Franchise News

McDonald’s Restructuring Strategy Includes Plan To Increase Franchise-Owned Locations From 81 To 90 Percent

May 04, 2015 11:59 PM EDT | By Michael Smith

McDonald's Chief Executive Officer Steve Easterbrook has announced a restructuring strategy aimed at revamping the fast food chain's branding and business model.

The strategy is said to include a plan to increase the number of franchise-owned restaurants from 81 to 90 percent, the New York Post reports. This will take place over an extended period of time.

"We are announcing the initial steps to reset and turn around our business," Easterbrook said in a statement, according to the site.

The company recently made headlines after employees in 19 cities across the United States filed complaints with the U.S. Occupational Safety and Health Administration (OSHA) over workplace-related concerns.

The 28 workers are claiming they were injured while on the job because of lax safety standards and faulty equipment. Some also claimed that they had been advised to treat their wounds with mayonnaise and mustard.

Company spokeswoman Heidi Barker Sa Shekhem assured government officials, investors and consumers that they are "committed to providing safe working conditions for employees in the 14,000 McDonald's Brand US restaurants," BBC reports.

McDonald's has also made headlines for recent administrative changes in light of unfavorable economic results.

In February, Easterbrook confronted worse-than-expected sales, reporting its ninth straight month of shrinking same-store sales, with the United States accounting for a four-percent decline, Bloomberg reports.

"This likely ups the urgency in terms of this new management team putting a plan out there to turn around the business," Stephens Inc. analyst Will Slabaugh told the site. 

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