Franchise News:Recently, McDonald’s CEO Steve Easterbook announced to increase the wages of its employees who working in outlets. McDonald’s is planning to revamp its positioning and look of the restaurants, adding some more options like antibiotic-free chicken, giving the brand a premium picture. The franchise owners are upset due to hike in salaries of the outlet employees. At present, it is applicable only in company owned outlets, but there are chances that it might get enforced in franchised outlets as well.
The franchisees say that it feels like company has abandoned them. The survey on franchisees has been carried out by Mark Kalinowski, an analyst. The franchisees have rate 1.81 out of 5 on Kalinowski scale, interpreting somewhere between poor and fair. The franchisee owners are also upset due to sudden changes in the management under the leadership of CEO Steve Easterbook. One franchisee has also said that the company does not treat them as a partner and they feel betrayed. On this, McDonalds has said that they maintain solid relationship with their franchisees. They would also work upon the feedback received by the franchisees.
McDonald’s has recently cut 8 items from the menu and the sales has dropped to 2% and earnings has fell for 15% from last year.