cycle Planning Session and is conducted after the Systems Day.
What are the roles and responsibilities during the FOR?
The Consultant’s role is to consult with the Owner Operator and coach the restaurant team to improve the guest experience,
while scoring the restaurant. The Consultant orchestrates the review with the Owner Operator and then works with the Owner
Operator to integrate the findings into the Evolving Action Plan. The Restaurant Manager is an active participant in the process.
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What is the Short Operations Review (SOR)?
The SOR is an abbreviated evaluation of the operational level of the restaurant.
Though abbreviated, it still covers Quality, Service, Cleanliness, People, and Food
Safety. The SOR is another opportunity for the Consultant to consult with the
Owner Operator and coach the restaurant team.
The SOR is a 2 or more hour visit focusing on the guest perspective. It evaluates the
5 drivers of guest satisfaction: quality, cleanliness, accuracy, friendliness, and
fast. It is a required and scored visit. Like the FOR, the SOR also reviews
progress made toward the Evolving Action Plan.
Why do we do the SOR?
The expected outcome of the SOR is improved results in Q, S, C, People and Food
Safety based on SOR observations, dialogue, consulting and coaching, leading
to a review and adjustment of the restaurants Evolving Action Plan.
How do we do the SOR?
We conduct the SOR on one day part—breakfast, lunch or dinner. The Consultant
first evaluates his/her own experience in the Drive-thru or at the Front Counter and
then announces his/her presence in the restaurant. The Consultant uses the Short
Operations Review form to evaluate restaurant operations following the Observation
to Action Process Flow.
It is important that everyone—Consultants, Owner Operators, and Restaurant Managers—do their best to put others at ease
during the SOR. Remind each other that the purpose of the SOR is to identify restaurant improvement opportunities to build the
business. The SOR is our opportunity to get even better at what we do.
The dialogue between the Consultant, the Manager, and Owner Operator regarding the Evolving Action Plan is a critical component
of the SOR. As part of the Evolving Action Plan conversation, the Owner Operator and Consultant may decide on the need for Support
Visits and/or other regional department support.
For more detailed information on how to complete the SOR, refer to the Short Operations Review Instruction in this QSC Play Book.
When do we do the SOR?
The recommendation is to conduct the SOR 60-150 days prior to or after the FOR or another SOR. There is no prescribed order
for FORs and SORs. The Consultant and Owner Operator may decide to conduct the SOR before the FOR to achieve increased
operational improvement.
SOR Process:
• Two unannounced SORs.
• A restaurant can earn its way out of the second unannounced SOR if all scores are 88% or above and Food Safety is passed on
the FOR and the first SOR. (note: 80% or above is passing)
Example #1
Q
S
C
FS
Example #2
Q
S
C
FS
FOR
88
93
90
P
FOR
93
97
92
P
SOR1
95 100 89
P
SOR1
86
88
91
P
90
83
97
P
Help Visit
Help Visit
Because the scores for Q,S, C, are 88% or above and
FS is passing, the restaurant earns its way out of the
second SOR.
SOR2
FOR/SOR requirements for the Cycle are Completed.
Scores are not 88% or above so the second SOR is
required, however all scores are above the failed visit
threshold of 80% so no follow-up visits are required.
FOR/SOR requirements for the Cycle are Completed.
Note: Additional scored visits can be conducted on any restaurant at any time.
For detailed information on how to address a failed visit, refer to the Follow-up to a Failed Visit on page 6 of this document.
What are the roles and responsibilities during the SOR?
The Consultant’s role is to positively impact the guest experience through real-time consulting and coaching while scoring the
restaurant. The Consultant performs the review with the Owner Operator and consults with the Owner Operator to integrate
the findings into the Evolving Action Plan. The Shift Manager is an active participant in the process.
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What is a Follow-up to a Failed Visit?
A failed visit due to QSC results when a FOR or SOR has any QSC category
score below 80%.
A failed visit due to Food Safety results when the restaurant misses
3 or more non-critical items or 1 critical item.
Why do we do a Follow-up to a Failed Visit?
The expected outcome of a Follow-up to a Failed Visit is to bring restaurant
operations up to an acceptable level—to build the guest experience and sales,
and to protect and build the brand.
How and when do we do a Follow-up to a Failed Visit?
If a restaurant has a failed visit due to any QSC category on a FOR or SOR,
a follow-up SOR is conducted 30-90 days after the failed visit. There is no
regional discretion to waive a follow-up SOR when any QSC category
score falls below 80%.
If there is a food safety failure due to a critical food safety item, a follow-up Food
Safety Procedures Verification must be completed within 14 days of the failed visit,
regardless of whether or not the QSC scores were otherwise acceptable.
A follow-up SOR is not required.
If there is a food safety failure due to 3 non-critical food safety items, a follow-up Food Safety Procedures Verification must
be completed within 90 days of the failed visit, regardless of whether or not the QSC scores were otherwise acceptable.
A follow-up SOR is not required.
When to Perform Food Safety
Follow up Visit
Follow up within:
Critical Failure
(One or more missed Food Safety
Questions from Items 12-16)
14 Days
Non-Critical Failure
(3 or more Food Safety Questions
missed NOT including Items 12-16)
30-90 Days
Failed Visit - Example #1
Q
S
C
FS
Failed Visit - Example #2
Q
S
C
FS
Failed Visit - Example #3
Q
S
C
FS
FOR
90
88
88
P
FOR
92
95
92
P
FOR
90
85
78
F
SOR1
95
88
88
F
SOR1
88
70
88
P
Follow-up FS
P
Follow-up SOR
85
83
84
P
Follow-up SOR
95
85
81
P
P
Help Visit
SOR1
88
70
90
P
Follow-up FS
SOR2
88
88
90
Help Visit
SOR2
Follow-up SOR
88
88
90
P
By failing FS on SOR1 the restaurant did not earn their
way out of SOR2. The failure of FS on SOR1 requires a
follow-up FS.
By failing service on SOR1 the restaurant did not
earn their way out of SOR2. Additionally, because the
service score was below 80% a Follow-up SOR must
be conducted.
SOR2
85
88
91
P
FOR/SOR requirements for the Cycle are Completed.
By failing cleanliness and Food Safety on the FOR the
restaurant did not earn their way out of SOR2. The FS
failure on the FOR requires a follow-up FS visit. The
failed cleanliness section of the FOR requires a followup SOR. The failed service section of SOR1 requires an
additional follow-up SOR.
FOR/SOR requirements for the Cycle are Completed.
80
87
88
P
P
Help Visit
FOR/SOR requirements for the Cycle are Completed.
What are the roles and responsibilities for a Follow-up to a Failed Visit?
The Consultant’s role is to positively impact the guest experience through real-time consulting and coaching while scoring the
restaurant. The Consultant performs the review with the Owner Operator and consults with the Owner Operator to integrate the
findings into the Evolving Action Plan. The Shift Manager is an active participant in the process.
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What is a Support Visit?
A Support Visit is a planned, announced activity that is determined during the
Cycle Planning Session or as needed to best support the restaurant. This is an
opportunity for the Consultant and Owner Operator to work side-by-side as
needed to help build the business. For this cycle, Support Visits include a menu
of targeted Help Visits plus additional Support Visits.
A menu of targeted Help Visits is available that you can choose from during this
cycle. These Help Visits are aligned to key initiatives and include:
• Building Peak Hour Performance Help Visit
• CBB & DTO Help Visit
• Restaurant Profitability Diagnostic Tool
• Field Visit Support Tool and Coaching and Status Tool used to support
deployment of Restaurant Department Management (RDM)
• Staffing, Scheduling, and Positioning (SSP) Help Visit
Why do we do Support Visits?
Targeted Help Visits and additional Support Visits can assist the Owner Operator
with implementation of key initiatives and/or business needs identified in the
Business Review and targeted in the Cycle Planning Session. The expected
outcome is improvement in restaurant operations.
• Help Visits are typically targeted at the restaurant level, align to key initiatives, and are designed to identify actionable opportunities
for improvement. By enabling restaurants and Operators to select the focus area of their choice, these Help Visits are beneficial in
maximizing Operators’ investment and business potential.
• Additional Support Visit may be targeted at the restaurant or organization level, with the focus adjusted as necessary
throughout the cycle.
How and when do we do Support Visits?
All the targeted Help Visits and additional Support Visits may occur at any point during ROIP Cycle 6 as mutually agreed by the Owner
Operator and Consultant.
• For this cycle, one Help Visit from the menu of targeted Help Visits will be required per restaurant. Which Help Visits are
conducted—and when—will depend on where the Operators and restaurants are at with their priorities, sequencing,
and the needs of the business.
• Additional Support Visits may be conducted as needed at any time during the cycle to best meet the restaurant’s needs.
All targeted Help Visits and additional Support Visits are documented in the Global Data Collection Tool but not scored. The
documentation shows what the Owner Operator and Consultant accomplished. It is a resource for both the Owner Operator and
Consultant for any follow-up that needs to occur.
What are the roles and responsibilities during Support Visits?
The Consultant and Owner Operator, or designated mid-management, work together prior to and during the Support Visit. The
Restaurant Manager is involved at the discretion of the Owner Operator.
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What is the On-going Status Review?
This is an on-going conversation between the Owner Operator and the Consultant
regarding the status of their Cycle 6 Plan and the Evolving Action Plan. It is an
opportunity to ensure that the Cycle 6 Plan they developed during the Cycle
Planning Session is on target and that the restaurant is seeing improvements.
Why do we do the On-going Status Review?
The expected outcome of the On-going Status Review is improved alignment
between the Owner Operator and the Consultant on the needs of the Owner
Operator’s business. It is a forum for dialogue that brings mutual expectations
to life. It sets the stage for improved business results.
How do we do the On-going Status Review?
During these status check-ups, the Consultant and Owner Operator determine
if the Cycle 6 Plan and Evolving Action Plan are on-track. If the plans are on-track,
they celebrate success. If the plans are not on-track, they make adjustments as
needed to drive improvement. This is accomplished by setting aside adequate
time when the Consultant and Owner Operator can have focused, meaningful
conversation to reflect on progress, formulate next steps, and ask for feedback
from each other.
When do we do the On-going Status Review?
These reviews are intended to be on-going throughout the ROIP cycle and at a
minimum, should happen at least once during the cycle. The On-going Status
Review does not need to be a stand-alone meeting. It may be linked to other
activities in the restaurant or with the Owner Operator outside the restaurant.
What are the roles and responsibilities during the On-going Status Review?
The Consultant and Owner Operator mutually review the Cycle 6 Plan and the Evolving Action Plan.
They decide together where celebration and adjustment are appropriate.
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What is the Evolving Action Plan?
This is a plan that originates with the Business Review or Business Plan and
changes as ROIP and other business-related activities occur. Every ROIP
activity—Cycle Planning, Systems Day, FOR, SORs, People Reviews, Support
Visits—should provide input and direction to the Evolving Action Plan.
Why do we do the Evolving Action Plan?
Rather than have multiple plans, the goal is to have one Evolving Action Plan
that changes to reflect the needs as they are identified in the restaurant.
The Evolving Action Plan incorporates action items from every aspect of the
business, such as FORs, SORs, People Reviews, Support Visits, Mystery Shops,
Employee Commitment Surveys, 1-800 number results, marketplace data,
financial measures and turnover reports.
How do we do the Evolving Action Plan?
The Evolving Action Plan reflects an on-going dialogue between the Consultant
and Owner Operator. Both parties continually evaluate the progress toward
restaurant, business, and organizational improvement.
When do we do the Evolving Action Plan?
Since the Evolving Action Plan is the roadmap for restaurant improvement, it should
be reviewed and updated regularly. The Owner Operator and Consultant update the
Evolving Action Plan during all restaurant visits and any significant conversations.
The Owner Operator or McOpCo Operations Consultant inputs the Evolving Action Plan into the Global Data
Collection Tool within one week of the visit.
What are the roles and responsibilities in the Evolving Action Plan?
The Owner Operator and Consultant review the Evolving Action Plan together and
decide on modifications. The Restaurant Manager participates as appropriate.
What are Inputs and Outputs?
Inputs provide information about restaurant operations from both internal and
external sources. Outputs are the results of ROIP activities.
Inputs include: Owner Operator Business Plan, Restaurant’s Evolving Action Plan,
Business Review, 1-800 number results, Employee Commitment Survey results,
and Mystery Shops.
Outputs include: Separate Q, S, C, People, and Food Safety results,
recognition and reinforcement of strengths, identification of root causes
to improve opportunities, Evolving Action Plan, and satisfied guests through
improved operations.
Why do we use Inputs and Outputs?
The Inputs paint a high-level picture of how the restaurant performs from the
guest and restaurant perspective. This information, along with the information
gained during ROIP activities, sets the direction for the Evolving Action Plan.
The Outputs provide direction on areas to improve and areas that deserve
recognition for achievement.
How and when do we use Inputs and Outputs?
We use Inputs and Outputs to focus improvement efforts throughout the cycle.
What are the roles and responsibilities for Inputs and Outputs?
The Consultant and Owner Operator both review inputs to identify trends and
patterns and to refine the Evolving Action Plan to focus on the areas needing
the most attention. Restaurant Management responds to coaching from the
Owner Operator to focus on continuous improvement.
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We all want positive business results because
this allows us to:
• support our families
• contribute to our community
• continue to grow
Increased
Guest Counts
The only way to achieve the business results we
want is to create and retain brand loyal guests.
Increased Sales
Increased Profit
Guest Expectations
• Easy to use (fast, hassle-free and clean)
• Food quality
• Friendly, efficient
• Value pricing
• Enjoyment, entertainment
Our research shows that if we consistently
deliver on these expectations, our guests will
be loyal to us. The QSC Travel Path can be
used to identify opportunities in these areas.
A primary way to deliver the best guest
experience and gain guest brand loyalty is
through superior operations (QSC Superiority).
Our operations are composed of a set
of systems that work together for the
overall objective of the whole.
Primary Systems
• Production
• Service
• Shift Management
Management Systems
• Business Planning
• Crew & Management
Scheduling
• Internal Communication
Support Systems
•
•
•
•
Food Safety
Inventory Management
People Practices
Planned & Daily
Maintenance
• Safety & Security
• Training
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Superior operations result from the
consistent execution of all twelve
restaurant systems.
Our Primary restaurant systems are
those that directly impact the guest
experience.
Our Support restaurant systems
supply the necessary resources
and policies needed for the Primary
systems to function.
Our Management systems are those
systems needed to guide the Primary
and Support systems.
Poor execution in any one of the
twelve restaurant systems will, over
time, impact operations (QSC), the
guest experience, and, ultimately,
business results.
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The foundation of McDonald’s operations is a set of systems that work together for the overall objective of the whole.
These systems were identified after a thorough analysis of the activities most frequently performed by McDonald’s
restaurant Managers and Crew.
Superior operations result from the consistent execution of all twelve restaurant systems. Poor execution in any one
of the restaurant systems will, over time, impact operations (QSC), the guest experience, and ultimately, business
results. The primary way to deliver the best guest experience and gain guest brand loyalty is through superior
operations (QSC Superiority).
To prepare hot, fresh food
To deliver a fast, accurate, friendly experience for every guest
To coordinate People, Equipment and Product (PEP) to achieve
guest and employee satisfaction
To ensure that safe food is served to every guest
To ensure that everything the restaurant needs to make and serve
products is available and of high quality
To provide an environment that motivates our employees
To maintain properly working equipment and a clean
sanitary environment
To provide and maintain a safe and secure environment for guests,
employees and the business
To provide timely, effective and engaging training that results in
competent employees
To develop and implement restaurant level goals and action plans that guide
the operations team towards monitoring and achieving business results
To create a schedule to achieve guest and employee satisfaction while
maximizing employee productivity
To provide employees with information that keeps them knowledgeable
about topics that will impact their job performance and commitment
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The following is an outline for the Systems Day when reviewing all twelve systems. For restaurants that have remained under
the same ownership since the previous cycle of ROIP, the Systems Day should be focused on the three systems that have already
been identified as needing focus.* New restaurants or restaurants that have changed ownership will most likely want to review
all twelve systems to determine the three systems that need focus. The goal is continued improvement and recognition for
improvements made.
The following steps relate to those restaurants that are new, have changed ownership or have elected to perform a Systems Day.
Complete the following steps with the Owner Operator or McOpCo Operations Manager and any other appropriate individuals
(e.g., O/O Restaurant Manager, McOpCo Operations Consultant).
Step
Purpose
Related Materials
Page
1
Meet and greet everyone. Walk
through the agenda for the day
To obtain a shared understanding
of what will happen today
Systems Training Day Steps
13
2
Walk through the Restaurant
Operations Improvement Process
To gain a common understanding
of what Systems Training Day is and
where it fits within the Restaurant
Operations Improvement Process
Restaurant Operations
Improvement Process
1
3
Walk through the Link Between
Restaurant Systems and
Business Results
To explain the connection between
restaurant systems, loyal guests and
ultimately, positive business results
The Link Between Restaurant
Systems and Business Results
11
4
Review the purpose of each
of the restaurant systems
To gain a common understanding
of the restaurant systems because
the only way to deliver the best
guest experience is through
superior operations
Restaurant Systems Overview
12
5
Conduct the QSC Travel Path
(Guest Perspective). Utilize prior
knowledge and information
concerning restaurant performance
to discuss areas of focus during
the visit.
To identify opportunities in areas that
are most important to our guests
QSC Travel Path
(Guest Perspective)
43-44
6
Perform the Restaurant
Systems Review
To identify where to focus
improvement efforts
Restaurant Systems Review
45-47
7
Discuss the impact of missing key
success factors
To gain commitment to put missing
key success factors in place
System Maps
14-40
8
Prioritize the systems that need
improvements and develop an
action plan
To determine actions that will
improve the targeted systems
Systems Action Plan
48-49
* Depending on the approach, Owner Operator and Consultant work side-by-side with the Restaurant Manager to
complete one of the following:
• Partial Systems Review
• 12 Systems Improvement Guide session
• Work Shop on a specific system (with management team as appropriate)
2011-2012 | System Maps | MAPS 3
McDonald’s USA - QSC Playbook - Version 6.0
(sample)
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 20 of 153
Pg ID 206
In this section you will find graphical maps of each of the McDonald’s 12 Restaurant Systems. Each System Map lists
critical activities for operating the restaurant efficiently and effectively, by role/position and by order in which the activities
must be completed.
For copies of the tools and training referenced on the system maps, refer to the “Index of Resources” at the end of
the QSC Play Book. Additional information on standards and procedures can be found in the O&T Manual, Restaurant
Management Curriculum and Crew Development Program.
Use these maps:
• As a guide to compare your restaurant systems to the “ideal”
• To identify missing key success factors
• To gain commitment for putting missing key success factors in place, and
• To help identify areas of opportunity and create Action Plans for improvement.
2011-2012 | System Maps | MAPS 4
McDonald’s USA - QSC Playbook - Version 6.0
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 21 of 153
Pg ID 207
Ensures MFY procedures are executed
according to standard
Restaurant
Manager
Maintains UHC charts and ensures cabinet
levels match
Ensures production area is organized and
labeled for ease of use
Shift
Manager
Product
Prep Person
Dedicated to stocking the
restaurant for 24/2
Observes Danger Zones and responds appropriately
when there are 3 or more orders on the KVS or 3 or
less orders of fries prepared
Ensures that crew stay in position
Monitors UHC levels to match production levels
French Fry
Person
Monitors equipment operation
Production
Manager
“Chases” KVS danger zones
Coaches crew
Communicates with shift manager throughout the shift
Stays in position according
to the positioning guide
Communicates production levels to Grilled Products
Person and Fried Products Person
Initiator
Stays in position
Bun Person
Assembler
Respond
to order
on KVS
Toast or
steam
buns
Ensure proper rotation
(FIFO) People positioned
properly Use bun buffer
only during appropriate
times Monitor holding
times of buffered buns
Items in bold are key success factors
2011-2012 | System Maps | MAPS 5
McDonald’s USA - QSC Playbook - Version 6.0
Pull
box/
wrap
Prepare
Product/
add sauce
Product
pulled by
assembler
Grilled
Products
Person
Bump
order
off KVS
Determine quantity of
grilled products to cook
based on the grilled
products chart and
communications from
the Production Manager
Cook grilled
products
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 22 of 153
Initiator
Area
Review prep
charts
Grilled
Products
Assembly
Prepare food
based on
prep charts
Fried
Products
Pg ID 208
French
Fries
Stock the
restaurant
for 24/2
Systems
Impacted
Service
Watch DT Monitor
and FC to determine
number of baskets
to drop in vat
Load
fries
Drop
fries
in vat
Cook fries
as close to
frozen as
possible
Salt
fries
Bag/box
fries
Output:
Completed
food product
HLZ
Pull box/
wrap from
initiator
Add condiments
to product
Get grilled
and fried
product
from UHC to
add to buns
Box/wrap
product
Slide
product
to HLZ
Key Success Factors
UHC
Place grilled
products in UHC
Fried
Products
Person
2011-2012 | System Maps | MAPS 6
McDonald’s USA - QSC Playbook - Version 6.0
Determine
quality of fried
products to
cook based
on the fried
products
chart and
communication
from the
Production
Manager
Cook
Fried
Products
Place
fried
products
in UHC
Initiator stays in position
____
French fry person stays in position
according to the positioning guide
____
All stations are properly stocked
for 24/2
____
Restaurant Manager ensures MFY
procedures are executed according
to standard
____
Restaurant maintains UHC charts
and ensures cabinet levels match
____
Shift Manager responds
appropriately when there are 3 or
more orders on the KVS or 3 or
less orders of fries prepared
____
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 23 of 153
“We proudly create an exceptional McDonald’s
Service Experience that makes all people feel
appreciated and valued.”
Pg ID 209
Ensure guest recovery process
is in place and is followed
Build and role model McDonald’s
Service Experience
Restaurant
Manager
Shift
Manager
Ensure key positioning and
monitor descriptions are
correct and the POS Reports are
set up correctly on the POS
Ensure service area is organized
and labeled for ease of use
Assemble
the order
Take the
order
Front Counter/ Drive-thru
FC/DT
Crew
Welcome
Attentive to
the guest
Communicate
clearly and
effectively
Present the
order
Receive
payment
Connect (Look for opportunities to make a connection with the guest)
Guest Recovery Success Factors
Restaurant
Manager
Receive guest
feedback
in-store
to-store
Items in bold are key success factors
2011-2012 | System Maps | MAPS 7
McDonald’s USA - QSC Playbook - Version 6.0
Respond quickly and
appropriately to 100%
of guest feedback to
ensure guest recovery
(Speed, accuracy, and
sincerity are critical)
Create an
environment
where all
people feel
appreciated
and valued
Identify root
cause of
problem and
take action to
prevent future
occurrences
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 24 of 153
Maintain
minimum
QSC standard
Maintain stock
levels during
shift (24/2)
Service
Manager
Pg ID 210
Role models McDonald’s
Service Experience
Make eye contact with the
guests and smile
Ensure crew stays in position
Are courteous to guests and
attentive to the guest’s needs
Ensure proper feedback
(recognition, coaching, and
correction) to the service team
to improve performance
Crew
Ensure order taker/cashier
responsibilities are split if 4 or
more crew are scheduled
Deliver orders to parked cars
Respond appropriately to the
danger zone (when there are 3 or
more cars in line at the Drive-thru
order point or 3 or more guests in
line at a register)
Effectively communicate with
the guest (listen attentively,
personalizes to the guest’s
needs)
Orders double checked for
accuracy (ensure they have
everything they need e.g.,
nugget sauce)
Help create an environment
where all people feel
appreciated and valued.
Ensure overall guest satisfaction
Farewell
Output:
The Best Guest Experience
All guests felt appreciated
and valued
Indicates direct Crew/guest
interaction. These interactions
are used to determine if the key
success factor, service employees
are courteous to guests, is in place
Document
feedback and
actions taken in
guest feedback
log book
2011-2012 | System Maps | MAPS 8
McDonald’s USA - QSC Playbook - Version 6.0
Key Success Factors
Service employees are
courteous to guests and
attentive to the guest needs
____
Service employees effectively
communicate with the guests
____
All orders are double checked
for accuracy
____
Guest recovery process is in
place and followed
____
Drive-thru:
Order taker/cashier
responsibilities are split if 4
or more crew are scheduled
in Drive-thru
____
Shift/Service Manager responds
appropriately when there are 3
or more cars in line at the Drive-thru
order point
____
Front counter:
Shift/Service Manager responds
appropriately when there are 3
or more guests in line at
the register
____
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 25 of 153
Pg ID 211
Shift Manager is shift certified/verified
Shift
Manager
Treat every employee with complete
respect, dignity, and courtesy
Working day before shift
Review partner’s sales
pattern (promotions,
upcoming special
events, etc.)*
Review TC/Sales
Projections
Check product
stock levels
Check Crew schedule
and complete
positioning plan (shift
preparation tool)
Review schedule
for next day
Pre-shift
Observe cleanliness
of restaurant exterior
upon arrival
Greet team
Read messages
from ISP and/or
manager’s log
Communicate with
manager on shift to
identify sales trends
or problems
Properly complete
the Pre-shift
Checklist (i.e.
stocking for 24/2)
Consult with partner
on partner’s sales
patterns*
Identify shift
priorities and
secondary duties
Prevent/handle
bottlenecks
Watch danger zones
During shift (dotted lines indicate responsibilities can be performed in any order)
Manage the shift
by observing (from
observation post)
Coach, encourage,
and assist Crew
when necessary
• Service, production
barriers
• Danger zones
• Crew positions
Communicate
progress of
targets to Crew
Monitor progress
towards targets
throughout shift
Interact with
guests/role model
hospitality and
follow guest
recovery process
when necessary
Conduct travel
path every
half hour (set
priorities and
take action)
Maintain safety
and security
during the shift
Post-shift transition
Evaluate results
against shift targets
Recognize and
reward crew for
meeting shift
targets or excellent
performance
Transition with
next shift’s
manager
* Items unique to Special Site Restaurants (such as: Malls, Airports, Retail Sites including
McDonald’s in Walmart, Co-branded Oil, Recreation Sites, and Temporary Entertainment Sites)
Items in bold are key success factors
2011-2012 | System Maps | MAPS 9
McDonald’s USA - QSC Playbook - Version 6.0
Prepare deposit
Review schedule
for next shift
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 26 of 153
Pg ID 212
Systems
Impacted
Production
Service
Review sales
projections and
any current
sales from today
Crew are positioned
according to the
positioning guide
and stay in position
• Training
schedule
• LSM activities
Communicate shift
targets to Crew
Output:
A well run shift
Communicate other
relevant information
(new products,
promotions or
partner events*)
Key Success Factors
Coordinate
breaks for team
Skim drawers
and prepare
deposits
Check employee
appearance,
handwashing
and glove
procedures
Tell team good-bye
and thanks
2011-2012 | System Maps | MAPS 10
McDonald’s USA - QSC Playbook - Version 6.0
Maintain
food safety
Maintain
acceptable
level of QSC
Managers visible on floor actively
managing by observing (from
observation post) service and
production barriers, danger zones
and Crew positions
____
Pre-shift Checklist is used
____
Shift Manager is shift certified/
verified
____
Crew are positioned according to
the positioning guide and stay
in position
____
Shift targets/information are
communicated to all employees
____
Crew recognized and rewarded
for meeting targets or excellent
performance
____
Shift Manager interacts with
guests, follows guest recovery
process when necessary and
role models hospitality
____
Travel path is conducted by
manager every half hour, priorities
are set and action taken
____
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 27 of 153
Pg ID 213
Control Points
Note: May need to be adjusted if local requirements exceed McDonald’s requirements.
Inventory Management System
Production System
Receive food
Store food
Prepare food
Frozen products solidly
frozen; refrigerated products
at or below 40°F (4°C)
Frozen:
• Air temperature at or below
0°F (-18°C)
Secondary shelf life for
lettuce, onions, tomatoes
adhered to
Refrigerated storage:
• Product temperature at or
below 40°F (4.4°C)
Shelf lives:
• All primary & secondary
shelf lives adhered to
Food Safety Responsibilities
These responsibilities are not done in a sequential order
Use appropriate
utensils during
food preparation
Team
Clean and sanitize shake, sundae,
espresso, blended ice and ice
machine at required frequency
Follow appropriate procedures for the
prevention of cross-contamination
when handling all raw meat or poultry
products at the grill station (must meet
local health department regulations
and McDonald’s Standards)
Disposable gloves are worn at the
salad prep areas for preparing salads,
parfaits and burritos
O/O &
Restaurant
Manager
Items in bold are key success factors
Maintain an approved
water filtration system
capable of removing
from the water 99.9%
of particles >1 micron
Ensure Managers and
Crew are properly trained/
instructed on food safety
and sanitation procedures
2011-2012 | System Maps | MAPS 11
McDonald’s USA - QSC Playbook - Version 6.0
Use sanitizer-soaked
towels to clean and sanitize
restaurant surfaces
Employees wash hands
hourly and practice
good personal hygiene
Adhere to local laws/
regulations for the use
of disposable gloves
for food handling
Develop and maintain
a strong working
relationship with health
department officials
Ensure full compliance to
food safety regulations
Complete the Food Safety
Daily Checklist each day
and keep at least 60 days
of completed checklists
at the restaurant
Complete
the Monthly
Restaurant
Manager Food
Safety Checklist
Clean and
sanitize all food
handling trays
and utensils
at least once
every 4 hours
Pest prevention
process is in place
Pest management
reports are
reviewed and
recommendations
acted upon
Complete the Monthly
Food Safety Procedures
Verifications (or
equivalent evaluation)
and keep at least the last
2 completed verifications
at the restaurant
Pyrometer kit
includes all
components
and is working
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 28 of 153
Cook food
Pg ID 214
Hold food
• Chicken cooked to 165°F (74°C) or above
• Beef cooked to 155°F (68.3°C) or above
(For quality, at least one of the four
temperatures of cooked patties must be
between 155°F (69°C) and 165°F (74°C)
• Pork cooked to 160°F (71.1°C) or above
• Fish cooked to 150°F (65.6°C) or above
• Shell egg products cooked until the yolk
is gelled and not runny
• Breakfast meats cooked to 160°F
(71.1°C) or above
Cooked foods held at or
above 140°F (60°C) (UHC
and hot holding units)
Systems
Impacted
Production
Shift Management
Inventory
Management
Business Planning
Crew &
Management
Scheduling
Internal
Communication
Foods are kept covered or wrapped
when in storage and are marked with
appropriate secondary shelf life
Output:
Safe food
Key Success Factors
Ensure any issues
discovered during
food safety
inspections or
audits are resolved
immediately
Ensure Crew adhere
to proper procedures
for storing, cooking,
and handling food
products
Ensure the restaurant
always has an adequate
supply of the approved
chemicals and supplies
for cleaning, sanitizing,
and hand washing
Ensure all Shift
Managers are trained
and certified on food
safety through ServSafe
or an equivalent class.
2011-2012 | System Maps | MAPS 12
McDonald’s USA - QSC Playbook - Version 6.0
Ensure proper handling
and follow-up on all food
safety related guest
complaints or claims
Planned maintenance
is performed and
documented for all
cooking, storage and
holding equipment
Planned maintenance is
performed and documented
for all food cooking, storage
and holding equipment
____
Managers and Crew are
properly trained/instructed in
Food Safety and sanitation
procedures
____
Food Safety Daily Checklist is
completed and at least the
last 60 days of completed
checklists are available
____
Pyrometer kit includes all
components and is working
____
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 29 of 153
Restaurant
Manager
Pg ID 215
Assistant
Manager
Check sales
projections to
determine
stock needed
Review build-to
to determine
products to be
ordered
Check upcoming
promotions
to determine
product needs
Check upcoming
partner events*
Ensure inventory
administration
is completed
Ensure storage
area is organized
Assistant
Manager
Crew
Store products
properly (location,
safety, rotation)
Restaurant
Manager
Count inventory
Lock remote storage
areas, beverage bars,
and condiment areas*
* Items unique to Special Site Restaurants (such as: Malls, Airports, Retail Sites including
McDonald’s in Walmart, Co-branded Oil, Recreation Sites, and Temporary Entertainment Sites)
Items in bold are key success factors
2011-2012 | System Maps | MAPS 13
McDonald’s USA - QSC Playbook - Version 6.0
Review buildto charts for
pulling and
preparing
products
Order product
from distribution
center
Analyze
inventory
stat report
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 30 of 153
Restaurant
Manager
& Shift
Manager
Pg ID 216
Ensure procedures are in place
and followed for handling raw and
completed waste
Ensures build-to’s are in place and
reflect current product mix
Ensures stock levels are
in line with sales projections
Shift
Manager
Schedule employees
to receive deliveries
Confirm partner’s
delivery schedule*
Receive products
by checking order
accuracy, quality,
and condition
Systems
Impacted
Production
Service
Shift Management
Planned & Daily
Maintenance
Crew &
Management
Scheduling
Communicate
inventory stat
report results
to employees
Develop and execute
plan to correct
discrepancies found
in inventory report
Output:
Goods available
upon guest demand
Key Success Factors
2011-2012 | System Maps | MAPS 14
McDonald’s USA - QSC Playbook - Version 6.0
Stock levels are in line with
sales projections
____
Build-to’s are in place and reflect
current product mix
____
Inventory administration
completed
____
Deliveries are checked for order
accuracy, quality and condition
____
Products are stored properly
(location, safety, rotation)
____
Procedures are in place and
followed for handling raw and
completed waste
____
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 31 of 153
Restaurant
Manager
Pg ID 217
Assistant
Manager
Check sales
projections to
determine
stock needed
Review build-to
to determine
products to be
ordered
Check upcoming
promotions
to determine
product needs
Ensure inventory
administration
is completed
Ensure ISP is
updated daily –
waste transfers,
etc.
Check upcoming
partner events*
Order product
from distribution
center
Review buildto charts for
pulling and
preparing
products
Ensure storage
area is organized
Review all
inventory alerts
Assistant
Manager
Crew
Store products
properly (location,
safety, rotation)
Restaurant
Manager
Count inventory
Lock remote storage
areas, beverage bars,
and condiment areas*
* Items unique to Special Site Restaurants (such as: Malls, Airports, Retail Sites including
McDonald’s in Walmart, Co-branded Oil, Recreation Sites, and Temporary Entertainment Sites)
Items in bold are key success factors
2011-2012 | System Maps | MAPS 15
McDonald’s USA - QSC Playbook - Version 6.0
Analyze
inventory
stat report
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 32 of 153
Restaurant
Manager
& Shift
Manager
Pg ID 218
Ensure procedures are in place
and followed for handling raw
and completed waste
Ensure stock levels are
in line with order proposal
Shift
Manager
Schedule employees
to receive deliveries
Confirm delivery
schedule*
Communicate
inventory stat
report results
to employees
2011-2012 | System Maps | MAPS 16
McDonald’s USA - QSC Playbook - Version 6.0
Receive products
checking order
accuracy, quality,
and condition
Develop and execute
plan to correct
discrepancies found
in inventory report
Systems
Impacted
Production
Service
Shift Management
Planned & Daily
Maintenance
Crew &
Management
Scheduling
Output:
Have the right
products at the right
time available for
our guests’ demand
Key Success Factors
Stock levels are in line with
order proposal
____
Ensure ISP is updated daily–
waste transfers, etc.
____
Review all
inventory alerts
____
Daily/weekly inventory
administration completed
____
Deliveries are checked for order
accuracy, quality and condition
____
Products are stored properly
(location, safety, security, rotation)
____
Procedures are in place and
followed for handling raw and
completed waste
____
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 33 of 153
Pg ID 219
O/O
Ops Consultant
Rest. Manager
Asst. Manager
Shift Manager
Crew
Crew event (meeting,
rally, outing, etc.) held
in last six months
O/O
Restaurant
Manager
Assistant
Manager
Process in place to
attract high-quality
guest-focused
applicants
• Determine
staffing needs
• Applications
handled properly
Conduct
employee
interview
Hire employees
Conduct
orientation
• Treat all
applicants
like guests
• Utilize
recommended
hiring tools
Perform wage/
administration
duties
• Conduct Employee
Satisfaction/
Commitment Survey
• Develop and
implement Plans
Crew and Management hiring and orientation process is followed
• Engage and connect with the
new employee
• Communicate McDonald’s
Service expectations
• Complete required
administrative work
• All required local and country
posters are displayed
Items in bold are key success factors
2011-2012 | System Maps | MAPS 17
McDonald’s USA - QSC Playbook - Version 6.0
• Labor laws and McD’s policies are
followed (e.g., minor laws, work permits,
minors identified on schedule)
• Health certificates are on file
where required
• An I-9 is on file for each employee
hired after 11-6-86
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 34 of 153
Pg ID 220
• Train and coach
employees
• Certify trainer
• Verify and track
ability to execute
Follow-up with new employees
Employee turnover
• Conduct exit interview when possible
• Complete appropriate paperwork
Open Door
Communication
Adhere to
all local and
country laws
Recognition/appreciation
programs exist for Crew
and Managers
Output:
Employees are motivated and
committed to provide our guests
with an exceptional experience
Systems
Impacted
Conduct performance reviews
• Create individual development plan
• Promote employees
• Develop and implement
performance improvement plan
Production
Service
Shift Management
Food Safety
Inventory
Management
Business Planning
Crew &
Management
Scheduling
Internal
Communication
Key Success Factors
* As an independent Owner/Operator, you are exclusively responsible
for employment matters within your organization.
2011-2012 | System Maps | MAPS 18
McDonald’s USA - QSC Playbook - Version 6.0
Crew and Management hiring and
orientation process is followed
____
Crew and Management
performance and wage review
policies are followed
____
Crew and Management
Satisfaction/Commitment Survey
completed and Action Plans
implemented
____
Recognition/appreciation programs
exist for Crew and Managers
____
Crew event (meeting, rally, outing,
etc.) held in the last 6 months
____
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 35 of 153
Pg ID 221
Planned maintenance
Restaurant
Manager
Assistant
Manager
Order PM
calendar
Current and complete
reference materials
are available and used
•
•
•
•
•
Assign PM
tasks and
post PM
calendar
Schedule
tasks that
require a
qualified
technician
Train and
schedule
employees
to perform
PM tasks
Provide
proper tools
and supplies
to perform
PM tasks
Follow-up
on PM
tasks
Rest. Mgr.
Asst. Mgr.
Shift Mgr.
Crew
PM Calendar
PM Manual
Equipment Manuals
M&R Budget
Necessary Tools
Equipment failure
Rest. Mgr.
Asst. Mgr.
Shift Mgr.
Provide opportunities for
employees to communicate
equipment and physical
plant failures
Identify and respond to
equipment and physical
plant failure (plan of
action in place)
Verify completion
of tasks
Daily Maintenance
Restaurant
Manager
Assistant
Manager
Restaurant
Manager
Trained daily
maintenance
person is
assigned daily
Items in bold are key success factors
2011-2012 | System Maps | MAPS 19
McDonald’s USA - QSC Playbook - Version 6.0
Crew
Provide proper
tools and supplies
to perform daily
maintenance tasks
Follow-up on
maintenance
tasks
Complete
Opening/
Transition
Checklist
tasks
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 36 of 153
O/O or
McOpCo
Ops Mgr./
Consultant
Perform
PM tasks
Restaurant
Manager
Assistant
Manager
Sign off on
completed
PM tasks
Pg ID 222
Grills are certified
annually
PM tasks are
verified upon
completion
Systems
Impacted
Production
Service
Shift Management
Food Safety
People Practices
Safety & Security
Business Planning
Crew &
Management
Scheduling
Internal
Communication
Output:
Working equipment and
clean restaurant
Key Success Factors
Restaurant
Manager
Complete
Opening/
Transition
Checklist
tasks
2011-2012 | System Maps | MAPS 20
McDonald’s USA - QSC Playbook - Version 6.0
Trained maintenance person
is assigned daily
____
PM tasks are verified upon
completion
____
Current and complete reference
materials are available and used:
• PM Calendar
• PM Manual
• Equipment Manuals
• M&R Budget
• Necessary Tools
____
Grills are certified annually
____
Plan of action is in place for any
broken equipment
____
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 37 of 153
Pg ID 223
Safe environment (dotted line indicates responsibilities can be done in any order)
Restaurant
Manager
Ensures an active
Safety Committee/
Manager/Management
team as required by
local law
Ensure
employees
are properly
trained in
safety
Maintain fire
extinguishers
and Ansul
system
Restaurant
Manager
Wear proper protective equipment
when cleaning and filtering vats
to include apron, gloves and face
shield. Crew wear approved safety
gloves during final grill cleaning
Reinforces safety
awareness
Secure environment (dotted line indicates responsibilities can be done in any order)
Restaurant
Manager
Ensure bank
deposits are
conducted
according
to policy
Ensure that no
more than one
deposit is in safe
at one time
Change POS
password at
least once a
month and
disable access
if manager is
terminated or
transferred
Change safe
combination
(and/or pin #)
according
to security
guidelines or
if manager is
terminated or
transferred
Ensure all
required
posters are
displayed
Restaurant
Manager
Ensure manager
and crew are
properly trained
in security
Conduct frequent
travel paths that
incorporate security
components
Schedule right
amount of people
to open and close
restaurant
Follow
staggered
method of
opening
and closing
procedures
React immediately to
any risk condition at
the restaurant
Perform security
audit as required
(country policy)
Shift
Manager
Items in bold are key success factors
2011-2012 | System Maps | MAPS 21
McDonald’s USA - QSC Playbook - Version 6.0
Change Security
CCTV tapes daily
where applicable
Check security
equipment for
proper operation
(Door alarm,
security tapes,
security cameras,
and lighting)
React immediately
to any risk condition
at the restaurant
Crew
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 38 ofSystems
153 Pg ID 224
Impacted
O/O or
McOpCo
Ops Mgr./
Consultant
Have PlayPlace safety inspection completed
annually and follow up on correction needs
Employees, contractors,
visitors follow all restaurant
safety procedures
Shift
Manager
Crew
Production
Service
Shift Management
Inventory
Management
People Practices
Business Planning
Crew & Management
Scheduling
Internal
Communication
Display “caution
wet floor” signs
when mopping
Wear slip
resistant
shoes
Keep floor
mats clean
and flat
Output:
Safe and secure
restaurant environment
Clean floor
regularly
Key Success Factors
Safety:
Shift
Manager
Count each drawer
at beginning and
end of shift
O/O
McOpCo
Ops.
Consultant
Adhere to cash
controls (skims
large bills)
Change restaurant locks when manager
or maintenance person is terminated,
transferred, or keys are lost
An active Safety Committee
reinforces safety awareness
____
“Caution Wet Floor” signs are
displayed when mopping
____
Crew wear proper protective
equipment when cleaning and
filtering vats to include apron,
gloves, and face shield. Crew wear
approved safety gloves during
final grill cleaning
____
All employees wear slip
resistant shoes
____
Have PlayPlace safety inspection
completed annually and follow
up on correction needs
____
Employees, contractors, visitors
follow all restaurant safety
procedures
____
Security:
Back door policy is followed
2011-2012 | System Maps | MAPS 22
McDonald’s USA - QSC Playbook - Version 6.0
Follow all restaurant
security procedures
Follow staggered method of
opening and closing procedures
____
Back door policy is followed
____
Bank deposits are conducted
according to policy
____
Cash controls are adhered to
(skims, large bills)
____
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 39 of 153
Pg ID 225
Crew development (Crew development process exists and is followed)
Restaurant
Manager
Assistant
Manager
• Certify trainers
Orient new
employees
to partner’s
business*
• Complete training
needs analysis
Ensures crew
trainers have
proficiency
necessary
to train
effectively
Develop
training
schedule
for new
employees
Assign a Crew
Trainer to new
employee
Rest. Mgr.
Asst. Mgr.
Shift Mgr.
Introduce new
employee to
Crew Trainer
Follow-up on
all training
• Develop crosstraining/skill
development plan
Ensure training is scheduled and ongoing for all employees
Management development (Management development process exists and is followed)
Restaurant
Manager
The restaurant
manager is a/an
ROLP/RLP/AOC
graduate
Orient new
Manager; set
performance
expectations
for position
Plan and
assist in their
development
Orient new
Managers
to partner’s
business
and partner’s
management
to McDonald’s
business*
Obtain
training
materials
Assign
coach
Rest. Mgr.
and/or
Asst. Mgr.
Obtain
unique
safety and
security
training
materials*
Rest. Mgr.
and/or
Asst. Mgr.
2011-2012 | System Maps | MAPS 23
McDonald’s USA - QSC Playbook - Version 6.0
Follow up
on in-store
training
progress
with coach
and trainee;
provide
feedback
• Ensure restaurant has adequate number of shift
certified/verified Managers to cover each shift
• Certify readiness of trainees before attending class
• Complete management certification
* Items unique to Special Site Restaurants (such as: Malls, Airports, Retail Sites including
McDonald’s in Walmart, Co-branded Oil, Recreation Sites, and Temporary Entertainment Sites)
Items in bold are key success factors
Schedule
in-store
training
with
coach
Conduct
skill and
knowledge
assessments
and
verifications
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 40 of 153
Pg ID 226
Systems
Impacted
Crew
Trainer
Teach employee
foundation skills,
stations, and
positions
Rest. Mgr.
Asst. Mgr.
Shift Mgr.
Verify and
document
employee
has learned
foundation
skills, stations,
and positions
(track training)
Production
Service
Shift Management
Food Safety
Inventory
Management
People Practices
Planned & Daily
Maintenance
Safety & Security
Crew &
Management
Scheduling
Internal
Communication
Output:
Competent and
confident employees
Ensure
classroom
training
pre-work is
completed
Restaurant
Manager
Ensure
training
materials
audit is
complete
Schedule
trainee for
classroom
training
Restaurant
Manager
Assistant
Manager
Ensure
classroom
training
post-work is
completed
Debrief
with
trainee
after
class
Ensure new
skills are used
on the job
Ongoing training
needs identified
Key Success Factors
2011-2012 | System Maps | MAPS 24
McDonald’s USA - QSC Playbook - Version 6.0
Training is scheduled and
ongoing for all employees
____
Restaurant Manager is a/an
ROLP/RLP/AOC graduate
____
Restaurant has an adequate
number of shift certified/verified
Managers to cover each shift
____
Owner Operator or McOpCo
Operations Consultant completes
shift management certifications
____
Management development process
exists and is followed
____
Crew development process exists
and is followed
____
Managers ensure Crew Trainers
have proficiency to train effectively
____
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 41 of 153
Pg ID 227
The focus is to ensure the Restaurant Manager knows and communicates their goals to
their team, based on an understanding of the Operator’s business plan.
Assess business
• QSC – ROIP scores
• People
• Sales
• Profit – Opportunities
• Be knowledgeable about partner’s business plan*
O/O
McOpCo
Ops Mgr.
Reassess
business
Determine
vision
Develop goals
• QSC
Co-develop objectives and
Action Plans
Communicate
goals
• People
* Reassess at the following times:
• Sales
• Change in market
• Profit
Determine training, resources
or motivation actions needed
Modify Action Plans based on
ROIP measures and changes
in business/business goals
• Change/acquire store
• Business Review
• Refinance
• Remodel/Reinvestment
• Restaurant Management Change
Restaurant
Manager
Assess/
reassess
business
Know and
communicate
restaurant goals
set by/with O/O
or Operations
Manager
Co-develop objectives and
Action Plans
Determine training, resources
or motivation actions needed
Modify Action Plans based on
ROIP measures and changes
in business/business goals
Assign tasks from the action
plan to members of the
management team and key
crew members
Assistant
Manager
Shift
Manager
* Items unique to Special Site Restaurants (such as: Malls, Airports, Retail Sites including
McDonald’s in Walmart, Co-branded Oil, Recreation Sites, and Temporary Entertainment Sites)
Items in bold are key success factors
2011-2012 | System Maps | MAPS 25
McDonald’s USA - QSC Playbook - Version 6.0
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 42 of 153
Pg ID 228
Systems
Impacted
Provide
resources/
funds for
Action
Plan and
motivation
as needed
Monitor
progress
towards
goals and
provide
feedback
Measure
results,
recognize
and reward
Production
Service
Shift Management
Food Safety
Inventory
Management
People Practices
Planned & Daily
Maintenance
Safety & Security
Training
Crew &
Management
Scheduling
Internal
Communication
Output:
Targets achieved
Develop
communication
plans to execute
Action Plan
Develop people
to execute the
Action Plan
Oversee
execution
of Action Plan
and provide
feedback
Measure results,
recognize and
reward
Key Success Factors
Provide
resources and
motivation as
needed
Know Action Plan
Execute Action
Plan and set
shift targets
Provide feedback
2011-2012 | System Maps | MAPS 26
McDonald’s USA - QSC Playbook - Version 6.0
Measure results,
recognize and
reward
Assess and reassess the business
Develop goals
• QSC
• People
• Sales
• Profit
____
Communicate the goals
____
Provide resources and motivation
as needed
____
Oversee execution of Action Plan
and provide feedback
____
Measure results, recognize
and reward
____
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 43 of 153
Pg ID 229
• Accurate sales and transaction projections are used
to create Crew schedules that will build guest counts
and enhance the guest experience
• Also use partner’s seasonal, weekly events and peak time*
Crew scheduling
• Crew scheduled according to their skills and availability
Assistant
Manager
Restaurant
Manager
Project hourly sales or
transaction counts and
fixed hours (Restaurant
Manager approves)
Determine variable
labor needs by hour
using the appropriate
positioning guide
Transfer
management
schedule
Assign Crew
per availability,
positioning
needs and Crew
competence
• Accurate sales and transactions projections are used to create
management coverage that will enhance guest experience
• Also use partner’s seasonal, weekly events and peak time*
Management scheduling
• Managers scheduled according to their skills and availability
Restaurant
Manager
Plan and schedule
weekly tasks
Ensure input
from partner*
Assign management shifts for
Managers who are responsible
for activities on specific days
* Items unique to Special Site Restaurants (such as: Malls, Airports, Retail Sites including
McDonald’s in Walmart, Co-branded Oil, Recreation Sites, and Temporary Entertainment Sites)
Items in bold are key success factors
2011-2012 | System Maps | MAPS 27
McDonald’s USA - QSC Playbook - Version 6.0
Assign management shifts
to ensure appropriate floor
coverage for the volume
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 44 of 153
Pg ID 230
Assistant
Manager
Review and approve
Crew schedule to
ensure all activities are
planned and scheduled
(training, PM, etc.)
Ensure labor
laws and
McDonald’s
policies are
followed
Post approved
Crew schedule
at least 4 days
prior (or as
required by local
law/regulation)
Systems
Impacted
Production
Service
Shift Management
Output:
Crew and
management
schedules
O/O or
McOpCo Ops.
Consultant
Restaurant
Manager
Approve
Manager
schedule
2011-2012 | System Maps | MAPS 28
McDonald’s USA - QSC Playbook - Version 6.0
Post approved monthly
Manager schedule at least
one week prior to beginning
of month (or as required by
local law/regulation)
Key Success Factors
Accurate sales and transaction
projections are used to create
schedules to build guest counts and
enhance guest experience
____
Employees scheduled according to
skills and availability
____
Weekly Manager tasks planned and
scheduled
____
Approved schedules are
posted in a timely manner
____
Determine variable labor needs
by hour using the appropriate
positioning guide
____
Labor laws and McDonald’s
scheduling policies are followed
____
Assign management shifts to
ensure appropriate floor
coverage for the volume
____
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 45 of 153
O/O
or Ops
Consultant
or Rest.
Manager
Pg ID 231
Ensure process is in place for ongoing communication with manager and crew
Ensure formal and informal partnership communication process exists*
Personal communications
O/O
or Ops
Consultant
& Mgmt.
Team
Gather personnel
information such as:
Determine vehicle
for communicating
•
•
•
•
•
•
•
•
Birthdays
Start dates
Schedule preferences
Anniversaries
Newsletter
Pay check stuffer
Activities calendar
Posters
Communicate information
Relevant information
communicated in a timely
manner and posted so
staff can view
Corporate and community communications
O/O
or Ops
Consultant
& Mgmt.
Team
Receive corporate and community information on:
•
•
•
•
Promotions
Operational updates
Safety & security alerts
Weather
•
•
•
•
Traffic
Construction sites
Customer compliments
Partnership information*
Filter and communicate
information to team
Relevant information
communicated in a timely
manner and posted so
staff can view
Team communications
O/O
or Ops
Consultant
Mgmt. Team
Crew
Receive information/gather feedback from the team that requires action:
•
•
•
•
•
•
Manager to Manager
Manager to Crew
Shift to Shift
Crew to Manager
Commitment Survey
Crew Meetings
•
•
•
•
•
•
Regular Manager Meetings
Exit Interviews
PAL Program
Partner to Manager and/or Owner Operator*
Owner Operator and/or Manager to Partner*
Rap Session
* Items unique to Special Site Restaurants (such as: Malls, Airports, Retail Sites including
McDonald’s in Walmart, Co-branded Oil, Recreation Sites, and Temporary Entertainment Sites)
Items in bold are key success factors
2011-2012 | System Maps | MAPS 29
McDonald’s USA - QSC Playbook - Version 6.0
Acknowledge
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 46 of 153
Pg ID 232
Revise vehicles
based on feedback
Systems
Impacted
Production
Service
Shift Management
Crew &
Management
Scheduling
Check with team
for understanding
Output:
Knowledgeable
employees
Take action
Key Success Factors
2011-2012 | System Maps | MAPS 30
McDonald’s USA - QSC Playbook - Version 6.0
Process in place for ongoing
communication with Managers
and Crew
____
Relevant information communicated
in a timely manner and posted so
staff can view
____
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 47 of 153
Pg ID 233
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 48 of 153
Pg ID 234
Complete this travel path with the Owner Operator or McOpCo Operations Manager and any other appropriate individuals
(e.g., O/O Restaurant Manager, McOpCo Operations Consultant) during the Systems Day. Used as a training tool, it will help
to identify opportunities for improvement in areas that are most relevant to our guests. Review the results with the Manager
on duty. Use the form on the next page.
DTspeakercheck audio
(
0eorra'
and
backyard
@crewroom
-
e
QWalk-in
refrigeratorl
freezer
Back room
@
Back
office
@
@Stockroom
t ."'.....
Salad
Restrooms
Crew appearance
and hygiene
o
Drive-thru
(exterior)
Productionl
assembly area
o [][][]
o
I
Drive-thru (interior) IMeCafel
Front counter
Lobby
o
0
PlayPlace/Playland
2011-2012 | Overview of Assessment Tools | OVERVIEW 1
McDonald’s USA - QSC Playbook - Version 6.0
o
start
Exterior, lot
2011-2012 | Overview of Assessment Tools | OVERVIEW 2
McDonald’s USA - QSC Playbook - Version 6.0
Exterior, lot
Corral and backyard
Drive-thru (exterior)
Guests’ Dining Area
Play Place/Playland
Restrooms
Front Counter/Drive-thru (interior)
Crew appearance and hygiene
Production/assembly area
1
2
3
4
5
6
7
8
9
Clean area, curbs, signage and lights (special sites: immediate area around partner’s facility is
free of McDonald’s debris. Restaurant signage in remote areas are clean and working properly)
1 Exterior lot
7 Front Counter
and Drive-thru
(interior)
6 Restrooms
5 PlayPlace
and Playland
4 Guests’ Dining
Area
3 Drive-thru
(exterior)
2 Corral and
backyard
Restaurant and signage clearly visible (not blocked by trees, landscaping, etc.)
0 Approach
Correct number of Crew positioned properly
Front counter surface is clean; counter tops are organized/clutter-free; and floor is clean
Floor, counters and stalls are litter-free
Soap dispenser are filled with McD Foaming ABHS or equivalent and toilet paper dispensers are filled
Hand dryer works properly and/or paper towels are stocked
Floor, mirrors, sinks, toilets and urinals are clean and odor-free
Equipment (i.e., PlayPlace nets are free from holes, tears or cuts), doors and tables are clean,
odor-free and in good repair
Interact with guests - inquire about their dining experience
Beverage/condiment bar is cleaned and stocked
“Caution wet floor” signs are used when mopping
Trash bins are not overflowing
Floor, tables, doors, windows, POP display, guests’ dining area trays and high chairs are clean
If there are three or more cars at the Drive-thru order point = (danger zone)
Service time is 45” or less (wheel stop at cash booth to order completion)
(total experience time is 3’30” or less)
All booths are clean and uncluttered
Drive-thru speaker/COD is working and clean
Drive-thru lane, landscaping, menu board and booth are clean and clutter-free
Corral and area is litter-free and odor-free
Corral doors and dumpster lids are closed
Trash receptacles are clean and not overflowing
Lot free of cracks and potholes
Criteria
Area
Comments:
Completed by: _____________________________ Store #: __________
Manager on duty: ____________________________________________
Date completed: _____________________ Day part: B
L
D
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 49 of 153
Pg ID 235
2011-2012 | Overview of Assessment Tools | OVERVIEW 3
McDonald’s USA - QSC Playbook - Version 6.0
Additional Comments
9 Production
and assembly
areas
8 Crew
appearance
and hygiene
Area
Drink tastes good (soda not flat and not too strong or weak, beverages hot to the taste)
Packaged fries are not placed in the first two rows of the fry ribbon
Fries are cooked as close to frozen as possible
French fries/hash browns/fried potato products are hot (you must taste the product to
evaluate temperature)
French fry box is full (hold box by front and back), properly salted. Fried potato product/hash
browns not broken
Fry area is clean (no French fries or oil on the floor)
All holding times are adhered to
Sandwich is fresh (moist meat, fresh eggs, fresh bread, fresh cheese, crisp lettuce)
Sandwich/entrée is hot (must taste the product to evaluate temperature)
Sandwich/entrée appears neatly assembled and packaged (no finger impressions or squeezed)
2-sided prep table is being utilized if applicable
Disposable gloves are worn where required when preparing food
Crew members are healthy and have good personal hygiene/grooming
Crew members are clean and in complete uniforms
Shift Manager responds appropriately to danger zones (3 or more in line at Drive-thru order point
or 3 or more guests in line at register)
Shift Manager manages from the front counter area
Crew exhibiting hospitality and following proper procedures
Service time is 60” or less at the front counter, total experience time is 3’30” or less
Criteria
Comments:
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 50 of 153
Pg ID 236
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 51 of 153
Pg ID 237
Use this review to assess each of the twelve McDonald’s restaurant systems
Restaurant address:
Complete the following steps with the Owner Operator or McOpCo Operations Manager and
any other appropriate individuals. (e.g., Restaurant Manager, McOpCo Operations Consultant)
Store number:
Owner Operator or McOpCo Operations Manager:
Restaurant manager:
Time/date:
1. Tour the restaurant. Observe and discuss each key success
factor to determine whether or not it is in place.
2. Circle “Y” for those key success factors in place.
Circle “N” for those not is place.
3. Use the corresponding systems map(s) to locate the missing
key success factor(s) and discuss the impact this has on the
restaurant.
Restaurant
system type
Restaurant
system
Primary
Production
Made For You
4. Prioritize which systems the restaurant should focus on first.
(Note: it is recommended that you work on improving no more
than three systems simultaneously.)
• Consider the primary systems first because they have the
most impact on the guest
• Then, consider the support systems
• Finally, consider the management systems
5. The next step will be to complete the systems action plan
(as part of the evolving action plan for the restaurant).
Key success factors
Initiator stays in position
Y
N
French fry person stays in position according to the positioning guide
Y
N
All stations are properly stocked for 24/2
Y
N
Restaurant manager ensures MFY standards are executed according to standard
Y
N
Restaurant Manager maintains production charts
Y
N
Shift Manager responds appropriately when there are 3 or more orders on the
KVS or 3 or less orders of fries prepared
Y
N
Service employees are courteous to guests and attentive to the guest needs
Y
N
Service employees effectively communicate with the guests
Y
N
All orders are double checked for accuracy
Y
N
Guest recovery process is in place and followed
Y
N
Y
N
Y
Y
N
N
Y
N
Managers visible on floor actively managing by observing (from observation post)
service and production barriers, danger zones and crew positions
Y
N
Pre-shift Checklist is used
Y
N
Shift Manager is shift certified/verified
Y
N
Crew are positioned according to the positioning guide and stay in position
Y
N
Shift targets/information are communicated to all employees
Y
N
Crew recognized and rewarded for meeting targets or excellent performance
Y
N
Shift Manager interacts with guests and follows guest recovery process when
necessary and role model hospitality
Y
N
Travel path is conducted by manager every half hour, priorities set
and action taken
Y
N
Comments:
Service
Drive-thru:
Order taker/cashier responsibilities are split if 4 or more crew are scheduled
in Drive-thru
Shift/Service Manager responds appropriately when there are 3 or more cars
at the Drive-thru order point
Front counter:
Shift/Service Manager responds appropriately when there are 3 or more guests
in line at register
Comments:
Shift Management
Comments:
2011-2012 | Overview of Assessment Tools | OVERVIEW 4
McDonald’s USA - QSC Playbook - Version 6.0
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 52 of 153
Restaurant
system type
Restaurant
system
Support
Food Safety
Inventory
Management
Pg ID 238
Key success factors
Planned maintenance is performed and documented for all food cooking, storage
and holding equipment
Y
N
Managers and Crew are properly trained/instructed in Food Safety
and sanitation procedures
Y
N
Food Safety Daily Checklist is completed and maintained and at least the last
60 days of completed checklists are available
Y
N
Pyrometer kit includes all components and is working
Y
N
Comments:
Y
N
Stock levels are in line with sales projections
Y
N
Build-to’s are in place and reflect current product mix
Y
N
Inventory administration completed
Y
N
Deliveries are checked for order accuracy, quality and condition
Y
N
Products are stored properly (location, safety, rotation)
Y
N
Procedures are in place and followed for handling raw waste and
completed waste
Y
N
Stock levels are in line with order proposal
Y
N
Review all inventory alerts
Y
N
Daily/weekly inventory administration completed
Y
N
Deliveries are checked for order accuracy, quality and condition
Y
N
Products are stored properly (location, safety, security, rotation)
Y
N
Procedures are in place and followed for handling raw and completed waste
Y
N
Crew and management hiring and orientation process is followed
Y
N
Crew and management performance and wage review policies are followed
Y
N
Crew and management Satisfaction/Commitment Survey completed, discussed
and action plans implemented
Y
N
Recognition/appreciation programs exist for Crew and Managers
Y
N
Crew event (meeting, rally, outing, etc.) held in the last 6 months
Y
N
Trained maintenance person is assigned daily
Y
N
PM calendar tasks are verified upon completion
Y
N
Current and complete reference materials are available and used:
• PM Calendar
• PM Manual
• Equipment manuals
• M&R budget
• Necessary tools
Y
N
Grills are certified annually
Y
N
Plan of action is in place for any broken equipment
Y
N
Comments:
Y
N
Safety:
Y
N
An active safety committee reinforces safety awareness
Y
N
“Caution wet floor” signs are displayed when mopping
Y
N
Crew wear proper protective equipment when cleaning and filtering vats to
include apron, gloves and face shield. Crew wear approved safety gloves
during final grill cleaning
Y
N
All employees wear slip resistant shoes
Y
N
Have PlayPlace safety inspection completed annually and follow up
on correction needs
Y
N
Comments:
Inventory
Management–
Restaurant Order
Proposal (ROP)
Comments:
People Practices
Comments:
Planned
Maintenance/Daily
Maintenance
Safety & Security
2011-2012 | Overview of Assessment Tools | OVERVIEW 5
McDonald’s USA - QSC Playbook - Version 6.0
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 53 of 153
Pg ID 239
Restaurant
system type
Restaurant
system
Key success factors
Support
Safety & Security
Employees, contractors, visitors follow all restaurant safety procedures
Y
N
Security:
Y
N
Follow staggered method of opening and closing procedures
Y
N
Back door policy is followed
Y
N
Bank deposits are conducted according to policy
Y
N
Cash controls are adhered to (skims, large bills)
Y
N
Training is scheduled and ongoing for all employees
Y
N
Restaurant Manager is a(n) ROLP/RLP/AOC graduate
Y
N
Restaurant has an adequate number of shift certified/verified Managers
to cover each shift
Y
N
Owner Operator or McOpCo Operations Consultant completes shift
management certifications
Y
N
Management development process exists and is followed
Y
N
Crew development process exists and is followed
Y
N
Managers ensure Crew Trainers have proficiency to train effectively
Y
N
Assess and reassess the business
Develop goals
• QSC
• People
• Sales
• Profit
Y
N
Communicate the goals
Y
N
Provide resources and motivation as needed
Y
N
Oversee execution of action plan and provide feedback
Y
N
Measure results, recognize and reward
Y
N
Accurate sales and transactions projections are used to create schedules to
build guest counts and enhance guest experience
Y
N
Employees scheduled according to skills and availability
Y
N
Weekly manager tasks planned and scheduled
Y
N
Approved schedules are posted in a timely manner
Y
N
Determine variable labor need by hour using the appropriate positioning guide
Y
N
Labor laws and McDonald’s scheduling policies are followed
Y
N
Assign management shifts to ensure appropriate floor coverage for the volume
Y
N
Process in place for ongoing communication with Mangers and Crew
Y
N
Relevant information communicated in a timely manner and posted so
staff can view
Y
N
Comments:
Training
Comments:
Management
Business
Planning
Comments:
Crew &
Management
Scheduling
Comments:
Internal
Communications
Comments:
2011-2012 | Overview of Assessment Tools | OVERVIEW 6
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Creating an Evolving Action Plan
Once you have gathered data and analyzed that data to identify root causes, you must create an Evolving Action Plan that addresses
those causes. If you already have an Evolving Action Plan in place, reference it to determine how best to include your findings into the
existing plan.
Objectives and Actions
Evolving Action Plans are based on objectives that help to achieve long-term goals. An objective is a specific statement of what must be
accomplished in a short period (no more than three months) to achieve the goal. It often takes multiple objectives to achieve a goal.
The objectives describe the results you expect.
When you are managing systems, the key success factors and targets are the objectives. Your focus will be on identifying root causes
and creating action plans to address those causes.
An example of an objective that supports the goal:
Beginning January 1 and ending January 27, the Crew Trainer will train 3 additional grill closers and verify completion by using the
station SOC.
Actions are activities and tasks that must be completed to achieve the objectives.
An example of an action that supports the objective:
By January 6, training manager will schedule training sessions for 3 Crew members to be trained on grill closing.
A well-written objective must be:
• Specific. Being specific helps everyone, including you, understand what you want to accomplish. In the example, a specific
task is given and a specific station, shift, and time frame are identified.
• Measurable. When you are specific, you should be able to measure your results. In the example above, you will know you
have achieved your objective on the 27th of the month if you have three grill closers complete SOCs at 100%.
• Attainable. The objective must be within the power of the person to whom it is assigned. The example above states a clear
expectation for the Crew Trainer and Training Manager. These are correct people to work on this objective.
• Relevant. The action item is focused on what you want to change. If you fix the action item, it will change the gap or fix the
problem. In the example above, the objective focuses on one station and one day part as an action that will change the situation
including a number of Crew that could be trained at the same time.
• Time-bound. The objective should state a clear beginning and ending date. In the example above, the Crew Trainer is given a month
to meet the objective.
Entering the Evolving Action Plan into the Global Data Collection Tool (GDCT)
Once the Evolving Action Plan has been created/modified, the Owner Operator or McOpCo Operations Consultant is responsible for
entering the Evolving Action Plan into the GDCT web application. A detailed Power Point presentation is available from AccessMCD -->
US ROIP Website -->ROIP Evolving Action Plans.
2011-2012 | Overview of Assessment Tools | OVERVIEW 7
McDonald’s USA - QSC Playbook - Version 6.0
Consultant
Restaurant Manager
ROIP Visit Type
Date
O/O
Consultant
Owner Operator
Restaurant Manager
The below listed Action Plans have been developed and agreed upon
2011-2012 | Overview of Assessment Tools | OVERVIEW 8
McDonald’s USA - QSC Playbook - Version 6.0
Person(s)
Accountable
End
Date
Measurement
Person(s)
Accountable
End
Date
Measurement
Action(s) agreed upon to ensure root causes are corrected
Person(s)
Accountable
End
Date
Measurement
System #3: Enter System #3: ____________________ Objective: _______________________________________________________________________
Action(s) agreed upon to ensure root causes are corrected
System #2: Enter System #2: ____________________ Objective: _______________________________________________________________________
Action(s) agreed upon to ensure root causes are corrected
System #1: Enter System #1: ____________________ Objective: _______________________________________________________________________
Write objectives that are Specific, Measurable, Attainable, Relevant and Time-bound (SMART).
Top 3 systems improvement targets identified in the review
Restaurant Name
Store #
Evolving Action Plan
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The Full Operations Review (FOR) evaluates the restaurant’s ability to execute operational standards in the areas
of Quality, Service, Cleanliness, People and Food Safety. This in-depth review helps identify strengths and
opportunities in critical McDonald’s operational systems. The review also determines progress made
towards the Evolving Action Plan.
Delivering high levels of Quality, Service and Cleanliness, as well as adhering to People and Food Safety standards
and procedures, will help to grow sales, guest satisfaction, employee satisfaction and cash flow.
Global Restaurant Operations
Improvement Process
Preparation for Full Operations Review
• It is important that in preparation for conducting the FOR that all participants understand and commit
to their shared expectations.
• Agree on date and times for the FOR. Use common sense when selecting the date and time of a visit (do not
schedule a visit at a time when there is an extraordinary event at the restaurant, etc.).
• Review questions on the FOR form. Review any operations procedures of which you are unsure.
• Be familiar with current promotions and promotional, new or special products to review.
• Review 800# and mystery shop data, Employee Commitment Survey results, as well as the Evolving Action Plan.
Generate and analyze the Automated Visit Preparation Summary from Performance Matrix as appropriate. Doing
this will assist in review of key points that can be targeted for consulting, training and coaching opportunities during
the FOR.
• Become familiar with the guidelines provided in the People Review Guide.
• Restaurant will complete a pre-FOR equipment calibration checklist (download from accessmcd ROIP website –
Operations Review Tools).
• Obtain a copy of the most recent PlayPlace Safety Audit Form, if applicable. Be prepared to confirm that safety
issues have been addressed.
• Bring a copy of the FOR or your laptop and/or Pocket PC with the Global Data Collection Tool application.
• Establish a plan of how you will review criteria in an efficient manner enabling you to spend an appropriate amount
of time consulting, coaching and training during the FOR.
Procedures when Conducting the Actual Review
• Introduce yourself to all restaurant staff and make them feel at ease.
• Evaluate restaurant’s performance to the standards as it relates to all criteria questions listed on the attached forms
(QSC, Food Safety and People) for all appropriate day parts.
• Refer to the “Observation to Action Process Flow” for instructions on completion of the forms.
• To assist in recording “N/A” points, mark an X through the box ( [x] ). Total all N/A points and post in the space
provided at the bottom of the page. This will ensure the restaurant is evaluated only on areas that apply. Note that
most questions have been assigned a point value of 1, 3 or 5.
• Sample finished products while conducting the review, as outlined in the Gold Standard Quality Reference Material.
• Make sure to review new products, finished and raw, along with cooking procedures and assembly. If a standard
is not being met with a new product, determine which questions relating to regular products would best
address the issue.
• Conduct a Full People Review during this visit.
• Review the equipment calibration checklist and check calibrations as needed.
• Enter the visit details into the Global Data Collection Tool.
• Upon completion of the visit, leave a printed copy of the completed Full Operations Review or a Visit Recap report
from the Global Data Collection Tool with the Owner Operator or McOpCo Operations Manager and any other
appropriate individuals (e.g., O/O Restaurant Manager, McOpCo Operations Consultant).
• When discussing results, use good judgment on when to include the Restaurant Manager in the discussions.
• Upload the visit to the ROIP database.
Action Plan Development Process (The Evolving Action Plan)
• The Owner Operator, McOpCo Operations Manager or other appropriate individuals (e.g., O/O Restaurant
Manager, McOpCo Operations Consultant) will determine the top three systems to target for improvement with
the Consultant’s assistance. Use the worksheet on page 6 of this form or refer to the results on the Global Data
Collection Tool report.
• The appropriate individuals (listed above) will determine, with Consultant assistance, if similar opportunities were
found in previous Full Operations Reviews, Short Operations Reviews or Systems Days. If similar opportunities
exist, determine factors/reasons if previous Plans were/were not achieved and make appropriate adjustments to
the current Plan or establish a new Plan.
• Based on the outcome of the dialogue, the appropriate individuals will adjust the existing Action Plan/tasks.
The Owner Operator or McOpCo Operations Consultant inputs the Evolving Action Plan into the Global Data
Collection Tool within one week of the visit.
2011-2012 | Full Operations Review | FOR 1
McDonald’s USA - QSC Playbook - Version 6.0
2011-2012 | Full Operations Review | FOR 2
McDonald’s USA - QSC Playbook - Version 6.0
No
All criteria in
this section
done?*
F
No
Opportunity?
B
Observe criteria item
to assess compliance
with McDonald’s
standards
A
Yes
For opportunities
circled with no root
cause system(s)
listed, assess each
opportunity to
determine the
system(s) in
which the root
cause(s) happened**
G
List the system(s)
numbers in the
space provided
by the criteria
item with the
opportunity
H
Note: This step may provide an ideal
time for coaching to occur
Explain the opportunity
and ideally get agreement
that it exists
Note: This only indicates
completion of this item
Yes
C
No
Entire
FOR/SOR
completed?
I
Prioritize the top
3 areas of
opportunity for
the restaurant***
J
Help formulate
the Action Plan for
the improvement
process in these
systems
K
Circle point value on form.
Select the system or
systems that may reflect
the opportunity
E
* Sections will vary depending on your preference e.g., it might be Cleanliness, a Day Part
** Use systems maps in QSC Play Book as reference
*** Use “Systems Targeted for Improvement” page of FOR
Yes
Document opportunity
area with clear explanation
in the space provided next
to the criteria question
D
Always utilize common sense when unusual things occur during the course of your review
(e.g., bus arrives unexpectedly, bad weather, power failure).
All steps need to be done in conjunction with the Owner Operator or McOpCo Operations Manager plus any other people
they feel should participate.
The intent is to assess how the restaurant is performing against McDonald’s standards and to encourage coaching, dialogue and
collaboration between the person completing the FOR/SOR and Owner Operator or McOpCo Operations Manager.
This document outlines the process that should be followed when conducting a restaurant review (FOR/SOR).
Observation to Action Process Flow (FOR/SOR)
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Current Review Information
Restaurant address:
Store number:
Owner Operator, McOpCo Operations Manager:
Restaurant Manager:
ROLP/RLP/AOC year:
Has the top management team of the restaurant changed since the last review?
Completed by:
Y
N
Reviewed with:
Date completed:
Score (%):
Q
S
C
________________________________________
Acceptable = 80%
Food Safety:
Acceptable
Unacceptable
(circle one)
People: Total Yes = ________
Previous Operations Reviews
Operations Review One
Restaurant Manager:
Completed by:
Reviewed with:
Date completed:
Type of visit:
Score:
Food Safety Results:
Areas targeted for improvement:
Operations Review Two
Restaurant Manager:
Completed by:
Reviewed with:
Date completed:
Type of visit:
Score:
Food Safety Results:
Areas targeted for improvement:
Follow-up from Previous Visit (if Applicable)
Areas targeted for improvement from last visit have been corrected to meet overall Business Plan objective.
(Refer to the Action Plan from previous Operations Review and provide comments.)
Y
N
1.
Y
N
2.
Y
N
3.
Y
N
2011-2012 | Full Operations Review | FOR 3
McDonald’s USA - QSC Playbook - Version 6.0
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QSC Scoring
Calculate the scores for Quality, Service and Cleanliness using the worksheet on this page. Modifications of the “Total Points Possible”
for each section (as indicated by N/A) may be necessary when reviewing certain restaurants (e.g., stores without drive-thrus, etc.).
• Refer to the pages listed below and transfer all shaded areas from these pages to the spaces provided.
• Round off points to one decimal place (i.e., 94.54 = 94.5 or 94.55 = 94.6).
• Subtotal the points achieved (A) for each of the modules/day parts completed in this review.
• Subtotal the adjusted possible points (B) for each of the modules/day parts completed in this review.
Note: Service questions for restaurants with or without a Drive-thru are calculated using different total points possible.
• Compute the percentage score by dividing the Total Points Achieved (A) by the Adjusted Possible Points (B).
Service
Quality
Adjusted
Possible
Points w/
Drive-thru
(B)
Cleanliness
Adjusted
Possible
Points w/o
Drive-thru
(B)
Module/
day part
Page
number
Total
Points
Achieved
(A)
General
FOR 12
_____
_____
FOR 14
_____
_____
_____
FOR 23
_____
_____
Day Part
FOR 34
_____
_____
FOR 43
_____
_____
_____
FOR 45
_____
_____
Subtotal
_____
(A)
_____
(B)
Subtotal
_____
(A)
_____
(B)
_____
(B)
Subtotal
_____
(A)
_____
(B)
Equals percentage
(Divide A by B)
_____
=%
_____
=%
_____
Adjusted
Possible
Points
(B)
Page
number
Total
Points
Achieved
(A)
Comments:
2011-2012 | Full Operations Review | FOR 4
McDonald’s USA - QSC Playbook - Version 6.0
Page
number
Total
Points
Achieved
(A)
Adjusted
Possible
Points
(B)
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1 Review each day part system (General, Breakfast, Lunch, and Dinner), looking at the systems column, to determine
what system(s) you have identified as needing improvement.
2 For every criteria that was noted as an opportunity (point value circled), list the appropriate point value in the box next to the
system (e.g., G-Q15 is an opportunity and Inventory Management is the identified system. Put a “3” in the column next to
Inventory Management).
When determining the systems to focus on, consider not only the “ value” but the number of occasions a system need
was identified.
Value of Points
Value of Points
Production
Planned & Daily
Maintenance
Total
Total
Service
Safety & Security
Total
Total
Shift Management
Training
Total
Total
Food Safety
Business Planning
Total
Total
Inventory Management
Crew and Management
Scheduling
Total
Total
People Practices
Internal
Communications
Total
Total
3 Use the information in the chart above to identify the top 3 systems to target for improvement within the restaurant.
System 1:
System 2:
System 3:
4 Re-visit the explanations you have written throughout the review that are associated with the 3 systems you have targeted.
This will help you prepare for your overall assessment of the restaurant’s performance and coaching opportunities.
5 Review the questions in the People Review to determine what systems have been circled repeatedly. For those systems
circled repeatedly, re-visit the explanations you have written. This will help you to determine any areas of opportunity and
help understand potential corrective tactics.
6 Review the questions in the Food Safety Review to determine which items need action. If Food Safety is unacceptable,
establish the next steps.
7 List the top 3 strengths observed:
Strength 1:
Strength 2:
Strength 3:
8 Based on steps 3-7, adjust/develop the restaurant’s Evolving Action Plan. Use worksheet on page FOR 6.
2011-2012 | Full Operations Review | FOR 5
McDonald’s USA - QSC Playbook - Version 6.0
Consultant
Restaurant Manager
ROIP Visit Type
Date
O/O
2011-2012 | Full Operations Review | FOR 6
McDonald’s USA - QSC Playbook - Version 6.0
Consultant
Owner Operator
Restaurant Manager
The below listed Action Plans have been developed and agreed upon
Person(s)
Accountable
End
Date
Measurement
Person(s)
Accountable
End
Date
Measurement
Action(s) agreed upon to ensure root causes are corrected
Person(s)
Accountable
End
Date
Measurement
System #3: Enter System #3: ____________________ Objective: _______________________________________________________________________
Action(s) agreed upon to ensure root causes are corrected
System #2: Enter System #2: ____________________ Objective: _______________________________________________________________________
Action(s) agreed upon to ensure root causes are corrected
System #1: Enter System #1: ____________________ Objective: _______________________________________________________________________
Write objectives that are Specific, Measurable, Attainable, Relevant and Time-bound (SMART).
Top 3 systems improvement targets identified in the review
Restaurant Name
Store #
Evolving Action Plan
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Criteria
Comments
Pg ID 249
System(s)*
If no,
circle No
Action Plan Review - Since the Evolving Action Plan is the roadmap for restaurant improvement, it should be reviewed and updated regularly. Taking the time to
discuss the status of the plan during the FOR allows for recognition, renewed focus or change in direction.
Is the management team aware of and do they
understand the restaurant’s Evolving Action Plan?
Yes / No
Has there been progress made with the Evolving Action Plan?
Yes / No
Are the key points on the Evolving Action Plan posted/visible?
Yes / No
Why People Review:
To Owner Operators:
The People Review is a consulting visit designed to help maximize the Owner Operator’s investment in People, enhance employee commitment
and satisfaction, reduce customer complaints, improve Peak hour sales, and build Owner Operator business results. The questions in this review,
will also help you to look at your people practices and determine if your restaurant is providing a service culture; one in which the employees are
more focused on delivering the best guest experience.
As an independent Owner Operator, you are exclusively responsible for employment matters within your organization. As such, the restaurant
must comply with all applicable laws and regulations.
To Business Consultants:
The People Review questions of the FOR are intended to foster a dialogue, based on observations and insights that lead to learnings that hopefully
allow the Owner Operator to improve their restaurants for the long term. The purpose is not to tell the Owner Operator how to manage their
employees or run their business. Instead it is to offer a tool to assist the Owner Operator in thinking about ways to elevate people practices within
the framework of the Owner Operator’s business model.
Owner Operators are independent employers who make their own decisions regarding employment related policies and procedures applicable
to the employees who work in their restaurant(s). The People Review portion of the Operations Review is a consulting visit designed to help
the Owner Operator maximize their investment in people. It is not intended to be used as a checklist or interview, nor is it intended to be an
opportunity to tell the Owner Operator how to manage their employees or how to run their restaurant. Rather, it is intended to foster a rich
dialogue concerning people policies and practices, during which the Consultant may recommend certain policies and practices that may help the
Owner Operator operate their business better. Thus, as you conduct the People Review, you must keep in mind that certain Owner Operators may
already have effective policies and policies in place, and that there is no obligation or expectation that an Owner Operator must replace them with
McDonald’s policies or practices.
On the other hand, if you observe a policy or practice that is not working well, you should feel free to suggest an alternative McDonald’s policy or
practice that has the potential to enhance the overall performance of the restaurant. In making any suggestions to change policies or practices,
however, you must always remember that you can only make suggestions. You must never require or demand an Owner Operator to use a
particular McDonald’s policy or practice. You must always remember that any decision to change people policies or practices rests solely in an
owner operated restaurant with the independent Owner Operator and that while you can suggest, you cannot pressure the Owner Operator to
change policies that they do not wish to change.
One final point. The People Review is a time to review and make suggestions with regard to an Owner Operator’s overall people policies and
practices. It is not a time to deal with individual personnel issues. In this regard, the Consultant should never render advice concerning individual
personnel matters. Accordingly, please refrain from discussing or providing any advice of any kind with regard to any individual employment issues
which the Owner Operator may raise. The Owner Operator is responsible for handling their own individual employment issues and thus they
should seek advice from consultants and attorneys of the Owner Operator’s own choosing and not from their Business Consultant.
Preparation for People Review:
In order to make the People Review as helpful as possible, it would be a good idea for the Owner Operator to obtain the following data for the
restaurant:
• Crew turnover (90 day, annualized, and TTM)
• Hourly Manager turnover (annualized and TTM)
• The results and Action Plan of the most recent Business Review
• Crew and Manager survey results (if available) and actions identified
(familiarize yourself with the results of the People Section and those
on their Action Plan
results pertaining to this particular restaurant)
• Staffing plan/targets for both peak and off peak time periods
• The currently used crew orientation program
• Maximization of McState sites (look for accurate restaurant information,
• Operations Review results
jobs posted, benefits offered, etc.)
• Mystery Shop and Customer Satisfaction Opportunity information
• Any employee development plans utilized in the past year
• Any customer feedback/customer recovery results which you think
• Cycle 5 People Review results and action plan (if applicable)
important
In order to provide additional insight during the visit, build your knowledge and awareness of the various BHOT’r tools. Review, the:
• Individual BHOT’r one-pagers as an overview of what is available in the area of Benefits, Hiring, Orientation, Training, and Retention
If you are an Owner Operator, you are exclusively responsible for complying with all applicable statutes, laws, and regulations applicable to your restaurant(s). You are also
exclusively responsible for all employment related matters in your restaurant(s) and exercise complete control over the work, working conditions, and terms and conditions of
employment for employees in your restaurants. The guidelines in this booklet with respect to employment related matters are informational only and should not be construed
as establishing requirements applicable to any Owner Operator.
2011-2012 | Full Operations Review | FOR 7
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Criteria
Comments
Pg ID 250
If no,
System(s)* circle No
Reducing Customer Complaints
The restaurant is using an effective hiring process (e.g., Hiring
to Win) to consistently select high-quality, guest-focused Crew,
Crew Trainer, and Manager employees.
Yes / No
The restaurant is using an effective promotion process (e.g., Hiring
to Win) to consistently decide promotion considerations to Shift
Management and Department Management, as appropriate.
Yes / No
Crew development process is in place and executed
(includes having proper materials and appropriate place
for “off the floor” training).
Yes / No
Station Observation Checklists (SOCs) are completed timely for
all Crew using the most current SOC forms; and are tracked.
Yes / No
Crew Trainers have been designated and developed and are
role modeling appropriate behaviors.
Yes / No
Restaurant Management curriculum is followed and development
time is designated on the monthly management schedule.
Yes / No
Schedules are developed using most up-to-date availability information
from Crew and an effective process for time off requests is in place.
Yes / No
Improving Peak Hour Sales
There is a restaurant staffing plan in place that will ensure that the restaurant
has the appropriate number of crew and managers for each daypart.
Yes / No
Jobs are posted in a way that will attract best applicants (e.g., McState) and
appropriate recruitment merchandising materials are posted in the restaurant.
Yes / No
The restaurant is using appropriate positioning guides to utilize labor effectively.
Yes / No
The restaurant is using effective scheduling tools (e.g., ISP Scheduling 2.7 or equivalent).
Yes / No
There is at least one certified/verified Shift Manager scheduled at all times.
Yes / No
Improving Crew Employee Commitment
Crew surveys have been completed in the last twelve months and in a way that
is anonymous; plus, Evolving Action Plans are created and progress measured.
Yes / No
The restaurant has a comprehensive and consistent Crew orientation process
in place and executed (e.g., the National Crew WOW Orientation material).
Yes / No
Crew schedule posted at least four days in advance.
Yes / No
Wage and performance reviews, if regularly utilized, are conducted on time
(e.g., every six months) or per policy.
Yes / No
Information about benefits offered by the restaurant is readily available and/or posted
(e.g., information provided to the individual employee such as the Total Compensation
Statement, postings required by law, such as the Crew Room poster, etc.).
Yes / No
The work environment meets the needs of employees (i.e., cold weather gear,
safety equipment including hot oil handling equipment – gloves, face shield
and apron – proper heat, air conditioning, stocked first aid kit, equipment
well maintained, etc.).
Yes / No
Appreciation programs are ongoing and effective (e.g., birthday and
anniversary recognition, Crew incentives, Crew parties, etc.).
Yes / No
If you are an Owner Operator, you are exclusively responsible for complying with all applicable statutes, laws, and regulations applicable to your restaurant(s). You are also
exclusively responsible for all employment related matters in your restaurant(s) and exercise complete control over the work, working conditions, and terms and conditions
of employment for employees in your restaurants. The guidelines in this booklet with respect to employment related matters are informational only and should not be
construed as establishing requirements applicable to any Owner Operator.
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Full Operations Review | FOR 8
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
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Criteria
Comments
Pg ID 251
If no,
System(s)* circle No
Improving Manager Employee Commitment
Manager employee surveys have been completed in the last twelve
months and in a way that is anonymous; plus, Evolving Action Plans
are created and progress measured.
Yes / No
Manager’s schedule completed for the month and posted one week in advance.
Yes / No
Immediate Supervisor verifies all class prerequisites and post-class Action Plans
(by spending time with the manager before and after class).
Yes / No
The Restaurant Manager/General Manager is a(n) U.S. ROLP/RLP/AOC graduate.
Yes / No
Improving Crew and Manager Turnover
Plan is in place and being executed to maintain or reduce 90 day
turnover and annual Crew and hourly Shift Management turnover
to meet restaurant target.
Yes / No
Facilitate a discussion around the results for Manager and Crew
communications from the most recent employee surveys
(e.g., Managers are not shouting at Crew, proper working
conditions, the equipment is well maintained, etc.).
Yes / No
Best Bets: (Note any exceptional and/or innovative people practices observed during your visit).
If you are an Owner Operator, you are exclusively responsible for complying with all applicable statutes, laws, and regulations applicable to your restaurant(s). You are also
exclusively responsible for all employment related matters in your restaurant(s) and exercise complete control over the work, working conditions, and terms and conditions
of employment for employees in your restaurants. The guidelines in this booklet with respect to employment related matters are informational only and should not be
construed as establishing requirements applicable to any Owner Operator.
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Full Operations Review | FOR 9
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
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Pg ID 252
Quality • Storage
Criteria
Comments
If no,
System(s)* circle points
Dry Storage
All food products are within their primary shelf life.
All food products are in good condition.
Proper rotation of all food products is being followed
(FIFO) and proper inventory management build-to product
amounts are established (not overstocked).
The principles of Be Well Stocked are sustained with all food
and packaging products 1) stored with like items and organized,
2) labeled with labels in legible condition, 3) stored off the floor.
3
All premium and promotional products distributed through
the restaurant comply with governmental and McDonald’s
safety requirements. (Examples of ways to confirm
compliance is by checking if product was purchased from
D.C., looking for a WRIN number on the packaging, looking
for McDonald’s identification or logos on the packaging or
by contacting the local Purchasing Manager).
Chemicals are stored away from food.
Refrigerated Storage
Complete the following checks for all food products inside all refrigerated units in the restaurant:
Refrigerated products (in all refrigerated units) are between
34°F to 40°F (1°C to 4°C).
3
All food products are within their primary shelf life.
All food products are in good condition.
Proper rotation of all food products is being followed (FIFO)
and proper inventory management build-to product amounts
are established (not overstocked).
The principles of Be Well Stocked are sustained with all food products
1) stored with like items and organized, 2) labeled with labels in legible
condition, 3) unrestricted airflow around cases, and 4) stored off the floor.
Frozen Storage
3
Complete the following checks for all freezers and food products stored within all freezer units in the restaurant:
Air temperatures (in all freezer units) are between
-10°F to 0°F (-23°C to -18°C).
All food products are within their primary shelf life.
All food products are in good condition.
Proper rotation of all food products is being followed (FIFO)
and proper inventory management build-to product amounts
are established (not overstocked).
The principles of Be Well Stocked are sustained with all food products
1) stored with like items and organized, 2) labeled with labels in legible
condition, 3) unrestricted airflow around cases, and 4) stored off the floor.
3
Cases of product are stacked 2” (5 cm) from the walls 1”
(2.5 cm) between columns and in the appropriate locations
inside the walk-in freezer. Stacking heights are within guidelines.
Evaporator fans running, coil clean, coil and ceiling free of ice
build-up (except during defrost). Curtain is clean and free from
ice buildup.
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Full Operations Review | FOR 10
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total points
circled
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 67 of 153
Criteria
Comments
Pg ID 253
If no,
System(s)* circle points
Prepared Products
All tomatoes are handled properly.
Leaf lettuce is presorted correctly.
Equipment Integrity/Calibrations
All correct small parts/equipment (e.g., fried
product baskets) are available and used.
Grills are calibrated.
Grill certification completed within the last 12 months.
Date completed:
Completed by:
Enter serial number for Grill #1:
enter n/a for not applicable
Grill #2 certification information different from above.
Yes / NA
Date completed:
Completed by:
Enter serial number for Grill #2:
enter n/a for not applicable
Fried products fryers are calibrated.
Fried product fryers meet recovery standards.
French Fryers are calibrated.
French Fryers meet recovery standards.
All toasters are calibrated correctly.
Muffin/bagel toaster is calibrated.
Microwave oven(s) is/are properly calibrated and
programmed (if applicable).
Oven(s) is/are calibrated properly and timers are
correctly programmed for all oven products.
Steamer(s) is/are calibrated properly including
steam cycle.
UHCs are calibrated and programmed correctly.
Appropriate number of UHC trays and utensils are in
good condition.
Heated landing zone is calibrated to the correct
temperature.
Dispensers/sauce guns are calibrated.
McCafé machine temperature and volume is calibrated properly.
Blended Ice machine is calibrated properly.
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Full Operations Review | FOR 11
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total points
circled
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 68 of 153
Criteria
Comments
Pg ID 254
If no,
System(s)* circle points
Beverages
Drink tower(s)/ABS is/are properly calibrated for all beverages.
Date completed:
Completed by:
Draw temperature for carbonated soft drinks is between
33°F to 36°F (1°C to 4°C).
Draw temperature for non-carbonated soft drinks is
between 33°F to 45°F (1°C to 7°C).
Water filters are dated and within their usage date.
Juice dispenser(s) is/are properly calibrated and serving
temperature is correct: 35°F to 45°F (2°C to 7°C).
Date completed:
Completed by:
Brew/holding temperatures of coffee is correct.
Water volume is properly calibrated.
Brew/holding temperatures of all other hot drinks is
correct. Water volume is properly calibrated.
Desserts
Draw temperature on Triple Thick shakes is correct
(22°F to 24°F) or (-5°C to -4°C).
Draw temperature on sundaes/McFlurry is correct
(16°F to 18°F) or (-9°C to -8°C).
Sundae topping temperatures are correct
(115°F to 125°F) or (46°C to 52°C).
Sundae topping volume is correct (1 fluid oz./30 ml.).
Syrup ratio on Triple Thick shakes is correct
(1 fluid oz. in 7 seconds).
Dairy mix in all shake and sundae machine reservoirs
is between 34°F to 40°F (1°C to 4°C).
Documentation and Pyrometer Check
The restaurant has all necessary calibration tools to
complete food safety checks (pyrometer kit) and these
tools work properly and are calibrated.
Manager or staff assigned to complete the calibrations
have been trained on how to properly conduct equipment
calibration procedures (observe to verify).
Restaurant is using the latest O&T Manual either via McDonald’s
Connection, ISP or printed version as of July 2010 or later. Older
manuals have been destroyed.
Comments:
N/A Points
Total points
circled
General Quality possible points
Deduct total N/A points
from previous General Quality pages
Adjusted possible General Quality points
(Transfer to Scoring Page)
Deduct total points circled
from previous General Quality pages
Total General Quality points achieved
(Transfer to Scoring page)
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Full Operations Review | FOR 12
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 69 of 153
Criteria
Comments
Pg ID 255
If no,
System(s)* circle points
Service Equipment and Stocking
POS register system supports the current operating
system and menu. Printers positioned correctly.
Order serve buttons (DT, KVS, etc.) are positioned
and operating properly, if (applicable).
KVS monitors and Bump Bars are positioned
and operating properly.
Beverage Video System (BVS) monitor and bump bars
are positioned and working properly.
Drive-thru has an effective and clear communication
system in place and working properly (sufficient number
of working headsets that support the DT configuration in use).
Automated Beverage System is properly programmed to
work with the POS.
Drive-thru POS monitors/cameras and merge point monitor
positioned and working properly.
Bags in proper position.
Happy Meal box/bag and premiums are positioned correctly.
Drink carriers/trays are available and in proper position.
Guests’ dining area trays in good condition, positioned
properly and in adequate supply.
Interior menu board/merchandising material current,
well lit and organized correctly.
Drive-thru menu board/merchandising material current,
well lit and organized correctly.
All current menu items are available for purchase.
Station by Station Stock Level Build-to’s in Use
Build-to’s are in place and being utilized effectively at the
front counter.
Build-to’s are in place and being utilized effectively at the DT
and McCafé areas.
Build-to’s are in place and being utilized effectively at the
production area.
Current Promotions
Current promotional materials are in good condition and
properly displayed.
Handling Guest Recovery
The restaurant has a guest satisfaction log book or other
tracking system and responds appropriately.
A process is in place where guest feedback data is
shared with the restaurant.
Crew and managers can explain and actively follow the steps to guest recovery
(Listen, apologize, solve problem and thank customer).
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Full Operations Review | FOR 13
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total points
circled
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 70 of 153
Criteria
Comments
Pg ID 256
If no,
System(s)* circle points
Guest Environment
The overall environment of the restaurant makes
for a comfortable experience (e.g., background
music working, restaurant temperature correct for
the season, interior lighting working and “no solicitation”
signage is visible).
Every Manager/Owner Operator demonstrates the
Service Experience (welcome, connect, deliver,
farewell) creating an environment of hospitality.
Every Manager/Owner Operator treats every
employee with complete respect, dignity and
courtesy, creating an environment of hospitality.
Opportunities are found to assist guest’s needs at all points
of the interaction (e.g., opening doors, carrying tray to the table,
provide condiments, clearing trays from the tables for guest,
pouring drink refills, if applicable).
Kids are treated in a special manner (e.g., greet kids
separately, hand them their Happy Meal).
Dedicated person in lobby during peak periods (per positioning guide).
Handling Special Needs
The restaurant is equipped to properly provide service
to guests with special needs (e.g., visually impaired
or disabled).
Nutrition information (e.g., brochures, tray liners) is
displayed or available upon request.
Toys for children under three years of age are available
and provided upon guest request.
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total points
circled
General Service possible points
Deduct total N/A points
from previous General Service pages
Adjusted possible General Service points
(Transfer to Scoring Page)
Deduct total points circled
from previous General Service pages
Total General Service points achieved
(Transfer to Scoring page)
Comments:
2011-2012 | Full Operations Review | FOR 14
McDonald’s USA - QSC Playbook - Version 6.0
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 71 of 153
Criteria
Comments
Pg ID 257
If no,
System(s)* circle points
Chemical Supplies and Equipment
The back sink functions properly and all compartments hold water.
Soap is being properly dispensed into the first sink.
Sanitizer is prepared properly and is maintained at the correct
concentration (inclusive of SmartSink system dispensing correctly).
Restaurant has chlorine and/or Quat test strips available and
being used properly.
Appropriate McCafe and Blended Ice Machine chemicals are
available and being used properly (including washing solution,
delimer, liquids, tablets, sanitizer, and brushes).
Assure all cleaning product dispensers are functioning properly.
Proper cleaning equipment (e.g., complete set of shake/sundae
machine brushes, no-scratch pads) and reference materials
(PM calendar, PM manual, equipment manual) are available.
Material Safety Data sheets are available for all chemical
products that are being used in the restaurant.
Only approved cleaning chemicals are used.
All spray bottles are labeled and contain the correct product.
The restaurant has clean and well maintained “Caution Wet Floor” signs.
Mops/Mop buckets are clean and water changed when appropriate.
Mops/Mop buckets are in good repair. If no, check reason below:
Wheels not in place or not turning smoothly
Wringer does not work
Other
Sanitizer-Soaked Towel Procedures
Sanitizer-soaked towels in the grill area and at the front counter area
are kept in clean sanitizer solution filled buckets with lids.
A sufficient number of sanitizer-soaked towels and grill cloths
are in good condition and in circulation (O&T guidelines are minimum
72 cloth and 40 grill).
Soiled towels are kept in the soiled towel bucket with soapy water.
Towels are laundered correctly.
Utensils and Small Equipment
All utensils/small parts (e.g., egg rings, brushes, tongs, spatulas,
etc.) are available and in good repair.
All cleaned and sanitized equipment is stored in a clean and
sanitary manner.
Proper procedures are used to clean and sanitize utensils,
trays and small equipment.
Ice bins, scoops and transfer buckets are cleaned and sanitized daily.
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Full Operations Review | FOR 15
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total No
circled
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 72 of 153
Criteria
Comments
Pg ID 258
If no,
System(s)* circle points
Kitchen Equipment
Automated fry dispenser is clean.
Automated fry dispenser is in good repair. If no, check reason below:
Unit does not dispense the correct amount of product
Basket does not transfer smoothly (automatic dispensing unit)
Temperature gauge is not working (frozen dispenser)
Gaskets are not in place (frozen dispenser)
Door does not close properly (frozen dispenser)
Other
Fry station (including fry racks, fried product baskets and skimmers) are
in good repair. If no, check reason below:
Fry baskets are bent
Wires on skimmer mesh are broken
Ribbon is missing parts
Proper wattage lamps are not in place or not working
Other
Grills are cleaned correctly and according to PM.
Grills are in good repair. If no, check reason below:
Debris build up on the grill platen
Upper platen shows signs of carbon build up
Release sheets not in good condition (e.g., 2 clips per platen)
Display not visible on controller
Other
Grill and fryer filters are cleaned at the correct frequency.
Grill and fryer filters are in good repair.
No excessive build-up of grease or food debris under
grills and fryers.
Ansul fixed fire suppression systems for fryers and
grills are inspected and serviced by a qualified service
company at least every six months.
Date completed:
Completed by:
The ventilation hoods, ducts and fans over fryers and
grills are inspected and cleaned by a qualified service
company at least every six months.
Date completed:
Completed by:
Steamer(s) is/are clean.
Steamer(s) is/are in good repair. If no, check reasons below:
Platen not delimed
Spatula (teflon) not in good condition
Spatula (handle) not in good condition
Water line is not clear (obstructed)
Other
Toasters are clean.
Toasters are in good repair. If no, check reasons below:
Platen release sheet and belt wraps are torn or not properly installed - VCT
Toaster clip not in place (Batch toaster)
Platen has build up (Universal toaster)
Top cover not in place or not secure (Universal toaster)
Other
The muffin/bagel toaster is clean.
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Full Operations Review | FOR 16
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total No
circled
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 73 of 153
Criteria
Comments
Pg ID 259
If no,
System(s)* circle points
The muffin/bagel toaster is in good repair. If no, check reason below:
Muffin plate has carbon build up
All heating elements are not operating properly
Other
Electrical outlets, connectors and cords in the
restaurant are in good condition. If no, check reason below:
Cord is frayed
Outlet plate is not in place
Other
Reach in refrigerators/salad display cases and Beverage Cell refrigerators
(including condensers/evaporators) are clean and organized.
Reach in refrigerators/salad display cases and Beverage Cell refrigerators
(including condensers/evaporators) are in good repair. If no, check reason below:
Temperature gauge is not operating properly
Gaskets not in place or not in good condition
Door does not close properly
Airflow blocked
Other
Reach in freezers (including condensers) are clean with no frost build up.
Reach in freezers are in good repair. If no, check reasons below:
Temperature gauge is not operating properly
Gaskets not in place or not in good condition
Door does not close properly
Brackets and shelves not in place
Airflow blocked
Other
Grill side freezers (including condensers/evaporators) are clean
with no frost build up.
Grill side freezers are in good repair. If no, check reasons below:
Temperature gauge is not operating properly
Gaskets not in place or not in good condition
Door/sliding lid does not close properly
Airflow blocked
Other
Universal holding cabinets/hot holding units are clean.
Universal holding cabinets/hot holding units are in good repair.
If no, check reasons below:
TImers not operating properly
Unit does not sound (beep) when product expires
Unit does not display the proper product names
Other
Ice machine (including condenser) is cleaned and sanitized
correctly (according to PM). Inspect the inside of ice machine
storage bins and ice chutes on ABS systems to check for any
visual signs of build-up (due to the growth of microorganisms).
Ice machine is in good repair. If no, check reasons below:
Ice cubes are not proper size
There is not sufficient ice capacity
Unit is not stable or wheels are not in good working condition
Airflow blocked
Other
Heated landing zone is clean.
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Full Operations Review | FOR 17
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total No
circled
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 74 of 153
Criteria
Comments
Pg ID 260
If no,
System(s)* circle points
Heated landing zone is in good repair. If no, check reasons below:
Temperature gauge is not operating properly
Lights not operating
Air flow not circulating through the unit
Other
Prep/toaster tables and all stainless surfaces are clean.
Prep/toaster tables and all stainless surfaces are in good repair.
If no, check reasons below:
Table not stable
There is rust or visible damage to the unit
No sign of surface heat on the table
Other
Microwave ovens are clean.
Microwave ovens are in good repair. If no, check reasons below:
Door is loose or damaged
Other
Oven is clean.
Oven is in good repair. If no, check reasons below:
Door is loose or damaged
Shelves are missing or not in good repair
Other
Fried product fryers are clean.
Fried product fryers are in good repair. If no, check reasons below:
Timers not working
Brackets (to hang baskets) not in place
Excessive grease migration or leaky pots behind fryer door
Other
French Fry Fryers are clean.
French Fry Fryers are in good repair. If no, check reasons below:
Timers not working
Brackets (to hang baskets) not in place
Excessive grease migration or leaky pots behind fryer door
Other
Kitchen and Storage Areas
Manager office is in good repair.
Dry storage areas (shelves, floors, walls, ceilings, etc.) are clean.
Dry storage areas (shelves, floors, walls, ceilings, etc.) are
in good repair. If no, check reason below:
Excessive rust or chipping on shelf coating
Sagging of the shelf where no product is present
Posts are bent
Other
Beverage system is clean.
Beverage system is in good repair. If no, check reason below:
Ice bank not evenly covering coils from top to bottom
Agitator motor not running
Circulator pump/motor not running
CO2 pressure at carbonator incorrect (should be 90-110 psi)
Filters not in place or not changed (minimum 6 months)
Other
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Full Operations Review | FOR 18
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total No
circled
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 75 of 153
Criteria
Comments
Pg ID 261
If no,
System(s)* circle points
All walk-in refrigerated units are clean (including coils, gaskets,
condenser/evaporator and door curtains).
All walk-in refrigerated units are in good repair. If no, check reason below:
Temperature gauge is not operating properly
Gaskets not in place or not in good condition
Door does not close properly
Air curtains missing
Light not working
Floor is damaged
Air flow blocked
Emergency door release not working
Other
All walk-in freezers are clean (including coils, gaskets,
condenser/evaporator and door curtains).
All walk-in freezers are in good repair. If no, check reason below:
Temperature gauge is not operating properly
Gaskets not in place or not in good condition
Door does not close properly
Air curtains missing
Light not working
Floor is damaged
Emergency door release not working
Air flow blocked
Other
The restaurant is pest proofed (e.g., no gaps under
doors) and free from signs of pests or pest infestation.
The restaurant has a regular pest control service and
has addressed recommendations.
Empty bun trays are stored inside the restaurant at all times.
Kitchen floors and baseboards are in good repair.
Kitchen walls, ceiling, vents and lighting are clean.
Kitchen walls, ceiling, vents and lighting are in good repair.
Washing Machine is in good repair.
Back sink area including mop sinks, floors, shelves and walls are clean.
Back sink area including mop sinks, floors, shelves and walls are in good repair.
Syrup storage area is clean/bulk Coke tanks are clean and sanitized
(sanitized tag attached).
Syrup storage area/bulk Coke tanks area in good repair. If no,
check reasons below:
Syrup puddling underneath shelf
Other
Bulk CO2 in good repair. If no, check reasons below:
Bulk CO2 frosting up
Other
All required procedures for the proper handling of CO2
are in place and are being followed.
The outside exits from the kitchen/storage area have working alarms.
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Full Operations Review | FOR 19
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total No
circled
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 76 of 153
Criteria
Comments
Pg ID 262
If no,
System(s)* circle points
Front Counter, Drive-thru and McCafé Areas
Shake and sundae machines are clean and sanitized correctly (if
not visually verified, have a manager describe proper procedures).
For heat treatment machines also verify that mix removed from the
machine is never reused. Verify that the managers know the
procedures to follow if the machine goes into hard lock.
Shake and sundae machine is in good repair. If no, check reason below:
Excessive mix leaking from bottom of door spout
Syrup continues to flow after shake is drawn
Other
Pie merchandiser is clean.
Pie merchandiser is in good repair. If no, check reason below:
Temperature set points not within specification
Unit is not heating
Temperature read out not functioning
Other
Juice dispenser(s) is/are clean and sanitized correctly.
Juice dispenser(s) is/are in good repair. If no, check reason below:
Product continues to flow after dispensing button is released
Other
Drink towers and nozzles are cleaned and sanitized daily.
Inspect drink tower nozzles and diffusers (and the bottom
of the valve body after removing the nozzle at each drink
tower) to check for any signs of build-up (due to the
growth of microorganisms).
Drink towers and nozzles are in good repair (including ABS).
If no, check reason below:
Beverage does not flow smoothly from nozzle
All nozzles and diffusers are not in place
Leaking
Other
Iced tea/Iced Coffee dispensers (including nozzles) are
cleaned and sanitized correctly. Self serve has latching
mechanism in place.
Iced tea/Iced coffee dispensers (including nozzles) are in
good repair. If no, check reason below:
Nozzle is broken
Leaking
Latching lid (for self serve) is broken
Other
Tea brewer(s) is/are clean.
Tea brewer(s) is/are in good repair. If no, please check reason below:
Spray head has blocked holes
Other
Coffee machine(s) is/are clean.
Coffee machine(s) is/are in good repair. If no, check reasons below:
Spray head has blocked holes
Warmer plates not operating
Decanters are chipped
Other
McCafé machine(s) (including louvers, bean hopper, foamer head,
milk tubes, milk storage area, floor drain and top of machine) is/are clean.
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Full Operations Review | FOR 20
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total No
circled
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 77 of 153
Criteria
Comments
Pg ID 263
If no,
System(s)* circle points
McCafé machine(s) is/are in good repair. if no, check reason below:
Beverage does not flow smoothly from nozzle
Foamer head is dirty or clogged
Milk tubes dirty or clogged
McCafé Blended Ice Machine(s) (including blending station, pitcher,
rinser, drizzle 7 syrup holder, mix bag storage holder and whipped
cream holder) is/are clean.
McCafé Blended Ice Machine(s) is/are in good repair.
If no, check reason below:
Pitcher is broken
Ice hopper is dirty
Bottom drip pan dirty
Bulk cream dispenser(s) is/are clean.
Bulk cream dispenser(s) is/are in good repair.
If no, check reason below:
Does not maintain proper temperature
Nozzle is clogged
All Purpose Dispenser(s) for sugar and sweeteners is/are clean.
All Purpose Dispenser(s) for sugar and sweetener is/are
in good repair. If no, check reason below:
Dispenser is cracked/broken
Dispenser is difficult to operate
McFlurry Mix-in dispensers and spindle are cleaned and sanitized daily.
McFlurry mix-in dispensers and spindle are in good repair. If no,
check reason below:
Puck is cracked
Mixing spoons will not slide onto agitator shaft
Foot pedal (or control switch) does not turn on agitator
Candy dispensing knob is not working
Other
Drive-thru window(s) is/are functioning and in good repair.
Front counter/Drive-thru floors, baseboards and walls are clean.
Front counter/Drive-thru floors, baseboards and walls are in good repair.
Front counter/Drive-thru ceiling, vents and lighting are clean.
Front counter/Drive-thru ceilling, vents and lighting are in good repair.
The under counter lighting (front counter) is not present or is guarded to prevent contact.
POS system is clean.
POS system is in good repair. If no, check reasons below:
Printers not working
Cash drawers not working properly
Other
Interior menu board is clean.
Interior menu board is in good repair.
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Full Operations Review | FOR 21
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total No
circled
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 78 of 153
Criteria
Comments
Pg ID 264
If no,
System(s)* circle points
Dining Room and Restrooms
Restroom walls, floors and fixtures (e.g., faucets, hand dryers,
toilets, changing stations, etc.) are in good repair.
Waste receptacles are cleaned and sanitized daily.
Waste receptacles are in good repair.
Guests’ dining area trays are washed, rinsed, and
sanitized a minimum of once per day.
Dining room doors and walls are in good repair.
Dining room chairs, tables, highchairs and decor are in good repair.
Dining room floors, baseboards, and thresholds are in good repair.
Dining room ceiling, vents, windows, doors and lighting are clean.
Dining room ceiling, vents, windows and lighting are in good repair.
Beverage/Condiment bar is in good repair.
PlayPlace/Playland
Annual PlayPlace/Playland safety inspection has been
completed and corrective action has occurred as needed.
Date completed:
Completed by:
PlayPlace/Playland equipment (e.g., PlayPlace nets are free from holes,
tears, or cuts), doors and tables are clean, odor-free and in good repair.
PlayPlace/Playland ceiling, lighting, restrooms and walls are clean.
PlayPlace/Playland ceiling, lighting, restrooms and walls are in good repair.
There is/are working alarm(s) on exits from the PlayPlace/Playland.
Outside the Restaurant
Parking stalls and Drive-thru pad are clean and free of oil build-up.
Parking stalls and Drive-thru pad are in good repair.
Parking areas are in good repair (free of pot holes and
cracks, striping in good condition).
Roof is clean.
Roof is in good repair.
All HVAC exhaust fans, filters and condenser coils are clean according to PM.
All HVAC exhaust fans, filters and condenser coils are in good repair.
All signage, flags, and exterior lighting are clean.
All signage, flags, and exterior lighting (excluding poles) are in good repair.
All flag poles, lot light poles, and sign poles including their base plates
and anchor bolts are not covered in any manner or buried by any
landscape materials or concrete.
All flag poles, lot light poles and sign poles, including their base plates,
anchor bolts show no visible repair or maintenance issues (including
corrosion, rusting, blistering, or cracking of the pole, base plate,
or foundation).
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Full Operations Review | FOR 22
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total No
circled
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 79 of 153
Criteria
Comments
Pg ID 265
If no,
System(s)* circle points
Exterior of building (walls, soffit, exterior doors, fascia, trim, etc.) is clean.
Exterior of building (walls, soffit, exterior doors, fascia, trim, etc.) is in good repair.
Walks, patios, and exterior seating are in good repair.
All windows and doors are in good repair.
Drive-thru menu board is clean.
Drive-thru menu board is in good repair.
Landscaping is well maintained.
Outside trash receptacles are in good repair.
Corral area (gates, pads, walls, grease container etc.) is in good repair.
Waste containers/compactor in corral area are in good repair and free of odor.
Guest conveniences such as pay phones, bike racks, etc. are clean.
Guest conveniences such as pay phones, bike racks, etc. are in good repair.
Outside the Restaurant: Drive-thru
COD/DT speaker is clean (if applicable).
COD/DT speaker is in good repair and enabled (functioning properly if applicable).
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Comments:
Total points
circled
General Cleanliness possible points
Deduct total N/A points
from previous General Cleanliness pages
Adjusted possible General Cleanliness points
(Transfer to Scoring Page)
Deduct total points circled
from previous General Cleanliness pages
Total General Cleanliness points achieved
(Transfer to Scoring page)
2011-2012 | Full Operations Review | FOR 23
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5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 80 of 153
Pg ID 266
For questions Q1-Q12, you must check 4 core menu products (entrées) for each day part. These products (entrées) should be a mixture of beef, chicken, fish products
and salads (during lunch or dinner) and mixture of muffin, biscuit, McGriddle sandwiches and breakfast platters (during breakfast). In order to receive the points for
questions Q1-Q18, the product must meet ALL attributes that are important to the guest, including appearance, texture, taste and temperature. If a question is answered
no, select all descriptors that apply.
Criteria
Comments
Breakfast Finished Product Quality
Is this product acceptable? (Yes / No)
Based on Questions A through D below.
5
5
5
5
PRODUCT 1
PRODUCT 2
PRODUCT 3
PRODUCT 4
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
List products
Does the product’s appearance meet McDonald’s product standard?
Compare the product to the Gold Standard Quality Reference Material
and product standard appearance description.
Sandwich not neatly assembled/messy
Sandwich is missing ingredients
Sandwich bun or breakfast bread is crushed
Color is too dark
Color is too light
Bun or breakfast bread is not properly toasted or baked
Produce is brown/wilted
Meat portion is too small or misshapen
Cheese is not properly melted
Other
Is the product at the correct eating temperature?
Product not hot enough
Refrigerated product is not cold enough
Other
Does the product have the correct texture?
Refer to product standard descriptions for texture.
Meat or egg is tough
Meat or egg is dry
Meat or egg is undercooked
Meat is overcooked
Fried product was soggy/greasy (not crispy)
Fried product was too hard/crunchy
Sandwich is dry
Bun or breakfast bread is hard/stale
Bun or breakfast bread is soggy/too wet
Sandwich falls apart as it is eaten
Produce is limp
Other
Does the product taste meet McDonald’s product standard?
Refer to the product standard taste descriptions.
Stale/old (does not taste fresh)
Off flavor
Burnt flavor
Not properly seasoned
Flavor too weak/bland
Flavor too strong
Old oil flavor (fried product)
Other
P1
N/A Points
Total points
circled
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Full Operations Review | FOR 24
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
P2
P3
P4
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 81 of 153
Criteria
Pg ID 267
Comments
Lunch Finished Product Quality
Is this product acceptable? (Yes / No)
Based on Questions A through D below.
5
5
5
5
PRODUCT 1
PRODUCT 2
PRODUCT 3
PRODUCT 4
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
List products
Does the product’s appearance meet McDonald’s product standard?
Compare the product to the Gold Standard Quality Reference Material
and product standard appearance description.
Sandwich not neatly assembled/messy
Sandwich is missing ingredients
Sandwich bun or breakfast bread is crushed
Color is too dark
Color is too light
Bun or breakfast bread is not properly toasted or baked
Produce is brown/wilted
Meat portion is too small or misshapen
Cheese is not properly melted
Other
Is the product at the correct eating temperature?
Product not hot enough
Refrigerated product is not cold enough
Other
Does the product have the correct texture?
Refer to product standard descriptions for texture.
Meat or egg is tough
Meat or egg is dry
Meat or egg is undercooked
Meat is overcooked
Fried product was soggy/greasy (not crispy)
Fried product was too hard/crunchy
Sandwich is dry
Bun or breakfast bread is hard/stale
Bun or breakfast bread is soggy/too wet
Sandwich falls apart as it is eaten
Produce is limp
Other
Does the product taste meet McDonald’s product standard?
Refer to the product standard taste descriptions.
Stale/old (does not taste fresh)
Off flavor
Burnt flavor
Not properly seasoned
Flavor too weak/bland
Flavor too strong
Old oil flavor (fried product)
Other
P1
N/A Points
Total points
circled
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Full Operations Review | FOR 25
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
P2
P3
P4
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 82 of 153
Criteria
Pg ID 268
Comments
Dinner Finished Product Quality
Is this product acceptable? (Yes / No)
Based on Questions A through D below.
5
5
5
5
PRODUCT 1
PRODUCT 2
PRODUCT 3
PRODUCT 4
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
List products
Does the product’s appearance meet McDonald’s product standard?
Compare the product to the Gold Standard Quality Reference Material
and product standard appearance description.
Sandwich not neatly assembled/messy
Sandwich is missing ingredients
Sandwich bun or breakfast bread is crushed
Color is too dark
Color is too light
Bun or breakfast bread is not properly toasted or baked
Produce is brown/wilted
Meat portion is too small or misshapen
Cheese is not properly melted
Other
Is the product at the correct eating temperature?
Product not hot enough
Refrigerated product is not cold enough
Other
Does the product have the correct texture?
Refer to product standard descriptions for texture.
Meat or egg is tough
Meat or egg is dry
Meat or egg is undercooked
Meat is overcooked
Fried product was soggy/greasy (not crispy)
Fried product was too hard/crunchy
Sandwich is dry
Bun or breakfast bread is hard/stale
Bun or breakfast bread is soggy/too wet
Sandwich falls apart as it is eaten
Produce is limp
Other
Does the product taste meet McDonald’s product standard?
Refer to the product standard taste descriptions.
Stale/old (does not taste fresh)
Off flavor
Burnt flavor
Not properly seasoned
Flavor too weak/bland
Flavor too strong
Old oil flavor (fried product)
Other
P1
N/A Points
Total points
circled
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Full Operations Review | FOR 26
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
P2
P3
P4
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 83 of 153
Criteria
Pg ID 269
Comments
Breakfast Hash Brown Quality
Is this product acceptable? (Yes / No)
Based on Questions A through D below
5
5
PRODUCT 1
PRODUCT 2
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
List products
Does the product’s appearance meet McDonald’s product standard?
Compare the product to the Gold Standard Quality Reference Material
and product standard appearance description.
French fry box not full
Color is too dark
Color is too light
French fries not of varying lengths
No visible salt
Raw inside
Hollow inside (French Fries)
Broken patties (Hash Browns)
Other
Is the product at the correct eating temperature?
Product not hot
Other
Does the product have the correct texture?
Soggy/greasy
Lacks crispness
Tough/chewy
Too hard/crunchy
Other
Does the product taste meet McDonald’s product standard?
Refer to the product standard taste descriptions.
Off flavor
Burnt flavor
Lacks salt
Too salty
Flavor too weak/bland
Flavor too strong
Old oil flavor
Other
P1
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Full Operations Review | FOR 27
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total points
circled
P2
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 84 of 153
Criteria
Pg ID 270
Comments
Lunch French Fry Quality
Is this product acceptable? (Yes / No)
Based on Questions A through D below
5
5
PRODUCT 1
PRODUCT 2
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
List products
Does the product’s appearance meet McDonald’s product standard?
Compare the product to the Gold Standard Quality Reference Material
and product standard appearance description.
French fry box not full
Color is too dark
Color is too light
French fries not of varying lengths
No visible salt
Raw inside
Hollow inside (French Fries)
Broken patties (Hash Browns)
Other
Is the product at the correct eating temperature?
Product not hot
Other
Does the product have the correct texture?
Soggy/greasy
Lacks crispness
Tough/chewy
Too hard/crunchy
Other
Does the product taste meet McDonald’s product standard?
Refer to the product standard taste descriptions.
Off flavor
Burnt flavor
Lacks salt
Too salty
Flavor too weak/bland
Flavor too strong
Old oil flavor
Other
P1
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Full Operations Review | FOR 28
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total points
circled
P2
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 85 of 153
Criteria
Pg ID 271
Comments
Dinner French Fry Quality
Is this product acceptable? (Yes / No)
Based on Questions A through D below
5
5
PRODUCT 1
PRODUCT 2
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
List products
Does the product’s appearance meet McDonald’s product standard?
Compare the product to the Gold Standard Quality Reference Material
and product standard appearance description.
French fry box not full
Color is too dark
Color is too light
French fries not of varying lengths
No visible salt
Raw inside
Hollow inside (French Fries)
Broken patties (Hash Browns)
Other
Is the product at the correct eating temperature?
Product not hot
Other
Does the product have the correct texture?
Soggy/greasy
Lacks crispness
Tough/chewy
Too hard/crunchy
Other
Does the product taste meet McDonald’s product standard?
Refer to the product standard taste descriptions.
Off flavor
Burnt flavor
Lacks salt
Too salty
Flavor too weak/bland
Flavor too strong
Old oil flavor
Other
P1
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Full Operations Review | FOR 29
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total points
circled
P2
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 86 of 153
Criteria
Comments
Pg ID 272
System(s)*
B
L
D
All sandwich/entrée packaging has a neat appearance.
All French Fry/Hash Brown packaging has a neat appearance.
Overall Drink Quality
Select two beverages per day part
Did the beverage taste good?
Drink was excessively sweet/syrupy
Drink was watered down/not flavorful
Drink did not have correct amount of ice
Shake did not have proper thickness
Coffee tasted old/not fresh brewed
Coffee was not hot
Cream curdled in the coffee
Sweetener packet was hard or lumpy
Coffee was too strong
Coffee was too weak
Other
Was the cup without spillage?
Desserts
Dessert item is properly prepared and tastes good.
The pie was cold and/or did not taste fresh
The pie was cracked or broken
The pie crust was not crisp
Cinnamon Melt was cold, dry or stale
Sundae did not have enough topping
Mix-ins for McFlurry not stirred in
The yogurt/ice cream dessert did not have the proper thickness
The yogurt/ice cream dessert is under-filled
Other
McCafé Beverage Quality
For the following McCafé questions, you must check 1 beverage for each daypart.
Please be sure to alternate between hot and cold beverages.
Is this product acceptable? (Yes or No)
Was your hot McCafé beverage or iced McCafé beverage served
neatly and with the appropriate garnish/presentation? If no, check
reason below: Compare the product to the Gold Standard Quality
Reference Material and product standard appearance descriptions.
Drink spilled over lid
Incorrect amount / volume
Cup not clean and dry
Incorrect presentation of drink
Appropriate garnish/toppings/condiments/ not included
Other
Was your hot McCafé beverage or iced McCafé beverage served fresh and did it taste good? (Yes or No)
If no, check reason below:
Bitter after-taste
Too strong
Too weak
Blended / mixed incorrectly
Other
Was your hot McCafé beverage served at the correct temperature? (Yes or No) If no check reason below:
Too hot
Not hot enough
Other
B
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Full Operations Review | FOR 30
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total points
circled
L
D
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 87 of 153
Criteria
Comments
Pg ID 273
System(s)*
B
L
D
Stock levels in secondary freezers are sufficient
for a maximum of two hours.
1
1
1
Lettuce, cheese, onions, sliced tomatoes and other condiments
being held at the prep table are fresh and meet McDonald’s
quality requirements. (Dried out cheese, condiments or
wilted lettuce are not acceptable).
3
3
3
Blended Ice Beverage Quality
For the following Blended Ice beverage questions, you must check 1 beverage for each daypart.
Please be sure to alternate between Real Fruit Smoothies and Frappes.
Is this product acceptable?
Was your Real Fruit Smoothie beverage OR your Frappe beverage
served neatly and with the appropriate garnish/presentation? (Yes or No)
If no, check reason below:
Compare the product to the Gold Standard Quality Reference
Material and standard appearance descriptions.
Drink spilled over lid
Incorrect amount / volume
Cup not clean and dry
Incorrect presentation of drink
Appropriate garnish/toppings/condiments not included
Other
Was your Real Fruit Smoothie beverage OR your Frappe beverage served
fresh and did it taste good? (Yes or No) If no, check reason below:
Frappe not creamy or smooth
Bitter after-taste
Too strong
Too weak
Blended/mixed incorrectly
Other
Prep Area
Secondary shelf lives monitored/adhered to for
products held at room temperature.
Sauces and cheese are properly tempered and are
within their secondary shelf life (if applicable).
Refrigerated ingredients for prepared products are kept
(e.g., salads, parfaits, burritos, fajitas, etc.) at room
temperature for a maximum of 30 minutes during the
assembly or presorting process and are returned to the
primary storage areas immediately after assembly is complete.
Prep table holding containers for all products are replaced
with new sanitized containers when being refilled. Products
are in good condition.
Prep table is organized.
B
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Full Operations Review | FOR 31
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total points
circled
L
D
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 88 of 153
Criteria
Comments
Pg ID 274
System(s)*
B
L
D
3
3
3
Beef, Chicken, Eggs and Fish Products
Beef patties are seasoned correctly.
All eggs are cooked properly and placed into UHC trays
correctly. Batch cooking procedures for egg products are
used when applicable. If no, identify product(s):
Scrambled Eggs
Folded eggs
Round eggs
Breakfast and regular meats are cooked/heated properly.
If applicable they are placed correctly into UHC trays
(e.g., sausage, 10:1 meat, etc.). Batch cooking procedures
are used when applicable. If no, identify product(s):
Sausage patties
Steak patties
Strip bacon
Canadian bacon
Beef patties
Chicken McGrill
Minimum of 2 UHC slots available for each product being held in the UHC holding cabinets.
All fried products (e.g., chicken and fish) are cooked
properly and placed into UHC trays correctly. Batch
cooking procedures are used when applicable.
If no, identify product(s):
Chicken Patties
Chicken McNuggets
Filet-O-Fish
Other breakfast and regular menu products are cooked/heated
properly and placed correctly in UHC trays/hot holding units.
Batch cooking procedures are used when applicable.
All burrito procedures are followed.
Grills are set at the correct temperature and time.
Fryers are set at the correct times and temperature.
Spatulas and scrapers are sharp (free from nicks and burrs).
Grill surfaces and Teflon sheets are clean and in good condition.
Oil quality in all fryers is acceptable and oil levels are correct.
Vats are skimmed at least every 30 minutes.
Cooked foods in UHC/hot holding units are at or above
140°F (60°C) (check one product per shelf in each UHC).
Holding times on all products held in the UHC/hot holding
units are monitored and adhered to.
UHC/hot holding unit times and temperatures are at the
correct setting for breakfast and regular menu products.
Toasters are set at the correct temperature and
compression settings.
Bun steamers are set at the correct temperature and
operating properly.
The correct condiments and build sequence are
used on all products.
Proper utensils are used to transfer cooked foods
to/from the UHC/hot holding units to buns or packaging.
Products are assembled on packaging or wraps.
B
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Full Operations Review | FOR 32
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total points
circled
L
D
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 89 of 153
Criteria
Comments
Pg ID 275
System(s)*
B
L
D
Proper rotation of UHC/hot holding unit products
are followed (FIFO).
Proper wrapping and packaging procedures are followed.
Correct sauce guns and dispensers are being used
and work properly.
Appropriate number of seasoning shakers at grill
and salt shaker available at the filet station.
One crew person assembles no more than 2 sandwiches at a time.
French Fries/Hash Browns
French Fries/Hash Browns are cooked correctly
(cook fries as close to frozen as possible).
French Fries/Potato products are salted correctly.
French Fries/Hash Browns are packaged and held correctly
(e.g., first two rows of fry ribbon not used).
French Fries/Hash Browns holding times are
monitored and adhered to.
Fryers are set at the proper times and temperature.
Oil quality in all fryers is acceptable and levels are correct.
Vats are skimmed at least every 30 minutes.
Beverages
Holding times on all beverages (e.g., coffee, tea)
are monitored and adhered to.
Proper amount of ice is added to beverages
(ice not added to orange juice).
Customized coffee procedures are followed.
Proper procedures are followed to make all hot McCafé beverages.
Proper procedures are followed to make all iced McCafé beverages.
Proper procedures are followed to make all Blended Ice beverages.
Secondary shelf lives marked/adhered to for products held at room temperature.
Refrigerated ingredients (e.g., whipped cream) for prepared products are used
and placed back into the refrigeration unit immediately after use.
The correct condiments and build sequence is used on all products.
Proper utensils are used.
Proper packaging procedures are followed
(e.g., Sticky Printer used or cups are marked).
Syrup pumps are working properly.
Spoons are placed in the used spoon container after each use (except when
being used for 2 or more of the same beverage at the same time).
B
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Full Operations Review | FOR 33
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total points
circled
L
D
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 90 of 153
Criteria
Comments
Pg ID 276
System(s)*
B
L
D
Desserts
Sundaes and cones are prepared correctly.
Shakes/dessert drinks are prepared correctly.
McFlurry desserts are prepared correctly.
Dessert ingredients are handled properly.
Fresh baked/fried dessert goods are prepared
and held properly (e.g., cookies, pies).
Salads/Prepared Products
All salads and other prepared products are prepared correctly.
Holding times on salads are marked and adhered to.
Holding times on other prepared products are marked
and adhered to.
Breakfast Breads and Buns
Breakfast breads are toasted, baked, buttered (if applicable)
and placed into UHC trays correctly.
Muffins
Bagels
Hot Cakes
Biscuits
McGriddles
Buns are toasted/steamed correctly (e.g., time, procedure).
If bun buffer is in use (based on arrival rate), proper
procedures and positioning guidelines are used and are
adhered to. Two minute holding time is adhered to for
all buffered buns.
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
B
L
N/A Points
Total points
circled
N/A Points
Total points
circled
Day Part Quality possible points
Deduct total N/A points
from previous Day Part Quality pages
Adjusted possible Day Part Quality points
(Transfer to Scoring Page)
Deduct total points circled
from previous Day Part Quality pages
Comments:
2011-2012 | Full Operations Review | FOR 34
McDonald’s USA - QSC Playbook - Version 6.0
Total Day Part Quality points achieved
(Transfer to Scoring page)
D
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 91 of 153
Criteria
Comments
Pg ID 277
System(s)*
B
L
D
L
D
Shift Preparation
Pre-Shift Checklist completed properly for the shift.
Shift adequately staffed to handle sales rate and
optimize sales.
Production Charts
A cabinet management system is in place and being
adhered to that delivers a hot, fresh product to the
guest in a fast efficient manner as outlined in the
Cabinet Management system (CMS). The process
should include: less product cooked more often,
Crew and Managers who can explain the system
in use, minimal waste.
Positioning and Staffing
Crew are positioned in accordance with the projected
transactions/sales and the recommended positioning guide.
French Fry/Hash Brown person is positioned as
appropriate to the positioning guide.
Crew are repositioned for breaks.
All members of the Drive-thru team are wearing headsets.
Runner condiment center is stocked and being used properly.
Initiator in position without secondary duties
Second side of the prep table set up and used appropriately.
B
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
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7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total points
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Pg ID 278
When taking service times, follow 10 guests all the way through the process versus observing 10 guests for each of the components.
Front Counter Component Definintions
• Service Measurement (60” or less): Time elapsed from the order being totaled until the time the order is presented to the guest
(completion of transaction).
• Total Experience Time (210” or less): Time elapsed from the guest getting in line until the order is presented to the guest
(completion of the transaction).
Drive-thru Component Definitions (Used for all Drive-thru configurations)
• Response Time (10” or less): Time elapsed from wheel stop at the order taking point until the time the guest is greeted.
(If the guest is asked to wait the timing continues until the order is ready to be taken.)
• Total Experience Time (210” or less): Time elapsed from wheel stop (entry into Drive-thru line) until the order is presented to the guest
(completion of the transaction).
The service measurement below is used for Drive-thru configurations in which the order and cash are taken at separate points (booths).
• Service Measurement (45” or less): Time elapsed from wheel stop at the cash point (booth) until the time the order is presented to the guest
(completion of the transaction)
The service measurement below is used for Drive-thru configurations in which the order and cash are taken at the same point (booth),
e.g., Face To Face.
• Service Measurement (60” or less): Time elapsed from the order being totaled to the time the order is presented to the guest
(completion of the transaction).
Note: All components of the 90-second Service Time will be captured for diagnostic purposes. The definitions of measurement above explain the components of Service Time that will be scored.
Front Counter and Drive-thru Service Measurement Scoring Instructions:
• Delete the high and low time for each component
• Average the remaining times for the components (divided by 8)
• If the average time for the component is less than or equal to the target (i.e., 60 seconds or less for Front Counter/45 seconds or less for the
Drive-thru/10 seconds or less for response) all points are awarded.
• If the average time for the component is greater than the target (i.e., 61 seconds or greater for Front Counter/46 seconds or more for the
Drive-thru/11 seconds or more for response) no points are awarded.
* It is recommended that not all 10 service times be taken at one time, but spread out over the peak period and divided between Drive-thru and
Front Counter as arrival rates warrant.
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
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7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 93 of 153
Pg ID 279
Breakfast
Guest
Order Taking
Time
(25” or less)
Cash Time
(15” or less)
1
2
3
4
5
6
7
8
9
10
Throw out high and low times.
Average time (divided by 8)
Points available
Problem system(s)
Service Time
Measurement
(60” or less)
Total
Experience Time
(210” or less)
14
14
Service Time
Measurement
(60” or less)
Total
Experience Time
(210” or less)
14
14
Service Time
Measurement
(60” or less)
Total
Experience Time
(210” or less)
14
14
Total points to be
deducted
(210” or less)
Lunch
Guest
Order Taking
Time
(25” or less)
Cash Time
(15” or less)
1
2
3
4
5
6
7
8
9
10
Throw out high and low times.
Average time (divided by 8)
Points available
Problem system(s)
Total points to be
deducted
(210” or less)
Dinner
Guest
Order Taking
Time
(25” or less)
1
2
3
4
5
6
7
8
9
10
Throw out high and low times.
Average time (divided by 8)
Points available
Problem system(s)
Cash Time
(15” or less)
Total points to be
deducted
(210” or less)
B
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
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7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total points
circled
L
D
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 94 of 153
Criteria
Comments
Pg ID 280
System(s)*
B
L
D
L
D
Front Counter Order Accuracy
Correct food and drink items received throughout the
shift (including correct sizes, flavors and grill orders).
If no, check all reasons that apply below:
Missing sandwich/entrée
Received wrong sandwich
Sandwich entrée not prepared as requested
Sandwich missing one or more ingredients
Missing French Fry or Hash Brown
Missing drink
Received wrong drink or drink not prepared as requested.
Other
Condiments, napkins and straws/stirrers, Happy Meal
toys received (or condiment bar well stocked) throughout
the shift. If no, check all reasons that apply below:
Missing dressings or sauces
Received wrong dressing or sauce
Condiment bar not stocked
Missing Happy Meal toy
Received wrong Happy Meal toy
Missing correct number of napkins
Other
Front Counter Welcome
All guests are welcomed/greeted in a polite and friendly
manner (e.g., smile, eye contact, friendly tone, polite,
attentive, sincere). If no, check all reasons that apply below:
Tone was not friendly - monotone
Guest was not treated in a polite manner - apathetic or rude
Greeting was not sincere/individualized or genuine (e.g., seemed robotic, no smile, no eye contact)
Other
Front Counter Connect
Order takers/cashiers/presenters were attentive (responsive,
actively listening, positive attitude, additional conversation).
If no, check all reasons that apply below:
Crew was not attentive and/or listening to the guest (distracted)
Crew did not seem interested in serving the guest
Crew was multi-tasking - doing something else while trying to take care of the guest
(e.g., stocking, not ready to take guest’s money)
Crew moved on to the next guest and did not ensure the guest was taken care of
Other
Order takers/cashiers/presenters communications
were effective, clear, courteous and easily understood.
Orders are taken properly. If no, check all reasons that apply below:
Suggestive sell or upsell not used appropriately
Interrupted the guest as they placed order
Did not clarify the order, including condiments, for accuracy when appropriate
Requests for gift certificate/gift card not handled correctly
Other
B
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
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7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total points
circled
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Criteria
Comments
Pg ID 281
System(s)*
B
L
D
L
D
Front Counter Deliver
Payments are received properly. If no, check all reasons that apply below:
Correct cash handling procedures (e.g., laying bills on drawer) not followed
Gift certificate/gift card transactions not handled correctly
Credit/debit transactions not handled correctly
Did not provide receipt (where appropriate)
Other
Orders are assembled correctly and served when complete.
Orders are presented correctly (neat tray, double folding of bag).
Front Counter Farewell
All guests receive a sincere, friendly farewell/closing.
If no, check all reasons that apply below:
No farewell/closing given
Tone was not friendly - monotone
Guest was not treated in a polite manner - apathetic or rude
Farewell was not sincere/individualized or genuine (e.g., seemed robotic, no smile, no eye contact)
Other
B
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
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7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total points
circled
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Pg ID 282
Breakfast
Guest
Response Time
(10” or less)
1
2
3
4
5
6
7
8
9
10
Throw out high and low times.
Average time (divided by 8)
Points available
Problem system(s)
Order Taking
Time
(25” or less)
Cash Time
(15” or less)
Present Time
(15” or less)
2
Measurement
(45”or less)
(60” or less)
(Depends on
configuration)
14
Total points to be
Total
deducted
Experience Time
(210” or less)
(210” or less)
14
Lunch
Guest
Response Time
(10” or less)
1
2
3
4
5
6
7
8
9
10
Throw out high and low times.
Average time (divided by 8)
Points available
Problem system(s)
Order Taking
Time
(25” or less)
Cash Time
(15” or less)
Present Time
(15” or less)
2
Measurement
(45”or less)
(60” or less)
(Depends on
configuration)
14
Total points to be
Total
deducted
Experience Time
(210” or less)
(210” or less)
14
Dinner
Guest
Response Time
(10” or less)
1
2
3
4
5
6
7
8
9
10
Throw out high and low times.
Average time (divided by 8)
Points available
Problem system(s)
*System Key
1 Production
2 Service
3 Shift Management
Order Taking
Time
(25” or less)
Cash Time
(15” or less)
Present Time
(15” or less)
2
4 Food Safety
5 Inventory Management
6 People Practices
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McDonald’s USA - QSC Playbook - Version 6.0
Measurement
(45”or less)
(60” or less)
(Depends on
configuration)
14
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
Total points to be
Total
deducted
Experience Time
(210” or less)
(210” or less)
14
N/A Points
Total points
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Criteria
Comments
Pg ID 283
System(s)*
B
L
D
L
D
Drive-thru Order Accuracy
Correct food and drink items received throughout the
shift (including correct sizes, flavors and grill orders).
If no, check all reasons that apply below:
Missing sandwich/entrée
Received wrong sandwich
Sandwich entrée not prepared as requested
Sandwich missing one or more ingredients
Missing French Fry or Hash Brown
Missing drink
Received wrong drink or drink not prepared as requested
Other
Condiments, napkins, straws/stirrers and Happy Meal
toys received throughout the shift. If no, check all
reasons that apply below:
Missing dressings or sauces
Received wrong dressing or sauce
Missing Happy Meal toy
Received wrong Happy Meal toy
Missing correct number of napkins
Other
Drive-thru Welcome
All guests are welcomed/greeted in a polite and friendly
manner (e.g., smile, eye contact, friendly tone, polite,
attentive, sincere). If no, check all reasons that apply below:
Tone was not friendly - monotone
Guest was not treated in a polite manner - apathetic or rude
Greeting was not sincere/individualized or genuine (e.g., seemed robotic, no smile, no eye contact)
Other
Drive-thru Connect
Order takers/cashiers/presenters were attentive
(responsive, actively listening, positive attitude,
additional conversation). If no, check all reasons
that apply below:
Crew was not attentive and/or listening to the guest (distracted)
Crew did not seem interested in serving the guest
Crew was multi-tasking - doing something else while trying to take care
of the guest (e.g., stocking, not ready to take guest’s money)
Crew moved on to the next guest and did not ensure the guest was taken care of
Other
Order takers/cashiers/presenters communications were
effective, clear, courteous and easily understood.
Orders are taken properly. If no, check all reasons that apply below:
Suggestive sell or upsell not used appropriately
Interrupted the guest as they placed order
Did not clarify the order, including condiments, for accuracy when appropriate.
Requests for gift certificate/gift card not handled correctly
Other
Drive-thru order taker verifies order by saying, “If your order is correct on the screen,
your total is $x.xx. Please pull forward.”
B
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
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McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total points
circled
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 98 of 153
Criteria
Comments
Pg ID 284
System(s)*
B
L
D
L
D
Drive-thru Deliver
Payments are received properly. If no, check all reasons that apply below:
Correct cash handling procedures (e.g., laying bills on drawer) not followed
Gift certificate/gift card transactions not handled correctly
Credit/debit transactions not handled correctly
Did not provide receipt (where appropriate)
Other
Orders are assembled correctly.
Orders are presented correctly (double folding of bag, Drive-thru
orders served or parked off the monitor at the appropriate time).
Drive-thru Farewell
All guests receive a sincere, friendly farewell/closing.
If no, check all reasons that apply below:
No farewell/closing given
Tone was not friendly - monotone
Guest was not treated in a polite manner - apathetic or rude
Farewell was not sincere/individualized or genuine (e.g., seemed robotic, no smile, no eye contact)
Other
MFY Prep Times
Average order prep time is within targets based on transaction rates.
Guest
1
2
3
4
5
6
7
8
9
10
Average Order Prep Time
B
Points Available
System(s) #
5
L
D
TRANS/HOUR
TARGET
0-105
35-50 SEC.
106-160
35-40 SEC.
160 +
35 SEC. OR LESS
(Thow out high and low times)
5
5
Orders are bumped from the KVS when pulled from the initiator
or when the initiator places the last sandwich of the order in the HLZ.
B
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
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7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total points
circled
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Criteria
Comments
Pg ID 285
System(s)*
B
L
D
L
D
Shift Management • Visible, Active and Effective Managers
All Shift Managers role model the service experience
and are accessible and identifiable to our guests as
the person in charge.
Shift Manager is interacting with and supporting/coaching the Crew.
Travel path conducted per guidelines, priorities set and
appropriate action taken.
Targets are established, communicated, monitored and
results are recognized.
Danger Zones
If there are bottlenecks/danger zone issues at the front
counter, the Shift Manager acts in a timely manner.
If there are bottlenecks/danger zone issues at the Drive-thru,
the Shift Manager acts in a timely manner.
If there are bottlenecks/danger zone issues at the
production area, the Shift Manager acts in a timely manner.
If there are bottlenecks/danger zone issues at the
French Fry/Hash Brown area, the Shift Manager acts
in a timely manner.
Comments:
B
N/A Points
Total points
circled
With Drive-thru
Without Drive-thru
Day Part Service possible points
Deduct total N/A points
from previous Day Part Service pages
Adjusted possible Day Part Service points
(Transfer to Scoring Page)
Deduct total points circled
from previous Day Part Service pages
Total Day Part Service points achieved
(Transfer to Scoring page)
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
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7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 100 of 153
Pg ID 286
Employee Hygiene and Food Handling - The following are minimum McDonald’s standards. Your local health department may require additional procedures to
be in place and followed.
Criteria
Comments
System(s)*
B
L
Employees present a neat, clean, and healthy appearance and are
wearing uniforms that are clean and in good condition. No employees
with long or dirty nails or open cuts/sores are allowed to prepare food.
All food handlers are wearing hats or visors, where required.
Crew uniforms and aprons are clean and in good condition.
Employees that work around open food wear minimal
jewelry and cosmetics.
Ice is transported from the ice machine to ice bins
only in clean ice buckets and buckets stored
properly when not in use.
Ice scoops are used to dispense ice from ice bins into
cups or ice buckets. Ice scoops are kept in scoop
holders when not in use.
Kitchen and Storage
Kitchen floors, walls and baseboards are clean.
Prep table and all stainless steel surfaces are clean.
Kitchen equipment is maintained in a clean
condition throughout the shift (toasters, steamers,
ovens, UHCs, ice machine, grills, HLZ, etc.).
Dry storage area, floors and storage shelving is
maintained clean and organized.
Office is clean and organized.
Crew room is clean and organized.
Grill station is clean and organized.
Fried products station(s) is/are clean and organized.
French fry station is clean and organized.
Walk-in freezer and refrigerator are maintained
clean and organized throughout shift.
Back sink area is clean and organized.
Dining Room, Front Counter, Restrooms and PlayPlace/Playland
Center island surface and equipment are clean and organized.
Front counter surfaces, under-counter shelving, floor,
Cambro containers, and waste cans are clean and organized.
Dining Room floors and walls are maintained
clean throughout shift.
Restrooms are stocked and maintained throughout the shift.
Restroom walls, floors and fixtures (e.g., faucets, hand
dryers, toilets, changing stations, etc.) are clean.
All windows and doors are spot cleaned throughout the shift.
Décor, tables, seats and high chairs sprayed with Kay Glass and Multi-Surface
cleaner solution and wiped with a clean sanitizer-soaked towel, and are
maintained clean throughout the shift. Separate towels are used for seats
and high chairs than from the ones used to wipe tables.
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
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7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total No
circled
D
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 101 of 153
Criteria
Comments
Pg ID 287
System(s)*
B
L
Beverage/condiment bar is clean.
Guest dining area trays are kept clean.
PlayPlace/Playland equipment and surfaces are clean.
PlayPlace/Playland seats and tables are clean.
PlayPlace/Playland floors and patio are clean.
Inside waste receptacles are clean and liners are
changed as needed.
“Caution Wet Floor” signs are used appropriately.
McCafé Area
All stainless steel surfaces, storage shelving, floors, walls
and waste can are clean and organized.
Refrigerator is clean and maintained throughout the shift.
Drive-thru Area
The Drive-thru booths are clean and organized (assembly
tables, cambro containers, register stands and floors).
The Drive-thru windows and window areas are clean and free of clutter.
Outside the Restaurant
Parking lot, Drive-thru lane and landscaping are free
of debris and litter.
The area surrounding the restaurant is free of litter.
Corral area (gates, pad, walls, grease container, etc.)
is clean. The gates are kept closed.
Waste containers/compactors in corral area are
clean and kept covered.
Outside trash receptacles are clean and emptied as required.
Walks, patios and exterior seating are clean.
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total points
circled
Cleanliness possible points
Deduct total N/A points
from previous Cleanliness pages
Adjusted possible Cleanliness points
(Transfer to Scoring Page)
Deduct total points circled
from previous Cleanliness pages
Total Cleanliness points achieved
(Transfer to Scoring page)
Comments:
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McDonald’s USA - QSC Playbook - Version 6.0
D
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 102 of 153
Pg ID 288
Date: _________________________
Time: __________________________
Restaurant number: _____________
Address: ______________________________________________________________________________________________
Person in charge: __________________________________________________
Consultant: ________________________________________________________
Owner/Operator: ____________________________________________________
Acceptable = less than three items missed (not including items 12-16)
Unacceptable = three or more items missed or one cooked product internal temperature or visual check item missed (items 12-15) or food safety procedures not done
correctly (item 16).
If any item is found to be out of compliance, the person completing the verification must verify and document that the item was corrected before leaving the restaurant.
To document the correction, they need to initial the box in the “corrective action taken” column on the form for each item that is corrected. For items 12 -14, this must
include a recheck on internal temperatures of the cooked product to verify the required internal temperature is being met. For item 15 a recheck must be completed on
cooked round eggs to verify that the eggs are not undercooked and have yolks that are not runny. Under no circumstances should a restaurant be permitted to serve
undercooked beef, chicken, fish or eggs or continue with a procedure that poses a food safety threat to our guests.
For item 9, recheck product temperature to verify products are now being held at the proper temperature. For item 10, verify the freezer units are now at the correct
temperature. Refrigerated food products that have been in the temperature danger zone for longer than 4 hours (or frozen foods that are not solidly frozen) need to be
discarded (see guidelines in the Receiving and Deliveries chapter of the O&T Manual on refrigerator/freezer breakdown). If heated leftover food products are found,
they must be discarded.
If the verification reveals problems that cannot be corrected immediately, those problems should be reported to the Operations Manager (McOpCo) or the Field Service
Manager without delay and a decision must be made as to whether or not the restaurant should be closed until the problem can be corrected. Examples of this might
include an equipment issue that requires a service technician to repair, lack of proper supplies (e.g., disposable gloves, sanitizer, or McD ABHS) or equipment (e.g.,
working pyrometer or yellow Hutzler spatula).
If any item within questions 12 -16 is found to be out of compliance, an unannounced follow-up Food Safety Procedures Verification must occur within 14 days. If during
this follow-up Food Safety Procedures Verification, any item within questions 12 -16 is again found to be out of compliance, the region must deal with the restaurant
appropriately. For all other unacceptable visits (i.e., three or more missed items, not including items 12-16), an unannounced follow-up Food Safety Procedures
Verification visit must be conducted within 90 days. Do not penalize the restaurant during this follow-up visit if not enough time has passed to correct an issue
(e.g., 60 days of completed food safety checklists).
When an unacceptable Food Safety Procedures Verification (FSPV) has been completed prior to sale of a restaurant, the following process should be followed to ensure
that any Food Safety opportunities are timely and appropriately addressed in that restaurant.
• Within 3-5 business days or otherwise as soon as possible following the purchase of the restaurant (and prior to any follow-up FSPV), the Consultant should meet
with the Owner Operator to discuss that an unacceptable FSPV has recently occurred at the restaurant while under prior ownership, along with the steps to be
taken to ensure that all Food Safety opportunities are being adequately addressed.
• A follow-up full unannounced FSPV should be completed by the Consultant in a timeframe determined by the severity of the unacceptable Food Safety Visit:
• within 14 days of a “critical” unacceptable FSPV
• within 90 days of a “non-critical” unacceptable FSPV
• If this follow-up FSPV is deemed unacceptable, then the process must be repeated (using the above timeframe) until acceptable.
Food Safety Procedures Verification must be conducted during this visit.
Criteria
Comments
System(s)*
Correct*
Needs
Action
Corrective
Action
Taken
Hand washing Procedures, Cross Contamination Prevention and Sanitation Supplies
Required and approved supplies are at all hand washing sinks (e.g., soap
dispenser with McD Foaming Antibacterial Hand Soap (ABHS) or equivalent,
warm running water) and the three-compartment sink (e.g., sanitizer solution).
Hands are properly washed following hand washing procedures at the
appropriate times.
Procedures for the prevention of cross-contamination when handling all raw
meat or poultry products (including shelled eggs) at the grill station are in place
(must meet local health department requirements and McDonald’s standards).
Disposable gloves worn for food preparation at the salad prep station and in all
other ready-to-eat areas required by local health department requirements.
Sanitized towel buckets contain towels soaked in sanitizer solution.
All UHC trays, grill utensils, prep table utensils and utensil holders are cleaned
and sanitized at least every 4 hours. (Back sink and soap/sanitizer dispensers
or dishwashers if used must function in order to be correct for this item).
All supplies must be available.
At food preparation areas, sanitizer-soaked towels used for detail cleaning
should be used only once and placed into the soiled towel bucket. Sanitizer-soaked
towels used at the prep table should be changed when soiled or at a minimum
every time the crew person washes their hands (at least hourly).
There may be statutes, laws, regulations and ordinances related to food safety procedures which impose requirements beyond those set forth in the Food Safety Procedures
Verification. If you are an Owner Operator, you are exclusively responsible for compliance with all applicable statutes, laws, regulations and ordinances related to your
restaurant(s), including, but not limited to, those related to food safety procedures.
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5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 103 of 153
Criteria
Comments
System(s)*
Pg ID 289
Correct*
Needs
Action
Corrective
Action
Taken
Temperature Standards and Controls
Have the restaurant demonstrate procedures for questions FS8 – FS15.
This will help determine compliance to FS16.
Pyrometer with needle probe is calibrated and working correctly.
Refrigerated products inside all refrigerated units are at or
below 40° F (4° C) (including shake/sundae reservoir).
Walk-in freezer and any other primary storage freezers at 0° F (-18° C) or
below. Secondary storage freezers are keeping all products solidly frozen.
Cooked foods in hot holding units are at or above 140° F (60° C).
The internal temperatures of Filet-O-Fish portions after
cooking are at or above 150° F (66° C).
For items FS12-FS15, if any item is missed, the restaurant is considered unacceptable on food safety. Be sure
to check a full run of product for each section of grill or fryer on or in which the product is being cooked.
The internal temperatures of beef patties after cooking are at or above
155° F (69° C).
The internal temperatures of chicken products after cooking are at or
above 165° F (74° C).
The internal temperatures of sausage patties and steak patties
after cooking are at or above 160° F ( 71° C).
Cooked McMuffin round eggs have gelled yolks (are not runny).
Procedures, Standards and Training
If item FS16 is missed, the restaurant is considered unacceptable on food safety.
Managers (or staff assigned to complete the checklist) have been trained
on how to properly complete the procedures on the Food Safety Daily Checklist.
Assess through observation/demonstration of knowledge.
At least the last 60 days of correctly completed Food
Safety Daily Checklists are available.
At least the last two correctly completed Monthly Food Safety Procedures
Verifications are available (completed / reviewed by Restaurant Manager
or Operator by 15th of each month).
Yellow Hutzler spatula used only to break raw egg yolks.
Opened packages of food in storage, (refrigerators and freezers)
are covered/wrapped and stored according to proper procedures.
All refrigerated products are in code. Secondary shelf lives of refrigerated
foods held at room temperature and in refrigerators are marked and the
products are being used within their secondary shelf lives.
Leftover heated foods are discarded (including any shake/sundae
mix removed from heat treatment shake/sundae machines).
All Managers (represented by one ServSafe certified manager on
each shift) are trained in food safety per local requirements.
Crew training and verification on food safety/sanitation (Cleanliness,
Sanitation and Food Safety booklet or training equivalent), is being
done in accordance with local regulations.
Review the most recent health department inspection form. All food safety
violations noted by the health department have been corrected. (If no, record
the Operator/Manager’s plan to address and correct the violations).
Person in Charge Signature: ___________________________________________________________
Circle one:
Acceptable
Unacceptable
Comments: Food Safety Improvement Targets
There may be statutes, laws, regulations and ordinances related to food safety procedures which impose requirements beyond those set forth in the Food Safety Procedures
Verification. If you are an Owner Operator, you are exclusively responsible for compliance with all applicable statutes, laws, regulations and ordinances related to your
restaurant(s), including, but not limited to, those related to food safety procedures.
2011-2012 | Full Operations Review | FOR 47
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The Short Operations Review (SOR) evaluates the restaurant’s ability to execute operational standards in the areas
of Quality, Service, Cleanliness, People and Food Safety. Delivering high levels of Quality, Service and Cleanliness,
as well as adhering to People and Food Safety standards and procedures, will ultimately lead to increased sales,
guest satisfaction, employee satisfaction and cash flow. The SOR helps identify strengths and opportunities in critical
McDonald’s operational systems while focusing on the guest experience. The review also determines progress made
toward the restaurant’s Evolving Action Plan.
Global Restaurant Operations
Improvement Process
Preparation for Short Operations Review
• It is important that in preparation for the SOR that all participants understand and commit to their shared
expectations.
• Use common sense when deciding when to conduct the SOR (Do not conduct the SOR during a special event at
the restaurant, etc.).
• Review questions on the SOR form. Review any operations procedures of which you are unsure.
• Be familiar with current promotions and promotional, new or special products.
• Review 800# and mystery shop data, Employee Commitment Survey results, as well as established Action Plans.
Generate and analyze the Automated Visit Preparation Summary from Performance Matrix as appropriate. Doing
this will assist in review of key points that can be targeted for consulting, training and coaching opportunities during
the SOR.
• Bring a copy of the SOR or your laptop and/or Pocket PC with the Global Data Collection Tool application.
• Establish a plan of how you will review criteria in an efficient manner enabling you to spend an appropriate amount
of time coaching and consulting ways to improve the guest experience during the SOR.
Procedures when Conducting the Actual Review
• The Consultant first evaluates his/her own experience in the Drive-thru or at the Front Counter and then announces
his/her presence in the restaurant.
• Evaluate the restaurant’s performance to the standards as it relates to all criteria questions listed on the attached
SOR form (QSC, People and Food Safety) for one day part.
• Review the 12 People questions in the People Review section. No score will be given.
• Refer to the “Observation to Action Process Flow” for instructions on completion of the forms (SOR INST 2).
• To assist in recording “N/A” points, mark an X through the box ( [x] ). Total all N/A points and post in the space
provided at the bottom of the page. This will ensure the restaurant is evaluated only on areas that apply. Note that
most questions have been assigned a point value of 1, 3 or 5.
• Sample finished products during the peak of the day part you are evaluating, as outlined in the Gold Standard
Quality Reference Material.
• Make sure to review new products, finished and raw, along with cooking procedures and assembly. If a standard
is not being met with a new product, determine which questions relating to regular products would best address
the issue.
• Enter the visit details into the Global Data Collection Tool.
• Upon completion of the visit, leave a printed copy of the completed Short Operations Review or a Visit Recap report
from the Global Data Collection Tool with the Owner/Operator or McOpCo Restaurant Manager and any other
appropriate individuals (e.g. O/O Restaurant Manager, McOpCo Operations Consultant).
• When discussing results with the Owner/Operator, use good judgment on when to include the Manager
in the discussions.
• Upload the visit to the ROIP database.
Action Plan Development Process (The Evolving Action Plan)
• The Owner Operator, McOpCo Operations Manager and/or other appropriate individuals, with the Consultant’s
assistance, will determine the top system opportunities during the visit.
• The participants in the visit will have dialogue on how these opportunities compare to the existing Action Plan/tasks
that the restaurant team is working on and measure progress that has been made.
• Based on the outcome of the dialogue, the appropriate individuals will adjust the existing Action Plan/tasks.
The Owner Operator or McOpCo Operations Consultant inputs the Evolving Action Plan into the Global Data
Collection Tool within one week of the visit.
2011-2012 | Short Operations Review | SOR 1
McDonald’s USA - QSC Playbook - Version 6.0
2011-2012 | Short Operations Review | SOR 2
McDonald’s USA - QSC Playbook - Version 6.0
No
All criteria in
this section
done?*
F
No
Opportunity?
B
Observe criteria item
to assess compliance
with McDonald’s
standards
A
Yes
For opportunities
circled with no root
cause system(s)
listed, assess each
opportunity to
determine the
system(s) in
which the root
cause(s) happened**
G
List the system(s)
numbers in the
space provided
by the criteria
item with the
opportunity
H
Note: This step may provide an ideal
time for coaching to occur
Explain the opportunity
and ideally get agreement
that it exists
Note: This only indicates
completion of this item
Yes
C
No
Entire
FOR/SOR
completed?
I
Prioritize the top
3 areas of
opportunity for
the restaurant***
J
Help formulate
the Action Plan for
the improvement
process in these
systems
K
Circle point value on form.
Select the system or
systems that may reflect
the opportunity
E
* Sections will vary depending on your preference e.g., it might be Cleanliness, a Day Part
** Use systems maps in QSC Play Book as reference
*** Use “Systems Targeted for Improvement” page of FOR
Yes
Document opportunity
area with clear explanation
in the space provided next
to the criteria question
D
Always utilize common sense when unusual things occur during the course of your review
(e.g., bus arrives unexpectedly, bad weather, power failure).
All steps need to be done in conjunction with the Owner Operator or McOpCo Operations Manager plus any other people
they feel should participate.
The intent is to assess how the restaurant is performing against McDonald’s standards and to encourage coaching, dialogue and
collaboration between the person completing the FOR/SOR and Owner Operator or McOpCo Operations Manager.
This document outlines the process that should be followed when conducting a restaurant review (FOR/SOR).
Observation to Action Process Flow (FOR/SOR)
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Current review information
Restaurant address:
Store number:
Owner Operator or McOpCo Operations Manager:
Restaurant Manager:
ROLP/RLP/AOC year:
Has the top management team of the restaurant changed since the last review?
Completed by:
Reviewed with:
Date completed:
Day Part:
Y
B
N
L
D
(circle one)
Follow-up from previous visit (if applicable)
Top 3 systems targeted for improvement from last visit have been corrected to meet overall Business Plan objective
Y
N
1.
Y
N
2.
Y
N
3.
Y
N
1.
Y
N
2.
Y
N
3.
Y
N
(Refer to the Action Plan from previous Operations Review.).
Restaurant strengths:
Acceptable Level
Quality total points (page SOR 10):
____
80%
Service total points (page SOR 16):
____
80%
Cleanliness total points (page SOR 19):
____
80%
Food safety status: (circle one)
Recap of Short Operations Review:
2011-2012 | Short Operations Review | SOR 3
McDonald’s USA - QSC Playbook - Version 6.0
Acceptable / Unacceptable
Consultant
Restaurant Manager
ROIP Visit Type
Date
O/O
Consultant
Owner Operator
Restaurant Manager
The below listed Action Plans have been developed and agreed upon
2011-2012 | Short Operations Review | SOR 4
McDonald’s USA - QSC Playbook - Version 6.0
Person(s)
Accountable
End
Date
Measurement
Person(s)
Accountable
End
Date
Measurement
Action(s) agreed upon to ensure root causes are corrected
Person(s)
Accountable
End
Date
Measurement
System #3: Enter System #3: ____________________ Objective: _______________________________________________________________________
Action(s) agreed upon to ensure root causes are corrected
System #2: Enter System #2: ____________________ Objective: _______________________________________________________________________
Action(s) agreed upon to ensure root causes are corrected
System #1: Enter System #1: ____________________ Objective: _______________________________________________________________________
Write objectives that are Specific, Measurable, Attainable, Relevant and Time-bound (SMART).
Top 3 systems improvement targets identified in the review:
Restaurant Name
Store #
Evolving Action Plan
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Criteria
Comments
Pg ID 295
If no,
System(s)* circle points
Action Plan Review - Since the Evolving Action Plan is the roadmap for restaurant improvement, it should be reviewed and updated regularly. Taking the time to
discuss the status of the plan during the SOR allows for recognition, renewed focus or change in direction.
Is the management team aware of and do they
understand the restaurant’s Evolving Action Plan?
Yes / No
Has there been progress made with the Evolving Action Plan?
Yes / No
Are the key points on the Evolving Action Plan posted/visible?
Yes / No
It is important that you keep a pulse on the people aspect of your business on an on-going basis. As an independent Owner Operator, you are exclusively responsible for
employment matters within your organization. If local regulations are more stringent than the standards required by McDonald’s for a particular question being reviewed,
the restaurant must be in compliance with the local regulation/guideline.
SOR People Section Criteria
Review the following important People Criteria within the restaurant. This is for discussion purposes only, therefore a score will not be calculated.
Answer the questions Yes or No.
Criteria
Comments
If no,
System(s)* circle points
Reducing Customer Complaints
The restaurant is using an effective hiring process (e.g., Hiring to Win)
to consistently select high-quality, guest-focused Crew, Crew Trainer,
and Manager employees.
Yes / No
Station Observation Checklists (SOCs) are completed timely for
all Crew using the most current SOC forms; and are tracked.
Yes / No
Crew Trainers have been designated and developed and
are role modeling appropriate behaviors.
Yes / No
Improving Peak Hour Sales
There is a restaurant staffing plan in place that will ensure
that the restaurant has the appropriate number of Crew
and Managers for each daypart.
Yes / No
Jobs are posted in a way that will attract best applicants
(e.g., McState) and appropriate recruitment merchandising
materials are posted in the restaurant.
Yes / No
There is at least one certified/verified Shift Manager scheduled at all times.
Yes / No
Improving Crew Employee Commitment
The restaurant has a comprehensive and consistent Crew
orientation process in place and executed (e.g., the National Crew
WOW Orientation material).
Yes / No
Crew schedule posted at least four days in advance.
Yes / No
Information about benefits offered by the restaurant is readily
available and/or posted (e.g., information provided to the individual
employee such as the Total Compensation Statement, postings
required by law, such as the Crew Room poster, etc.).
Yes / No
The work environment meets the needs of employees (i.e., cold
weather gear, safety equipment including hot oil handling equipment
– gloves, face shieldand apron – proper heat, air conditioning,
stocked first aid kit, equipment well maintained, etc.).
Yes / No
Appreciation programs are ongoing and effective (e.g., birthday and
anniversary recognition, Crew incentives, Crew parties, etc.).
Yes / No
Improving Manager Employee Commitment
The Restaurant Manager/General Manager
is a(n) U.S. ROLP/RLP/AOC graduate.
Yes / No
If you are an Owner Operator, you are exclusively responsible for complying with all applicable statutes, laws, and regulations applicable to your restaurant(s). You are also
exclusively responsible for all employment related matters in your restaurant(s) and exercise complete control over the work, working conditions, and terms and conditions
of employment for employees in your restaurants. The guidelines in this booklet with respect to employment related matters are informational only and should not be
construed as establishing requirements applicable to any Owner Operator.
2011-2012 | Short Operations Review | SOR 5
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For questions Q1-Q4, you must check 4 core menu products (entrées) for the day part being evaluated. These products (entrées) should be a mixture of beef, chicken,
fish products and salads (during lunch or dinner) or a mixture of muffin, biscuit, McGriddle sandwiches and breakfast platters (during breakfast). In order to receive
the points for questions Q1-Q6, the product must meet ALL attributes that are important to the guest, including appearance, texture, taste and temperature. If a
question is answered no, select all descriptors that apply.
Criteria
Q1-4
Comments
Overall Finished Product Quality
Is this product acceptable? (Yes / No)
PRODUCT 1
PRODUCT 2
PRODUCT 3
PRODUCT 4
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
List product
QA
Appearance
Does the product’s appearance meet McDonald’s product standard? Compare
the product to the Gold Standard Quality Reference Material and product standard
appearance descriptions.
Sandwich not neatly assembled/messy
Sandwich is missing ingredients
Sandwich bun or breakfast bread is crushed
Color is too dark
Color is too light
Bun or breakfast bread is not properly toasted or baked
Produce is brown/wilted
Meat portion is too small or misshapen
Cheese is not properly melted
Other
QB
Temperature
Is the product at the correct eating temperature?
Product not hot enough
Refrigerated product is not cold enough
Other
QC
Texture
Does the product have the correct texture? Refer to product standard
descriptions for texture.
Meat or egg is tough
Meat or egg is dry
Meat or egg is undercooked
Meat is overcooked
Fried product was soggy/greasy (not crispy)
Fried product was too hard/crunchy
Sandwich is dry
Bun or breakfast bread is hard/stale
Bun or breakfast bread is soggy/too wet
Sandwich falls apart as it is eaten
Produce is limp
Other
QD
Taste
Does the product taste meet McDonald’s product standard? Refer to the product
standard taste descriptions.
Stale/old (does not taste fresh)
Off flavor
Burnt flavor
Not properly seasoned
Flavor too weak/bland
Flavor too strong
Old oil flavor (fried product)
Other
P1
*System Key
1
2
3
4
5
6
Production
Service
Shift Management
Food Safety
Inventory Management
People Practices
7
8
9
10
11
12
2011-2012 | Short Operations Review | SOR 6
McDonald’s USA - QSC Playbook - Version 6.0
Planned & Daily Maintenance
Safety & Security
Training
Business Planning
Crew & Management Scheduling
Internal Communications
N/A Points
Total points
circled
P2
P3
P4
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Criteria
Q5-6
Pg ID 297
Comments
Overall French Fry/Hash Brown Quality
Is this product acceptable? (Yes / No)
PRODUCT 1
PRODUCT 2
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
List product
QA
Appearance
Does the product’s appearance meet McDonald’s product standard? Compare the product
to the Gold Standard Quality Reference Material and product standard appearance descriptions.
French Fry box not full
Color is too dark
Color is too light
French Fries not of varying lengths
No visible salt
Raw inside
Hollow inside (French Fries)
Broken patties (Hash Browns)
Other
QB
Temperature
Is the product at the correct eating temperature?
Product not hot
Other
QC
Texture
Does the product have the correct texture? Refer to product standard descriptions for texture.
Soggy/greasy
Lacks crispness
Tough/chewy
Too hard/crunchy
Other
QD
Taste
Does the product taste meet McDonald’s product standard? Refer to the product
standard taste descriptions.
Off flavor
Burnt flavor
Lacks salt
Too salty
Flavor too weak/bland
Flavor too strong
Old oil flavor
Other
P1
N/A Points
Total points
circled
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Short Operations Review | SOR 7
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
P2
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Criteria
Comments
Pg ID 298
If no,
System(s)* circle points
Overall Package Quality
All sandwich/entrée packaging has a neat appearance.
All French Fry/Hash Brown packaging has a neat appearance.
Overall Drink/Dessert Quality
For the following beverage questions, you should purchase 1 McCafé beverage or Blended Ice beverage and 1 additional beverage of your choice.
Overall Drink Quality
Beverage is properly prepared and tastes good.
Yes / No
Drink was excessively sweet/syrupy
Drink was watered down/not flavorful
Drink had too much ice
Drink did not have enough ice
Shake did not have proper thickness
Drink was not hot
Cream curdled in the coffee
Sweetener packet was hard or lumpy
Drink was too strong
Drink was too weak
Coffee tasted old/not fresh brewed
Appropriate garnish/toppings/condiments not included
Blended/mixed incorrectly
Drink was underfilled
Other
Overall Drink Quality
Beverage is properly prepared and tastes good.
Yes / No
Drink was excessively sweet/syrupy
Drink was watered down/not flavorful
Drink had too much ice
Drink did not have enough ice
Shake did not have proper thickness
Drink was not hot
Cream curdled in the coffee
Sweetener packet was hard or lumpy
Drink was too strong
Drink was too weak
Coffee tasted old/not fresh brewed
Appropriate garnish/toppings/condiments not included
Blended/mixed incorrectly
Drink was underfilled
Other
Select one dessert
Dessert item is properly prepared and tastes good.
Yes / No
The pie was cold and/or did not taste fresh
Cinnamon Melt was cold, dry or stale
The pie was cracked or broken
The pie crust was not crisp
Sundae did not have enough topping
Mix-ins for McFlurry not stirred in
The yogurt/ice cream dessert did not have the proper thickness
The yogurt/ice cream dessert is under-filled
Other
N/A Points
Total points
circled
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
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McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
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Criteria
Pg ID 299
If no,
System(s)* circle points
Comments
Procedures and Storage
All food products are within their primary shelf life.
Proper rotation of all food products is being followed (FIFO).
Frozen products are solidly frozen and meet our quality standards. Visually inspect frozen products in each freezer,
especially in reach-in and wall mount freezers. Refer to quality descriptions and photos.
Food products in refrigerators meet our quality standards. Visually inspect refrigerated products in all
refrigerators. Look at completed salads, products in Cambro containers and in sealed packages.
Refer to Quality descriptions and photos.
Lettuce, cheese, onions, sliced tomatoes and other condiments being held at the prep table are fresh and
meet McDonald’s quality requirements (Dried out cheese, condiments or wilted lettuce are not acceptable).
Toasted buns have the correct amount of toast and meet our quality standards.
Steamed buns meet our quality standards. Refer to quality descriptions and photos.
*Taste as appropriate
Breakfast breads have the correct amount of toast or appear properly baked and meet
our quality standards. Refer to quality descriptions and photos. If no, identify product(s).
* Taste as appropriate
Muffins
Bagels
Hot Cakes
Biscuits
McGriddles
Grill surfaces and Teflon sheets are clean and in good condition.
Proper rotation of UHC/hot holding unit products is followed (FIFO).
All food products held in UHC cabinets meet our quality standards and are within
holding times. Refer to quality descriptions and photos.
*Taste as appropriate
Cooked egg products meet our quality standards. Check all types
of egg products immediately after cooking or heating. Refer to
quality descriptions and photos.
* Taste as appropriate
Scrambled Eggs
Folded eggs
Round eggs
Cooked fried products (e.g., chicken and fish) meet our quality
standards. Check all types of fried products immediately after
cooking. Refer to quality descriptions and photos.
* Taste as appropriate
Chicken Patties
Chicken McNuggets
Filet-O-Fish
Cooked breakfast and regular menu meat meet our quality standards. Check all types
of meats immediately after cooking. Beef patties must meet the quality standard for
internal temperature (this check can be done at the same time as the food
safety check). Refer to quality descriptions and photos.
* Taste as appropriate
Sausage patties
Steak patties
Strip bacon
Canadian bacon
Beef patties
Chicken McGrill
French Fries/Hash Browns meet our quality standards. Check French Fries
and other potato products after cooking and being held at the French Fry
station. Refer to quality descriptions and photos.
* Taste as appropriate
Oil in all fryers meets our quality standards (including being skimmed at least every
30 minutes). If oil looks marginal, it must be tested with an approved oil quality test kit.
Holding times on all beverages (e.g., coffee, tea) are
monitored and adhered to.
Equipment is calibrated and working properly.
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Short Operations Review | SOR 9
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total points
circled
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Criteria
Comments
Pg ID 300
If no,
System(s)* circle points
Water filters are dated and within their usage date.
All premiums and promotional products distributed
through the restaurant comply with governmental
and McDonald’s safety requirements. (Examples of
ways to confirm compliance is by checking if product
was purchased from D.C., looking for a WRIN number
on the packaging, looking for McDonald’s identification
or logos on the packaging or by contacting the local
Purchasing Manager).
Grill certification completed within last 12 months.
Date completed:
Completed by:
Enter serial number for Grill #1:
Grill #2 certification information different from above.
Yes / No
Date completed:
Completed by:
Enter serial number for Grill #2:
Comments:
N/A Points
Total points
circled
Quality possible points
(Regular menu)
Quality possible points
(Breakfast menu)
Deduct total N/A points
from previous Quality pages
Adjusted possible Quality points
(Transfer to Scoring Page)
Deduct total points circled
from previous Quality pages
Total Quality points achieved
(Transfer to Scoring page)
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Short Operations Review | SOR 10
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7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
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Criteria
Comments
Pg ID 301
If no,
System(s)* circle points
Shift Prep
Pre-Shift Checklist completed properly for the shift.
Shift adequately staffed to handle sales rate and optimize sales.
Production Charts
A cabinet management system is in place and being adhered to that delivers a hot, fresh product to the guest
in a fast efficient manner as outlined in the Cabinet Management System (CMS). The process should include:
less product cooked more often, Crew and Managers who can explain the system in use and minimal waste.
Positioning & Staffing
Crew are positioned in accordance with the projected transactions and the recommended positioning guide.
3
All members of the drive-thru team are wearing headsets.
3
Runner Condiment Center is stocked and being used properly.
1
When taking service times, follow 10 guests all the way through the process versus observing 10 guests for each of the components.
Front Counter Component Definitions
• Service Measurement (60” or less): Time elapsed from the order being totaled until the time the order is presented to the guest
(completion of transaction).
• Total Experience Time (210” or less): Time elapsed from the guest getting in line until the order is presented to the guest
(completion of the transaction).
Drive-thru Component Definitions (Used for all Drive-thru configurations)
• Response Time (10” or less): Time elapsed from wheel stop at the order taking point until the time the guest is greeted. (If the guest is asked to
wait the timing continues until the order is ready to be taken).
• Total Experience Time (210” or less): Time elapsed from wheel stop (entry into Drive-thru line) until the order is presented to the guest
(completion of the transaction).
The service measurement below is used for Drive-thru configurations in which the order and cash are taken at separate points (booths).
• Service Measurement (45” or less): Time elapsed from wheel stop at the cash point (booth) until the time the order is presented to the guest
(completion of the transaction).
The service measurement below is used for Drive-thru configurations in which the order and cash are taken at the same point (booth),
e.g., Face To Face.
• Service Measurement (60” or less): Time elapsed from the order being totaled to the time the order is presented to the guest
(completion of the transaction).
Note: All components of the 90-second Service Time will be captured for diagnostic purposes. The definitions of measurement above explain the components of Service Time that will be scored.
Front Counter and Drive-thru Service Measurement Scoring Instructions:
• Delete the high and low time for each component
• Average the remaining times for the components (divided by 8)
• If the average time for the component is less than or equal to the target (i.e., 60 seconds or less for Front Counter/45 seconds or less for the
Drive-thru/10 seconds or less for response) all points are awarded.
• If the average time for the component is greater than the target (i.e., 61 seconds or greater for Front Counter/46 seconds or more for the
Drive-thru/11 seconds or more for response) no points are awarded.
* It is recommended that not all 10 service times be taken at one time, but spread out over the peak period and divided between Drive-thru and
Front Counter as arrival rates warrant.
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Short Operations Review | SOR 11
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total points
circled
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 116 of 153
Order Taking
Time
(25” or less)
Guest
Cash Time
(15” or less)
1
2
3
4
5
6
7
8
9
10
Throw out high and low times.
Average time (divided by 8)
Points available
Problem system(s)
Criteria
Service Time
Measurement
(60” or less)
Total
Experience Time
(210” or less)
14
14
Pg ID 302
Total points to be
deducted
(210” or less)
Comments
If no,
System(s)* circle points
Front Counter Order Accuracy
Correct food and drink items received throughout the shift
(including correct sizes, flavors and grill orders).
If no, check all reasons that apply below:
Missing sandwich/entrée
Received wrong sandwich
Sandwich entrée not prepared as requested
Sandwich missing one or more ingredients
Missing French Fry or Hash Browns
Missing drink
Received wrong drink or drink not prepared as requested
Other
Condiments, napkins and straws/stirrers, Happy Meal toys
received (or condiment bar well stocked) throughout the
shift. If no, check all reasons that apply below:
Missing dressings or sauces
Received wrong dressing or sauce
Condiment bar not stocked
Missing Happy Meal toy
Received wrong Happy Meal toy
Missing correct number of napkins
Other
Front Counter Welcome
All guests are welcomed/greeted in a polite and friendly
manner (e.g., smile, eye contact, friendly tone, polite,
attentive, sincere). If no, check all reasons that apply below:
Tone was not friendly - monotone
Guest was not treated in a polite manner - apathetic or rude
Greeting was not sincere/individualized or genuine (e.g., seemed robotic, no smile, no eye contact)
Other
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Short Operations Review | SOR 12
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total points
circled
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 117 of 153
Criteria
Pg ID 303
If no,
System(s)* circle points
Comments
Front Counter Connect
Order takers/cashiers/presenters were attentive (responsive, actively listening, positive attitude,
additional conversation). If no, check all reasons that apply below:
Crew was not attentive and/or listening to the guest (distracted)
Crew did not seem interested in serving the guest
Crew was multi-tasking - doing something else while trying to take care of the guest
(e.g., stocking, not ready to take guest’s money)
Crew moved on to the next guest and did not ensure the guest was taken care of
Other
Order takers/cashiers/presenters communications were effective, clear, courteous, and easily understood.
Orders are taken properly. If no, check all reasons that apply below:
Suggestive sell or upsell not used appropriately
Interrupted the guest as they placed order
Did not clarify the order, including condiments, for accuracy when appropriate
Requests for gift certificate/gift card not handled correctly
Other
Front Counter Deliver
Payments are received properly. If no, check all reasons that apply below:
Correct cash handling procedures (e.g. laying bills on drawer) not followed
Gift certificate/gift card transactions not handled correctly
Credit/debit transactions not handled correctly
Did not provide receipt (where appropriate)
Other
Orders are assembled correctly and served when complete.
Orders are presented correctly (neat tray, double folding of bag).
Front Counter Farewell
All guests receive a sincere, friendly farewell/closing. If no, check all reasons that apply below:
No farewell/closing given
Tone was not friendly - monotone
Guest was not treated in a polite manner - apathetic or rude
Farewell was not sincere/individualized or genuine (e.g., seemed robotic, no smile, no eye contact)
Other
Guest
Response Time
(10” or less)
1
2
3
4
5
6
7
8
9
10
Throw out high and low times.
Average time (divided by 8)
Points available
Problem system(s)
*System Key
1 Production
2 Service
3 Shift Management
Order Taking
Time
(25” or less)
Cash Time
(15” or less)
Present Time
(15” or less)
2
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Short Operations Review | SOR 13
McDonald’s USA - QSC Playbook - Version 6.0
Measurement
(45”or less)
(60” or less)
depends on
configuration)
14
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
Total points to be
Total
deducted
Experience Time
(210” or less)
(210” or less)
14
N/A Points
Total points
circled
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 118 of 153
Criteria
Comments
Pg ID 304
If no,
System(s)* circle points
Drive-thru Order Accuracy
Correct food and drink items received throughout the shift
(including correct sizes, flavors and grill orders).
If no, check all reasons that apply below:
Missing sandwich/entrée
Received wrong sandwich
Sandwich entrée not prepared as requested
Sandwich missing one or more ingredients
Missing French Fry or Hash Browns
Missing drink
Received wrong drink or drink not prepared as requested
Other
Condiments, napkins, straws/stirrers and Happy meal toys received
throughout the shift. If no, check all reasons that apply below:
Missing dressings or sauces
Received wrong dressing or sauce
Missing Happy Meal toy
Received wrong Happy Meal toy
Missing correct number of napkins
Other
Drive-thru Welcome
All guests are welcomed/greeted in a polite and friendly manner
(e.g., smile, eye contact, friendly tone, polite, attentive, sincere).
If no, check all reasons that apply below:
Tone was not friendly - monotone
Guest was not treated in a polite manner - apathetic or rude
Greeting was not sincere/individualized or genuine (e.g., seemed robotic, no smile, no eye contact)
Other
Drive-thru Connect
Order takers/cashiers/presenters were attentive (responsive,
actively listening, positive attitude, additional conversation).
If no, check all reasons that apply below:
Crew was not attentive and/or listening to the guest (distracted)
Crew did not seem interested in serving the guest
Crew was multi-tasking - doing something else while trying to take care of the guest
(e.g., stocking, not ready to take guest’s money)
Crew moved on to the next guest and did not ensure the guest was taken care of
Other
Order takers/cashiers/presenters communications were
effective, clear, courteous, and easily understood.
Orders are taken properly. If no, check all reasons that apply below:
Suggestive sell or upsell not used appropriately
Interrupted the guest as they placed order
Did not clarify the order, including condiments, for accuracy when appropriate
Requests for gift certificate/gift card not handled correctly
Other
Drive-thru order-taker verifies order by asking “If your order is correct
on the screen, your total is $x.xx. Please pull forward.”
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Short Operations Review | SOR 14
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total points
circled
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 119 of 153
Criteria
Comments
Pg ID 305
If no,
System(s)* circle points
Drive-thru Deliver
Payments are received properly. If no, check all
reasons that apply below:
Correct cash handling procedures (e.g. laying bills on drawer) not followed
Gift certificate/gift card transactions not handled correctly
Credit/debit transactions not handled correctly
Did not provide receipt (where appropriate)
Other
Orders are assembled correctly.
Orders are presented correctly (double folding of bag,
DT orders served or parked off the monitor at the
appropriate time).
Drive-thru Farewell
All guests receive a sincere, friendly farewell/closing.
If no, check all reasons that apply below:
No farewell/closing given
Tone was not friendly - monotone
Guest was not treated in a polite manner - apathetic or rude
Farewell was not sincere/individualized or genuine
(e.g., seemed robotic, no smile, no eye contact)
Other
Order Prep Times
Average order prep time is within targets based on transaction rates.
Guest
1
2
3
4
5
6
7
8
9
10
Average Order Prep Time
TRANS/HOUR
TARGET
0-105
35-50 SEC.
106-160
35-40 SEC.
160 +
35 SEC. OR LESS
(Throw out high and low times)
Points Available
System(s) #
Shift Management
All Shift Managers role model the service experience and are accessible and
identifiable to our guests as the person in charge.
Shift Manager is interacting with and supporting/coaching the Crew.
Travel path conducted per guidelines, priorities set and appropriate action taken.
Targets and goals are established, communicated,
monitored and results are recognized.
Every Manager/Owner Operator treats every employee
with complete respect, dignity and courtesy, creating
an environment of hospitality.
If there are bottlenecks/danger zone issues in any area, the Shift Manager acts in a timely manner.
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Short Operations Review | SOR 15
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total points
circled
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 120 of 153
Criteria
Comments
Pg ID 306
If no,
System(s)* circle points
Station Level Build-to’s in Use
Clear evidence of stock level build-to’s in use at front
counter, Drive-thru, McCafé and production area.
Drive-thru has an effective and clear communication
system in place and working properly (Sufficient number
of working headsets that support the Drive-thru configuration in use).
Current Promotions
Current promotional materials are in good condition and properly displayed.
Handling Guest Recovery
Crew and managers can explain and actively follow the steps to guest
recovery. (Listen, apologize, solve problem and thank customer).
Guest Environment
Every Manager/Owner Operator demonstrates the Service
Experience (welcome, connect, deliver, farewell) creating
an environment of hospitality.
Opportunities are found to assist guest’s needs at all points of the
interaction (e.g., opening doors, carrying tray to the table, providing
condiments, clearing trays from the tables for the guest, pouring
drink refills, if applicable).
Kids are treated in a special manner (e.g., greet
kids separately, hand them their Happy Meal).
Dedicated person in lobby during peak periods
(according to positioning guides).
Handling Special Needs
Nutrition information (e.g., brochures, tray liners)
is displayed or available upon request.
Comments:
N/A Points
Total points
circled
Service possible points
(with Drive-thru)
Service possible points
(without Drive-thru)
Deduct total N/A points
from previous Service pages
Adjusted possible Service points
(Transfer to Scoring Page)
Deduct total points circled
from previous Service pages
Total Service points achieved
(Transfer to Scoring page)
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Short Operations Review | SOR 16
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 121 of 153
Pg ID 307
Employee Hygiene and Food Handling - The following are minimum McDonald’s standards. Your local health department may require additional procedures to
be in place and followed.
Criteria
Comments
If no,
System(s)* circle points
Employees present a neat, clean, and healthy appearance and are
wearing uniforms that are clean and in good condition. No employees
with long or dirty nails or open cuts/sores are allowed to prepare food.
All food handlers are wearing hats or visors, where required.
Employees that work around open food wear minimal jewelry and cosmetics.
Sanitizer-Soaked Towel Procedures
A sufficient number of sanitizer-soaked towels and grill cloths
are in good condition and in circulation (O&T guidelines
are minimum 72 cloth and 40 grill).
Soiled towels are kept in the soiled towel bucket with soapy water.
Kitchen and Storage
The restaurant is pest proofed (e.g., no gaps under doors)
and free from signs of pests or pest infestation.
The restaurant has a regular pest control service
and has addressed recommendations.
Empty bun trays are stored inside the restaurant at all times.
Dry storage areas, floors and storage shelving are maintained clean and organized
with all like items stored together and labeled, with proper inventory levels.
Dry storage areas (shelves, floors, walls, ceilings, etc) are
in good repair. If no, check all reasons that apply below:
Excessive rust or chipping on shelf coating
Sagging of the shelf where no product is present
Posts are bent
Other
Crew room and Managers office are clean and organized.
All walk-in and reach-in freezers and refrigerators are
maintained clean and organized throughout shift.
All walk-in and reach-in freezers and refrigerators are in
good repair. If no, check all reasons that apply below:
Temperature gauge is not operating properly
Gaskets not in place or not in good condition
Door does not close properly
Air curtains missing
Light not working
Floor is damaged
Emergency door release not working
Airflow blocked
Other
Ice machine (including condenser/evaporator) is cleaned and
sanitized correctly (according to PM). Inspect the inside of ice
machine storage bins and ice chutes on ABS systems to check for
any visual signs of build-up (due to the growth of microorganisms).
Drink towers and nozzles are cleaned and sanitized daily. Inspect
drink tower nozzles and diffusers (and the bottom of the valve body
after removing the nozzle at each drink tower) to check for any
signs of build-up (due to the growth of microorganisms).
Back sink area is clean and organized.
Kitchen floors and baseboards are clean.
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Short Operations Review | SOR 17
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total points
circled
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 122 of 153
Criteria
Comments
Pg ID 308
If no,
System(s)* circle points
Kitchen floors and baseboards are in good repair.
Kitchen walls, ceiling, vents and lighting are clean.
Kitchen walls, ceiling, vents and lighting are in good repair.
Prep table and all stainless steel surfaces are clean.
Kitchen equipment is maintained in a clean condition
throughout the shift (toasters, steamers, ovens, UHC’s,
ice machine, grills, HLZ, etc.).
Kitchen equipment is in good repair (toasters, prep surfaces,
steamers, ovens, UHC’s, ice machine, grills, HLZ, etc.).
Grill station is clean and organized.
Fried products station(s) is/are clean and organized.
French Fry station is clean and organized.
Heated landing zone is clean.
Center island surface and equipment are clean and organized.
Center island equipment is in good repair.
Shake/sundae machine is clean.
Shake/sundae machine is in good repair. If no, check all reasons that apply below:
Excessive mix leaking from bottom of door spout
Syrup continues to flow after shake is drawn
Other
Front counter surfaces, under-counter shelving, floor, Cambro
containers, and waste cans are clean and organized.
Dining Room, Front Counter, Restrooms and PlayPlace/Playland
Interior menu board is clean.
Interior menu board is in good repair.
Front counter floors, walls and baseboards are maintained clean throughout the shift.
Restrooms are stocked and maintained throughout the shift.
Restroom walls, floors and fixtures (e.g., faucets, hand
dryers, toilets, changing stations, lighting, etc.) are clean.
Restroom walls, floors and fixtures (e.g., faucets, hand dryers,
toilets, changing stations, lighting, etc.) are in good repair.
Dining room floors and walls are maintained clean throughout shift.
Dining room floors and walls are in good repair.
Dining room ceiling, vents, and lighting are clean.
Dining room ceiling, vents, and lighting are in good repair.
Dining room chairs, tables, highchairs and decor are in good repair.
All windows and doors are spot cleaned throughout the shift.
All windows and doors are in good repair.
Décor, tables, seats and high chairs sprayed with Kay Glass and MultiSurface cleaner solution and wiped with a clean sanitizer-soaked towel,
and are maintained clean throughout the shift. Separate towels are used
for seats and high chairs than from the ones used to wipe tables.
Beverage/condiment bar is clean.
Beverage/condiment bar is in good repair.
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Short Operations Review | SOR 18
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
N/A Points
Total points
circled
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 123 of 153
Criteria
Comments
Pg ID 309
If no,
System(s)* circle points
Guest dining area trays are kept clean.
PlayPlace/Playland equipment and surfaces are clean.
PlayPlace/Playland equipment and surfaces are
in good repair (including a working alarm on exit).
PlayPlace/Playland seats and tables are clean.
PlayPlace/Playland seats and tables are in good repair.
PlayPlace/Playland floors and patio are clean.
PlayPlace/Playland floors and patio are in good repair.
Inside waste receptacles are cleaned and liners are changed as needed.
“Caution Wet Floor” signs are used appropriately.
Drive-thru Area
The Drive-thru booths are clean and organized (assembly tables,
Cambro containers, register stands and floors).
The Drive-thru windows and window areas are clean and free of clutter.
Drive-thru menu board is clean.
Drive-thru menu board is in good repair.
COD/DT speaker is clean (if applicable).
COD/DT speaker is in good repair and enabled
(functioning properly, if applicable).
Outside the Restaurant
Parking lot, Drive-thru lane and landscaping are free of debris and litter.
Parking stalls and Drive-thru pad are clean and free of oil build-up.
Parking stalls and Drive-thru pad are in good repair.
Parking areas are in good repair (free of pot holes
and cracks, striping in good condition).
The area surrounding the restaurant is free of litter.
Corral area (gates, pad, walls, grease container, etc.)
is clean. The gates are kept closed.
Waste containers/compactors in corral area are clean and kept covered.
All signage, flags, and exterior lighting are clean.
All signage, flags, and exterior lighting (including poles) are in good repair.
Outside trash receptacles are clean and emptied as required.
Walks, patios and exterior seating are clean.
Walks, patios and exterior seating are in good repair.
Comments:
N/A Points
Total points
circled
Cleanliness possible points
Deduct total N/A points
from previous Cleanliness pages
Adjusted possible Cleanliness points
(Transfer to Scoring Page)
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | Short Operations Review | SOR 19
McDonald’s USA - QSC Playbook - Version 6.0
7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
Deduct total points circled
from previous Cleanliness pages
Total Cleanliness points achieved
(Transfer to Scoring page)
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 124 of 153
Pg ID 310
Date: _________________________
Time: __________________________
Restaurant number: _____________
Address: ______________________________________________________________________________________________
Person in charge: __________________________________________________
Consultant: ________________________________________________________
Owner/Operator: ____________________________________________________
Acceptable = less than three items missed (not including items 12-16)
Unacceptable = three or more items missed or one cooked product internal temperature or visual check item missed (items 12-15) or food safety procedures not done
correctly (item 16).
If any item is found to be out of compliance, the person completing the verification must verify and document that the item was corrected before leaving the restaurant.
To document the correction, they need to initial the box in the “corrective action taken” column on the form for each item that is corrected. For items 12 -14, this must
include a recheck on internal temperatures of the cooked product to verify the required internal temperature is being met. For item 15 a recheck must be completed on
cooked round eggs to verify that the eggs are not undercooked and have yolks that are not runny. Under no circumstances should a restaurant be permitted to serve
undercooked beef, chicken, fish or eggs or continue with a procedure that poses a food safety threat to our guests.
For item 9, recheck product temperature to verify products are now being held at the proper temperature. For item 10, verify the freezer units are now at the correct
temperature. Refrigerated food products that have been in the temperature danger zone for longer than 4 hours (or frozen foods that are not solidly frozen) need to be
discarded (see guidelines in the Receiving and Deliveries chapter of the O&T Manual on refrigerator/freezer breakdown). If heated leftover food products are found,
they must be discarded.
If the verification reveals problems that cannot be corrected immediately, those problems should be reported to the Operations Manager (McOpCo) or the Field Service
Manager without delay and a decision must be made as to whether or not the restaurant should be closed until the problem can be corrected. Examples of this might
include an equipment issue that requires a service technician to repair, lack of proper supplies (e.g., disposable gloves, sanitizer, or McD ABHS) or equipment (e.g.,
working pyrometer or yellow Hutzler spatula).
If any item within questions 12 -16 is found to be out of compliance, an unannounced follow-up Food Safety Procedures Verification must occur within 14 days. If during
this follow-up Food Safety Procedures Verification, any item within questions 12 -16 is again found to be out of compliance, the region must deal with the restaurant
appropriately. For all other unacceptable visits (i.e., three or more missed items, not including items 12-16), an unannounced follow-up Food Safety Procedures
Verification visit must be conducted within 90 days. Do not penalize the restaurant during this follow-up visit if not enough time has passed to correct an issue
(e.g., 60 days of completed food safety checklists).
When an unacceptable Food Safety Procedures Verification (FSPV) has been completed prior to sale of a restaurant, the following process should be followed to ensure
that any Food Safety opportunities are timely and appropriately addressed in that restaurant.
• Within 3-5 business days or otherwise as soon as possible following the purchase of the restaurant (and prior to any follow-up FSPV), the Consultant should meet
with the Owner Operator to discuss that an unacceptable FSPV has recently occurred at the restaurant while under prior ownership, along with the steps to be
taken to ensure that all Food Safety opportunities are being adequately addressed.
• A follow-up full unannounced FSPV should be completed by the Consultant in a timeframe determined by the severity of the unacceptable Food Safety Visit:
• within 14 days of a “critical” unacceptable FSPV
• within 90 days of a “non-critical” unacceptable FSPV
• If this follow-up FSPV is deemed unacceptable, then the process must be repeated (using the above timeframe) until acceptable.
Food Safety Procedures Verification must be conducted during this visit.
Criteria
Comments
System(s)*
Correct*
Needs
Action
Corrective
Action
Taken
Hand washing Procedures, Cross Contamination Prevention and Sanitation Supplies
Required and approved supplies are at all hand washing sinks (e.g., soap
dispenser with McD Foaming Antibacterial Hand Soap (ABHS) or equivalent,
warm running water) and the three-compartment sink (e.g., sanitizer solution).
Hands are properly washed following hand washing procedures at the
appropriate times.
Procedures for the prevention of cross-contamination when handling all raw
meat or poultry products (including shelled eggs) at the grill station are in place
(must meet local health department requirements and McDonald’s standards).
Disposable gloves worn for food preparation at the salad prep station and in all
other ready-to-eat areas required by local health department requirements.
Sanitized towel buckets contain towels soaked in sanitizer solution.
All UHC trays, grill utensils, prep table utensils and utensil holders are cleaned
and sanitized at least every 4 hours. (Back sink and soap/sanitizer dispensers
or dishwashers if used must function in order to be correct for this item).
All supplies must be available.
At food preparation areas, sanitizer-soaked towels used for detail cleaning
should be used only once and placed into the soiled towel bucket. Sanitizer-soaked
towels used at the prep table should be changed when soiled or at a minimum
every time the crew person washes their hands (at least hourly).
There may be statutes, laws, regulations and ordinances related to food safety procedures which impose requirements beyond those set forth in the Food Safety Procedures
Verification. If you are an Owner Operator, you are exclusively responsible for compliance with all applicable statutes, laws, regulations and ordinances related to your
restaurant(s), including, but not limited to, those related to food safety procedures.
2011-2012 | Short Operations Review | SOR 20
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5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 125 of 153
Criteria
Comments
System(s)*
Pg ID 311
Correct*
Needs
Action
Corrective
Action
Taken
Temperature Standards and Controls
Have the restaurant demonstrate procedures for questions FS8 – FS15.
This will help determine compliance to FS16.
Pyrometer with needle probe is calibrated and working correctly.
Refrigerated products inside all refrigerated units are at or
below 40° F (4° C) (including shake/sundae reservoir).
Walk-in freezer and any other primary storage freezers at 0° F (-18° C) or
below. Secondary storage freezers are keeping all products solidly frozen.
Cooked foods in hot holding units are at or above 140° F (60° C).
The internal temperatures of Filet-O-Fish portions after
cooking are at or above 150° F (66° C).
For items FS12-FS15, if any item is missed, the restaurant is considered unacceptable on food safety. Be sure
to check a full run of product for each section of grill or fryer on or in which the product is being cooked.
The internal temperatures of beef patties after cooking are at or above
155° F (69° C).
The internal temperatures of chicken products after cooking are at or
above 165° F (74° C).
The internal temperatures of sausage patties and steak patties
after cooking are at or above 160° F ( 71° C).
Cooked McMuffin round eggs have gelled yolks (are not runny).
Procedures, Standards and Training
If item FS16 is missed, the restaurant is considered unacceptable on food safety.
Managers (or staff assigned to complete the checklist) have been trained
on how to properly complete the procedures on the Food Safety Daily Checklist.
Assess through observation/demonstration of knowledge.
At least the last 60 days of correctly completed Food
Safety Daily Checklists are available.
At least the last two correctly completed Monthly Food Safety Procedures
Verifications are available (completed / reviewed by Restaurant Manager
or Operator by 15th of each month).
Yellow Hutzler spatula used only to break raw egg yolks.
Opened packages of food in storage, (refrigerators and freezers)
are covered/wrapped and stored according to proper procedures.
All refrigerated products are in code. Secondary shelf lives of refrigerated
foods held at room temperature and in refrigerators are marked and the
products are being used within their secondary shelf lives.
Leftover heated foods are discarded (including any shake/sundae
mix removed from heat treatment shake/sundae machines).
All Managers (represented by one ServSafe certified manager on
each shift) are trained in food safety per local requirements.
Crew training and verification on food safety/sanitation (Cleanliness,
Sanitation and Food Safety booklet or training equivalent), is being
done in accordance with local regulations.
Review the most recent health department inspection form. All food safety
violations noted by the health department have been corrected. (If no, record
the Operator/Manager’s plan to address and correct the violations).
Person in Charge Signature: ___________________________________________________________
Circle one:
Acceptable
Unacceptable
Comments: Food Safety Improvement Targets
There may be statutes, laws, regulations and ordinances related to food safety procedures which impose requirements beyond those set forth in the Food Safety Procedures
Verification. If you are an Owner Operator, you are exclusively responsible for compliance with all applicable statutes, laws, regulations and ordinances related to your
restaurant(s), including, but not limited to, those related to food safety procedures.
2011-2012 | Short Operations Review | SOR 21
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When a visit for McDonald’s in Walmart is generated - Drive-thru, PlayPlace, Restrooms and External of Building will automatically be
removed from the form based on the site characteristics as defined in the Global Business Location Tool (site profile). If the McDonald’s
in Walmart is a typical McDonald’s in Walmart, the form generated will be appropriate for use. If the McDonald’s in Walmart has unique
characteristics, the form can be customized by 5 site characteristics - Drive-thru, PlayPlace, Restrooms, Dining Room and External of
Building to be an exact representation of the McDonald’s in Walmart restaurant. The McDonald’s in Walmart form will also automatically
generate questions specific to McDonald’s in Walmart for evaluation. Those questions are displayed below.
Service times for McDonald’s in Walmart will be evaluated using the same process as for traditional restaurants (10 service times taken
throughout the peak period(s) with the high and low time for each scored component being deleted). It is important when evaluating
service times that arrival rates, volume trends, and product mix (R2D2 or manual reports) be reviewed/discussed.
Please visit McDonald’s in Walmart site on Access McD for latest NABIT Snack Product Manuals (popcorn, pretzels, ICEE® etc.), Issue
Resolution Process and other information.
The FOR and SOR questions shown here are specific to McDonald’s in Walmart and will
automatically appear for evaluation on the Global Data Collection Tool.
Criteria
Comments
If no,
System(s)* circle points
FULL OPERATIONS REVIEW (FOR)
General Quality
Equipment Integrity/Calibrations
ICEE® machine is properly calibrated and works properly.
3
Snack machines (popcorn, hot pretzel, etc.) work properly.
3
Desserts
General Service
Service Equipment and Stocking
General Cleanliness
Kitchen Equipment
Popcorn machine is clean.
1
Popcorn machine is in good repair.
1
Front counter and Drive-thru Booth Areas
Shake and sundae machine (including Archibald/FIBA machine) are
clean and sanitized correctly.
3
Shake and sundae machine (including Archibald/FIBA machine) is
in good repair.
3
ICEE® machine is clean and has proper merchandising.
1
ICEE machine is in good repair.
1
Snack displays for products sold inside the McDonald’s restaurants are clean.
1
Snack displays for products sold inside the McDonald’s restaurants are
in good repair and properly merchandised.
1
®
Dining Room and Restrooms
*System Key
Interior Arch/Canopy is lit and in good repair.
3
Remote beverage center is in good repair.
1
If Ronald bench is in place, it is clean, in good repair and meets safety requirements.
3
Automatic P.A. system properly programmed, working and being used.
3
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | McDonald’s in Walmart FOR/SOR | WM 1
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7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
Total points
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Criteria
Comments
Pg ID 314
System(s)*
B
L
D
ICEES® are properly filled and proper dome is provided.
1
1
Shakes are prepared correctly (for Archibald, must include
sanitizing after each spindling).
1
1
Popcorn prepared and bagged correctly.
1
1
Pretzels prepared and bagged correctly.
1
1
L
D
FOR Day Part Quality
Beverages
Prepackaged orange juice thawed, refrigerated properly and
meets secondary shelf lives.
3
Desserts
B
Total points
Criteria
Comments
If no,
System(s)* circle points
SHORT OPERATIONS REVIEW (SOR)
Quality
Procedures and Storage
Snack items (if applicable) are prepared correctly, marked with
secondary shelf lives and within holding time.
3
Cleanliness
Dining Room, Front Counter, Restrooms and PlayPlace/Playland
All interior signage (Arch/Canopy, Ronald bench that meets safety
requirements, door decal, etc.) is clean and in good repair.
3
Total points
*System Key
1 Production
2 Service
3 Shift Management
4 Food Safety
5 Inventory Management
6 People Practices
2011-2012 | McDonald’s in Walmart FOR/SOR | WM 2
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7 Planned & Daily Maintenance
8 Safety & Security
9 Training
10 Business Planning
11 Crew & Management Scheduling
12 Internal Communications
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Goals and Objectives of Product Evaluation at the Restaurant
We need to verify that the food products we are serving meet McDonald’s Gold Standards of Quality because that is what our
guests expect every time they visit our restaurants.
By focusing on our Gold Standards, we believe that we can make a significant system improvement in the quality and
consistency of the food products we serve to our guests.
Product evaluation provides us an opportunity to help our restaurants improve the quality and consistency of the food they are
serving every day.
Our guests have told us that their French fries are not always hot or salted and their sandwiches are not always hot and fresh.
By properly evaluating products in the restaurant, you can identify when important quality attributes of the food do not meet the
Gold Standards.
Using the quality troubleshooting tools, you will be able to help the restaurant identify the cause of the specific quality issues,
help the restaurant correct the issue and improve their food quality.
How to Conduct Product Quality Evaluations
A proper and accurate evaluation of food quality requires a good understanding of the Gold Standards and the use of a consistent
product evaluation method performed in a consistent manner.
When conducting quality evaluations of completed sandwiches, fries and other products during both SORs and FORs follow
these guidelines:
• Always evaluate completed products as they are served to our guests. You want to be the guest.
• Never order or evaluate more than 2 sandwiches at a time. The ideal evaluation would be one sandwich and an order of fries.
• Once you receive your order, sit down and start the evaluation as soon as possible and always within 2 minutes. After this
time period passes, the fries start to cool off.
• Conduct the evaluations of food quality at different times throughout the visit rather than all at one time to gain an overall view
of quality, not just one point in time.
Use the Gold Standard Quality product descriptions as your reference guide when evaluating the products. You always want
to compare the product you are evaluating against the Gold Standard Quality attributes to determine if the product meets
McDonald’s standard.
Example
Assume that you are conducting a quality evaluation for the SOR, and have just received your order for a cheeseburger and fries.
Following the steps on the next few pages will assure consistency and result in an accurate evaluation of product quality.
French Fries First – Always
French fries cool the fastest, so regardless of what you’ve ordered, evaluate the quality of the fries first. Follow these simple
steps to assure a consistent and accurate product evaluation. The entire evaluation should only take a couple of minutes to
complete.
2011-2012 | Gold Standard Quality Reference Material | GSQ 1
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1. Appearance - First check to see that you receive a full box or bag or French fries. Then, take your fry order and empty the fries
onto the tray liner. Within 30 seconds (do not take too long or the fries will cool), quickly scan the fries for the following attributes:
• Externally bright light golden brown with natural color highlights and a slight sheen
• French fries are straight and uniform cut in size with minimal defects
• Some salt crystals are visible on the surface
2. Now taste the fries and focus on their temperature, texture and flavor. Eat two or three strips of medium length fries at one time
to get a more representative sample.
3. Internal appearance - As you taste fries also look at the internal appearance of the fries. Check for the following:
• White and fluffy like a baked potato
• Slight separation of the crust from flesh
4. Taste - Focus on the following attributes as you taste the fries:
• Hot and fresh
• Slightly crisp and tender
• Fresh cooked potato flavor
• Clean oil flavor
• Salted
5. Temperature - French fries should be hot. While evaluating for temperature, you can also evaluate texture and taste.
6. Texture - The texture of the French fries is very important as our guests do not like to eat French fries that are soggy or limp.
Evaluate them for the following attributes:
• Exterior texture is slightly crisp with a tender bite
• Interior texture is mealy, slightly moist with a baked potato texture
• Slight separation of the crust from flesh
Did the French fries meet all the Gold Standard Quality attributes for appearance, temperature, texture and taste? If yes, the product
is awarded the points.
If no, you should note specific comments about the attributes that did not meet the Gold Standards that will help you and the
Owner Operator/McOpCo Operations Manager troubleshoot the cause of the quality defect.
Sandwich or Entrée Evaluation
Sandwiches and entrées hold their heat a little longer than French fries, so evaluating these products after the French fries is not a
problem as long as it is done immediately following the evaluation of the fries. From the time you left the counter with your order,
not more than two minutes should have elapsed.
For the following example of a sandwich quality evaluation, we will use a cheeseburger. When evaluating other sandwiches refer to
the Gold Standard Quality Descriptions for the sandwich being evaluated.
1. Appearance - Quickly unwrap the sandwich and look for the following attributes:
• The sandwich has a uniform gold brown bun
• The sandwich looks neat and holds together well
• The melted cheese has draped corners
2. Now taste the sandwich. Do not dissect the sandwich or take it apart before tasting it. Remember that you are being the
guest. Take a couple of bites to make sure you taste all of the sandwich ingredients. You can now evaluate for temperature,
texture and taste. Assembly is observed as sandwich/entrée is assembled on prep line.
3. Temperature - The sandwich should be hot.
2011-2012 | Gold Standard Quality Reference Material | GSQ 2
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4. Texture - Focus on the following attributes as you are biting into the sandwich:
• Soft, resilient, moist bun
• Tender juicy beef
• Moistness from the melted creamy cheese and condiments
• Occasional crispness of the dill pickle slices and onions
5. Taste - focus on the following attributes as you taste the sandwich:
• Freshly caramelized bread - has the taste of “toast”
• Seared seasoned mild beef - has a “cooked” beef taste and is properly seasoned with the salt/pepper blend
• Creamy, mild cheddar cheese
• Sweet tangy McDonald’s ketchup
• Mustard
• Isolated acidic bite from the dill pickle
• Mild onion
Did the sandwich meet all the Gold Standard attributes for appearance, temperature, texture and taste? If yes, the product
is awarded the points.
If no, you should note specific comments about the attributes that did not meet the Gold Standards that will help you and
the Owner Operator/McOpCo Operations Manager troubleshoot the cause of the quality defect.
Conducting Product Quality Evaluations of CBB Beverages
• Always evaluate completed products as they are served to our customers.
• Never order or evaluate more than 1 CBB beverage at a time.
• Evaluate beverage as soon as possible after receiving it.
• Conduct the evaluations of beverage quality at different times throughout the day.
• Refer to Gold standard product descriptors as you review.
2011-2012 | Gold Standard Quality Reference Material | GSQ 3
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Gold Standard Quality McDonald’s French Fries
Appearance
• Externally bright, light golden brown with natural color highlights and a slight sheen.
• Internally white, fluffy and mealy like a freshly baked potato with slight separation of crust from flesh.
• French fries are straight and uniformly cut with varying lengths and minimal defects. Some salt crystals are visible on the surface.
• Served hot in a full bag or box.
Temperature/Texture
• French fries are hot.
• Exterior texture is slightly crisp with a tender bite. Interior texture is mealy, slightly moist like a “baked potato.”
Taste
The signature taste is a well balanced flavor profile of freshly cooked fried potato, clean oil and salt.
2011-2012 | Gold Standard Quality Reference Material | GSQ 4
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Gold Standard Quality McDonald’s McCafé Coffees
Iced Mocha
Appearance
• Whipped Cream – generously applied from outer rim of cup to center of cup, resulting in a white peak
approximately two inches tall (no ragged edges) and should completely fill dome lid.
• Chocolate Drizzle – four (4) back and forth drizzles of syrup on top of whipped cream.
• Mocha – medium chocolate brown; creamy, frothy surface.
• Chocolate Syrup – small amount may be visible at bottom of cup.
• Ice – visible solid ice cubes.
Temperature/Texture
• Cold beverage; served over ice (3/4 cup).
• Creamy, smooth, heavy bodied.
Taste
Well balanced blend of rich dark roast espresso coffee and dark chocolate flavor; topped with whipped cream,
which has a creamy, sweetened dairy flavor with noticeable vanilla notes, and chocolate drizzle that is sweet
dark fudge flavored syrup.
Mocha
Appearance
• Whipped Cream – generously applied from outer rim of cup to center of cup, resulting in a white peak,
which does not exceed the top rim of the cup by more than ¼ inch (to allow for lid placement).
• Chocolate Drizzle – four (4) back and forth drizzles of syrup on top of whipped cream.
• Mocha – medium chocolate brown; creamy, frothy surface.
Temperature/Texture
• Hot.
• Creamy, smooth, heavy bodied.
Taste
Well balanced blend of rich dark roast espresso coffee, steamed milk and dark chocolate flavor; topped with
whipped cream, which has a creamy, sweetened dairy flavor with noticeable vanilla notes, and chocolate drizzle
that is sweet dark fudge flavored syrup.
Cappuccino
Appearance
• Foam – a deep layer of frothy white foam composed of dense tight bubbles (on surface of drink),
which extends approximately 1/3 into cup; merges with steamed milk and espresso.
Temperature/Texture
• Hot.
• Creamy, heavy bodied.
• Feels ‘lighter” (by weight) than Latte.
Taste (Plain Cappuccino – no flavor syrup)
Well balanced rich dark roast espresso coffee flavor blended with steamed and foamed milk;
medium to high impact coffee flavor.
2011-2012 | Gold Standard Quality Reference Material | GSQ 5
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Gold Standard Quality McDonald’s McCafé Coffees
Latte
Appearance
• Foam – a thin layer of frothy white foam composed of dense tight bubbles (on surface of drink),
merges with steamed milk and espresso below the surface; liquid is medium tannish-brown.
Temperature/Texture
• Hot.
• Creamy, smooth, milky, full-bodied.
Taste
Well balanced rich dark roast espresso coffee flavor blended with steamed milk (majority) and topped
with foamed milk; medium impact coffee flavor.
Iced Latte
Appearance
• Body – medium creamy brown coffee liquid.
• Ice – visible solid ice particles.
Temperature/Texture
• Cold beverage; served over ice (3/4 cup).
• Creamy, smooth, heavy bodied.
Taste (Plain Iced Latte – no flavor syrup)
Well balanced blend of rich dark roast espresso coffee and cold milk.
Hot Chocolate
Appearance
• Hot Chocolate – medium chocolate brown; creamy, frothy surface.
• Whipped Cream – generously applied from outer rim of cup to center of cup, resulting in a white peak,
which does not exceed the top rim of the cup by more than ¼ inch (to allow for lid placement).
• Chocolate Drizzle – four (4) back and forth drizzles of syrup on top of whipped cream.
Temperature/Texture
• Hot.
• Creamy, smooth.
Taste
Blend of rich dark chocolate syrup and steamed milk; topped with whipped cream, which has a creamy,
sweetened dairy flavor with noticeable vanilla notes, and chocolate drizzle that is sweet dark fudge
flavored syrup.
Espresso
Appearance
• Crema – creamy, golden, dark beige layer on surface of espresso shot.
• Espresso coffee – deep, dark chocolate brown liquid below surface of cream.
Temperature/Texture
• Hot.
• Heavy-bodied, creamy, velvety smooth.
Taste/Aroma
• Sweet clean aroma.
• High impact; clean cup; good balance of acidity and body; dark roast coffee flavor with hints of
dark chocolate.
• Absence of burnt, bitter notes.
2011-2012 | Gold Standard Quality Reference Material | GSQ 6
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Gold Standard Quality McDonald’s Blended Ice Beverages
Mocha Frappé
Appearance
• Whipped Cream – generously applied from outer rim of cup to center of cup, resulting in a white peak
approximately two inches tall (no ragged edges).
• Chocolate Drizzle – four (4) back and forth drizzles of syrup on top of the whipped cream.
• Mocha Frappé – medium chocolate brown; creamy, ice-blended beverage.
• Ice – well blended; no ice chunks or ice cubes should be visible.
Temperature/Texture
• Frozen, drinkable beverage.
• Creamy, smooth, thick mouthfeel; sensation of finely blended ice particles.
Taste
Well balanced blend of rich dark roast coffee and dark chocolate flavor; topped with whipped cream,
which has a creamy, sweetened dairy flavor with noticeable vanilla notes; chocolate drizzle has a
dark chocolate flavor profile.
Caramel Frappé
Appearance
• Whipped Cream – generously applied from outer rim of cup to center of cup, resulting in a white peak
approximately two inches tall (no ragged edges).
• Caramel Drizzle – four (4) back and forth drizzles of syrup on top of the whipped cream.
• Caramel Frappé – creamy beige taupe, ice-blended beverage.
• Ice – well blended; no ice chunks or ice cubes should be visible.
Temperature/Texture
• Frozen, drinkable beverage.
• Creamy, smooth, thick mouthfeel; sensation of finely blended ice particles.
Taste
Well balanced blend of rich dark roast coffee and buttery caramel flavor; topped with whipped cream,
which has a creamy, sweetened dairy flavor with noticeable vanilla notes; caramel drizzle has a
buttery sweet caramel profile.
Strawberry
Banana
Smoothie
Appearance
• Ice well blended; no ice chunks or ice cubes should be visible.
Temperature/Texture
• Icy cold.
• Smooth, creamy thick drink.
Taste
Balanced strawberry and banana flavor, mostly sweet, slightly tart, with a light, creamy dairy note (from yogurt).
Aroma of ripe strawberries and banana.
2011-2012 | Gold Standard Quality Reference Material | GSQ 7
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Gold Standard Quality McDonald’s Blended Ice Beverages
Wild Berry
Smoothie
Appearance
• Ice well blended; no ice chunks or ice cubes should be visible.
Temperature/Texture
• Icy cold.
• Smooth, creamy thick drink.
Taste
Balanced mixed berry flavor (blueberries, blackberries, strawberries), mostly sweet, slightly tart, with a light,
creamy dairy note (from yogurt). Aroma of mixed berries.
Shakes
Appearance
• Whipped Cream – white and airy in appearance. No whipped cream should be peaking from the hole.
• Cherry – bright red maraschino cherry, with no stem.
• Chocolate –Medium brown colored shake topped with whipped cream and a cherry.
• Vanilla –Light custard yellow colored shake topped with whipped cream and a cherry.
• Strawberry –Bright, light pink colored shake with visible strawberry bits topped with
whipped cream and a cherry.
Temperature/Texture
• Thick, creamy and cold with no signs of melting.
Taste
• Chocolate –Blend of sweet, cocoa, fudgy chocolate character in a sweet, creamy dairy base.
• Vanilla –Blend of rich and sweet vanilla flavor in a sweet, creamy dairy base.
• Strawberry –Blend of sweet, fresh, ripe strawberry flavor and green strawberry notes in
a sweet, creamy dairy base.
2011-2012 | Gold Standard Quality Reference Material | GSQ 8
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Gold Standard Quality McDonald’s Chicken McNuggets
Appearance
• Fried Chicken McNuggets tempura breading is light golden brown in color with natural reddish brown highlights.
• Chicken McNuggets should be in the four distinct shapes and are uniformly coated with ridges and peaks.
Temperature/Texture
• Product is served hot and fresh.
• The breading texture has a light crisp and tender tempura coating that adheres firmly to the meat.
• Meat texture has a uniform firm bite and is slightly juicy.
Taste
The taste is a slight fried corn and wheat flour breading taste with a noted caramelized and clean oil taste. Mild chicken taste
that is slightly salty with hint of black pepper and celery taste in the breading.
2011-2012 | Gold Standard Quality Reference Material | GSQ 9
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Gold Standard Quality McDonald’s Filet-O-Fish
Appearance
• The sandwich has a uniform golden brown steamed bun with a slight sheen. The corners of the golden brown fish portion
t
are slightly visible.
• Sandwich looks neat and holds together well.
Temperature/Texture
t
• The sandwich is hot and moist.
• The texture of the sandwich is distinguished by a soft, steamed bun with fish filet that is lightly crisp outside, tender,
moist and flaky inside, with creamy tartar sauce and melted cheese.
Taste
t
The taste is a balanced blend oft fresh taste, creamy, slightly acidic tartar sauce with a balanced blend of a dill pickle relish
and fresh onion, mild fish, salt and slight mild cheddar cheese.
2011-2012 | Gold Standard Quality Reference Material | GSQ 10
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Gold Standard Quality McDonald’s Cheeseburger
Appearance
• The sandwich has a uniform golden brown bun.
• The sandwich looks neat and holds together well.
• The melted cheese has draped corners.
Temperature/Texture
• The sandwich is hot.
• The texture of the sandwich is a soft, resilient, moist bun, with tender, juicy beef, moistness from the melted
creamy cheese and the condiments with occasional crispness of the dill pickle and onions.
Taste
The taste is a balanced blend of freshly caramelized bread taste, seared, seasoned mild beef, creamy, mild cheddar cheese,
sweet tangy McDonald’s ketchup and mustard with an isolated acidic bite from the dill pickle and mild onion.
2011-2012 | Gold Standard Quality Reference Material | GSQ 11
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Gold Standard Quality McDonald’s Hamburger
Appearance
• The sandwich has a uniform golden brown bun.
• The sandwich looks neat and holds together well.
Temperature/Texture
• The sandwich is hot.
• The texture of the sandwich is a soft, resilient, moist bun, with tender, juicy beef, moistness from the condiments
and occasional crispness of the dill pickle and onions.
Taste
The taste is a balanced blend of freshly caramelized bread taste, seared, seasoned mild beef, sweet tangy McDonald’s
ketchup and mustard with an isolated acidic bite from the dill pickle and mild onion.
2011-2012 | Gold Standard Quality Reference Material | GSQ 12
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Gold Standard Quality McDonald’s Double Cheeseburger
Appearance
• The sandwich has a uniform golden brown bun.
• The sandwich looks neat and holds together well.
• The two pieces of melted cheese are staggered with draped corners.
Temperature/Texture
• The sandwich is hot.
• The texture of the sandwich is a soft, resilient, moist bun, with tender, juicy beef, moistness from the melted creamy
cheese and the condiments with occasional crispness of the dill pickle and onions.
Taste
The taste is a balanced blend of freshly caramelized bread taste, dominant creamy cheddar cheese, seared, seasoned mild beef,
sweet tangy McDonald’s ketchup and mustard with an isolated acidic bite from the dill pickle and mild onion.
2011-2012 | Gold Standard Quality Reference Material | GSQ 13
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Gold Standard Quality McDonald’s Quarter Pounder with Cheese
Appearance
• The sandwich is neat and holds together well.
• The melted cheese is staggered with draped corners.
• The beef patty is visible outside the sesame seed bun.
Temperature/Texture
• The sandwich is hot.
• The texture of the sandwich is a soft, resilient, moist bun, with tender, crumbly, juicy beef, moistness from the
melted creamy cheese and the condiments and occasional crispness of the dill pickle and onions.
Taste
The taste is a balanced blend of freshly caramelized bread taste with sesame seeds, dominant seared, seasoned mild beef,
creamy cheddar cheese, sweet tangy McDonald’s ketchup and mustard with an isolated acidic bite from the dill pickle and
fresh onion.
2011-2012 | Gold Standard Quality Reference Material | GSQ 14
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Gold Standard Quality McDonald’s Big Mac
Appearance
• The sandwich stands tall on a three layered bun with sesame seeds on the crown.
• It is neatly assembled with overflowing fresh green shredded lettuce.
• The melted cheese has draped corners.
Temperature/Texture
• The sandwich is warm and holds together well.
• The texture of the sandwich is a soft, resilient, moist bun, with tender, juicy beef, crisp lettuce, moist, melted creamy cheese
and creamy sauce, crisp lettuce with occasional crispness of the dill pickles, onions and relish.
Taste
The taste is a signature taste that combines a distinctive balanced blend of freshly caramelized bread taste with sesame seeds,
seared, seasoned mild beef, creamy Big Mac sauce with a balance of sour, pungent mustard, sweet pickle relish, onion and
savory tastes, fresh lettuce, creamy cheddar cheese, with an isolated acidic bite from the dill pickle and mild onion.
2011-2012 | Gold Standard Quality Reference Material | GSQ 15
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Gold Standard Quality McDonald’s Egg McMuffin
Appearance
• Egg McMuffin is an egg, Canadian bacon and cheese breakfast sandwich. The sandwich is neat and holds
together well.
• The English muffin is a round, creamy-white muffin with medium golden brown exterior highlights, and a light
cornmeal dusting.
• Internally, the muffin is porous with varying small and large holes (has pronounced nooks and crannies),
with a brown, uniform toast (not burnt).
• Cheese is slightly melted with draped corners.
• The whole round egg is fully cooked, with a cooked/gelled yellow yolk.
• Round Canadian style bacon is reddish pink, with a slightly darker rind.
Temperature/Texture
• The Egg McMuffin sandwich is hot.
• Moderately toasted English muffin is slightly crisp, with a tender, resilient, slightly moist texture.
• The egg is tender, moist, and slightly resilient, with a smooth creamy texture from the cheese.
• The Canadian style bacon is moist and tender with a slight chew.
Taste
The taste is freshly toasted English muffin, with mild egg, butter and cheddar cheese flavors, with a sweet and salty,
smoked cured pork flavor.
2011-2012 | Gold Standard Quality Reference Material | GSQ 16
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Pg ID 333
Quality Troubleshooting Information
Operations and Training Manual (O&T) and the Pocket Quality Reference Guide (PQRG)
If you find quality issues with products when completing product evaluations, the first step is to determine the cause or causes
of the quality issue you have identified.
Once the cause or causes are identified, you will be able to help the Owner Operator/McOpCo Operations Manager determine
what actions must be taken to correct the quality issue.
Use the following quality troubleshooting information found in the O&T and/or PQRG to assist you in this process.
Product/Area
O&T or PQRG
Chapter/Section
Breakfast Products
PQRG Section on Breakfast Products
Troubleshooting breakfast sandwiches/
components
Round Egg Cooking
O&T
See Food Safety chapter: Testing and
troubleshooting McMuffin eggs and
round eggs
Hot Holding in the Universal
Holding Cabinets
O&T
See Food Safety chapter: Testing and
troubleshooting internal temperatures
of food products in the Universal
Holding Cabinet or Marinator
Regular Menu Grilled Product
Sandwiches
PQRG Regular Menu Sandwiches
Troubleshooting grilled products
Regular Menu Fried Product
Sandwiches
PQRG Regular Menu Fried Product
Sandwiches
Troubleshooting fried products
Beef Patty Internal Temperatures
and Cooking
O&T
See Food Safety chapter: Testing and
troubleshooting internal temperatures
of beef patties
Chicken and Fish Product
Internal Temperatures and
Cooking
O&T
See Food Safety chapter: Testing and
troubleshooting internal temperatures
of chicken and fish products
French Fries
PQRG French Fries
Troubleshooting French Fries
O&T
See Production: French Fries,
Troubleshooting Guidelines
“Eyes on the Fries” Execution Manual
Troubleshooting French Fries
NABIT Seed Store #2 2007
Refrigerated and Frozen
Products
O&T
See Inventory Management: Proper
product storage, proper frozen product
storage, and proper refrigerated
product storage
• Problem checklist for storing
refrigerated and frozen products
McCafé Beverages
O&T
See Service: Quality, Espresso Machine
McCafé Coffee Execution Manual
Troubleshooting
2011-2012 | Gold Standard Quality Reference Material | GSQ 17
McDonald’s USA - QSC Playbook - Version 6.0
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 148 of 153
Support
Systems
Inventory Management
People Practices
Planned & Daily Maintenance
Safety & Security
Training
Business Planning Scheduling
Crew & Management Scheduling
Internal Communication
r- r- r-
Food Safety
r- r-
•
•
•
•
•
•
•
•
•
•
•
Additional Resources
Food Safety Workshop Modules
•
Planned & Daily Maintenance Workshop Modules
•
Internal Communication Workshop Modules
•
Safety and Security Workshop Modules
•
People Practices Workshop Modules
•
Training Workshop Modules
Production
•
No. Resource Name
Management
Systems
Shift Management
Note: These documents change frequently. Please log on to AccessMcD
and search under “12 Systems Resources” for the most recent updates.
Primary
Systems
Service
This index shows you which of the 12 Systems use a particular resource.
Each resource is listed alphabetically on the following pages.
Pg ID 334
Access/Order Information
1. 12 Systems Improvement Guide
Franke Resupply #8213299-3
* 2. 2 at a Time Drive-thru Order Taking Resource Guide
3. Assembling Order Posters
•
•
RCC Order Taker Station Guide #8213557-3
RCC Presenter Station Guide #8213558-2
•
Drive-thru Runner Condiment Center Station Guide #8213559-4
4. Automated Ordering System Training Manual
Contact your distribution center
5. “Be Well Served” Layouts & Labeling Guide
6. Business Consultants Toolbox
•
Contact Regional Finance Team
7. Business Management Program
Franke Resupply #8213210
8. CDP Manager’s Guide and Training Planning Tools
* 9. Child Labor Compliance Guide
10. Coach Class Leader Guide
•
Franke Resupply #8213284-5
•
Franke Resupply #8212327-6 & #8213102-2
•
Franke Resupply Eng. #8213563-1 Span. #8213563S-1
•
•
•
•
•
•
•
•
•
•
•
•
** Contact HR Consulting 877-623-1955
* 13. Crew Development Program Materials Audit Form
14. Crew Development Program
* 15. Crew Meeting Agenda Template
* 16. Crew Meetings
•
Franke Resupply #7002028-1
•
•
•
Franke Resupply #8212328-6
18. Crew Trainer Development Program (CTDP)
•
•
** Contact HR Consulting 877-623-1955
17. Crew Recognition Chart
•
•
•
•
•
•
•
•
•
•
•
•
•
21. Daily Cleaning Cards for Shake Machine
Contact your local distributor
22. Drive-thru Daily Monthly Poster Tracking Kit
Franke Resupply #MCD73527
* 23. Drive-thru Operation System Diagnostic Tool
24. E-Learning 7.0 CD ROM
Franke Resupply #8213201-8
•
•
•
•
•
•
•
•
•
•
•
•
Franke Resupply McOpCo - English #FCS 4850112-11
Spanish #FCS 4850112S-8
•
Licensee - English #FCS 4850113-12
Spanish #FCS 4850113S-7
* 26. Employment Brand and Staffing Catalog
* 27. Energy Survey
28. Equipment Manuals and Videos
Franke Resupply #FCS 8213333-1
•
29. Extended Hours Resource Guide
•
•
•
30. Federal OSHA Hazard Communication Program
Franke Resupply #MCDOSHAP-3
31. Food Safety Booklet
Franke Resupply #MCD42604-19
Note: The direct phone number for Franke Resupply is 1-800-423-5247
* Resource can be found on AccessMCD.
** HR Consulting Direct Line is 1-877-623-9150
2011-2012 | Index of Resources | IND 1
McDonald’s USA - QSC Playbook - Version 6.0
•
Contact your equipment distributor
•
•
•
•
•
•
Franke Resupply Eng. #8213049-7
* 19. Curriculum - Manager’s Learning Path
* 20. Customer Incident Form and Instructions
25. Employment Applications
•
•
•
** Contact HR Consulting 877-623-1955
* 11. Commitment Survey
* 12. Communication RAP Sessions
•
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 149 of 153
Contact Regional Finance Team
* 33. From Ow to Wow-How to Achieve Effective Customer Recovery
* 34. Front Counter Service Operations Manual
•
•
•
•
•
** Contact HR Consulting 877-623-1955
•
** Contact HR Consulting 877-623-1955
•
•
•
•
•
** Contact HR Consulting 877-623-1955
•
•
•
46. ISP Abbreviated Personnel Report
ISP
47. ISP Audit Summary Report
ISP
48. ISP Automated Ordering System Training through Distribution Center
•
•
Contact Distribution Center
•
49. ISP Automatic Re-Order Report
ISP
•
50. ISP Cash Audit Worksheet
ISP
•
51. ISP Cash Sheet by Period
ISP
•
52. ISP Crew Assignments
ISP
53. ISP Crew Payroll with Service Dates and Wage Rates
ISP
•
•
Franke Resupply #1110383-1 or ISP
55. ISP Crew Staffing Budget Analysis Report
•
•
ISP
•
56. ISP Daily Activity Report
•
57. ISP Deposit Validation Report
•
58. ISP Fixed Labor Guide
59. ISP E-learning for Crew Scheduling, Management Scheduling and Automated Ordering
•
Franke Resupply #8213472-1
•
60. ISP Food Optimization Training on Windows Side (1.02)
ISP
•
61. ISP Food/Paper Cost Report for Inventory Turnover
ISP
•
62. ISP Help Screens
ISP
•
63. ISP Inventory STAT Report
ISP
•
64. ISP Labor Analysis Report
ISP
65. ISP Low Stock Level Report
ISP
66. ISP Manager Core Schedule
ISP
67. ISP Manager Schedule Violations Report
ISP
68. ISP Manager Schedule
ISP
69. ISP Operations Reports (or Manual Reports)
ISP
Note: The direct phone number for Franke Resupply is 1-800-423-5247
* Resource can be found on AccessMCD.
** HR Consulting Direct Line is 1-877-623-9150
2011-2012 | Index of Resources | IND 2
McDonald’s USA - QSC Playbook - Version 6.0
Internal Communication
Crew & Management Scheduling
•
•
* 42. Image Works
* 43. In the Loop Restaurant Communication Guide
54. ISP Crew Schedule
Business Planning Scheduling
•
•
* 37. Getting the Most from your Survey Results
* 38. Giving Candid Feedback Workshop
* 44. Incentives and Rewards
* 45. Insurance and Safety Department Website
Training
•
Customer Satisfaction Website
* 35. Frymaster Fryer Risk Reduction Checklist
* 36. Full Operations Review
41. How to Do a Complete Wage and Hour Self-Audit
Safety & Security
Access/Order Information
32. Franchisee Financial System (FFS) P&L Opportunity Report
* 39. Gold Card Implementation Guide
40. Hiring to Win
Planned & Daily Maintenance
•
Management
Systems
People Practices
•
Inventory Management
Food Safety
Support
Systems
Shift Management
No. Resource Name
Service
Production
Primary
Systems
Pg ID 335
•
•
•
•
•
•
•
•
•
•
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 150 of 153
Primary
Systems
Pg ID 336
Support
Systems
Management
Systems
No. Resource Name
Access/Order Information
70. ISP Order Report
ISP
71. ISP Profit and Loss Statement
ISP
72. ISP Raw and Completed Waste/Promo Reports
ISP
73. ISP Shift Preparation Tool-Positioning Aid
ISP
74. ISP Skim Countdown Summary
ISP
75. ISP Store System e-Learning Training
ISP
77. ISP Transactions and Labor Projections
ISP
78. ISP Window Person Summary Report by Date Range
ISP
79. Kay Cards (Kit)
Contact Kay Chemical 1-800-529-5458
80. Kay Excellence in Cleaning Seminar
Contact Kay Chemical 1-800-529-5458
* 81. Kinko’s People DocStore Website
82. Manager’s News
Internal Communication
Crew & Management Scheduling
Business Planning Scheduling
Training
•
•
•
•
•
•
•
•
•
•
•
•
* 85. McDonald’s Language Resource Guide
86. McDonald’s Partnership Orientation Process (McPOP)
Kinko’s website
•
•
•
•
•
•
•
•
www.mcplayplace.com
•
Contact Regional SPOD Coordinator
* 87. McDonald’s Restaurant Safety Inspection
88. McDonald’s Safety Awareness Calendar
•
•
Franke Resupply #FCS 8213063-9
89. McDonald’s Service Center
•
1-877-623-1955
* 90. Operating System Diagnostic Tool
* 91. Operations and Training Manual (O&T)
•
ISP
Franke Print On Demand
92. Orientation Kits
•
•
•
•
•
•
Contact Franke Resupply
93. Orientation Checklist
•
•
•
**Contact HR Consulting 1-877-623-1955
•
•
•
•
•
* 96. People Practices Workshop Modules
* 97. Performance Development System
•
* 98. P-Factor (People Factor) Checklist
* 99. Planned and Daily Maintenance Workshop Modules
•
104. PlayPlace Website
•
•
•
•
•
Franke Resupply Eng. #8212112-11 Span. #8212112S-11
•
•
Franke Resupply Eng. #MCD9801P-4
•
•
* 102. Planning Calendar
103. PlayPlace Maintenance Schedule Safety Inspection Forms
•
•
•
•
101. Planned Maintenance Manual
•
•
•
100. Planned Maintenance Calendar
•
•
* 94. People Day Resource Guide
* 95. People Practices Checklist
Franke Resupply #PC 2011
•
•
www.mcplayplace.com
Note: The direct phone number for Franke Resupply is 1-800-423-5247
* Resource can be found on AccessMCD.
** HR Consulting Direct Line is 1-877-623-9150
POS
•
•
•
•
•
•
•
www.mcplayplace.com
Franke Resupply Eng. #FCS 8201069-21 Span. #FCS 8201069S-21
106. POS Hourly Drive-thru Sales Report (TTL)
2011-2012 | Index of Resources | IND 3
McDonald’s USA - QSC Playbook - Version 6.0
Safety & Security
•
•
Delivered to Restaurant Monthly
* 83. Manager’s Toolkit
84. McDonald’s Certified PlayPlace Safety Inspector (MCPSI) Training Course
* 105. Pocket Quality Reference Guide
Planned & Daily Maintenance
People Practices
•
Franke Resupply #FCS 8213472-1
76. ISP Time Punch Edits
Inventory Management
Food Safety
r- r- r-
Shift Management
Service
Production
r- r-
•
•
•
•
•
•
•
•
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 151 of 153
No. Resource Name
Internal Communication
Crew & Management Scheduling
Access/Order Information
107. POS KVS Timing Report
POS
108. POS Storewide Hourly Report
POS
* 109. Positioning Guides (VLH)
•
•
•
•
•
•
•
•
* 110. Profitability Website
•
* 111. Projecting Crew Staffing Needs Tool
* 112. QSC Play Book
•
•
•
113. R2D2 All Hours VLH Guide vs. Schedule
R2D2 Report Catalog
114. R2D2 Automated Prep Charts
R2D2 Report Catalog
115. R2D2 Daily Actual Labor by Hour Report
R2D2 Report Catalog
116. R2D2 Daily Sales and Service by Hour Report
R2D2 Report Catalog
117. R2D2 Monthly Quality Cost Report (QCR)
R2D2 Report Catalog
•
118. Raw Item Conversion Efficiency Report
Contact Regional Finance Team
•
119. Restaurant Management Performance Review
Franke Resupply #0002.4009500
120. Restaurant Management Program
122. Safety & Loss Prevention Service Guide
•
•
•
•
•
•
•
•
Contact D.C.
•
•
•
•
•
•
Contact Safety & Security 630-623-6461
•
* 123. Safety and Security Department Website
•
124. SEI ISP Training
ISP or Troubleshooting 701-280-2900
125. Shift Management Program MDP1
•
•
•
Franke Resupply #8213001-6
121. Restaurant/Distribution Partnership Program Summary Report
Franke Resupply: Eng. #8202023-14 Span. #8202023S-12
Serv Safe Franke Resupply: #ESX4
126. Shoes for Crews or other slip-resistant shoe suppliers
•
•
•
•
•
•
•
•
•
•
•
•
www.shoesforcrews.com or 1-800-523-4448
* 127. Short Operations Review
•
* 128. Special Development Diagnostic Tool
•
* 129. Supervisor Cash Audit
•
* 130. Survey Planning Guide
131. Systems Management Program MDP2
Coach Class Leader Guide
•
Franke Resupply: Eng. #8212241-6 Span. #8212380-5
Franke Resupply: Eng. #8213567 Span. #8213567S
* 132. Team Member Performance Update
•
•
** Contact HR Consulting &
Franke Resupply: Eng. #0002.4850114 Span. #0002.5006300
•
•
•
•
1-800-HELP-MCD
* 136. Vertical Cabinet Management System Manual
137. W. Kent Jessee & Associates Safety Series
Note: The direct phone number for Franke Resupply is 1-800-423-5247
* Resource can be found on AccessMCD.
** HR Consulting Direct Line is 1-877-623-9150
•
•
* 134. Troubleshooting Tool for Floor Manager
135. Turbocharge Training
•
•
133. Training Workshop Modules
2011-2012 | Index of Resources | IND 4
McDonald’s USA - QSC Playbook - Version 6.0
Business Planning Scheduling
Training
Safety & Security
Planned & Daily Maintenance
Management
Systems
People Practices
Inventory Management
Food Safety
Support
Systems
Shift Management
Service
Production
Primary
Systems
Pg ID 337
•
•
•
•
www.wkjessee.com
•
•
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 152 of 153
Pg ID 338
OPERATIONS
Resource Center
Get the right answer fast!
Operations or Training questions?
Ca ll1email the Operations Resource Centor
Toll-Free
1-866-the.orc@us.mcd.com
At McDonald's, delivering superior sarvice and consistentty executing all of OUf Operating
Systems Standards are key to driving our U.S. Plan to Win; providing our Restaurant
Managers, Owns/lOpe/ators and Field Staff with the tools to
it hapflen is equally
imponant. That's why the ORC is here lor you ..•
What is Ih, ORC?
The OR C is ,ourOpel1ltioM Help Oesk.lt's one phone numbe/ lo cell lur the most up-to-date
operalions and training information to help you run great restaurants.
HIIW can I reach th e ORC1
CaU us at ' ·866·0RC-4MCD. ORC associates are available 1 days a week Irom 7 am - 7
pm, CST. Alter hours yaicemail is available - an associate will return yeur call within ene
business day,
Email usatthe.orcCus_mcd.com. You will receive a res pense within 2 business days_
HCIW can the ORC help you and your mansgemanlteam?
The ORC can simplify your job by giving you ...
o
o
FasIISfVic6 - The ORC has the latest operations information to quickly share with
you. If ifs a new Guestion, we do the rase arch so that you den't have tol
Accurate
The ORC works closely with me U.S. Restaurant Systems
subject maner eKperts to ensure the team is equipped with the most accurate and
current information.
The ORC is IHIre for you!
As you continue to improve sales and execution in your restauranlS, remember the ORC is
a resource lor youl Post this Ilyer as a quick reminder 01 howlO contact the ORCfor your
operations information needs.
5:14-cv-11082-JCO-SDD Doc # 11-6 Filed 03/24/14 Pg 153 of 153
The ROIP process is not intended to and does not create or
modify any contract rights or obligations. McDonald’s reserves
all rights under its Franchise Agreements, including without
limitation, the right to modify these guidelines.
For exclusive use of employees and licensees of McDonald’s
Corporation. None of the materials contained herein may be
reproduced, copied, or utilized in any form or by any means
without the specific written authorization of an officer of
McDonald’s Corporation.
The following trademarks used herein are owned by McDonald’s
Corporation and its affiliates; McDonald’s, the Golden Arches
Logo, McMuffin, McGriddles, QSC, Made For You, McD, McCafé,
Ronald, ARCH, McState, HU, Chicken McNuggets, Quarter
Pounder, Big Mac and Egg McMuffin.
© 2011 McDonald’s
Pg ID 339
Exhibit 4
MCDOCH015682
Case 3:14-cv-02098-JD Document 265-2 Filed 08/17/15 Page 2 of DEPOSITION
3
EXHIBIT
10 7
c.11
4/ - 7-/3"
National Franchising Standards
(12/14/11)
An owner/operator who is in compliance with their Franchise Agreement and consistently meets or
exceeds the following National Franchising Standards (the "Standards") is eligible for Growth and for
Rewrite. Eligibility for growth and rewrite does not assure growth or that a new term franchise will be
granted. The QSC VP makes growth decisions and Rewrite recommendations. The Rewrite
Committee reviews, discusses, and approves all Rewrite denial recommendations. That group is the
only group that may deny an owner/operator a Rewrite. All decisions are based on their business
judgment.
The Standards are listed below, followed by the measurement tools and guidelines. The
measurement tools and guidelines are used to assess whether an owner/operator's performance and
results are meeting the Standards. The Standards are not intended to, and do not, address whether
an owner/operator is in default, They have been developed for the purpose of identifying
owner/operators with whom McDonald's desires to grow with and/or enter into new relationships.
Every Standard is vital to McDonald's future success even though some are not Franchise
Agreement obligations. Every Owner/operator Business Review should address each question listed
below.
Operations: Operating each restaurant in a manner that consistently meets or exceeds
QS&C specifications.
The measurement tools and guidelines include:
• FOR grades
• SOR grades
• Food Safety Audits
Has any restaurant in the owner/operator's organization: (i) been placed in the Improvement Process for
Underperforming Restaurants; or (ii) not met operational standards on three or more graded ROIP visits
(score below 80 on any of Q, S, or C) and/or food safety audits in the last 18 months?
Financial: Operating a financially viable restaurant business and meeting all financial
obligations; building the business by maximizing the sales potential of the restaurant;
and investing on a timely basis to improve the restaurant's competitive position in the
marketplace.
This Standard has two components, financial and reinvestment. Both must be met for an owner/operator
to meet this Standard.
The measurement tools and guidelines include:
• Operates a financially viable business • Is the net equity percentage 25% or higher? (Net equity percentage = value of the business
minus net debt on the business divided by the value of the business)
Is the cash flow adequate to cover annual debt service payments? — Is the cash flow coverage
ratio 1.2 or higher?
• Does the organization have adequate sales to cover current liabilities? - If the organization has
negative working capital, is the amount equal or less than 7 days of sales?
All three of these questions are viewed in their entirety in determining the financial viability of the
business. Failure to meet one measurement does not necessarily indicate that the organization is not
financially viable.
• Pays McDonald's and others on time — Are payments to McDonald's, suppliers, Co-Op, lenders and
taxing authorities made within terms?
• Regularly submits financial statements to McDonald's when due — Are P&Ls accurate and received
by the 25th of the following month? Are balance sheets accurate and timely submitted in accordance
with the Franchise Agreement and/or when requested?
• Does each restaurant's level of reinvestment meet the National Restaurant Building and Equipment
Standards, including minimum approved equipment to meet QSC standards? If no, is there a plan
that has been agreed to and implemented to achieve this?
of 2)
These are internal guidelines which McDonald's may apply, modify or eliminate as it deems appropriate. They are not intended to
and do not create or modify any contract rights or obligations, As always, those rights and obligations are determined only by
McDonald's signed, written Franchise Agreements.
HIGHLY CONFIDENTIAL
MCDOCH015682
Case 3:14-cv-02098-JD Document 265-2 Filed 08/17/15 Page 3 of 3
MCDOCH015682
People: Recruiting, developing, training, and retaining qualified personnel to operate
and build the McDonald's business. Having at least one Hamburger University/ROLP
graduate for each restaurant.
The measurement tools and guidelines include:
• Having an adequate number of HU/ROLP trained and shift certified managers — Is each restaurant
managed by a HU/ROLP trained manager? Are all shifts run by shift certified managers?
• Having an effective crew training program, such as CDP, in use — Is the Training section of the ROIP
People section acceptable?
• Having an effective employee feedback process, such as the Manager and Crew Commitment
Survey, and action plan — Has the owner/operator sought and received anonymous feedback from
the management and crew at each restaurant within the last 12 months and implemented action
plans?
Customer Satisfaction: Consistently improving customer satisfaction in each restaurant.
The measurement tools for this Standard should be viewed in their entirety, meaning that failure to meet
any one of the measurements does not necessarily mean the owner/operator fails to meet this Standard.
The measurement tools and guidelines include:
• Comp Sales and GCs — a comparison to the market and competitors index should be made.
Individual restaurant factors (e.g. road construction, impact, weather, etc.) should be considered. Is
value being offered? Are the sales at-the restaurant being maximized?
• All shifts adequately staffed to maximize sales — Are all shifts adequately staffed with trained crew
and management?
• 800 number call back responsiveness — Does the owner/operator have a customer recovery
program? Are all 800 number complaints responded to within 48 hours or has a significant effort been
made to contact the customer?
Operator Involvement: Operating great restaurants through ongoing and constructive
involvement. In addition, the owner/operator has positive involvement with fellow
owner/operators at the national, divisional, and regional levels and is a current
member of OPNAD/Co-Ops.
This Standard requires the highest use of business judgment. The focus of this Standard is on behaviors
that benefit the entire System. We do not want to discourage.spirited debate or individual initiative that is
done in the best interest of the System; however we must determine, based on all we know about the
owner/operator, if this is a person with whom we want to maintain or grow our relationship.
The measurement tools and guidelines include:
• Having positive involvement with McDonald's and fellow owner/operators — What is the
owner/operator's overall attitude toward the Company and his/her fellow owner/operators? Does
he/she make positive contributions?
• Devoting full-time and best efforts to the business including exhibiting personal management and
leadership in the restaurant business — Does the owner/operator have active, ongoing, day-to-day
involvement in the restaurant business? Has the owner/operator developed an organization capable
of supporting the business? Is the owner/operator accessible to Field Service (i.e. returns calls,
checks e-mail and voice mail, and attends announced visits)?
• Being a current, participating member of OPNAD and appropriate local Co-Op on a consistent basis —
Is the owner/operator delinquent to OPNAD or the Co-Op? Does the owner/operator's participation in
National and Co-Op promotions reflect consistent support for the System?
• Actively participates in and supports Social Responsibility efforts. — Does the owner/operator give
back to the local community?
(2 of 2)
These are internal guidelines which McDonald's may apply, modify or eliminate as it deems appropriate. They are not intended to
and do not create or modify any contract rights or obligations. As always, those rights and obligations are determined only by
McDonald's signed, written Franchise Agreements.
HIGHLY CONFIDENTIAL
MCDOCH015683
Exhibit 5
Case 3:14-cv-02098-JD Document 265-4 Filed 08/17/15 Page 2 of 7
Case 3:14-cv-02098-JD Document 265-4 Filed 08/17/15 Page 3 of 7
Case 3:14-cv-02098-JD Document 265-4 Filed 08/17/15 Page 4 of 7
Case 3:14-cv-02098-JD Document 265-4 Filed 08/17/15 Page 5 of 7
Case 3:14-cv-02098-JD Document 265-4 Filed 08/17/15 Page 6 of 7
Case 3:14-cv-02098-JD Document 265-4 Filed 08/17/15 Page 7 of 7
Exhibit 6
Case 3:14-cv-02098-JD Document 271-11 Filed 08/17/15 Page 2 of 28
MCDOCI-id07528
MCDOCHuO752B
Standards
Franchising Standards
National
National Franchising
12/1/13
of
FAQs as
FAQs
as of 12/1/13
4)
(Effective
04/01/14)
(Effective 04/01/1
the
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NationalFranchising
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nal Vision
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Franchising Standards
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to the
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e proficien
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l Franchising Standards?
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s form
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