Day 197 - 07 Dec 95 - Page 13
1 A. That is it. I mean, at that time, traditionally,
2 sales had increased every year but we were having a
3 problem at this time where sales were decreasing or
4 staying negative. What that is actually saying is
5 although we took less money than we were targeted to make,
6 we had actually made more money on the bottom line than we
7 were budgeted to do.
8
9 Q. Then you were congratulated: "An excellent effort in this
10 area. Well done". That is 21st August 1989. There is a
11 theme running throughout, I believe, all the PRs from you
12 and Mark Davis about local store marketing, increasing the
13 effort all the time. Here it says on the bottom of page
14 46 under "Goal Maximising Sales": (2) Marketing to
15 increase sales more than 10 per cent per month". What
16 were they saying there?
17 A. What they were looking at there would be at a local
18 level finding ways of involving outside organisations, or
19 getting involved in some sort of outside activity that
20 would result in more people coming into the restaurant and
21 spending money. It could be local charities or something
22 like that.
23
24 The idea behind it would be obviously to increase the
25 turnover in the restaurant.
26
27 Q. Over the page it says, for example: "Expand birthday
28 party programme, coffee top ups". What is a "coffee top
29 up".
30 A. It was, basically, at certain times of the day where
31 people were coming in and they would buy one coffee, and
32 you would just go round and top the coffee up free of
33 charge, again to encourage people to keep coming back.
34
35 Q. At the bottom of page 47 under "Optimising profits", your
36 goal was to beat budget PAC for each month. It says: "I
37 will leave methods and objectives to you". Yes?
38 A. Yes.
39
40 Q. Just note that.
41
42 MR. JUSTICE BELL: Mr. Davis was criticising you for making a
43 huge effort for full field visits and other things, and
44 then running too tight for the following three or four
45 days, was he not?
46 A. It is one of those awkward things with McDonald's
47 where you are criticised for doing something but you would
48 be criticised if you did not do it. It was a catch-22
49 situation.
50
51 Q. Do you accept, if you look at the paragraph above "Sales"
52 on page 44, Mr. Davis was criticising you for doing that,
53 saying that the store will not improve unless you even
54 things out?
55
56 MR. MORRIS: When he was a Supervisor to you and an inspection
57 was known to be going to happen in one of his stores, what
58 would he say to you as regards what you had to do to
59 prepare for an inspection?
60 A. It would be expected to do late closes, possibly an
