Franchise and franchisee relationships feature heavily in the QSR Industry News this week. Let’s jump into the major stories.
1. Subway responds to Sandwich Day giveaways
Franchisees reportedly pleaded with the chain to stop the giveaway due to high costs.
Subway has disputed an article from the Sydney Morning Herald and The Age that detailed “struggling” franchisees revolting “over the high cost” of its World Sandwich Day promotion.
Jess says: When margins are tight it’s a big ask to give your stock away for free. I’m sure Subway have the best intentions, but they need to be able to prove that the investment is worth it. It’s a shame that it took a strike for Subway to listen to their franchisees.Jess Nolev, Onboarder at Mobi2Go
2. McDonald’s loses $4 billion in value after CEO fired over relationship with subordinate
McDonald’s lost $4 billion in value early Monday morning, with the stock sinking as much as 3% after investors balked at the shock firing of the company’s CEO.
The fast-food chain said in a press release on Sunday that it fired CEO Steve Easterbrook for violating company policy by having a relationship with an employee.
Ant says: McDonalds share price rose 2X in Eastbrook’s 3.5 years as CEO. He drove technology with considerable command:Antony Darvill, Director of Sales at Mobi2Go
artificial intelligence, automation, in-store pick-up, home delivery and automated kiosks. His business decisions clearly more forward thinking than his personal decisions.
3. Wendy’s will consider a franchisee opt-out on breakfast
In a third-quarter earnings call Wednesday, Gunter Plosch, the company’s chief financial officer said franchisees will “have an opportunity to potentially raise concerns if the breakfast business is not creating enough financial returns for them.”
Plosch said Wendy’s would be willing to discuss with those operators the potential of opting out.
Anna says: It’s great that they’re prepared to listen to concerns from franchisees. I’m sure keeping that line of communication open takes effort, but when you’re trying to create a cohesive business it’s necessary to listen to the people actually serving your customers.Anna Lorek, Digital Designer at Mobi2Go
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