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Tag: McDonald’s

  • Is This What McDonald's Spinoff Restaurant CosMc's Will Look Like? | Entrepreneur

    Is This What McDonald's Spinoff Restaurant CosMc's Will Look Like? | Entrepreneur

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    McDonald’s is taking one giant step into the past to leap into its future.

    The fast food chain announced the grand opening of a space-themed eatery, CosMc’s, based on the six-armed ET from McDonald’s ads that aired in the 1980s. Remember those?

    While McDonald’s is being secretive about the details, FOX Business reports that the first CosMc’s will open early next year in Bolingbrook, a Chicago suburb. A few other restaurants will follow in 2024, scattered like constellations across the U.S.

    The small-format concept restaurant will feature an extensive beverage selection that includes coffee, iced teas, lemonades, and a lineup of energy drinks called “signature galactic boosts.” Customers can also expect a mix of food and desserts that blend nostalgia with novelty.

    Space Age McD’s

    Last July, CEO Chris Kempczinski shared with analysts that while CosMc’s will be recognized as a distinct entity, it will maintain the essence of McDonald’s globally celebrated brand. A new logo will replace the golden arches in a more modern navy blue and yellow palette.

    FOX 32 Chicago recently captured aerial glimpses of the mystery-shrouded Bolingbrook location. And an X-user posted photos of the alleged location under construction.

    Photo by Iman Jalali (via X)

    Menu shrouded in mystery

    While McDonald’s has not yet been forthcoming about CosMc’s menu, some online food detectives have unearthed menu previews showcasing alleged specialties like a Pear Slushy, Blueberry Ginger Boost, Churro Frappe, and a Spicy Queso Sandwich.

    Amidst all the excitement, McDonald’s shares have seen an 8% increase over the year, slightly behind the broader market’s advancements. The anticipation is palpable, as the fast-food magnate is expected to shed more light on its strategic developments and innovations during tomorrow’s investor day.

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    Jonathan Small

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  • McDonald's Is Completely Changing Its Burgers in 2024 | Entrepreneur

    McDonald's Is Completely Changing Its Burgers in 2024 | Entrepreneur

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    McDonald’s is making major changes to its beef.

    A spokesperson for the fast-food chain told the Wall Street Journal the new burgers have over 50 modifications to its current patties.

    The new burgers were first tested in Australia and began rolling out to McDonald’s West Coast and Midwest markets earlier this year. The new burgers ar expected to be available nationwide by 2024.

    Related: Burgers Were Once 15 Cents at this Oldest Operating McDonald’s

    The new burger patty has been in the works at McDonald’s HQ in Chicago for over seven years. Chef Chad Schafer said the chain’s current patties are “kind of dry.”

    “We can do it quick, fast, and safe, but it doesn’t necessarily taste great. So, we want to incorporate quality into where we’re at,” said Chris Young, McDonald’s senior director of global menu strategy, per the outlet.

    In addition to the patty, other changes are on the way for the chain’s beloved signature burger, the Big Mac.

    The Big Mac’s classic sesame seed bun is being swapped for “buttery brioche,” and the burger will get more special sauce for a “meltier” culinary experience, according to the chain.

    Related: A McDonald’s Menu Item Is a Billion Dollar Brand—On Its Own

    McDonald’s is coming off of a strong Q3 2023 after revenue increased an impressive 14% quarterly, with same-store sales in the U.S. increasing 8.1%.

    The fast-food chain was up just over 4.59% year over year as of Friday afternoon.

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    Emily Rella

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  • Inflation is still on the menu at McDonald’s and other fast-food chains. Here’s why.

    Inflation is still on the menu at McDonald’s and other fast-food chains. Here’s why.

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    The harsh inflation that’s battered consumers in the pandemic’s wake may be subsiding, but that trend isn’t yet extending to fast-food chains, which have continued to hike menu prices at a faster clip than inflation overall as well as at the grocery store.  

    Fast-food became popular because it’s both inexpensive and quick, but customers are finding that fast-food meals don’t offer the value they once did. Some viral posts on social media have touted McDonald’s meals that cost as much as $16, although the truth is that such orders included special burgers that pushed up the price.

    While fast-food prices might not be as high as those reports indicate, the Big Mac, Quarter Pounder and other fast-food staples are taking a substantially bigger bite from customer wallets than they used to.

    According to data from the Labor Department, inflation overall is cooling, but it is running a different course when it comes to eating out.

    Menu prices at restaurants and other foodservice companies climbed 5.4% in October when compared with a year earlier, the numbers from the U.S. Bureau of Labor Statistics show. That’s above overall inflation, which stood at 3.2% on an annual basis last month, and more than double the pace of inflation for groceries.

    But some of the steepest price hikes occurred at fast-food restaurants, with prices at limited-service restaurants up 6.2% over the past year. Full-service restaurants have hiked their prices 4.3% over the past year. 

    McDonald’s declined to comment, but the burger giant’s executives acknowledged its pricier offerings in a late October earnings call.

    “Our average pricing level in the U.S. business for the full year will be just over 10%,” Ian Borden, the company’s CFO stated. Even so, he noted that the size of the increases started to decline in the third quarter.

    McDonald’s costlier menu has been met with a drop in business from low-income customers, “which we would say is $45,000 and under, [and] was negative from an industry standpoint,” McDonald’s President and CEO Chris Kempczinski told analysts. “That part of the business, we’re seeing traffic in the quarter was down.”

    But even as customer traffic slipped, the higher prices translated into pricier orders, with McDonald’s same-stores sales up 8.1% and the company reporting $6.69 billion revenue for the third quarter.

    Big fish tales

    Thee viral video showing the $16.10 receipt was for a limited edition “smoky” double Quarter Pounder BLT with fries and a Sprite, with one YouTube video inaccurately calling it a “Big Mac meal.” 

    Still, another image of a Big Mac combo meal that cost $17.59 at a Connecticut rest stop also fueled online outrage.

    In fact, the nationwide average cost of a Big Mac this summer came to $5.58, up more than 10% from the $4.89 that a Big Mac cost in December of 2020, a month before President Biden took office, according to an index run by the Economist.

    And the average price for a McDonald’s Quarter Pounder stood at $5.45 in early October, up 6% from $5.14 a year earlier, according to a cost-of-living index compiled by the Council for Community and Economic Research, or C2ER. 

    The most expensive Quarter Pounder

    The priciest Quarter Pounder was sold by McDonald’s for $8.09 in Billings, Montana, which serves as an entrance to Yellowstone National Park and therefore ripe for tourists, the group said. The higher cost of deliveries to a remote area could be a factor in the burger’s cost, it added.

    Labor costs are part of the equation, and low-wage workers such as those that work in fast-food establishments have seen a rapid growth in pay, substantially eroding wage inequality, notes Josh Bivens, chief economist at the Economic Policy Institute, a left-leaning think tank. 

    “Consider one metric of inequality — the ratio of the 90th-percentile wage (the wage earned by the worker who has higher pay than 90% of the workforce) to the 10th-percentile wage. Between 1980 and 2019, this ratio rose enormously by about 34%. But a full third of this 39-year increase has been erased in less than three years after 2019,” Bivens recently wrote in a blog post. 

    The 10th-percentile hourly wage was $12.57 in 2022, up 9% during that three-year period, he noted. “If this inequality reduction sticks, it could well be the single most important development in the economy in decades,” Bivens said.

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  • McDonald’s Canada founder has died at age 86  | Globalnews.ca

    McDonald’s Canada founder has died at age 86 | Globalnews.ca

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    George Cohon, founder of McDonald’s Canada according to Ronald McDonald House Charities, has died.

    Cohon’s son, Mark Cohon, took to X, formerly known as Twitter, Saturday morning, and said: “Last night we said farewell to my Dad. Our family, Canada and the world lost a remarkable man.”

    Story continues below advertisement

    Cohon was born in Chicago in 1937 and received degrees from Drake University and Northwestern University School of Law before coming to Canada.

    Cohon opened his first McDonald’s location in London, Ont. in November 1968.

    He was also the founder of Ronald McDonald Children’s Charities across the country.

    In 2020, Cohon received the Companion of the Order of Canada, the highest level of the order, for his charitable work around the world, according to a post by Ronald McDonald House.

    He was 86 years old.

    &copy 2023 Global News, a division of Corus Entertainment Inc.

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    Tessa Bennett

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  • Warren Buffett joked he’d be ‘eating Thanksgiving dinner at McDonald’s’ if the US government didn’t bail out the banks in 2008

    Warren Buffett joked he’d be ‘eating Thanksgiving dinner at McDonald’s’ if the US government didn’t bail out the banks in 2008

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    Warren Buffett.REUTERS/Rick Wilking

    • Warren Buffett once joked he would have faced a fast-food Thanksgiving without the 2008 bailouts.

    • “If the government hadn’t acted, I would be eating Thanksgiving dinner at McDonald’s,” he quipped.

    • Buffett often eats McDonald’s for breakfast, and owns one of the restaurant chain’s gold cards.

    Warren Buffett would have celebrated Thanksgiving with a Big Mac, fries, and a milkshake in 2008 if US officials hadn’t bailed out the banks, he joked in a CNBC interview in 2010.

    “If the government hadn’t acted, I would be eating Thanksgiving dinner at McDonald’s,” he quipped.

    The billionaire investor and Berkshire Hathaway CEO was underscoring the enormous threat posed by the financial crisis in 2008. However, few would put it past him to follow through on a fast-food Thanksgiving.

    Buffett typically grabs breakfast at McDonald’s during his morning drive to the office, opting for a pricier bacon-egg-and-cheese biscuit if he’s feeling especially wealthy. He also carries one of the restaurant chain’s gold cards, which entitles him to free McDonald’s meals for life in his hometown of Omaha, Nebraska.

    “That’s why the Buffett family has Christmas dinner at McDonald’s,” he joked in a CNBC interview in 2007.

    Buffett isn’t shy about showing his love for McDonald’s or his thriftiness — even when he’s spending time with Bill Gates, one of the wealthiest men in the world.

    “Remember the laugh we had when we traveled together to Hong Kong and decided to get lunch at McDonald’s?” Gates wrote in a public letter to Buffett in 2017. “You offered to pay, dug into your pocket, and pulled out…coupons!”

    Giving thanks to the government

    Buffett joked about celebrating Thanksgiving at McDonald’s shortly after he praised the US government’s financial-crisis interventions in a New York Times op-ed article.

    “The challenge was huge, and many people thought you were not up to it,” he wrote. “Well, Uncle Sam, you delivered.”

    The investor signed the letter “Your grateful nephew, Warren.”

    There are few people more qualified than Buffett to judge the federal response in that period. When credit markets seized up, Berkshire invested billions of dollars in blue-chip companies including Goldman Sachs and General Electric, and it loaned much-needed cash to ailing businesses such as Harley-Davidson.

    The investor also called Treasury Secretary Hank Paulson in October 2008 to suggest the US government invest directly in the banks instead of only buying their assets, inspiring a program that might have staved off an even deeper recession.

    Read the original article on Business Insider

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  • [Targeted] AmEx Offers: Mcdonald’s App, Spend $15 & Get $5 Back (3x) – Doctor Of Credit

    [Targeted] AmEx Offers: Mcdonald’s App, Spend $15 & Get $5 Back (3x) – Doctor Of Credit

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    Update 11/16/23: Deal is back and valid until 12/31/23. This time can be done 3x.

    The Offer

    Check your AmEx Offers for the following deal:

    • Get a $5 statement credit by using your enrolled eligible Card to make a single purchase of $15 or more using McDonald’s Mobile Order & Pay via the McDonald’s mobile app by 12/31/23. Limit of 3 statement credits (total of $15). Excludes delivery. See terms.

    Our Verdict

    Nice savings for those targeted.

    Hat tip to reader bob123

    View more Amex offers here & if you have any questions about American Express offers then read this post.

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    Chuck

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  • McDonald’s has received 400 harassment complaints from its workers in the last 4 months—and its U.K. boss calls it ‘truly horrific’

    McDonald’s has received 400 harassment complaints from its workers in the last 4 months—and its U.K. boss calls it ‘truly horrific’

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    McDonald’s is sprinkled all across the U.K. and employs thousands of Brits in its locations—and this week, concerns about the safety of those workers came to a head.  

    The boss of McDonald’s in the U.K. said that the company has received over 400 complaints of sexual harassment in four months—sometimes up to two a week—during a Business and Trade Select Committee meeting on Tuesday.

    Alistair Macrow, who runs McDonald’s U.K. & Ireland, told MPs that the experiences of some of the fast food chain’s workers were “truly horrific” and “very hard to listen to.”

    “These cases… are absolutely horrendous. What I would like to be clear about is that we will tackle them and make sure that we do everything we can to eradicate them from the business,” Macrow said. 

    The U.K. chief’s statement comes after an initial investigation by the BBC in July shed light on McDonald’s staff who were routinely harassed, bullied or sexually assaulted while at work. The report said that over 100 current and recent workers had allegedly been on the receiving end of such behaviors, following which the company kicked off an investigation. At the time, McDonald’s apologized and said it had “fallen short.”

    So far, the company has investigated 157 of the 407 cases of varying nature, Macrow told MPs. Some of those resulted in terminations while others led to disciplinary action. Of the sexual harassment cases, it’s unclear if the workers reported them to the police.      

    ​​”I am absolutely determined to root out any of these behaviours, identify individuals who are responsible for them and make sure that they are eradicated from our business,” Macrow said. 

    McDonald’s has over 170,000 workers across its 1,450 restaurants in the U.K.—89% of those locations are franchises, Macrow said. 

    Workers of the 21st Century

    Complaints about harassment or forms of abuse had been cropping up for several years, Ian Hodson, the national president at the Bakers, Food and Allied Workers Union, told the Business and Trade Select Committee on Tuesday. He was first alerted of the growing number of claims five years ago, and said the group had spoken to workers across its London stores.

    “We need to make sure that this is the opportunity to make employers accountable for protecting people when they go to work,” Hodson said. “In the 21st century in the U.K., it should not happen. When a global corporation, the second biggest employer in the world, which makes billions and billions of pounds, can’t protect their workforce, it’s awful.”

    The BBC’s investigation has spurred more McDonald’s workers to pursue legal action through law firm Leigh Day last week. 

    McDonald’s didn’t immediately return Fortune’s request for comment.

    Subscribe to the new Fortune CEO Weekly Europe newsletter to get corner office insights on the biggest business stories in Europe. Sign up before it launches Nov. 29.

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    Prarthana Prakash

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  • McDonald’s and Crocs Release $75 Clogs in Shoe Collab | Entrepreneur

    McDonald’s and Crocs Release $75 Clogs in Shoe Collab | Entrepreneur

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    Now you can eat your Big Mac and wear it too thanks to McDonald’s new collaboration with Crocs.

    The limited-edition line features a selection of three Crocs inspired by McDonald’s iconic characters Grimace, Birdie, and Hamburglar, in addition to a classic-style Croc in the fast-food company’s signature red and yellow colors.

    Each pair of Crocs includes custom Jibbitz charms and retails for between $70 – $75 a pair, plus matching socks are available for purchase for $20, according to a press release. Customers can snag the clogs beginning on November 14 at Crocs retail locations, Crocs.com, and select wholesale partners while supplies last.

    In honor of McDonald’s first-ever global shoe collaboration, the company plans to make an undisclosed donation to Ronald McDonald House Charities to help sick children and give families access to medical care.

    RELATED: McDonald’s Made a Simple Change to a Cult-Favorite Menu Item. Now, the Sandwich Is a $1 Billion Brand.

    Last month McDonald’s reported a 14% revenue boost in its third quarter, according to CNBC. Following strategic price increases, McDonald’s generated $6.69 billion in revenue.

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    Sam Silverman

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  • Has Everyone Gone Croc Crazy

    Has Everyone Gone Croc Crazy

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    From the shoes everyone loved to hate to now the Insta darling of brands – Crocs are again having a moment

    When they first appeared, the reviews were scathing, and yet, people bought them.  Popping up on thousands of feet, jokes were everywhere and a site called I Hate Crocs was started.  But sales continued to climb.  While being a sneaker head is fashion thing, social media asks has everyone gone Croc crazy?

    When Crocs debuted in 2002, there was nothing like the Danish clog meets boating shoes  meets rubber foam material – and people hated them. They defied the mainstream fashion styles of the early 2000s like the Vans or Converse canvas sneakers. Skaters, surfers, and musicians were setting a tone which the floatable shoe was not part. Seen as low brow and ugly, high fashion and wanna-be fashionista sshunned them. Early on, they launched the “Ugly Can Be Beautiful” campaign, the first national advertising campaign for the Crocs brand. Since then, sales have done well.

    RELATED: 5 Morning Activities To Help You Feel Happier

    Now the shoe and online world are colliding with opinions around Croc’s latest moves. Bringing out a former, beloved McDonaldland member, McDonalds is having its Grimace moment. McDonald’s characters, specifically Grimace, had a resurgence in popularity when the purple icon celebrated his birthday in June. The brand released a purple milkshake as part of the celebratory Grimace Birthday Meal. People couldn’t get enough of the purple sweetness and couldn’t quite figure out exactly what is Grimace. Now the purple “thing” is becoming a Croc!

    But wait, there is more, McDonald’s has rolled out a mini array of characters of Birdie, Hamburglar, and a classic McDonald’s style.

    McDonald’s is hoping lightening strikes twice with a limited series of shoes.

    RELATED: Great Fall Whiskeys

    Earlier this summer, the company suprised everyone with a pair cowboy boots.  Not just for water or gardening, these boots are made to adventure! Each pair is designed with a signature Crocskin texture, metallic disco desert embroidery details and an actual spinning spur on the back, which can be removed for practical use.  Only a limited amount of the cowboy boots were made and fashion and music sites had a field day with them.

    Love ’em or hate ’em – Crocs are hear to stay.

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    Anthony Washington

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  • McDonald’s and Crocs are creating new shoes inspired by Hamburglar and Grimace. Cost: $75.

    McDonald’s and Crocs are creating new shoes inspired by Hamburglar and Grimace. Cost: $75.

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    McDonalds and Crocs are partnering to create clogs, sandals, charms and socks inspired by the fast-food chain’s branding and mascots, including Grimace and Hamburglar. The shoes will cost as much as $75 a pair. 

    Starting mid-day Tuesday, the companies will begin selling four styles of shoes: a classic red McDonalds-inspired clog; a striped black-and-white Hamburglar clog; a yellow Birdie clog; and a purple Grimace sandal, McDonald’s said in a statement Monday.  

    The quirky shoes, which will retail between $70 and $75, can paired with $20 matching socks featuring the famous characters’ faces. McDonald’s fans can also accessorize their shoes with Jibbitz charms fashioned after the chain’s Big Macs, fries and Chicken McNuggets, in addition to clip-ons inspired by the company’s golden arches. 

    screenshot-2023-11-14-at-10-44-37-am.png
    Crocs’ McDonald’s-inspired clogs come in four styles inspired by the fast-food company’s iconic mascots. 

    McDonald’s


    Starting mid-day Tuesday, shoppers can buy the shoes online or at Crocs stores and at wholesale partners, according to McDonald’s. 

    This isn’t the first time McDonald’s has embraced its mascots to boost its sales. In June, the company launched a viral campaign to promote its Grimace-branded milkshake, topping TikTok’s trend chart and generating millions of mentions across social media platforms, the trade publication Restaurant Business reported

    McDonald’s has also made other forays into fashion. In August, Mcdonald’s teamed up with British skate brand PALACE to release branded apparel. 

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  • A McDonald’s Menu Item Is a Billion Dollar Brand—On Its Own | Entrepreneur

    A McDonald’s Menu Item Is a Billion Dollar Brand—On Its Own | Entrepreneur

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    When McDonald’s changed the name of its crispy chicken sandwich earlier this year to the McCrispy, same-store sales rose 12.6% in Q1 — the first quarter the new sandwich was rolled out.

    Now, after the company announced its Q3 2023 results, it has become clear that branding matters and that McCrispy is clucking good proof of it.

    During an earnings call on Monday, McDonald’s executives revealed that the McCrispy sandwich is now a $1 billion global brand, taking on a life of its own and becoming an instant cult favorite with loyal customers.

    Related: McDonald’s Is Making a Major Change to its McFlurry

    “Our McCrispy chicken sandwich continues to be an important driver of chicken share growth, having first launched in markets like Canada and Germany and now a billion-dollar brand,” McDonald’s Chief Financial Officer Ian Borden said on the call. “Our food is at the heart of our customers’ relationship with the brand. This is why we’re taking a One McDonald’s Way approach to our menu, further fueling our chicken ambition by scaling core chicken equities.”

    The chain rebranded its crispy chicken sandwich to the McCrispy in March 2023, explaining in a statement at the time that the sandwich earning its “Mc” is a true McDonald’s badge of honor” upon the name change.

    Global same-store sales in McDonald’s increased 8.8% in Q3, while overall revenue was up 14% quarterly.

    Price increases implemented in U.S.-based restaurants also paid off, as same-store sales increased 8.1%.

    “By combining strong execution of our core menu offerings, with new flavor news and limited additional complexity, we continue to strengthen our chicken credibility with customers and maintain our market share leadership in the chicken category,” Borden said.

    Related: McDonald’s Announces ‘Free Fries Fridays’ Until End of Year

    McDonald’s originally rolled out the crispy chicken sandwich in 2021, which consists of a “crispy chicken fillet made with all-white meat, crinkle-cut pickles” and is served on a buttered potato roll.

    McDonald’s was close to flat year-over-year as of Tuesday afternoon at just under 3.8% down.

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    Emily Rella

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  • McDonald’s ditching McFlurry spoon for more sustainable option

    McDonald’s ditching McFlurry spoon for more sustainable option

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    The iconic McDonald’s McFlurry spoon, which has spurred years of questions because of its unique hollow handle, is on its way out, the fast-food chain said Tuesday. 

    McDonald’s will start serving up McFlurrys with the same type of spoon the chain serves with its sundaes, which are smaller and use less plastic than the McFlurry spoons.

    “This small change will help reduce single-use plastic waste in restaurants – while giving customers the same delicious McFlurry they know and love,” McDonald’s said. “That’s a win-win in our book.”

    The current McFlurry spoon has a hollow handle that attaches to the machine McDonald’s uses to mix McFlurrys so it can be used as a spindle to mix the frozen treat. Many customers have tried to use the handle as a straw over the years.

    “IDK who needs to hear this but the McFlurry spoon is not a straw,” the chain wrote on X, the platform formerly known as Twitter, in one of its many reminders about the spoon’s design.

    McDonald’s restaurants are transitioning to a reusable spindle for its McFlurry machines that will be swapped out and cleaned after each McFlurry is made.

    In 2018, McDonald’s announced plans to cut greenhouse gas emissions. One of its changes in Europe also impacts the McFlurry; McDonald’s locations in Europe are serving McFlurry cups without lids.

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  • McDonalds Announces ‘Free Fries Fridays’ Until End of Year | Entrepreneur

    McDonalds Announces ‘Free Fries Fridays’ Until End of Year | Entrepreneur

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    How about some free fries with that shake?

    McDonald’s announced today that starting this Friday, they will offer customers a free carton of medium fries every Friday. In a promotion that they’re fittingly billing “Free Fries Friday,” the fast-food giant is offering the deal until 12/31/23.

    But, of course, nothing in life is entirely free. Free Fries Friday comes with a caveat designed to get diners to use the McDonald’s app. In order to partake in these golden delicacies, customers must first make a $1 minimum purchase in the McDonald’s mobile app.

    How it works

    To claim your free McDonald’s fries, follow these steps:

    • Go to the deals tab in the McDonald’s app, select the Free Fries Friday deal, and tap the “Add Deal to Mobile Order” button—only one order per customer.
    • Make your payment using any major credit card. Your card will not be charged until you check-in. Add or remove a payment card using the Checkout and My Account screens.
    • Check-in at any participating McDonald’s to pick up your free Fries (with $1 minimum purchase). Get them delivered to you with curbside pickup, or grab a bag at your nearest McDonald’s Drive Thru.

    Bullish on the app

    McDonald’s is clearly McAnxious to get customers to continue using their app. They’re also offering 10 Free McNuggets with their first app order (again with a minimum payment of $1).

    Retailers love mobile apps because they allow them to connect directly with customers, pushing messaging and offering deals. Also, research shows that conversion and average transaction value are higher on mobile apps than on their e-commerce sites.

    Not that McDonald’s is having trouble getting customers to download their app. According to QSR Magazine, the McDonald’s mobile app was downloaded 127 million times worldwide in 2022, with 40 million new downloads in the U.S. That figure was 194 percent more than McD’s closest competitor, Starbucks.

    Time will tell if Free Fries Fridays will catch on like Taco Tuesdays, Wing Wednesdays, or even Meatless Mondays. But McDonald’s hopes people “make it fry day with a friend.” After all, French Fries are consistently the best-selling item on the McDonald’s menu.

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    Jonathan Small

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  • Judge Dismisses Wendy’s, McDonald’s Burger Size Lawsuit | Entrepreneur

    Judge Dismisses Wendy’s, McDonald’s Burger Size Lawsuit | Entrepreneur

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    A lawsuit against Wendy’s and McDonald’s, alleging that the companies had exaggerated the size of their burgers in advertisements, has been officially dismissed by a federal judge on Wednesday, The New York Times reported.

    The plaintiff, Justin Chimienti of New York, had initiated the lawsuit in 2022, claiming that he purchased burgers at Wendy’s and McDonald’s locations, but they were significantly smaller than depicted in the ads, and he was “financially damaged as a result.”

    Judge Hector Gonzalez of the U.S. District Court for the Eastern District of New York ruled that there was no evidence to suggest that the fast-food chains had served smaller burgers than what they advertised or that they had deceived their customers as the lawsuit contended.

    In the 19-page ruling, the judge also expressed doubts about whether Chimienti had actually seen the specific ads for the fast food items which he had cited as examples in his complaint.

    Related: Jack in the Box Employee Shoots at Customer Over Alleged Missing Curly Fries, Family Files Lawsuit

    Chimienti argued that misleading advertising harmed customers by providing them with food of lower value than what was promised.

    While the monetary damages Chimienti sought in the lawsuit are unspecified, he aimed to “fully compensate” individuals who felt “deceived” after purchasing an “overstated menu item.”

    Chimienti’s complaint was one of several recent lawsuits targeting fast-food companies for alleged misrepresentation of their products in advertisements.

    In August, a judge in the Southern District of Florida denied Burger King’s plea to dismiss a lawsuit originally filed in 2022, wherein plaintiffs are arguing that the chain engages in “unfair” and “deceptive” practices in relation to its Whopper size.

    Similarly, an ongoing lawsuit against Taco Bell alleges that the company’s Crunchwraps and Mexican pizzas are advertised as containing “at least double” the filling they actually contain, seeking damages of at least $5 million.

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    Madeline Garfinkle

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  • Why McDonald’s is bringing back its McRib for the umpteenth time

    Why McDonald’s is bringing back its McRib for the umpteenth time

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    Call it the long goodbye, fast food-style.

    McDonald’s
    MCD,
    +0.27%

    is planning to bring back its beloved McRib sandwich, just one year after giving the porky treat a “farewell tour.” The menu item is set to return next month, according to the company.

    “While it won’t be available nationwide, some lucky fans may find their favorite elusive saucy sandwich at their local McDonald’s restaurants this November,” McDonald’s said in a statement to MarketWatch on Wednesday.

    Not that the news should come as a complete surprise. McDonald’s has always employed a scarcity tactic in marketing the McRib. That is, the key to the sandwich’s appeal has been that it’s never around for long, leaving fans (including Homer Simpson) to devour it while they can.

    As Restaurant Business, a trade publication, observed last year: “If consumers think there is a shortage of a product, or that it won’t be around for long, they will rush out to get it. Think of the Great Toilet Paper Shortage in 2020 and how many people rushed out to get some the moment they thought they might run out.”

    The publication quoted McDonald’s CEO Chris Kempczinski about this approach, particularly in relation to the “farewell tour”: “The McRib is the GOAT of sandwiches on our menu. And so like the GOATs Michael Jordan, Tom Brady, and others, you’re never sure if they’re fully retired or not.”

    By all accounts, the strategy has worked: A Wall Street Journal story once noted that McDonald’s sold more than 60 million of the sandwiches over a three-year period — in spite of the fact (or maybe because of the fact) it’s available in such limited fashion.

    Further proof of the McRib’s success: It has spawned some competition. In 2021, Arby’s released a Country Style Pork Rib sandwich as a limited-time fall offering — and took cheeky aim at McDonald’s in its marketing, referring to the McRib as a “rib-shaped sandwich” (there’s some truth to that — the McRib features a boneless pork patty with no actual ribs).

    Naturally, the McRib’s return has sparked plenty of reaction on social media. One commenter on X (formerly Twitter) referred to the fact the sandwich seemingly has nine lives. Another said that McDonald’s retracting of its “farewell tour” announcement has left them having “trust issues.”

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  • Mystery McDonald’s Doordash Deliveries Keep Showing Up in Texas | Entrepreneur

    Mystery McDonald’s Doordash Deliveries Keep Showing Up in Texas | Entrepreneur

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    They’re not lovin’ it.

    D Magazine reports that residents of a neighborhood in Texas called Idiot’s Hill (yes, that’s really what it is called) have been on the receiving end of McDonald’s DoorDash deliveries that they did not order. And as nice as free food might seem, it is kind of freaking people out.

    One recipient of the mystery Mickey Dee’s named Carly Swim told D Magazine that there have been over 20 deliveries in recent weeks, usually consisting of an entree, fries and a drink. “We’re all kind of laughing at each other,” Swim says of the strange predicament of finding food at your front door. “But I guess there’s a little part of you that’s hoping you’re not laughing at somebody getting scammed.”

    It’s certainly weird — and not an isolated phenomenon. As the Los Angeles Times reported earlier this summer, from late February and March of this year, several homes in the Los Angeles neighborhood of Highland Park were hit with dozens of unordered Uber Eats deliveries.

    Related: Uber Eats Deliveries Are Flooding a Los Angeles Neighborhood

    Like the folks in Idiot’s Hill, the Angelenos quickly went from being confused to being amused to being concerned. “We one got three different orders within five minutes,” Highland Park resident William Neil told CBS.

    So what’s going on here? No one knows for sure, but here are the theories:

    • This is part of a prank for a TV show.
    • Criminals are testing if stolen credit cards work.
    • The customer service phone number on the bags are part of a phishing scam.

    A DoorDash spokeswoman told D Magazine that they were investigating the bogus orders in Idiot’s Hill. McDonald’s did not respond to a request for comment. Likewise, Entrepreneur reached out to Uber for comment on the Los Angeles deliveries and has not heard back.

    We may never know the story behind these baffling bags of fries, and although we may never for sure who is behind the bogus orders, we have a strong hunch that the guy in the middle of the lineup below is somehow involved.

    Photo Credit: Viktor_IS | Shutterstock

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    Dan Bova

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  • McDonald’s Is Raising Its Franchise Royalty Fee on January 1 | Entrepreneur

    McDonald’s Is Raising Its Franchise Royalty Fee on January 1 | Entrepreneur

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    McDonald’s is increasing the royalty fee for new franchisees to buy and operate a restaurant, the company announced on Friday. It’s the first such increase for the brand in nearly 30 years.

    Starting on January 1, the fees will rise from 4% to 5% in U.S. and Canada. However, the increase will not apply to existing franchisees running current operations, those purchasing franchised locations from other operators, rebuilt existing locations, or restaurants transferred within family members.

    The higher rate will only apply to new franchisees, buyers of company-owned restaurants, relocated establishments, and other scenarios involving the franchisor.

    “While we created the industry we now lead, we must continue to redefine what success looks like and position ourselves for long-term success to ensure the value of our brand remains as strong as ever,” Joe Erlinger, McDonald’s U.S. president, told franchisees in a message viewed by CNBC.

    Related: Thinking of Buying a Franchise? These Four Industries Are Flaming Hot Right Now

    McDonald’s also added that the uptick in fees probably won’t affect a majority of its current market, given that the 5% fee is standard in other countries, and the 4% fee was only used in North America.

    “Because the royalty rate is currently at 5% in all owned markets, except for the U.S. and Canada, this royalty rate increase will not apply to a majority of the existing restaurant portfolio,” McDonald’s wrote in the announcement.

    Franchise royalty fees are a percentage of monthly earnings that a franchisee pays to a franchisor. According to the International Franchise Professionals Group, the average royalty fee for a franchise typically ranges from 4% to 12% or more, depending on the type of franchise.

    For food franchises, since they are high-volume businesses, franchisees typically pay lower royalty rates, making the 5% fairly standard for the industry.

    As of 2021, there are over 13,400 McDonald’s locations in the U.S., 95% of which are operated by franchisees, according to Global Data.

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    Madeline Garfinkle

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  • Woman Sues McDonald’s Claiming Hot Coffee Left Her Severely Burned

    Woman Sues McDonald’s Claiming Hot Coffee Left Her Severely Burned

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    Roughly 30 years after a woman successfully sued McDonald’s for millions after burning herself with a cup of hot coffee, creating a common case study in tort law, another woman has come forward with a similar lawsuit citing coffee burn injuries.

    Mable Childress, 85, said she was left with severe burns across her body after purchasing the hot beverage through a San Francisco McDonald’s drive-through window in June, according to a copy of her lawsuit filed earlier this month against the fast-food giant.

    Childress was allegedly attempting to drink from the cup when its lid, which had been improperly secured by the restaurant’s staff, came off, resulting in severe burns. Photos shared with HuffPost through her attorney appear to show some discoloration and redness around her groin area.

    “Mable is recovering from her burns as well as emotional distress,” her attorney, Dylan Hackett, said in an email to HuffPost Wednesday.

    Mable Childress’ lawsuit accuses the restaurant of gross negligence and seeks more than $25,000 in damages.

    Justin Sullivan via Getty Images

    Childress attempted to report what happened to the restaurant’s staff and did speak with three staff members but they all refused to help her, her lawsuit claims.

    Childress, “an elder woman, continued to ask and wait for help, but Defendants ignored her, and she eventually left to treat her wounds,” the suit continues.

    The restaurant’s owner Peter Ou has denied that his staff declined to help her and said that they offered immediate assistance.

    “My restaurants have strict food safety protocols in place, including training crew to ensure lids on hot beverages are secure,” he said in a statement shared with HuffPost. “We take every customer complaint seriously — and when Ms. Childress reported her experience to us later that day, our employees and management team spoke to her within a few minutes and offered assistance.”

    Her lawsuit accuses the restaurant of gross negligence and seeks more than $25,000 in damages.

    Childress’ lawsuit resembles one sensationally filed in 1994 that at the time was commonly dismissed by the public as frivolous.

    In that case, 79-year-old Stella Liebeck suffered third-degree burns from a cup of coffee that was also purchased through a McDonald’s drive-through window. Liebeck, who was in the vehicle’s passenger seat when the injury occurred, was hospitalized for over a week and required skin grafting.

    A jury awarded her $160,000 in compensatory damages and nearly $3 million in punitive damages.

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  • McDonald’s faces lawsuit over “scalding” coffee that left woman with “severe burns”

    McDonald’s faces lawsuit over “scalding” coffee that left woman with “severe burns”

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    A new lawsuit may leave McDonald’s once again crying over spilled coffee. 

    A lawyer for Mable Childress has alleged in a complaint that “scalding” coffee from a McDonald’s drive-thru in San Francisco spilled onto Childress in June, leaving her with “severe burns and emotional distress.” According to the lawsuit, filed last Thursday in a California court, McDonald’s employees “improperly” secured the lid to Childress’ coffee cup, causing it to open unexpectedly and pour hot liquid onto her when she tried to drink from it.  

    “[The employees’] negligence was a substantial factor in causing [Childress] harm,” the lawyer said in the complaint.

    The incident left Childress with scarring in her groin area, according to the suit. 

    Childress, described as “an elder woman,” in the suit, tried to report the incident to three employees at the restaurant, they “refused” to help her, the and later “ignored,” according to her claim. She eventually left the restaurant to seek medical attention for her injuries after being “ignored.” 

    “My restaurants have strict food safety protocols in place, including training crew to ensure lids on hot beverages are secure,” McDonald’s owner and operator Peter Ou said in a statement.

    “We take every customer complaint seriously – and when Ms. Childress reported her experience to us later that day, our employees and management team spoke to her within a few minutes and offered assistance. We’re reviewing this new legal claim in detail,” he said.

    Previous cases

    This isn’t the first time McDonald’s has faced a lawsuit over the temperature of its beverages. In 1992, a court famously ordered the company to pay nearly $3 million to an elderly woman who suffered “severe burns” from a 49-cent cup of coffee that was heated to a temperature between 180 and 190 degrees. 

    A California woman also sued the fast-food restaurant in 2014, alleging its employees “improperly” secured the lid of the cup her hot she ordered, causing the scalding liquid to spill onto her and burn her. A settlement was reached in that case as well, according to Eater.com, which reported at the time that details had not been disclosed.

    In July, a Florida jury awarded $800,000 to a girl who alleged she suffered severe burns when a Chicken McNugget fell onto her leg in 2019. 

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  • McDonald’s to eliminate self-serve soda machines at U.S. locations

    McDonald’s to eliminate self-serve soda machines at U.S. locations

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    Say goodbye to self-serve drink machines, McDonald’s fans. 

    The fast-food chain plans to get rid of self-service “beverage stations” at its U.S. locations by 2032, McDonald’s confirmed to CBS News on Tuesday. A spokesperson did not say how the change would impact international locations. 

    McDonald’s USA said the company is making the change so that customer and worker experiences will be consistent across all ordering points, from dining in person to visiting a drive-through or ordering via the company’s app.

    McDonald’s USA did not say how the removals would impact drink refills. Franchise locations until now have had control over refill policies, the company previously shared on social media. CBS News has reached out to McDonald’s for additional details. 

    Some locations have already removed their self-serve soda machines, customers pointed out on social media. One person on X, the platform previously known as Twitter, said the change happened at their regular McDonald’s location not long ago. The customer said they asked an employee for a refill and it took more than five minutes to get the the drink. 

    “If they had them I could have refilled it myself in less then [sic] 30 seconds,” the person wrote.

    Some on social media wondered how they’d be able to create unique beverages by mixing different sodas, with one user posting, “say goodbye to hybrid drinks.”

    McDonald’s has rolled out several other changes in recent years, including the opening of an automated restaurant near Fort Worth, Texas. The chain has also introduced revamped burgers with “pillowy” buns and started selling Krispy Kreme donuts at some locations.

    In late July, McDonald’s said digital sales, comprised of app, delivery and kiosk purchases, accounted for nearly 40% of systemwide sales for the second quarter of 2023. Revenue rose 14% to about $6.5 billion for the quarter.

    “The McDonald’s brand has never been stronger,” McDonald’s President and CEO Chris Kempczinski said at the time.

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