Posted on 04/08/2023 8:28:52 PM PDT by SeekAndFind
McDonald’s Corp.’s restructuring this week is reaching company wide, resulting in hundreds of layoffs and for some employees reductions in their packages, according to people familiar with the matter.
Job cuts and changes at the burger chain have affected employees in the U.S. and abroad, at McDonald’s Chicago headquarters and in its field offices, and across departments including marketing and operations, the people said.
The corporate restructuring has unfolded in a multipart process this week, some of the people said and internal company communications showed. McDonald’s temporarily closed its U.S. offices and started informing some corporate employees about layoffs on Monday, The Wall Street Journal has reported.
The fast-food chain also offered some employees a chance to remain at the company with reductions in their compensation packages, including changes to titles and benefits such as bonuses and equity grants, according to people familiar with the matter.
This week’s restructuring moves included role changes or promotions for other employees, including nearly 10 U.S. officers working across operations, finance and marketing, according to an internal company email sent Thursday.
Companies across the U.S. economy are shedding jobs, often white-collar positions, amid concerns about a potential recession. Layoffs that began in the tech sector last year have spread to other industries, with companies from Goldman Sachs Group Inc. to Amazon.com Inc. recently trimming their ranks.
McDonald’s told U.S. restaurant owners and operators in the Thursday email that it would close its field offices in coming months, saying that they are underutilized with most field staff spending their time in restaurants. The company said instead it would adopt a single, national structure overseeing its 10 field offices.
“While the McDonald’s Brand is in the strongest position it has been in years, we also recognize that our business has grown increasingly complex in recent years,”
(Excerpt) Read more at wsj.com ...
I can't imagine eating crappy fast food that has been made even crappier in an attempt to keep the price in line with the costs. If a lb of un-fancy ground beef costs $6.59 and a Quarter Pounder costs $4.89 one has to wonder at what it is they are actually eating.
This whole business is also a reminder that the real minimum wage isn't whatever the government dictates, whether $1.25/hr, $12.5/hr, $15/hr or $17.5/hr.
It's $0/hr
That’s your opinion and I understand what you’re saying.
I don’t give a shit What their focus was on who got laid off or why. I also understand raw resource costs and equally don’t give a shit. We’re approaching economic “hard times”, and layoffs are common when the economy starts looking dim. Time to cut the fat and figure out how to keep operating at a profit if possible.
I’m saying that I can personally no longer justify spending so much money for a simple meal they offer. I’ve occasionally eaten there over many decades and their fare has become cost prohibitive. If your price points scare off long time customers, that’s probably not a healthy outlook for corporate.
I’m saying if they can’t get back to cheap prices for what they sell, they are doomed. That is the bottom line and has a fundamental impact on any corporate “staffing”.
I showed it to him when he got off work. He told me that they don't care. He no longer works there...
Is corporate moving overseas?
Thank you!
Thank you!
You’ve been here long enough to notice…
Freepers today are…..
OK, next comes Ronald McDonald dancing as a drag queen.
It is difficult to peg the exact dollar amount each restaurant sends to MCD but it starts with a 4% franchise fee and a $45,000 initial fee that also costs $45k to renew. There is also not less than a 4% advertising fee, and many additional fees for software, cash registers, and everything in the store. It was once said the total costs average 21% of gross sales.
Average per store sales are under $3 million, so profit hovers (Fox News calc) around $150,000, which is about 5% net.
If people only realized that McD Corporate is in the real estate business they (might) understand. But they don’t. Burgers, fries and Shakes are the franchise’s business. McD’s Corporate business is real estate.
Read people and learn something, if not, watch the movie “The Founder”, it’s on Netflix.
“ Consumers think of McDonald’s as a burger restaurant, but in the business world, McDonald’s is considered a real estate company.”
“ Is McDonald’s one of the largest real estate owner?
McDonald’s is one of the biggest real estate companies in the world. It owns or leases more than 39,000 restaurants in over 100 countries and has a portfolio worth an estimated $30 billion.”
“Where does McDonals make most of its money?
While its restaurants serve food, the company makes most of its earnings through real estate. It creates revenue through franchise agreements and leasing its restaurants to owners at huge markups over the real estate market value for the property.”
I 100% agree with you.
The cost of a Quarter Pounder includes franchise fees, real estate costs, utilities, maintenance, equipment, advertising, food costs and wages.
I don’t care for mickey d’s food. But, I have to say that their Ronald mcdonald house is a huge blessing.
My granddaughter had need of them acouple weeks ago when she had her twins by c-section. The babies needed time in the nicu and she herself nearly died due to a particular health issue.
Rmdh opened to them along with the older children. They were treated very well and were amazed by the help they received which included rooms, bed, bedding, meals, package of personal care items appropriate for the individuals, playground for young children and blankets everyone could take home.
I mention this because they have thatchange box at the payment window, and they really do help in a big way.
I don’t know what’s going on behind the scenes, but rmdh is good so I hope they don’t reduce those services.
Until I received this firsthand onfo, I had no Idea that they actually took good care of families, so now you know, too.
Even if you don’t eat their food, it doesn’t hurt to drop swing through for a coffee or cool beverage and drop a few coins in the box from time to time.
At $6.59 a pound, a quarter pound of beef is $1.65. Then you need to buy the bun, ketchup, mustard and onion. Then gas, propane or electric to cook it and then your time. (Time is money). You easily have $3.00 invested in your homemade QP. Then there’s the clean up. McD also provides you with the box it comes in and if you get the meal the bag or cardboard the fries come in and the cup for your drink. You can throw that stuff right in the trash, where at home you have to clean the utensils, pans and run the dishwasher. Really not much difference in cost which is why people buy McD products to save time.
Inflation is killing the take away food places McDonald’s Sub Way carl’s and many more and the states that add the fuel to the fire with $15.00 an hour wages.
When democrats rule you always know what to expect.
Folks on this website seemingly hate everything that’s successful. There are not many companies more successful than McDonalds.
I’m not arguing about quality and taste mind you, that is subjective, but overall McD is the undisputed King in the fast food world, like em or not. They are not going anywhere, McDonalds opens a new restaurant every 14.5 hours, almost 2 per day. That is unbelievable!
McDonalds had net profit over $6 billion dollars last year, inflation be damned.
All that is true, which is why what you eat at a fast food joint barely qualifies as food. Really not much difference in cost which is why people buy McD products to save time.
Oh, but what a difference in quality! But hey, it's a free country. People can (and do) eat sh*t if they want, or are too lazy to do something as basic as flip a burger on their grill or pan.
It's no wonder American businesses prefer to hire Mexicans.
No Mexicans at my local 3 McD’s. The Mexican restaurants for sure, but that’s who I want fixing my Taco or Burrito’s and Carnitas. Why bring race into this? Most Mexicans around here do landscaping, roofing and drywall and do a damned good job.
Many are are in bad shape cutting pay and jobs.
met profit over $6 billion dollars last year = LAST YEAR
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