McDonald’s Franchisees Say The Company Is Bankrupting Them

22 Oct

McDonald’s franchisees are furious that the company’s aggressive promotions and costly restaurant upgrades are squeezing their profits, according to a new survey.

“Growth for McDonald’s is over,” one franchisee wrote in response to the survey by financial services firm Janney Capital Markets.

“I am just hoping to be flat,” another franchisee said. “[The] customer has lost faith in the brand.”

“We are leaderless,” said a third. A fourth franchisee complained, “They are being successful in bankrupting us.”

For the survey, Janney Capital Markets interviewed 32 domestic franchisees representing 256 stores. McDonald’s has more than 14,000 locations in the US.

The franchisees surveyed said their same-store sales fell by 3.6% in September.

McDonald’s global same-store sales declined 3.7% in August, marking the worst monthly drop in more than a decade. The company, which reports third quarter earnings on Tuesday, has recorded negative same-store sales in the U.S. for the last two consecutive quarters.

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Posted by on October 22, 2014 in Uncategorized


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