Even as customers boycott the fast-food giant, McDonald’s plans to open 10,000 new locations in the next four years.
The company has a little more than 40,000 restaurants worldwide, but by 2027, that figure will move to 50,000, the company said in a meeting Wednesday.
While McDonald’s same-store sales grew by about 9 percent worldwide in the third quarter, it noted a slowdown of U.S. traffic. The numbers are more troubling for the brand as it faces boycotts because of perceived complacency in the Israel-Hamas conflict.
More than a month has passed since Hamas launched an attack in Israel that led to the deaths of 1,200 Israelis, according to the Associated Press. Israel’s military response to the attack in Gaza has led to the deaths of more than 11,400 Palestinians, according to AP.
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Customers slammed McDonald’s and called for a boycott after a franchise in Israel said it would donate meals to the Israel Defense Forces.
Newsweek reached out to McDonald’s by email for comment.
“McDonald’s Corporation is not funding or supporting any governments involved in this conflict, and any actions from our local Developmental Licensee business partners were made independently without McDonald’s consent or approval,” the company previously said in a statement. “Our hearts are with all of the communities and families impacted by this crisis. We abhor violence of any kind and firmly stand against hate speech, and we will always proudly open our doors to everyone.
“We are doing everything we can to ensure the safety of our people in the region while supporting the communities where we operate.”
How Will Boycotts Affect McDonald’s?
If McDonald’s can effectively engage in open dialogue and communicate its corporate values, it will be well situated to launch the 10,000 new stores, experts said.
Expanding a business is always difficult while still looking to maintain customer satisfaction and brand integrity, according to Daphna Simon, the founder of the Daphna Simon jewelry line.
“McDonald’s plan to open 10,000 new locations comes at a challenging time, balancing growth ambitions with public sentiment,” Simon told Newsweek. “The biggest challenge in the face of boycotts is maintaining customer trust.”
Tim Connon, a business expert and founder of ParamountQuote Insurance Advisors, told Newsweek: “McDonald’s was in a solid position for expansion but the boycotts are troublesome for them.”
McDonald’s has already been looking to boost customer sentiment by unveiling a new Big Mac recipe. The burgers in 2024 will be made with softer buns, meltier cheese and more Big Mac sauce, the company announced.
While the boycotts will inevitably lead to a loss of revenue, McDonald’s could still be successful in its expansion by using certain strategies.
“The only real way to fix this issue is for McDonald’s to be transparent on communication for their corporate responsibility and consider how locals feel about things before expanding,” Connon said. “If they want to continue to grow, they will have to understand what their customers expect.”
Uncommon Knowledge
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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.