Advertisement

McDonald's franchisees clashing with management over rising costs

By KATE STANTON, UPI.com
UPI /Monika Graff.
UPI /Monika Graff. | License Photo

In recent weeks, the world's largest hamburger fast-food chain has already had to contend with a massive workers' strike calling for increased pay. According to a recent Bloomberg report, McDonald's is also alienating franchisees, the small business owners who operate the company's franchises around the country.

Kathryn Slater-Carter, who joined other franchisees for a conference in California, said McDonald's is looking for ways to "shift costs to operators" to improve the company's profit margins. She and other franchisees alleged that the fast food chain is increasing rent prices and other costs, like fees for employee training.

Advertisement

In a letter to his fellow operators, one franchisee accused the company's tone of becoming "much more controlling and less inclusive.

‘‘We are continuing to work together with McDonald’s owner/operators and our supplier partners to ensure that our restaurants are providing a great experience to our customers, which involves investments in training and technology," a McDonald's rep said in a statement.

McDonald's is having a tough year, especially after its much-hyped "Dollar Menu" failed to translate into the profit margins the company had hoped for.

Advertisement

Latest Headlines

Advertisement

Trending Stories

Advertisement

Follow Us

Advertisement