McDonald's $3 Menu Fizzles at Many Locations Due to Franchisee Pushback
McDonald's promised customers that their local restaurants would offer ten items for under $3. However, not all locations were able to meet this goal due to inconsistent execution by franchisees.
According to McDonald's CEO Christopher Kempczinski, only about 60-65% of the company's system was executing the recommended pricing architecture with the 10 items for under $3.
This discrepancy is not a new phenomenon. Franchise operators have more say in changes at their restaurants than one might imagine, and they often push back on corporate initiatives that are not feasible for their location.
McDonald's prices vary by location due to the fact that 95% of its restaurants are independently owned and operated by franchisees who can set their own prices.