Operators are pushing back against an estimated $170 million in higher fees and eliminated subsidies set to be put in place next year.
McDonald’s franchisees are pushing back against a series of charges and subsidy cuts that one estimate suggests could cost operators $170 million next year.
In an email the company’s leadership team sent to operators on Thursday, and seen by Restaurant Business, the company is telling U.S. franchisees that it plans to end a more than 30-year-old subsidy and have franchisees pre-fund technology charges and pay for the brand’s Archways to Opportunity education initiative.
McDonald’s said many of these initiatives have been years in the making and were set to take place as part of an agreement between the company and its franchisees in 2017. But some franchisees said they were “blindsided” by the letter. One operator said privately that it was “shortsighted” and could lead operators to vote against efforts to promote value in the coming year as they seek to recoup their costs.
The letter featured three major changes in how different initiatives are funded.
People keep closing down to stay safe are not thinking about how it will be paid back especially under a socialist party. I’ll give you a clue TAXES, wage cuts and massive down sizing. How’s that 15 dollars an hour working out.
Yeppers…higher costs funnel down to the customer. Are the robots (kiosks) enough big business?
Keep the money local where a great burger can be purchased at a real nice establishment we ALL know about.
Plus my fresh made chix nuggets are from real chix breasts. Middle finger big business.