McDonald's relations with Franchisees in US hit New Low
A survey released on Friday stated that the fast food restaurant company McDonald's relations with franchisees in the United States has hit a new low as the Oak Brook headquartered company’s new chief executive fights to turn around the fast-food giant's domestic business.
According to reports, more than 30 franchisees participated in the monthly survey, which has been published by Janney Capital Markets restaurant analyst Mark Kalinowski. One of the franchisees participating in the survey said that the company’s relations with its franchisees are the worst the franchise partner has ever seen.
The franchisees in the survey represent 1% of the fast food company’s United States franchisees. In addition, they operate the company’s about 215 restaurants. In the United States, McDonald's has more than 14,000 restaurants.
McDonald's spokeswoman Lisa McComb noted the poll size. According to McComb, “The company values franchisee feedback and has a solid working relationship with them.” As per the reports, the franchisees’ response in the latest survey was based on a scale, where 1 meant ‘poor’ and 5 meant ‘excellent’.
The reports stated that the average rating that the company received came in at 1.48, which was a record low and down from the historical average of 2.1. Kalinowski said that six-month business outlook rating of the franchisees fell to about 1.81. Historical average of the survey was 2.8, according to Kalinowski.
Recently, franchisees of the world's largest chain of hamburger fast food restaurants gathered in Las Vegas where they had closed-door meetings with the parent company. The event was dubbed the ‘Turnaround Summit’. The event marked the official debut of Chief Executive Steve Easterbrook.
While talking about the summit, a franchisee said that the summit was very confusing. McDonald's management does not know what its franchisees want to be, according to the franchisee.