McDonald’s to Sell More Franchises, Tests Food Delivery Service

McDonald’s to Sell More Franchises, Tests Food Delivery Service


American Black Film Festival partner McDonald’s is taking on a new business model that involves selling more restaurants to franchisees and restructuring its international operations. According to reports, the changes will cut $300 million in yearly costs and “create a more nimble business.”

[Related: McDonald’s Increases Hourly Wage and Benefits for a Portion of Its Workers]

The CEO, Steve Easterbrook, said that the logistics must be modernized in order to meet new global challenges. “In the last five years, the world has moved faster outside the business than inside,” he said. “I will not shy away from the urgent need to reset this business.”

By 2018, McDonald’s plans to sell 3,500 of its roughly 36,000 world-wide restaurant locations to franchisees. The corporation’s aim is to be 90% franchised to provide more stable and predictable income.

The global business will reorganize into four segments, starting July 1: The United States, International Lead Markets, High-growth Markets, and Foundational Markets. This will group markets based on similar dynamics and challenges, versus geographic location.

Reduced costs of $300 million are expected to happen by the end of 2017. Layoffs, mainly in other countries, will be one of the results.

Additionally, McDonald’s is trying out delivery service at 88 New York restaurants through Postmates, Inc. The third-party delivery service has found other allies in Chipotle and Starbucks.

Black Enterprise and Film Life present The 19th Annual American Black Film Festival June 11-June 14 in New York City. To register now and find out more visit, ABFF.com. Join us at The American Black Film Festival, the largest gathering for film and TV enthusiasts.


×