The chain reveals plan to end a $50 million a year subsidy paid to franchisees for Happy Meals; operators will also pay more for technology costs over 12 months; McDonald's plans to reallocate funds to fuel other programs such as support of restaurant employees
When trouble is brewing at McDonald’s Corp., veteran company insiders often say “the ketchup has hit the fan.” That phrase is likely being uttered this week as McDonald’s Corp. tells franchisees to expect an increase in certain fees in 2021 including a temporary increase in technology-supported payments.
The company is scheduled to host a webcast Monday afternoon to discuss subsidy changes and fee increases, which include ending a Happy Meal subsidy that will save the Chicago-based chain roughly $50 million a year. For at least two decades, the company has been paying owner-operators about $300 a month per restaurant to keep Happy Meal prices affordable.
Initially, the subsidy was created to keep the price of a Happy Meal at $1.99. With ...
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