Contact Us

McDonald's And Franchisees To Spend $6B To Revamp Restaurants

McDonald's Corp. is kicking off a $6B revamp of its U.S. restaurants throughout the rest of this year and in 2019. The massive burger chain has about 14,000 locations in the U.S. alone. 


The work will involve both interior and exterior upgrades, the company said in a statement, with the cost being borne by both corporate and franchisees, though McDonald's didn't specify how the total will be split.

The usual formula for renovations at a McDonald's is having the franchisee pay 75% of the cost, while the company puts up 25%, restaurant consultant Richard Adams told CBS

The nationwide renovations will include "modernized dining rooms with globally and locally inspired décor, new furniture and refreshed exterior designs," the company said.

Digital self-order kiosks — the sort that are already appearing in other fast-food restaurants, such as Wendy's — will likewise be part of the update, allowing customers to order their meals without interacting with an employee. There will also be brighter and easier-to-read digital menu boards inside and at drive-thrus.

Other changes in the works will be made to help attract younger, more connected customers, such as reserved parking spots for customers who make orders via McDonald's mobile app.

The renovations will build on changes that the fast-food giant has made in recent years, mainly under the direction of Stephen Easterbrook, who became CEO in 2015. 

Early in Easterbrook's tenure, McDonald’s shut down about 500 stores to boost profits, with the closings coming from poorly performing locations in the U.S.

McDonald's also began paying serious attention to social media in recent years, hiring employees from Amazon and PayPal to boost its social media engagement.

Not all of the previous changes have worked out. In 2016, McDonald's rolled out the “Create Your Taste” custom-burger option. Customers chose every aspect of their burger, from how many patties to the types of cheese, buns and sauces, making their selections on a kiosk installed in about 2,000 U.S. locations. 

But after only a few months, the kiosks were removed. Customers had complained that orders were taking too long and turning out to be too expensive, Business Insider reports.