The coronavirus pandemic is exacerbating a longstanding feud between McDonald's Corp. and its U.S. franchisees, as social-distancing measures cut deep into the burger giant's sales and profits.
McDonald's has asked the more than 1,600 owners of its restaurants in the U.S. to do more to protect workers after some employees have contracted the virus and others have gone into quarantine.
Franchisees, in turn, say they want more financial relief from the company to help keep them afloat. Same-store sales at U.S. restaurants fell by 13% last month as dine-in service stopped across most of the U.S., the company said. McDonald's continues to make delivery and drive-through sales from many restaurants.
Tensions between the Chicago-based company and its U.S. franchisees have escalated over the past month in a series of communications viewed by The Wall Street Journal.
"Our membership and most owners are increasingly losing faith in the partnership and company leadership," the National Owners Association wrote to McDonald's executives in one letter last week.
Joe Erlinger, McDonald's U.S. division head, wrote back to the franchisee group to say that their support for the company's strategy seemed predicated on unlimited financial support.
"If that's how the NOA seeks to define its relationship with McDonald's, then in reality, we don't have a relationship, and I am extremely disappointed and disheartened by this," he wrote in a letter reviewed by the Journal.
McDonald's spokesman David Tovar said on Tuesday that it is engaged in productive discussions with franchisees. "Everybody is trying to pull together to get us through this," Mr. Tovar said. The NOA declined to comment on discussions with McDonald's.
Write to Heather Haddon at heather.haddon@wsj.com
"assistance" - Google News
April 15, 2020 at 02:29AM
https://ift.tt/2XCihZQ
McDonald's owners, company spar over assistance - MarketWatch
"assistance" - Google News
https://ift.tt/2Ne4zX9
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update
Bagikan Berita Ini
0 Response to "McDonald's owners, company spar over assistance - MarketWatch"
Post a Comment