McDonald’s reduces the number of franchise

All of us know McDonald’s company. For sure, it’s a world-wide fast food chain that connecting people from different countries. I mean that everywhere you can find McDonald’s. But nowadays this giant company wants to change the number of their restaurants, they want to reduce them. So the company introduces new approaches and management strategy.

Fast food giant McDonald’s is known for its loyalty to the entrepreneurs who want to buy a franchise. At the same time, for the businessman does not necessary to have a large network of cafes or college essay writing services – just one or two will be absolutely enough.

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However, in recent years, the corporation began to pay more attention to cooperation with big companies. They more likely will deal with big, serious company than with small businesses. Since 2014 the number of owners of McDonald’s franchises reduced to 2.6%, while the number of franchised institutions increased by 1.2%.

According to some participants and market experts, McDonald’s plans for the company – reducing the number of small franchisees and their absorption by larger companies. This will greatly facilitate the monitoring work and its complexity.

In April, CEO Steve Easterbrook said that McDonald’s strive to consolidate its restaurant chain and its unification under the leadership of a few operators.

Other participants of the market of fast food, such as Burger King or Pizza Hut, also have a large network of franchisees. However, if the largest franchise network of McDonald’s in the United States has 69 institutions, and then Burger King is bigger. They have 727 cafes, and at Pizza Hut – 1240. This type of work is better for many large companies, as it helps to control the operation of a limited number of partners.

Several decades ago, McDonald’s company sold the franchise only for few companies. While other chains prefer to subordinate whole regions of a single operator. This strategy has been caused by plans to expand its presence in the market. Today in the USA there are more than 14,000 McDonald’s restaurants. That’s why the company thinks about other models of management and closure of inefficient institutions.

About the Author: Tim Wilson is a HR is a big trade company. He likes to read business newspapers. There he usually found some information which he discus in his own blog. Also he is a perfect father and husband. His hobby is fishing and playing chess.