It’s unusual to see a crowd of people toting signs and celebrating that a local restaurant has closed. The people outside the Dairy Queen in Zion, IL, had originally planned a protest urging people to boycott after the franchisee reportedly called at a customer and her children by a racial slur, but Dairy Queen pulled his franchise and the restaurant closed in the interim. [More]
Just like better burger joints have nibbled away at McDonald’s sandwich business, competitors with a wider variety of coffee options are attracting the caffeine-seeking consumers away from the Golden Arches. Now the fast food giant wants to re-establish its coffee bona fides, investing in equipment to help stores compete with the likes of Starbucks and Dunkin’ Donuts. [More]
Though McDonald’s has been riding high on all-day breakfast since its launch last year, the company’s franchisees say the novelty is fading. Part of the problem, several complain, is McDonald’s love of discounts. [More]
Wendy’s, a fast food chain that serves burgers, fries, and salad experiences, has had some recent issues with malware. Specifically, they announced last month that about 300 franchisees had been hit with malware that breached customers’ card data. The investigation continued, though, and so did fraudulent charges. It turns out that there was another piece of malware lurking in payment systems. The number of stores hit is “considerably higher” than the company originally thought. [More]
A new lawsuit filed by New York state prosecutors accuses Domino’s Pizza and three Domino’s franchisees of underpaying workers at 10 stores by at least $565,000. Meanwhile, Domino’s HQ contends it should not be a defendant because franchisees are responsible for handling issues of pay. [More]
When Seattle city leadership voted in 2014 to approve a plan to raise minimum wage to $15/hour over the course of several years, franchisees in the city said the rules were unfair and vowed to challenge the higher wages in court. Today that challenge came to a quiet end when the U.S. Supreme Court elected to not hear the matter. [More]
Beyond selling off a bunch of company-owned restaurants to franchisees, McDonald’s has been a bit vague on the details on how it intends to turn around struggling sales at the chain. Yesterday the company offered a glimmer of its vision for the future, sharing a plan with franchisees to trim its drive-thru menu, add some more midprice offerings and expand tests of its (limited) all-day breakfast menu.
It seems selling fast food restaurants to franchisees is somewhat de rigueur these days: After McDonald’s recently said it’s using that plan to steer its big turnaround plan, Wendy’s announced today that it’ll be selling a total of 640 restaurants in the U.S. and Canada this year as well as its baking operation in Zanesville, OH.
While RadioShack has declared bankruptcy and plans to liquidate, closing or maybe continuing to exist in a co-branded venture with Sprint. However, there are about 700 RadioShack stores that are doing okay. These stores are dealers and franchisees, stores that carry RadioShack merchandise and perhaps their brand, but might sell other merchandise too. The bankruptcy of RadioShack has some terrible effects on these merchants, and they’re working together to make sure that they aren’t hurt as parts of RadioShack are sold off. [More]
McDonald’s and some of its franchisees retaliated against workers who participated in protests and other demonstrations over hours and working conditions, the National Labor Relations Board said today, in announcing several complaints it filed accusing the fast-food chain of violating workers’ rights with “discriminatory discipline.”
During the last few years and under new ownership, Burger King has changed its business model slightly. The company once owned some restaurants as well as franchising its brand, but now has mostly left the restaurant-running business. Instead, they extract franchise royalties and send “field coaches” to look over the literal and metaphorical shoulders of their franchisees. [More]
When a worker at a fast food franchise acts like an a-hole, it’s obviously his boss’s immediate responsibility to investigate and discipline that employee if necessary. But does the corporate office share any liability when things go wrong at the franchisee level? What about when people from company HQ are involved in the decision of whether or not to dismiss an employee? According to California’s highest court, the buck stops at the franchisee’s door. [More]
A few weeks ago, we shared with you a Bloomberg Businessweek cover story about fast-food chain Burger King, its young leadership, and its effort to change a lot of things about the fast-food brand business model. When the chain shed most of its corporate-owned stores in the U.S. in 2012, existing franchisees like publicly traded Carrols took on those restaurants. Its sales are down, Carrols wants investors to know, because Burger King cut back on local ad reimbursements to his loyal subjects. [More]