McDonald’s Is In Deep, Deep Trouble As Biggest Fast Food Chains In America Face Collapse! – Epic Economist | Economy

The biggest fast-food chain in the world, McDonald’s, is facing serious problems according to a report by Franchise Consulting Group. Over two-thirds of McDonald’s U.S. revenue comes from franchisees who say the company is on a “destructive path”. One franchisee has already gone bankrupt, and systemic risks are growing for the fast-food chain as 30% of franchisees are currently insolvent. Up to 2,000 McDonald’s restaurants could disappear from U.S. cities by the end of 2023. Regulator pressure, labor tensions, and financial losses could force the company to reduce its brick-and-mortar footprint sharply. Management is struggling to justify higher fees and other charges at a time when franchisees are already facing rising wages and costs for ingredients and packaging which are eroding profits. McDonald’s business model could be collapsing, with analysts fearing that the franchise system is approaching a major crisis. Franchisees also worry that the company is trying to be too many things for too many people and that “the system is very lost at the moment”. Americans are also outraged by rising prices and deteriorating quality.



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