It's no secret that fast food giant McDonald's (NYSE: MCD) has faced its fair share of criticism over the years, from concerns about the quality of its food to accusations of mistreatment of its employees. And the company's latest business strategy, Accelerating the Arches 2.0, is likely to do little to quell those criticisms.
According to CEO Chris Kempczinski, the new plan involves a review of corporate staffing levels and the acceleration of restaurant openings. In other words, the company is looking to trim costs and streamline operations in the hopes of becoming more efficient and innovative. This could lead to layoffs and job uncertainty for some employees, a move that the company claims it will approach with "values" in mind.
But let's not forget that McDonald's has consistently seen success, with the company beating sales and profit estimates in its last quarterly earnings report and experiencing a 9.5% increase in global same-store sales in the third quarter. And like other fast food chains, McDonald's has hiked menu prices to keep up with rising commodity and labor costs.
So what is the company doing with all those extra profits? Well, it plans to test more new concepts aimed at customer convenience, as well as streamline technology and menu development in order to get new products into use more quickly on a global scale.
But as McDonald's looks to make changes and expand, it's worth considering the impact on its employees and the communities it serves. Layoffs and job uncertainty can be difficult for those affected, and the company's expansion plans may displace small businesses and contribute to gentrification. It's important for McDonald's to consider the consequences of its actions and find ways to balance its pursuit of profits with its values and the well-being of its employees and the larger community.
Rate this article