This “smoking gun” killed the McDonald’s ice cream hackers’ startup

Jeepster1

Ars Scholae Palatinae
709
Despite the percentages in this article, based on people bitching online, you'd think 70% of McDonald's ice cream machines are broken! It's interesting that it has gained such traction in the zeitgeist. Regardless of that, it's a weird scam that is happening. When is the last time you went to an ice cream store and they said: "it's broken" for me, never.
There is even a website:
https://mcbroken.com/
Funny thing is most of these machines tend to “break” a few hours before closing time. The cleaning/disinfecting cycle is 4 hours apparently and probably the teenagers that work the evening shift couldn’t care less, so they start the cleaning early and just tell customers that it’s broken. Sounds reasonable to me :).
 
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8 (10 / -2)
And you...think there's any sort of practical difference between the two? Seize 5% a billionaire's assets, and it will have absolutely no impact on their life or lifestyles. Seize 5% of the assets owned by someone making minimum wage, and that's a bill that goes into default. That's a missed rental payment. That's a sudden spike in the interest rates on a credit card. That's debt that goes to a collector. Notice how there's a world of difference in how the two groups are impacted by the 'same' fine?

Are you starting to see that no matter how you approach this, fines will never have intended effect? To have any real impact on the wealthy, they'll be life-destroying to everyone else. And anything less than that is a free pass for the wealthy to run roughshod over society without a care in the world. Which is exactly how things currently are...because fines don't work.
You think someone earning $7.25 an hour is paying their monthly bills with stock dividends? Someone making minimum wage is almost guaranteed to have almost no savings and aren't likely to have hard assets. What? A $2500 vehicle maybe? That would be a $125 fine ... which is a speeding ticket. You would honestly need a bare deterrent minimum fine level because many (most) lower-income people living paycheck to paycheck would likely be facing $0 fines.

Give that same speeding ticket to a dude who lives in a $5 million McMansion, $250K in the bank, and two $80K vehicles ... and they are paying $262,508. Some dude who owns a $35 million yacht plus a $250 million investment portfolio ... they'd get a $14,250,000 speeding ticket. Yeah. That would absolutely get everybody's attention and make people at every resource level seriously consider speeding.

I'm not necessarily endorsing the scheme, but your argument makes absolutely no sense. The place where the policy would hit hardest is the middle class, homeowners specifically, where a major chunk of liquid income maintains a primary residence which is also a reasonably valuable asset. And that bit really could be handled with a progressive rate and maybe a degree of exemption for primary residences.
 
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9 (12 / -3)

star-strewn

Ars Scholae Palatinae
769
Subscriptor++
The US - and, more particularly, regular 'mom and pop' business owners and average Joes and Janes - need to get off their arses and demand proper regulation of elements of capitalism that clearly need it (add in healthcare while we're at it).

This seems to be a peculiarly USA problem, because Macca's corporate (and Taylor) can get away with scamming their franchisees (Mickey D's must get some sort of kickback from Taylor, right?) all because their agreement says they can (in effect).

In sane jurisdictions, parties that hold disproportionate power in an agreement can't just insist upon unfair terms and make the David-party bend over to whatever Goliath-whim they might have.
You speak as if you are not in the US. Is that the case?

What you're really asking for is more socialist democratic candidates and progress on issues most people care about. Unfortunately, given the near-deadlock that a polarizing two party system can impose on our single-choice elections, moving to a voting method that encourages working together, such as open primary elections and ranked choice voting (RCV), is probably the best way forward.

Notably, Alaska's last election used RCV, which hopefully survives the war that the national Republican party now seems to be waging against it, because it seems to have resulted in exactly the kind of changes desired:
https://fairvote.org/new-unite-america-report-shows-the-benefits-of-rcv-in-alaska/
Maine already uses RCV to elect congress reps, and Nevada is taking steps toward RCV:
https://alaskapublic.org/2023/09/19...-system-is-praised-and-criticized-nationally/
 
Upvote
17 (18 / -1)
Yeah, the coffee was somewhere around 180° to 190°. She suffered 3rd degree burns and had to have skin grafts. McDonald's refused to cover her medical expenses, (she was asking for 20k), and ended up paying out well over 2 million.

The people defending McDonald's have to be astroturfers, because I can't believe an honest human being thinks that corporate gross negligence that results in serious bodily injury is somehow defensible. Or maybe I'm naive.

I learned about the McDonald's case in a business law class. In the brief that I read, as you correctly point out, the victim only requested 20K to cover her medical bills. It was the jury who awarded her more for her pain and severing.

Additionally, McDonalds only increased the temperature, to meet customer's demands for "hotter coffee". It's not an excuse, but it is the reason the coffee was served at that temperature, and sadly the lady suffered for that decision.

In the class we talked about the choice McDonalds had to make, either cover the individual's medical expenses and open them up to lability for anyone burned by coffee in the future or go to court and defend their actions. In the end they probably should have just covered the medical expenses, lowered the temperature of the coffee, instead of defending their actions. However, McDonalds didn't intentionally seek to cause harm to the lady, one could argue (poorly) that the lady wanted hotter coffee since she ordered it from McDonalds instead of a competitor who was offering slightly colder coffee.

In the end what I learned, is the case was entirely cut and dry, and it wasn't simply McDonalds offering 190°. They did their market research before increasing the temperature. They determine the benefits of customers being more satisfied with the product, outweighed the potential lability.
 
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-14 (6 / -20)

eggie

Ars Tribunus Militum
1,880
What would be the justification to apply such different punishment for the same offense? Isn’t the punishment supposed to be proportional to the offense regardless of who the offender is?
The penalty is supposed to act as a deterrent. A flat fine can't deter everybody evenly. It's a week's labor for one offender, while another's investments earn more than the fine during the time he's pulled over for a ticket to be written.
 
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17 (17 / 0)

waldo22

Ars Praetorian
562
Subscriptor++
I wish I understood WHY it was expected by most consumers. It pisses me off when I receive a coffee that is too hot to even sip, let alone enjoy, for the next ~10-15 minutes.

If I wanted coffee then, I wouldn't be in line now!
1000x this. I usually get my coffee from local joints where I can lower the temperature with milk. If I go to Starbucks I have to order it "130" which means 130 degrees Fahrenheit. I guess they add a bit of cool water or something.

I HATE scalding my tongue. I guess some folks eat to live instead of live to eat and don't care if they scorch their tastebuds.

Fast food places are the worst. I always order a milk and an empty cup so I can drink it right away.
 
Upvote
2 (5 / -3)
You think someone earning $7.25 an hour is paying their monthly bills with stock dividends? Someone making minimum wage is almost guaranteed to have almost no savings and aren't likely to have hard assets. What? A $2500 vehicle maybe? That would be a $125 fine ... which is a speeding ticket. You would honestly need a bare deterrent minimum fine level because many (most) lower-income people living paycheck to paycheck would likely be facing $0 fines.

Give that same speeding ticket to a dude who lives in a $5 million McMansion, $250K in the bank, and two $80K vehicles ... and they are paying $262,508. Some dude who owns a $35 million yacht plus a $250 million investment portfolio ... they'd get a $14,250,000 speeding ticket. Yeah. That would absolutely get everybody's attention and make people at every resource level seriously consider speeding.

I'm not necessarily endorsing the scheme, but your argument makes absolutely no sense. The place where the policy would hit hardest is the middle class, homeowners specifically, where a major chunk of liquid income maintains a primary residence which is also a reasonably valuable asset. And that bit really could be handled with a progressive rate and maybe a degree of exemption for primary residences.
A billionaire losing 99% of their assets is just a less wealthy, but still wealthier than 90% of Americans. While someone making minimum wage losing even 5% of their earnings is flirting with a never-ending debt spiral until their life falls apart completely. The only way for a fine to a person making minimum wage can be equivalent to someone making 7- and 8-figure salaries is if the fine to the millionaires is essentially 100% of everything they own and make. Because that's the impact of even small fines to people making minimum wage. It upends everything. They risk losing the roof over their heads, their jobs, having property repossessed, going hungry, etc, etc. Because it's not about how big the fine is. It's about what they have left over afterward.

Which goes back to what I've said multiple times already -- if the penalty for a crime is a fine, then it's not a crime for anyone rich enough to afford it. And that is EXACTLY how the wealthy and their corporations treat fines -- it's just the cost of doing business.
 
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Upvote
-10 (6 / -16)
I don't get one thing - why McD wants so much to keep doing business with a company that basically damages their brand (by providing devices that are broken so often it became a meme) and just milks money from them for lackluster service support. I don't see how they gain anything, they only loose money and reputation.
Perhaps there is some collusion between the owners of Taylor machines and McD's corporate that its a win-win. Notice how Taylor kept wanting to introduce a feature of network monitoring and still hasn't...for years!
Personally, I no longer visit or contribute to McDonalds bottom line. But there are icecream stands and places like Rita's that use machines to make custard/softserve/gilato and might be Taylor machines...
 
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2 (2 / 0)

drkstar82

Smack-Fu Master, in training
44
According to the franchise agreement if they sue McDonalds can unilaterally cancel the franchise agreement and terminate the lease agreement. There is no recourse even if the franchisee wins.

So yes in theory, in practice no not really.
Ah American Capitalism, yes you can fight us, win and still lose everything you ever worked for!
 
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11 (11 / 0)

panton41

Ars Legatus Legionis
11,115
Subscriptor
That's at GrubHub's extortionate rates...

On the McDonald's App, for a location within walking distance of me, it's $2.99 and bacon is $2.19.

OK, I was wrong, and Jesus Rastafarian Christ that bacon is a rip-off of biblical proportions... If I walked to that McDonald's I'd pass a grocery store that sells a pack of 10-slices of pre-cooked bacon for $5.

Though, the McDonald's's does a buy-one, get-one sale if you get the McDouble and value fries that, along with a value drink, brings it to $5.98.
 
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6 (6 / 0)

jmauro

Ars Scholae Palatinae
655
Subscriptor++
Well they do as McDonalds does own 2100 restaurants themselves 693 of which are US based. Of course that pails in comparison to the 38,000 franchised restaurants of which 12,750 are US based (all numbers as of the end of 2022).
With an exception of very high volume high profit stores, most of those stores are owned in the US at least because one franchisee was removed and they haven’t found a new one yet to take over.
 
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5 (5 / 0)

Ostracus

Ars Legatus Legionis
27,984
You speak as if you are not in the US. Is that the case?

What you're really asking for is more socialist democratic candidates and progress on issues most people care about. Unfortunately, given the near-deadlock that a polarizing two party system can impose on our single-choice elections, moving to a voting method that encourages working together, such as open primary elections and ranked choice voting (RCV), is probably the best way forward.

Notably, Alaska's last election used RCV, which hopefully survives the war that the national Republican party now seems to be waging against it, because it seems to have resulted in exactly the kind of changes desired:
https://fairvote.org/new-unite-america-report-shows-the-benefits-of-rcv-in-alaska/
Maine already uses RCV to elect congress reps, and Nevada is taking steps toward RCV:
https://alaskapublic.org/2023/09/19...-system-is-praised-and-criticized-nationally/
Interesting read. Two party only and no term limits is part of the issue too.
 
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-4 (3 / -7)

OrvGull

Ars Legatus Legionis
10,644
Interesting read. Two party only and no term limits is part of the issue too.
I used to live in a state with legislative term limits, and they don't really help. Lobbyists end up with more power because they're the only ones who have been around long enough to know how things work, and everybody spends their final term lining up their next gig instead of governing.
 
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23 (23 / 0)

kupokupo

Wise, Aged Ars Veteran
185
I was never a big fan of McDonalds to begin with, but the McLibel case convinced me to actively boycott them.
The McSandwich case only reinforced that McDonalds is not the kind of company I care to give my custom.

Considering what they offer, it's not even a sacrifice.
After much persuasion, my kids convinced me to step foot into a current McD "restaurant" to get one of their much vaunted "burgers" - so they don't miss out on the McD experience which their peers have all had.
Sure thing. (I hated every second of that current McD experience. The "cashier" was very good with customer service, although obviously it isn't one of their main tasks these days.) My fam walked out with our takeaway bags of burgers and fries.
And the kids have never asked for a repeat experience. Not even for the drive-thru.
 
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-13 (1 / -14)

The Geeman

Wise, Aged Ars Veteran
125
Personally, I can say that occasional trips to McD's to get some easy crowd-pleasers have tanked ever since I couldn't guarantee returning with a milkshake. And knowing that corporate seemed completely disinterested in solving the egregious problem has really put me off the entire company; if they're willing to shit on us customers this consistently about such a widespread issue, what else are they going to shit on us about?

Edit: It's especially bad because THIS DID NOT USED TO HAPPEN. McDonald's literally made their service worse in a big way that affects my every interaction with them. There's no way to argue that they didn't make it worse, and they're not fixing it.
They seem to think this is an okay way to run a business.
As with all big corporates there's a tipping point from which 'provide a good service, make decent money' tips to 'we're big enough to make loads of money regardless of the service'.
We can all list them.
I used to occasionally have Maccies' fries and shake and usually ended up with just fries until I found what's in them. The rest has always seemed flaccid junk to me. Hooray for 5 Guys! Haha
 
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-5 (0 / -5)

citpeks

Ars Tribunus Militum
1,533
Is this just the US?

I wonder how it works internationally.

For some reason Burger King and McDonalds taste better in Europe.

In my travels, I found that the McDonalds outlets outside the U.S. are generally nicer, and more up-to-date (with the ordering kiosks). And McCafes are full-blown coffee counters, like Starbucks, not just branding for the coffee drinks.

Can't say whether that's due to the urban locations I came across, or more a function of the older classic suburban locations common to my area.

I rarely eat McDonalds at home in the U.S., except when I get a craving for a breakfast item, and I don't see that getting any more frequent based on the $7-8 a biscuit w/egg and hash brown cost last time I went, and the upcharge for anything but coffee for the full combo.

Menu wise, I did find the chicken wings served on the Italian and German menus to be pretty tasty, though I'm sure they're "bad" in some way. But I am a sucker for fried chicken.

I haven't had the soft serve since I was a kid.

Another thing that being abroad has made me realize that the cost of fast (processed) food is getting out of hand, and how the affordable, genuine food that's more the norm elsewhere (particularly in Asia), is missed.

Here, I mostly limit myself to either In-n-Out (good for fast food, but important to remember, it's still fast food; treats employees well), or Popeye's (the fried chicken thing) every few months.
 
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10 (11 / -1)

theSeb

Ars Praefectus
4,487
Subscriptor
I don't get one thing - why McD wants so much to keep doing business with a company that basically damages their brand (by providing devices that are broken so often it became a meme) and just milks money from them for lackluster service support. I don't see how they gain anything, they only loose money and reputation.
I also dont see how this company is any way a competitor to Taylor, since it alerts of an issue. They are not trying to take the fixing business.
 
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3 (3 / 0)
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panton41

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190°F on the other hand would make sense, and I should have written 190°C / 463.15 K, please respect units please, Ars has an international audience
Ars is written for, and primary read by, an American audience.

Can we please, Please, PLEASE not do this units bullshit every single fucking time stuff like this comes up?
 
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10 (20 / -10)
I also dont see how this company is any way a competitor to Taylor, since it alerts of an issue. They are not trying to take the fixing business.
Their device provides error messages to the franchise in easy to understand language, thus allowing them to fix it themselves and not call a Taylor service tech as often.

It only competes with Taylor in the sense that Taylor specifically set up their business model around requiring repeated service visits, and Kytch removes the need for that service.
 
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11 (11 / 0)

Ostracus

Ars Legatus Legionis
27,984
Ars is written for, and primary read by, an American audience.

Can we please, Please, PLEASE not do this units bullshit every single fucking time stuff like this comes up?
I'm surprised no one has written a browser extension that does the conversions for people. As often as I've seen it across the web, it should be already available.
 
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3 (4 / -1)

davey_w

Smack-Fu Master, in training
25
Subscriptor
I saw a play at the Ensemble Studio Theatre in NYC called Smart, where the daughter wanted to help train Jennie, the assistant she put in her mother's home by having it's creator listen to everything said in the room. Daughter had some issues when she had a man over and intimate conversation was heard. But when Mom fell, the listener called 911, which saved Mom's life. EST is a great Off-Broadway theater. I've never seen a bad play there.
 
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-9 (0 / -9)
I'm surprised no one has written a browser extension that does the conversions for people. As often as I've seen it across the web, it should be already available.
Well, how does the extension know wether it is Fahrenheit or Celsius if people write ° instead of °F / °C / K ?
 
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2 (5 / -3)

Wheels Of Confusion

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7 (8 / -1)

rosen380

Ars Tribunus Angusticlavius
6,887
In my travels, I found that the McDonalds outlets outside the U.S. are generally nicer, and more up-to-date (with the ordering kiosks). And McCafes are full-blown coffee counters, like Starbucks, not just branding for the coffee drinks.
I guess it might depend on what you mean by "travels".

If internationally, you are generally visiting McD in touristy sorts of areas, then sure, I'd expect the, be be nicer and better, just like they seem to be in touristy areas in the US. Like there is a big difference between the McD near me (suburbs outside of a small city) and the McD you'll find in Times Square or on the strip in Las Vegas.

But if you mean, "I moved to France and lived in the outskirts of Aix-en-Provence for a few years," and the local McD's were consistently nicer I guess I'd be a touch surprised.
 
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5 (5 / 0)

balthazarr

Ars Tribunus Angusticlavius
6,183
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Ars is written for, and primary read by, an American audience.

Can we please, Please, PLEASE not do this units bullshit every single fucking time stuff like this comes up?
Ars also purports to be science-focussed, so SI Units should be its primary units.
 
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-14 (7 / -21)
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190° is above boiling point, pretty sure that would be burnt coffee.

190°F on the other hand would make sense, and I should have written 190°C / 463.15 K, please respect units please, Ars has an international audience
Given that the difficulty in running a take-away business selling coffee pressurized to at least 12 atmospheres which explodes into superheated steam the moment you open it would be considerable - it should have been pretty obvious the units that were being used weren't celsius.
 
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21 (21 / 0)

Wheels Of Confusion

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I don't imagine the Venn of Ars readers and McDonalds customers is particularly large.

It's not designed or marketed to be food for adults, and there are myriad better options.
Tell me you've never seen a McDonald's ad without telling me you've never seen a McDonald's ad.
I can't remember the last time there was one emphasizing their Happy Meals. It's always breakfasts, chicken sandwiches, and all their various McCafe coffee products nowadays.
 
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7 (7 / 0)

orwelldesign

Ars Tribunus Angusticlavius
6,720
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What? The average McDonalds location nets the owner 150K. Top locations can net 400-500K. They sell about 3 million $/store annually with a margin in the 5-6% range. There are locations that can reach like $9 million in annual sales.

Yeah, that checks out as an average. I was replying to a post asking "what should I buy for a business" that had already excluded restaurants anyway. Your first restaurant? You'll spend at least a couple years either barely breaking even or shoveling more money in the pit. And you'll definitely be working 80+ hours a week, which, while it's not ideal, has an ending.

Much more than the average, I'm curious the median income. There's got to be some heavy outliers that skew the average much higher than the ground truth: airports, Times Square, that sort. I know our local fella (7 restaurants) does NOT live the sort of life that 7x150k would suggest. He's firmly upper middle class. Firmly upper, firmly middle.

But you can buy a tool truck and make money relatively quickly, especially if you have existing relationships with mechanics -- and I'd think one might not want to do a tool truck unless those relationships already exist. I know our Cornwell guy stole a lot of Matco's business by being much, much more responsive: he'd be there in less than an hour to replace broken sockets, wrenches, that sort of thing, and must have had a bunch of specialty tools in another location -- where Matco was special order, and would take a week, Cornwell would be that hour or so.

(I've a vivid memory of my lead tech getting stuck on an Infiniti, iirc the QX40 -- it's a weird V8, only in that model, and there's a weird wrench that's absolutely necessary. He got stuck without the wrench and Matco said "Thursday" while Cornwell said "right after lunch," and ever after had half of [tech]'s business.)
 
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Shavano

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I learned about the McDonald's case in a business law class. In the brief that I read, as you correctly point out, the victim only requested 20K to cover her medical bills. It was the jury who awarded her more for her pain and severing.

Additionally, McDonalds only increased the temperature, to meet customer's demands for "hotter coffee". It's not an excuse, but it is the reason the coffee was served at that temperature, and sadly the lady suffered for that decision.

In the class we talked about the choice McDonalds had to make, either cover the individual's medical expenses and open them up to lability for anyone burned by coffee in the future or go to court and defend their actions. In the end they probably should have just covered the medical expenses, lowered the temperature of the coffee, instead of defending their actions. However, McDonalds didn't intentionally seek to cause harm to the lady, one could argue (poorly) that the lady wanted hotter coffee since she ordered it from McDonalds instead of a competitor who was offering slightly colder coffee.

In the end what I learned, is the case was entirely cut and dry, and it wasn't simply McDonalds offering 190°. They did their market research before increasing the temperature. They determine the benefits of customers being more satisfied with the product, outweighed the potential lability.
IOW they decided take the risk, and the lady got burned due to their decision, resulting in a jury deciding they would have to pay for it. It came out in discovery that many previous customers had also suffered burns from excessively hot coffee, so McDonalds deciding to take the case to court was an incomprehensibly stupid decision.
 
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13 (13 / 0)