General Discussion
In reply to the discussion: McDonald's losing business to home cooking. Is this a bad thing? [View all]no_hypocrisy
(46,310 posts)Went bankrupt. McDonald's made them return their franchise and they went bankrupt. And the reason why they had to return the franchise was it didn't make the profit projected by HQ. And the reasons why they didn't hit that number were threefold: 1) Weather. That summer, it rained for the majority of the season. Not many people outside on the beach; 2) Roadwork. Same time period. Wildwood was doing major road work and cars had trouble pulling into McDonalds, so they kept on driving; and 3) Same time period. McDonalds and Burger King were having a war over their major burgers (Big Mac and Whopper). HQ demanded that Big Macs go for $1.00, obviously mandating a loss of profits for each one sold.
HQ wasn't interested in the specifics. It just demanded the franchise back arbitrarily.