McDonald's franchisees to receive more for restaurant upgrades

Friday, May 12, 2017

Offers to pay 55% of the costs of restaurant changes

McDonald's Corp. really wants its franchisees to help change everything from the way customers order their food to the way employees provide service. When McDonald's (MCD) imposes changes on its restaurants, it normally expects its franchisees to bear the brunt of the expenses. But in an effort to regain the core customers it has lost to rivals, the company is trying to get franchisees on board by ponying up a big chunk of the money for upgrades that can cost anywhere from $150,000 to $700,000 per location. The burger giant recently told investors that it lost 500 million U.S.

orders over the past five years--mostly to other fast-food chains, rather than to the fast-casual restaurants it was trying to emulate with healthier offerings such as sandwich wraps and salads. The company said it was hunkering down to focus on winning back its core customers on the lookout for low-cost food. Upgrades would involve installing self-order kiosks, upgrading dessert counters, buying new employee uniforms and installing table-locator technology that enables employees to bring customers' food to the table.

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