Blog: Instinet survey suggests mounting capital projects are forcing older and smaller operators to sell
This post is part of the On the Margin blog.
Costs for remodeling and other changes are hurting profits for McDonald’s Corp. franchisees — to the point that it’s pushing some operators out of the business altogether.
That, at least, is according to some operators in a quarterly survey from Instinet Analyst Mark Kalinowski.
“There is a rush to get out, more and more stores are up for sale,” one operator wrote. “Sad to see McDonald’s becoming something entirely different than founder Ray Kroc’s vision.”
Another wrote, “McDonald’s continues to purge itself of legacy franchisees (who think for themselves).”
McDonald’s wants franchisees to add kiosks to their stores by 2020. This comes on the heels of other investments, such as those that enable...
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