McDonald's Abuse of Operators and Why 40% are Going Bankrupt
For decades, McDonald’s operators have put up with their one-sided policies and antics, but it looks like Covid was the last straw for many operators.
2023-03-27 21:00:00 - Logically Answered
Within the past few years, 28% of all McDonald’s were either shut down or sold off, and that’s not including the ones that were shut down due to the Russia situation.
But, why are so many operators quitting the business? Well, McDonald’s likes to say that it’s just pent-up demand from the pandemic, but the real reason seems to trace its roots back to some expensive remodels in 2018.
McDonald’s required that all operators remodel their stores to incorporate new furniture, new decor, remodeled counters, exterior redesigns, digital kiosks, and reimagined drive-thru lanes.
While this was feasible and even lucrative for stores that were performing well, these remodel jeopardize the livelihoods of as much as 40% of operators.
Operators have also become wiser about how McDonald’s really makes money.
The truth to McDonald’s success isn’t actually selling food, but renting out locations to operators for top dollar.
This video explains the top grievances of McDonald’s employees and why McDonald’s operators are leaving in droves.