One of the worlds most popular fast food company McDonald’s and its franchisees would be a spending a massive $390 million in an effort to upgrade around 550 McDonald’s restaurants in California. They are modernizing the dining rooms, providing self-order kiosks inside its restaurants and installing new digital menu boards among a few improvements. The remodeled counters and kiosks will enable expanded table service, in which the workers bring the food to customers.
This modernization is a part of a systemwide upgrade of most McDonald’s outlets nationwide. The entire project will cost McDonald’s and its franchisees about $6 billion. The hamburger chain and its franchisees have declared that this would not result in any job losses. But there be a slight increase in the jobs.
Clay Paschen III, who owns 16 McDonald’s restaurants in Ventura County and also employs nearly 1,000 staff said that there will not be any loss of employment and there would be potentially an increase in jobs. There can be some shifts in duties as they would be bringing the employees from behind the counter to the front. This will engage them in a more personal way with the customers.
McDonald’s outlets in Southern California were the first to get company’s modernization plan going. As many as 500 restaurants in this region have got an upgradation in the last 2 years. This includes about a dozen owned by Clay Paschen. These 550 outlets which would be modernized are in addition to the 500 which have got upgraded.
The chief executive officer of McDonald’s, Steve Easterbrook, had said in January that the upgrade program which is called the Experience of the Future plan, has been getting a very positive feedback from customers.
He said that customers have been telling that the new McDonald’s are better and they are loving it. The customers are visiting more frequently and also spending earlier than before.
McDonald’s wants to stay ahead in the highly competitive food business and hence the modernization. It had also earlier this year introduced a new version of its Dollar Menu which has items priced at $1, $2 and $3.
U.S. same-store sales figures have been rising. They have climbed 2.6% in the second quarter compared with the same period a year earlier. This is despite the traffic slump.
90 % of the 37,000 McDonald’s restaurants in 120 countries are operated by franchisees. In the U.S. market itself they serve about 25 million people in a day. McDonald’s revenue in 2017 had totaled $22.8 billion which includes the revenue it receives from its franchisees.