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.
