McDonald’s Franchisees Dump on Delivery
By Sara Shaw • February 20, 2019
Delivery is a high priority for McDonald’s CEO Steve Easterbrook, and a big worry for franchisees. Easterbrook expects a rapidly expanding delivery partnership with UberEats to drive sales growth. Franchisees grumble that delivery costs put more pressure on their tight profit margins.
The dispute over delivery marks another flashpoint in the increasingly tense relationship between Easterbrook and franchisees who bear much of the cost of his effort to remake McDonald’s as a “modern, progressive burger company.”
Franchisees say they understand that delivery is critical to future growth but warn it will cannibalize existing sales eventually. They also say the current deal unfairly benefits UberEats and McDonald’s.