QSR Franchisees Feeling Pinched

QSR Web:

Quick-service restaurant brands are trying a variety of tactics to drive traffic as the industry struggles to lure consumers in to their stores. Franchisees often take the brunt of the cost of those efforts, from boosting inventory for new menu item launches to being required to reconfigure their stores for new product lines.

Franchisees sometimes must take on products lines even if they question their profitability, such as with Florida-based McDonald’s franchisee Mike Wright, according to a story in The Wall Street Journal. Wright reluctantly installed equipment in his store for the chain’s new McCafé espresso-based coffee drinks.

From The Wall Street Journal:

In Southern markets, selling hot coffee isn’t easy, Wright says. “When you start selling Bubba a cappuccino, it’s like trying to sell grits to a New Yorker,” he says. “They forced everyone to put this in their stores regardless of profitability.”

McDonald’s is telling its franchisees to have faith in the new menu. “Despite the economy, we are still seeing consistent growth in both our premium and value offerings,” says Julie Pottebaum, a McDonald’s spokeswoman.

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