McDonald's Abuse Of Operators (& Why 40% Are Going Bankrupt)
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For decades, McDonald’s operators have put up with their onesided policies and antics, but it looks like Covid was the last straw for many operators. 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 pentup 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 drivethru 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.
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Timestamps:
0:00McDonald’s Exodus
2:58Expensive Remodels
6:26Facade Of A Partnership
9:36Ugly Breakup
12:23The Future Of McDonald’s
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Logically Answered is centered around explaining the economics of tech and social media. These sectors are generally analyzed through the lenses of finance and economics to determine which industries and companies will thrive and which will fall. In addition to this analysis, the content is often focused on the stories of various famous entrepreneurs such as Elon Musk, Steve Jobs, and Jeff Bezos. Logically Answered also cover the rise and fall of several interesting companies and services that we come across on a daytoday basis. There have been so many companies that have risen to fame and then died out in a single generation. The most interesting companies are the ones that were able to save themselves and avoid bankruptcy. Feel free to follow the podcast if you would like to see any of these topics Logically Answered.
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Disclaimer: This podcast is an independently created audio adaptation of content originally published by Logically Answered. This is a fan made podcast that appreciates the channel’s insightful approach to knowledge and aims to make it accessible to those who prefer listening over watching. This podcast is not affiliated with, endorsed by, or officially connected to Logically Answered in any way. All rights to the original content belong to Logically Answered. If you have any concerns, please reach out.
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