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9 mentions found


☆ McDonald's to raise royalty fees for new franchised restaurants for first time in nearly 30 years
  + stars: | 2023-09-22 | by ( Amelia Lucas | ) www.cnbc.com   time to read: +3 min
McDonald's franchisees who add new restaurants will soon have to pay higher royalty fees. It's the first time in nearly three decades that McDonald's is hiking its royalty fees. However, the higher rate will affect new franchisees, buyers of company-owned restaurants, relocated restaurants and other scenarios that involve the franchisor. McDonald's will also stop calling the payments "service fees," and instead use the term "royalty fees," which most franchisors favor. They pay rent, monthly royalty fees and other charges, such as annual fees toward the company's mobile app, in order to operate as part of McDonald's system.
Persons: Joe Erlinger, McDonald's, Erlinger, Ian Borden Organizations: CNBC, Kalinowski Equity Research Locations: McDonald's, California, U.S
☆ A fight between fast-food chains and unions in California is over, for now – what to know
  + stars: | 2023-09-15 | by ( Amelia Lucas | ) www.cnbc.com   time to read: +8 min
Gavin Newsom's office, also creates a nine-person council that will decide on future wage hikes for the fast-food industry in California through 2029. The deal will mean a wage floor of $20 for California workers at fast-food chains with at least 60 locations nationwide, starting April 1. The council will include four representatives from the fast-food industry, four from the workers' side and one neutral party who will serve as chair. But the fast-food industry was attacking the bill before it even made its way to Newsom's desk. Fast-food workers employed by affected restaurants will see pay increases of as much as 25% hit their paychecks starting in April.
Persons: Mario Tama, Gavin Newsom's, Mark Kalinowski, Newsom, Joe Erlinger, Erlinger, Jan, What's, Joe Pawlak, Technomic, they'll, Joe Pawlak Technomic, Pawlak, Mary Kay Henry, it's, Sean Kennedy, Burger Organizations: Getty, Gov, Equity Research, Democrat, FAST, Yum Brands, Restaurant Brands, McDonald's, Citi Research, Service Employees International Union, SEIU, California State, CNBC, Walmart, Target, Food, National Restaurant Association, Delta Airlines, Los Angeles International Airport Locations: Boyle, Los Angeles , California, California, McDonald's U.S, Minnesota, New York, —
☆ Why McDonald's and Domino's could win a recession, while Starbucks and Burger King could suffer
  + stars: | 2023-01-20 | by ( Nancy Luna | ) www.businessinsider.com   time to read: +2 min
Some consumers trade down from casual-dining favorites to fast-food chains, analysts said. Analysts predicted what top publicly traded chains could do well with consumers during a recession. Typically during a recession, restaurants feel the pain first. Analysts think McDonald's, Papa Johns, Olive Garden, Taco Bell, Chipotle, and Domino's are set up for success during a recession. Analysts are undecided or mixed on brands like Starbucks, Wendy's, and Cheesecake Factory and how they might fare during a recession.
☆ Activist investor Nelson Peltz's Trian won't pursue Wendy's takeover
  + stars: | 2023-01-13 | by ( Amelia Lucas | ) www.cnbc.com   time to read: +2 min
Nelson Peltz isn't interested in acquiring Wendy's , according to a regulatory filing made on Friday. Peltz serves as non-executive chair on the burger chain's board and as chief executive of activist firm Trian Fund Management, which is its largest shareholder. In May, Trian said it was exploring a potential deal with the company to "enhance shareholder value" that could include an acquisition or merger. Trian, which was founded by Peltz, first invested in Wendy's in 2005, when the fund was initially created. Rival McDonald's announced a week ago that it is also revamping its corporate structure for similar reasons.
☆ Sweetgreen is among the 12 chains Taco Bell owner, Yum Brands, could buy as the company's CFO tells investors it's hunting for an acquisition
  + stars: | 2022-11-30 | by ( Nancy Luna | ) www.businessinsider.com   time to read: +11 min
A Yum Brands exec said the company was "scanning categories" that don't compete with its brands. Analyst Mark Kalinowski identified 12 chains Yum Brands could target, including Sweetgreen. Habit was Yum Brands' latest acquisition — it purchased the fast-casual chain in March 2020 in a deal valued at $375 million. Zoe's Kitchen could be a buy target for Yum Brands, a veteran analyst wrote in a research note last week. "It has a market cap bigger than I would have expected, so it'd be an expensive purchase for Yum Brands."
☆ 'Line balk' is one of the biggest obstacles facing popular chains like Starbucks and Chick-fil-A — here's what it is and how they're fighting it
  + stars: | 2022-09-19 | by ( Mary Meisenzahl | ) www.businessinsider.com   time to read: +3 min
Starbucks and Chick-fil-A executives have said that long drive-thru lines keep away customers. Long drive-thru lines are "one of the number one reasons for not visiting Starbucks," Chief Marketing Office Brady Brewer told investors in Seattle at the company's investor day on September 13. Potential customers see the long line from the road and decide not to join, or leave from the end of the line before ordering, which is referred to as "line balk," at Starbucks, Brewer said. Chick-fil-A famously deals with the same problem, with its long lines regularly making headlines and frustrating local lawmakers and neighboring business owners. In 2021, exiting CEO Dan Cathy said how much business lines could be costing the chain.
☆ Burger King's new 'Royal Reset' would reward 800 top restaurants but could punish thousands of others. Analysts worry it could kick off a 'Darwinian' battle for survival.
  + stars: | 2022-09-19 | by ( Nancy Luna | ) www.businessinsider.com   time to read: +6 min
Tim Powell, the managing principal at the consultancy Foodservice IP, said Burger King units were long overdue for modernization. But he questioned Burger King's "survival of the fittest" tactic. Jose Cil, the CEO of Burger King's Restaurant Brands International, said the turnaround plan was directed at lifting sales for all restaurants. "All of that will lead to an output which is increased traffic, increased sales, increased restaurant-level profitability, and growth for the brand, from a systemwide sales standpoint. US sales at Burger King increased nearly 4% in 2021.
☆ 'Line bulk' is one of the biggest obstacles facing popular chains like Starbucks and Chick-fil-A — here's what it is and how they're fighting it
  + stars: | 2022-09-17 | by ( Mary Meisenzahl | ) www.businessinsider.com   time to read: +3 min
Starbucks and Chick-fil-A executives have said that long drive-thru lines keep away customers. Long drive-thru lines are "one of the number one reasons for not visiting Starbucks," Chief Marketing Office Brady Brewer told investors in Seattle at the company's investor day on September 13. Potential customers see the long line from the road and decide not to join, or leave from the end of the line before ordering, which is referred to as "line bulk," at Starbucks, Brewer said. Chick-fil-A famously deals with the same problem, with its long lines regularly making headlines and frustrating local lawmakers and neighboring business owners. In 2021, exiting CEO Dan Cathy said how much business lines could be costing the chain.
☆ Burger King's $400 million turnaround plan favors 800 top-performing restaurants. It's a 'Darwinian' move analysts say could leave hundreds of franchisees in the lurch.
  + stars: | 2022-09-14 | by ( Nancy Luna | ) www.businessinsider.com   time to read: +6 min
Burger King unveiled a $400 million "Reclaim the Flame" turnaround plan last week. Burger King's $400 million "Reclaim the Flame" turnaround plan calls for upgrading 800 of the company's top restaurants, a "Darwinian" move that could hurt hundreds of poor-performing locations left without financial support, analysts say. Tim Powell, the managing principal at the consultancy Foodservice IP, said Burger King units were long overdue for modernization. Jose Cil, the CEO of Burger King's Restaurant Brands International, said the turnaround plan was directed at lifting sales for all restaurants. "All of that will lead to an output which is increased traffic, increased sales, increased restaurant-level profitability, and growth for the brand, from a systemwide sales standpoint.
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