McDonald’s Announces Plans to ‘Reshape’ Business with More Franchises, Less Bureaucracy

As part of its efforts to keep up with competitors, McDonald’s has teamed up with Postmates to launch delivery. 

In a video posted to the McDonald’s corporate website, newly appointed CEO Steve Easterbrook detailed the company’s restructuring plan, meant to help repair its worst sales slump in a decade and a steady decline in consumer appeal.

“No business or brand has a divine right to succeed,” Easterbrook announced. “And the reality is, our recent performance has been poor. The numbers don’t lie.”

Beginning in July, the company will be restructured into four new market segments that “combine markets with similar needs, challenges, and opportunities for growth”: U.S., international lead markets, high-growth markets, and foundational markets.

Among the planned changes, McDonald’s will also attempt to reduce unnecessary bureaucracy in order to facilitate quicker decision-making, save $300 million a year in administrative spending, and reduce the number of company-owned stores from 19 percent to 10 percent by 2018 — all part of what Easterbrook called an “urgent need to reset this business.”

Incidentally, McDonald’s corporate locations are the only ones affected by its recent wage-increase announcement.

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Through Postmates, the company has also introduced delivery in New York City.