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Industry Updates

They Deserve a Financial Break Today and McDonald’s is Giving its Franchisees Just That


McDonald’s CEO Chris Kempczinski: “I believe our system can position itself to reemerge even stronger.”

McDonald’s is taking care of its own — that being the thousands of independent businessmen and women who operate franchises around the world.

As the world’s second-largest fast-food chain prepares to reopen its doors for inside service, McDonald’s CEO Chris Kempczinski recently announced the chain is taking “timely, targeted and temporary actions” to provide financial assistance to franchisees around the world to enable them to continue supporting their workforces and serving their communities. The initiatives will deploy a significant incremental investment to accelerate franchisee recovery, enabling them to return to growth and maintain the retailer’s competitive advantage, Kempczinski noted.

“We know the path is uncertain and will present further challenges,” Kempczinski added in a video on the retailer’s website. “We will continue to approach the reopening with the same prudent mindset that has guided us since the onset of the pandemic.”

The financial recovery program includes three core components:

• A significant corporate investment in marketing spend across the U.S. and internationally operated market segments equivalent to one month of co-op contributions (varies by market, approximately 4 percent of pre-COVID systemwide sales) to accelerate recovery and drive sales.

• Targeted financial support to the hardest hit operators.

• Support for the unique circumstances facing operators in certain markets, such as those operating delivery-only restaurants.

“I believe our system can position itself to reemerge even stronger using our scale to deepen our competitive advantages,” Kempczinski stated.

As it begins to reopen, the retailer said it has made nearly 50 process changes in its 14,000 U.S. locations in accordance with guidance from the Centers for Disease Control and Prevention and state and local health experts. These include providing wellness and temperature checks, masks and gloves, social distancing guidelines, increased cleanings and installing protective barriers.