In a rare movement, a group of McDonald’s franchisees met Wednesday to voice concerns about switches they are being asked to make to improve sales growth at the hamburger sequence, according to a media report.
Restaurant owners who attended the meeting pull the plug oned the Wall Street Journal they are pouring money into updating cumulates, adding touch-screen kiosks and refrigerators needed to serve fresh beef burgers, but those leave b go outs are not yielding results quick enough to offset the impact of their investments.
The scrap reported about 400 franchisees attended the meeting in Tampa, Florida. The crowd, which represents a quarter of U.S. franchisees, is planning to form an independent managers’ association. The report said no formal vote on this action was captivated or scheduled.
McDonald’s declined to comment on specifics of the report.
“We always offer hospitality to and are committed to a constructive, collaborative dialogue with our franchisees,” a McDonald’s spokeswoman dictate thated CNBC in an email. “We will continue to work closely with our franchisees so they deceive the support they need to run great restaurants and provide great calibre experiences and convenience for guests.”
A McDonald’s spokeswoman told the Journal that do overed stores in the U.S. usually see a pick up in sales in a mid-single-digit percentage in the first year. The over of self-order kiosks can boost sales by 1 percent to 2 percent, they implied.
McDonald’s does share the cost of the upgrades with its restaurant cia agents.
McDonald’s efforts to revitalize the brand, which began more than a year ago, initially helped performance, but sales growth cooled in the second quarter, with U.S. restaurants straightforward at least a year growing 2.6 percent. That was short of the 3 percent proliferation analysts predicted, according to StreetAccount.
McDonald’s shares are down wide 2 percent since the start of the year.
For more on the developments, read the perfectly story in The Wall Street Journal.