Become an InsiderMcDonald's internally announced three changes that would shift costs from corporate to franchisees this week, according to internal documents seen by Business Insider. "It is the proverbial straw that broke the camel's back ... The ketchup has hit the fan," said a former McDonald's executive, who continues to work with franchisees.
Ending the Happy Meal subsidy, a roughly $300 per month subsidy that has been around for several decades. The executive and two franchisees who spoke with Business Insider were granted anonymity in order to speak freely without fear of retribution.Two people who were on the call with more than 100 franchisees, which included franchisee leadership from groups including National Franchisee Leadership Alliance and Operator's National Advertising , said that franchisee sentiment was overwhelmingly negative. According to both sources, not a single franchisee voiced support of McDonald's decision.
"COVID is surging, and they're worried about taking our Happy Meal subsidy?" a second franchisee said.
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