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FROM THE EDITOR 10 May 2013

VIABLE business?

Simon-2012

One of the best-known names in New Zealand is a brand that failed to achieve its goals and ceased trading 15 years ago – Georgie Pie. Now the name is back, at least for a trial period. A former McDonald’s MD once said bringing back Georgie Pie was a “Damned if you do, damned if you don’t” decision and it seems he was right. The same people who were so vociferous saying how far they’d travel for a Georgie Pie have been quick to turn on McDonald’s, criticising the fact that there won’t be dedicated new restaurants, that the initial trial is taking place only in a small area, and, above all, that the price will be considerably more than the $1 that was hopelessly uneconomic 15 years ago. ‘I wanted Georgie Pie back, but exactly as it was,’ wailed one poor, deluded person on Facebook. In other words, she wanted someone to recreate a failed business.

The first duty of McDonald’s is to its franchisees, some of whom will be enthusiastic participants in the test. They will be keen to make it work but for Georgie Pie to go national, the model has to be a viable one. That’s what this test is about. The comments being published not only on social media but the general press, too, suggest that few people have bothered to understand that.
Read our analysis here.

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