TL;DR
McDonald's is focusing on delivery as a key area for growth, with 19,000 restaurants globally offering delivery through an exclusive partnership with Uber Eats. However, this strategy is causing tensions between McDonald's corporate and its franchisees, who are not satisfied with the economics of the delivery model.
McDonald’s is reporting “positive global and domestic same-store sales” for its 2018 Q4 earnings report, despite lower guest counts, according to an article in The Spoon. The ubiquitous burger chain is also considering delivery as a “particularly lucrative area for McDonald’s moving forward,” the article said.
In 2017, McDonald’s launched an exclusive partnership with Uber Eats, the article says, and “19,000 McDonald’s restaurants globally offer delivery, making it a $3 billion business,” according to the article. “CEO Steve Easterbook noted the company will make delivery a ‘high priority’ in 2019,” according to the article.
The move is stoking mounting tensions between McDonald’s corporate and the brand’s franchisees, the article said. According to the article, about 400 McDonald’s franchisees formed the National Owners Association (NOA) in 2018, and the majority of approximately 800 franchisees surveyed about delivery said they were “not satisfied with the economics” of the Uber Eats delivery monopoly.
In this story
This story was originally published in 1851 Franchise on February 1, 2019. Burnaze summarizes and links to the original reporting.
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