Franchise News

McDonald's Urges Franchises to Open on Christmas Day

Dec 23, 2012 02:51 PM EST | By Staff Reporter

McDonald's is trying to boost December sales by urging franchisees to open on Christmas Day, a holiday during which many of them traditionally close.

Last month, McDonald's stunned analysts by posting U.S. sales growth of 2.5% in November after a drop of 2.2 percent the prior month after franchises across the nation opened for Thanksgiving, giving overall sales a much needed boost.

"Starting with Thanksgiving, ensure your restaurants are open throughout the holidays," reads the Nov. 8 memo from McDonald's USA Chief Operating Officer Jim Johannesen which was obtained by Ad Age.

"Our largest holiday opportunity as a system is Christmas Day. Last year, [company-operated] restaurants that opened on Christmas averaged $5,500 in sales."

McDonald's would not confirm or deny the existence of the memo. Since the majority of McDonald's restaurants are owned by franchisees, it's ultimately up to those business owners whether or not to stay open for Christmas and whether to ask employees to volunteer for shifts.

"Like other retailers and restaurants, we respond to our customers' needs for convenience by being open when they need and want us, including the holidays," McDonald's spokeswoman Ofelia Casillas said, according to the Huffington Post. "For McDonald's restaurants, our employees are given the opportunity to voluntarily work these holiday hours, are compensated for working these hours and rewarded for their service."

McDonald's monthly global sales at established restaurants fell for the first time in nine years in October, but unexpectedly rebounded in November.

"Our November results were driven, in part, by our Thanksgiving Day performance," Johannesen wrote in a December 12 memo to franchisees.

In his first published operations manual, McDonald's Corp founder Ray Kroc said the company would close on Thanksgiving and Christmas to give employees time with their families.

"It's an act of desperation. The franchisees are not happy," said Richard Adams, a former McDonald's franchisee who now advises the chain's owner/operators.

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