Day 137 - 19 Jun 95 - Page 28


     
     1
     2   Q.   -- or people like car hire businesses?
     3        A.  I am referring to all of them.  It is -- we have been
     4        recognised many times in the media by various associations
     5        as having the largest group of minority operators of any
     6        organisation.
     7
     8   Q.   All I am asking is, I twigged about car hire; I guessed
     9        that a lot of those were franchised operations and
    10        I understand quick service restaurants, but what other big
    11        franchise operations in other fields of commerce are there?
    12        A.  The photography, places that develop pictures, they are
    13        largely franchised; dry cleaning establishments would be
    14        largely franchised operations; gasoline stations, if you
    15        will, would be franchised operations; the retailing area,
    16        in particular, has a lot of hotels, frankly, are often
    17        times franchised operations.  What comes to mind are people
    18        like the Hyatt Corporation.
    19
    20   Q.   Anyone with a brand name or selling a particular product
    21        like what we call petrol -- I think you call gasoline --
    22        things like that, which will have the name of the
    23        standard  -----
    24        A.  "Esso" or, yes, exactly.  Franchising is a very big
    25        thing within the United States.
    26
    27   MR. RAMPTON:  Before I leave franchising for the moment,
    28        Mr. Stein, do you have any idea what proportion of
    29        owner/operators started out as crew?
    30        A.  Yes, I do.
    31
    32   Q.   Roughly?
    33        A.  30 per cent.
    34
    35   Q.   Do you have any idea what proportion of the Managers who
    36        work for those owner/operators might have started as crew?
    37        A.  Yes, I do.  We did a survey of -- a random survey so
    38        that ------
    39
    40   Q.   A sample?
    41        A.  Yes, I believe it was 50 of our operators, and we
    42        picked those in the city area, those in the suburban area,
    43        those in various parts of the United States, to try to get
    44        a good representative sampling.  It came back that over 90
    45        per cent, the figure was 94 per cent, started as crew.
    46        That is very consistent with my experience and observations
    47        of where owner/operators generally obtain their management
    48        from.
    49
    50   Q.   Well have you got to learn in the course of your 21 years 
    51        at McDonald's about the sort of conditions which apply 
    52        amongst your competitors and in other parts of the retail 
    53        industry?
    54        A.  Generally speaking?
    55
    56   Q.   Generally speaking.
    57        A.  Yes.
    58
    59   Q.   Have you learned a bit about that?
    60        A.  Yes.

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