Baxia Markets
May 24, 2021

McDonalds, I'm Lovin It!

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Have you missed dining in at McDonalds? Well, they are getting ready to fully reopen dining rooms in the US by August. They have found opposition from some franchisees who claim that there is not enough staff or customers interested to make it worth it. And just like that we can see a potential battle between franchisor and franchisee. At the end of the day McDonalds needs to make money.


The company has not yet set a hard date for franchises to reopen but it is expected to happen between now and August as COVID rates and local regulations allow it. More than 95% of McDonald’s restaurants are owned by franchisees with 13,600 locations in the US. The company said that they are willing to work on an alternate plan and to be flexible with individual owners when necessary. As of last month only 15% of customer dining areas were open.


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Many franchisees say they are looking to reopen, particularly after spending so much on renovations. Others are reluctant to bring back in store dining since their restaurants are doing well from the drive thrus, take out and delivery, all of which can be operated with a limited staff. Most restaurants across the country are having a hard time finding workers, but they expect this to change as they announced a wage increase to its employees which could motivate more people to work.

McDonald’s decision to bring back indoor dining could spark a ripple effect in the U.S. Other restaurants could follow the same path. Despite the slow start, McDonald’s shares are up about 8% this year, mainly fueled by the strength of its drive-thru business and the launch of its new chicken sandwich. “I’m Lovin It”!


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