It isn’t taking long for new McDonald’s Corp. Chief Executive Jim Cantalupo to tear apart former CEO Jack Greenberg’s playbook.
Cantalupo, who is trying to get staffers focused on fixing the problems of its core business, has begun dismantling several programs initiated by Greenberg. Greenberg left under pressure late last year in the face of the company’s first-ever quarterly loss.
Sources say that among the things Cantalupo is slashing is a dedicated unit set up under Greenberg called “project innovate.”
The project, which included linking McDonald’s restaurants around the world to get real-time sales data, was costing the company more than $10 million a year, according to a source at McDonald’s.
Greenberg’s goal was to enable McDonald’s operators to react more quickly to changes in customers’ buying patterns.
More than one McDonald’s source said that some of Greenberg’s other ambitious plans may be shelved as well, including the much-touted hybrid McDonald’s with the Diner Inside concept.
More Top Picks Best Under Sink Water Filters For Well Water Systems
Sources said that the concept would not be dismantled, but plans for major expansion are not likely. The reason cited for the pullback: higher kitchen costs.
A spokeswoman for McDonald’s disputed the claims that McDonald’s has plans to put the concept on hold, saying: “It’s been a hit with consumers.” But she wouldn’t say whether the concept would expand beyond its 10th opening, which will be in Whitehead, Ind., this month, citing company policy to not comment on such plans.
These changes appear to be the tip of the iceberg. Staffers in Oak Brook are bracing for the possibility of more cuts at headquarters
“Everything is under the microscope,” said a source close to Cantalupo. “There are still a lot of changes to come.”
Lights, camera, action: The Chicago Mercantile Exchange wrapped a building in Times Square on Monday as part of its new marketing campaign, and Chicagoans will get what promises to be one of the more dramatic visual presentations undertaken in the Loop in recent years. Beginning at 4 a.m. Tuesday as traders head into the pits, the Merc will project the new subtheme “Where there’s no such thing as no such thing” on the entire length of the west wall of the Exchange’s building. The display, which will run for four hours every morning through early February, is part of the Exchange’s new advertising campaign.
The campaign was launched Monday by Chicago-based DraftWorldwide, which hopes to set the exchange apart from its competitors by playing up the Merc’s speed and technology in a new pitch to investors. The main theme: “CME now.”
“It’s people making huge decisions and they have to make them right now,” said Draft’s senior executive vice president Lor Gold.
Draft won the business after a shootout late last year. The account win is an example of agency chief Howard Draft’s vision to offer a full package of marketing services to clients.
Cuts at World Book: Chicago-based World Book cut several jobs, many in the editorial division, as part of a major restructuring that will include the complete overhaul of the way it sells its products going forward. The publisher of encyclopedias and other reference materials said that it would eventually add 65 full-time sales and marketing positions as it moves away from its traditional commission-only sales approach. Sources said 10 positions were cut last week. Matthew Thibeau, senior vice president of sales and marketing, said that eight positions were eliminated.
On the move: Ray Warren, former president and CEO of Raycom Sports, was named managing director of Omnicom Group’s OMD USA. He replaces Dan Rank, who left in November to join Universal Television Group in Chicago. … Bob Dwyer, formerly vice president of corporate communications at Exelon Energy Delivery, joined Fleishman-Hillard’s Chicago office as a senior vice president in its corporate reputation practice.
Toasting Terlato: Anthony J. Terlato, chairman and CEO of the Terlato Wine Group, was named Wine Enthusiast Magazine’s “Man of the Year.” The editorial staff cited the longtime Chicago resident for “changing the way Americans drink,” during his tenure in the wine industry.
———-
Jim Kirk’s Media and Marketing column appears Tuesday, Wednesday, Thursday and Friday. Contact Jim at [email protected].