McDonald's franchisees furious over high operational costs

Franchisees of McDonald's are furious over high operational costs, complaining that fees for rent, remodeling and training are too much.

McDonald's
McDonald's (Image from goodreads.com)
Bloomberg News reports that due to the heavier financial burden to operate a McDonald’s restaurant, franchises are “less likely to open new restaurants and refurbish them,” which has a negative impact on sales in general.

The report said domestic expansion slowed down since more than a decade ago. Restaurant consultant Dick Adams, who formerly owned a McDonald’s store, said that time in the past when there was low morale among franchisees is coming back.

Businesswoman Kathryn Slater-Carter, who operates two locations in the states, told the news provider that having a McDonald’s business “is not as profitable as it used to be.”

The fastfood chain has more than 14,100 stores across the US, almost 90 percent of which are franchisee-operated.

Company executives, franchise owners as well as suppliers are reportedly holding dialogues and brainstorming to find a solution to the growing problem.