McDonald’s, facing a nationwide franchisee revolt, has given stores up to three more years to complete the necessary “Experience of the Future” remodelling. The move comes in the wake of complaints from disgruntled franchisees, who have criticised McDonald’s USA office for pushing too hard and too fast for the changes. However, under the new plan, restaurants which delay the refurbishment will forgo up to 15 percent of McDonald’s contribution.
“Our growth strategy remains rooted in making positive food changes, offering new restaurant experiences and providing our guests better value,” the company said in a statement. “In 2018 alone, we launched fresh beef quarter-pound burgers, reached a deployment of EOTF in about half of restaurants and introduced a new national value menu. The adjustments we are making will allow us to continue on this path and provide greater local operator flexibility.”
Up until now, McDonald’s has been paying 55 percent of the cost of remodelling jobs, with the franchisee footing the bill for the rest. For restaurants which are not complete until 2022, the contribution will be dropped to 40 percent.
McDonald’s CEO Steve Easterbrook said that the remodelling programme was “the most significant transformation ever taken in the largest market in the McDonald’s system.”
“Franchisees are undertaking a lot all at once,” he said.
The “Experience of the Future” plan has been accused of hurting sales across the US, as restaurants close for extended periods and customers take time to adjust to the kiosk-focussed systems. As a result, several high-profile franchisees formed the first ever union.
