McDonald’s is changing how franchises are awarded in order to attract more diverse candidates, the latest adjustment in how the burger chain’s management controls its franchisees.
Beginning in 2023, the fast-food behemoth will consider each potential new operator on an equal footing. Spouses and children of current franchisees have previously received preferential treatment.
“We’ve been doing a lot of thinking about how we continue to attract and retain the industry’s best owner/operators – individuals who represent the diverse communities we serve, bring a growth mindset and focus on executional excellence, while cultivating a positive work environment for restaurant teams,” McDonald’s U.S. President Joe Erlinger said in a message to franchisees, as reported by the media.
McDonald’s will also separate the process of renewing franchisees’ 20-year contracts from the determination of whether the franchisee can operate more restaurants. Furthermore, Erlinger informed US franchisees that the company will include its beliefs more clearly into its franchisee criteria.
The corporation has recently been under fire for a plan to implement a new grading system early next year, which has irritated several franchisees who are concerned about potentially alienating employees.
In the United States, McDonald’s has approximately 13,000 franchised restaurants. According to Restaurant Business Online, over 1,750 sites were sold last year, in part because some operators elected to leave the franchise.
McDonald’s vowed in December to attract more franchisees from diverse backgrounds, pledging $250 million over the next five years to assist those individuals in financing a franchise. It is part of the company’s broader efforts to promote diversity at all levels.
In recent years, black franchisees, both current and past, have sued the chain, alleging racial discrimination. One of the lawsuits was dismissed, and the other resulted in a $33.5 million settlement with McDonald’s.
In late May, the majority of the company’s shareholders voted in favour of an independent civil rights audit. Although the plan was not legally binding, the corporation stated that it had recruited a third party to perform a diversity evaluation.
(Adapted from BusinessInsider.in)