McDonald’s Canister/Other and National Programs

Based on the first six months

Canister Program

While our revenue is up year over year in the program due to the addition of the Clark organization joining the program, the program as a whole is not performing as in years past and is not meeting the numbers there were budgeted for 2017. However, the way of raising revenue through the Donation Box program is still a significant contributor to funding our mission.Mindful of slowing guest counts, change in service patterns and change in cashless use the Global office made a big investment in campaigns and advertising to support the program. *NOTE in 2018 the Global office will be phasing in the long anticipated Round Up program which will be done through credit card transactions.

Explanations:

From the Global Office

1.)*NOTEThe downward trend in the canister income is a national trend, but the first time we are seeing it in our market area.

Due to:

Slowing guest counts

Change in service patterns

Increasingly a cashless environment

From RMHC of CNY

2.)The addition of 16 new restaurants is helping to increase the revenue in the program, however, the restaurants are not performing at the level at which we thought they would. We used the average of the overall canister revenue per restaurant to estimate the revenue for the additional canisters.

To help offset the loss, we have worked in partnership with the third party canister collectors to adjust the amount of collection throughout the co op. The adjustment was not done until June. We will reevaluate the collection schedule when we receive the September collection report.

3.)When we budgeted for the 16 new restaurants in the canister program we used the average monthly collection for the 2016 program and adjusted accordingly for the addition of the new restaurants. We also added an additional $200 a month in the overall program because we had added more collections and thought we would see the results in increased revenue.

We simply overestimated the new revenue from the 16 additional restaurants.

We are not seeing the additional revenue in connection with the additional collection so we have adjusted those pickups accordingly.

McDonald’s Other Programs

The local McDonald’s co op hosted a paper sale fundraiser to run concurrently with the national Shamrock Shake promotion held in March. The campaign is on track to meet its goal. We are currently collecting the last of the donations. We are on track to meet the $66k budget.

McDonald’s National Programs

The Shamrock Shake Promotion was held at the end of March. This program was a new additional program to the annual fall promotion. We budgeted the spring promotion based on the fall promotion revenue from 2016. While the promotion did generate additional income, it did not meet the expectations of the global office and we will see a $23k loss for this promotion as such a short fall in the $96k budgeted number.