News

McDonald's franchisee 'wall problem'

January 25, 2019

McDonald's franchisees are letting the chain's leaders know in no uncertain terms that the inclusion of a kitchen wall in remodeling plans for their units is not only unnecessary but a cost they aren't willing to pay for, according to BloombergNews, which reviewed  correspondence about the debated feature, which one letter said produced nothing in terms of ROI. 

McDonald's franchisees said in a letter this month to fellow store operators. "We must allow our owner-operators to take back control of the reinvestment that is happening, stop the useless and problematic investing (Sam Walls), and focus our reinvestment in what will actually produce a return on investment (drive thrus and kitchens)," Bloomberg quoted one letter from franchisees to fellow operators as saying. 

The chain and its leadership are pushing store remodels with kiosks, new delivery order systems and more drive-thrus, but the initiative is being slowed by problems franchisees are expressing about its expense. The service area modernization, or SAM walls, were included to shield equipment and kitchens from public view.

The mega-chain refused to comment on its franchisee discussions, as did the 1,200-member National Owners Association of franchisees.