McDonald's moving HQ to Oprah's old Harpo Studios digs [[Chicago story)

**tkelly1986** · June-01-16, 09:29 PM

It looks like McDonalds is joining the swift exodus of suburban Chicago companies moving downtown. Archer Daniels, Kraft Heinz, Motorola Mobility, Motorola Solutions, Boeing, Google's new midwest HQ, GoGo Internet ect..all want the to be where the talent is. I have a friend in the counsel's office at McDonalds said this was a needed move, as they've had the hardest time attracting people to Oak Brook.

Nevertheless, when does Metro Detroit wake up and take note? The future is downtown. And yes, even with the crime stats and terrible Chicago Public Schools [[which may go bankrupt before DPS), companies are still abandoning the relic office parks for the city...

http://www.chicagobusiness.com/artic...oreUserAgent=1

**313WX** · June-01-16, 10:27 PM

Good for McDonald's and Chicago!!!

**Wesley Mouch** · June-02-16, 09:57 AM

Originally Posted by tkelly1986

It looks like McDonalds is joining the swift exodus of suburban Chicago companies moving downtown. Archer Daniels, Kraft Heinz, Motorola Mobility, Motorola Solutions, Boeing, Google's new midwest HQ, GoGo Internet ect..all want the to be where the talent is. I have a friend in the counsel's office at McDonalds said this was a needed move, as they've had the hardest time attracting people to Oak Brook.

Nevertheless, when does Metro Detroit wake up and take note? The future is downtown. And yes, even with the crime stats and terrible Chicago Public Schools [[which may go bankrupt before DPS), companies are still abandoning the relic office parks for the city...

http://www.chicagobusiness.com/artic...oreUserAgent=1

Downtown [[central) Chicago works [[pun intended). Kids like cities. Yes, Detroit should be paying attention.

Government rebuilding of neighbourhood rather than the core would be a mistake for all citizens. Detroiter should be paying attention.

**ndavies** · June-02-16, 10:18 AM

Kids like downtown until they marry and have kids. Then they flee the high costs, crime and crappy schools of the city, just like their parents did.

**BankruptcyGuy** · June-02-16, 10:40 AM

Originally Posted by ndavies

Kids like downtown until they marry and have kids. Then they flee the high costs, crime and crappy schools of the city, just like their parents did.

Are you referring to Detroit or Chicago with this?

McDonald's complex in Oak Brook is pretty tired. Think KMart's former HQ in Troy.

The rumor is Harpo Studio's location, which is not "downtown." It's West Loop/Fulton Market. They are NOT the same.

I guess the closest Detroit parallel is maybe the north end of the New Center Area. But it's not a "downtown" location. McDonald's had a signed letter of intent for 350,000 sf of space in downtown, but they backed out.

Curious to see what incentives are offered to get them to sign.

**tkelly1986** · June-02-16, 11:00 AM

Originally Posted by BankruptcyGuy

Are you referring to Detroit or Chicago with this?

McDonald's complex in Oak Brook is pretty tired. Think KMart's former HQ in Troy.

The rumor is Harpo Studio's location, which is not "downtown." It's West Loop/Fulton Market. They are NOT the same.

I guess the closest Detroit parallel is maybe the north end of the New Center Area. But it's not a "downtown" location. McDonald's had a signed letter of intent for 350,000 sf of space in downtown, but they backed out.

Curious to see what incentives are offered to get them to sign.

For the purposes of attracting talent...it's in the city. The west loop is also where a bunch of bars are, especially around the Fulton Street Market area. easy access from mass transit ect...

**tkelly1986** · June-02-16, 11:01 AM

Originally Posted by ndavies

Kids like downtown until they marry and have kids. Then they flee the high costs, crime and crappy schools of the city, just like their parents did.

This trend seems to be slowing. I have not had a single "couple" friend with kids friend move out of DC, or Chicago. Two places I have lived in the past 10 years.

**Scottathew** · June-02-16, 11:15 AM

I know quite a few people that are moving into Downtown Detroit or the greater CBD area. Most of them are single, and NONE of them have children.

This will be an issue for Detroit and Chicago; retaining people who are having kids.

**EGrant** · June-02-16, 12:03 PM

Originally Posted by 48307

I know quite a few people that are moving into Downtown Detroit or the greater CBD area. Most of them are single, and NONE of them have children.

This will be an issue for Detroit and Chicago; retaining people who are having kids.

Obviously you want to retain people, but there will always be new, younger generations coming up. It's about adding more people in that 23-30 demo every year. Yeah, you lose a lot of people as they grow older and have a family, but they are being replaced faster than they are leaving by a new set of young people who want to live downtown [[at least, that's the hope.)

Hope that makes sense. Increase the amounts of young people moving downtown to offset the people leaving.

**Wesley Mouch** · June-02-16, 02:23 PM

Originally Posted by EGrant

Obviously you want to retain people, but there will always be new, younger generations coming up. It's about adding more people in that 23-30 demo every year. Yeah, you lose a lot of people as they grow older and have a family, but they are being replaced faster than they are leaving by a new set of young people who want to live downtown [[at least, that's the hope.)

Hope that makes sense. Increase the amounts of young people moving downtown to offset the people leaving.

Generations are different in some ways, and the same in others. I do think the current generation of young people want to live downtown. But if the schools and safety aren't addressed, they won't.

So if I were a city, I'd get downtown schools and safety done.

[[DPS might want to think about this. If they want to stay relevant and prove that they can play a new game, here's a chance. Charters may not want to go into downtown because of the higher expenses. DPS should be able to fund longer-term capital projects. Should does not mean can nor will.)

**iheartthed** · June-02-16, 02:36 PM

Originally Posted by ndavies

Kids like downtown until they marry and have kids. Then they flee the high costs, crime and crappy schools of the city, just like their parents did.

Even if that's true, which I don't exactly agree, then it would mean a strong downtown is vital for suburbs...

**tkelly1986** · June-02-16, 03:01 PM

Originally Posted by iheartthed

Even if that's true, which I don't exactly agree, then it would mean a strong downtown is vital for suburbs...

Bingo! And this is what L. Brooks Patterson has never understood. What metro Detroit lacks is the draw/magnet that brings people to the area in the first place. If they move out to the burbs once they have kids, fine. But just get people to Detroit and let things progress as they do in other, functional regions.

**Hypestyles** · June-02-16, 08:54 PM

More businesses of various kinds need to relocate to the east side neighborhoods, west side neighborhoods, and other locales in Detroit proper. Plenty of abandoned/empty buildings and landspace.

**Towne Cluber** · June-02-16, 11:19 PM

Originally Posted by tkelly1986

Bingo! And this is what L. Brooks Patterson has never understood. What metro Detroit lacks is the draw/magnet that brings people to the area in the first place. If they move out to the burbs once they have kids, fine. But just get people to Detroit and let things progress as they do in other, functional regions.

It's also what many Detroit leaders never understood. To have things progress as they do in other functional regions would have required a certain level of loss of control for various Detroit political, religious, social, etc. figures. Or perhaps they understood all too well...

**BankruptcyGuy** · June-03-16, 08:20 AM

Originally Posted by Hypestyles

More businesses of various kinds need to relocate to the east side neighborhoods, west side neighborhoods, and other locales in Detroit proper. Plenty of abandoned/empty buildings and landspace.

Cost of land is a very small part of the calculus undertaken by a retailer. The cost of a building [[sticks and bricks) is pretty much the same within an MSA, unless union labor is required, then the cost is higher.

Retailers look heavily at demographics and purchasing power in an area. If it's too low to support the business model, they won't locate there.

**Bham1982** · June-03-16, 08:30 AM

Sounds like this post was written by Mayor Rahm Emanuel.

Chicago is an absolute mess right now. Worst population loss in the country, worst budget situation in the country, pension crisis, schools won't open in the Fall, taxes are about to skyrocket, slowest job growth in the country. Actually, all of Illinois is a mess. If anything, Chicago is probably in slightly better shape than the suburbs and state. At least they have a vibrant downtown and real draws.

The fact that McDonalds is massively downsizing and opening a small office near downtown while abandoning a massive HQ is hardly good news. May be good for immediate property owners near the new site, but, at best, is a complete wash, and more realistically, is a net negative for the region, with further job losses and economic retrenchment.

But anything to distract from the city's corruption and long-term decline.

**dtowncitylover** · June-03-16, 09:04 AM

Originally Posted by Bham1982

Sounds like this post was written by Mayor Rahm Emanuel.

Chicago is an absolute mess right now. Worst population loss in the country, worst budget situation in the country, pension crisis, schools won't open in the Fall, taxes are about to skyrocket, slowest job growth in the country. Actually, all of Illinois is a mess. If anything, Chicago is probably in slightly better shape than the suburbs and state. At least they have a vibrant downtown and real draws.

The fact that McDonalds is massively downsizing and opening a small office near downtown while abandoning a massive HQ is hardly good news. May be good for immediate property owners near the new site, but, at best, is a complete wash, and more realistically, is a net negative for the region, with further job losses and economic retrenchment.

But anything to distract from the city's corruption and long-term decline.

Oh look, Eeyore woke up from his nap!

**ABetterDetroit** · June-03-16, 10:28 AM

Originally Posted by Wesley Mouch

[[DPS might want to think about this. If they want to stay relevant and prove that they can play a new game, here's a chance. Charters may not want to go into downtown because of the higher expenses. DPS should be able to fund longer-term capital projects. Should does not mean can nor will.)

Hypocritical suggestion if there ever was.

Lets get this straight here. You acknowledge that the charters are out looking for the easiest pickings and want to put minimal investment in to maximize profits and then suggest that the state and tax payers pick up the tab for the "higher expenses". In every other post you make on schools in every thread you constantly clamor for more charters because the costs are less than the public system.

Which way way do you want it? Of course there is the low hanging fruit the private entities will scope up to make money, but what about the rest? The cost go up significantly after that process. You can't have the cake and eat it too. This is a serious problem that requires intelligent solutions. The political crap that comes out of both sides of the mouth for whoever is in the room will not solve anything.

**Mackinaw** · June-03-16, 02:32 PM

Originally Posted by iheartthed

Even if that's true, which I don't exactly agree, then it would mean a strong downtown is vital for suburbs...

Right, and ndavies rather basic statement is not so much about people's preferences as it is about the fact that we are governing our cities correctly, and due to entrenched segregation of the classes and races.

In our better cities and neighborhoods, these problems have been overcome. Detroit needs to get on that bandwagon more than any other-- even more than the topic of this thread [[seems to me Detroit's performing pretty well in getting employers downtown since 2010, though there are some obvious candidates that need to step up and do it).

**Danny** · June-03-16, 03:40 PM

Bump! De bump bump

**Bham1982** · June-04-16, 11:57 AM

Originally Posted by dtowncitylover

Oh look, Eeyore woke up from his nap!

I guess reality bites? But if you prefer the "head in the sand, everything's fine" outlook on life, have at it. Michigan and Illinois have been following your worldview for decades now, with predictable results.

In the meantime, McDonalds' first round of massive downsizing has begun, and the spinmeisters will claim it's a a "transformation" and "rebirth". Millennials don't want to eat that garbage, and parents no longer give it to their kids.

http://www.chicagobusiness.com/artic...rters-staffers

**Hermod** · June-04-16, 12:37 PM

Originally Posted by Bham1982

I guess reality bites? But if you prefer the "head in the sand, everything's fine" outlook on life, have at it. Michigan and Illinois have been following your worldview for decades now, with predictable results.

In the meantime, McDonalds' first round of massive downsizing has begun, and the spinmeisters will claim it's a a "transformation" and "rebirth". Millennials don't want to eat that garbage, and parents no longer give it to their kids.

http://www.chicagobusiness.com/artic...rters-staffers

They aren't closing restaurants. McDonald's has been very profitable over the years and with no earnings pressure on them has allowed the headquarters "clerks and jerks" overhead to follow Parkinson's Law and get bloated. With a pinch on the earnings, they are doing draconian cuts to reduce overhead. McDonald's has enough flexibility to adapt their menus to the times. I think that they are a better investment than Chipotle or Pei Wei.

**Wesley Mouch** · June-04-16, 12:54 PM

Originally Posted by Hermod

They aren't closing restaurants. McDonald's has been very profitable over the years and with no earnings pressure on them has allowed the headquarters "clerks and jerks" overhead to follow Parkinson's Law and get bloated. With a pinch on the earnings, they are doing draconian cuts to reduce overhead. McDonald's has enough flexibility to adapt their menus to the times. I think that they are a better investment than Chipotle or Pei Wei.

12 months ago, stock was in the 90s. Now in the 120s. Also pays about 1% dividend. Not bad.

I do understand they were having static to declining sales in the recent past, but reports now are that seems to be over, and the machine is doing just fine, thank you. Sales are down a bit last year or two, but shares up 40% ain't a sign of disaster or bloat. All-day breakfast continues to grow, and be rolled out internationally.

Wish I'd bought some stock before the recent bump. Been on my radar. Wanted to buy for my vegetarian/organic/gluten-free friends' kids so they can learn how you make money by selling stuff people actually want.

**Hermod** · June-04-16, 01:25 PM

Originally Posted by Wesley Mouch

12 months ago, stock was in the 90s. Now in the 120s. Also pays about 1% dividend. Not bad.

I do understand they were having static to declining sales in the recent past, but reports now are that seems to be over, and the machine is doing just fine, thank you. Sales are down a bit last year or two, but shares up 40% ain't a sign of disaster or bloat. All-day breakfast continues to grow, and be rolled out internationally.

Wish I'd bought some stock before the recent bump. Been on my radar. Wanted to buy for my vegetarian/organic/gluten-free friends' kids so they can learn how you make money by selling stuff people actually want.

$129 a share and yielding 2.8%. The dividend has been steadily growing. Early 2015, they had an earnings per share dip.