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McDonald’s is forking up a ton of cash to help franchisees fund costly restaurant upgrades in an unprecedented move to win back lost customers.
This means customers will soon see a lot of changes coming to McDonald’s restaurants across the US, as the promise of funding will make franchisees far more willing than in the past to initiate upgrades and remodels.
Specifically, McDonald’s is promising to pay 55% of the costs associated with its so-called “Experience of the Future” initiative, which includes installing self-order kiosks, adding new dessert counters, and installing table-locator technology that employees use to deliver customers’ food, The Wall Street Journal’s Julie Jargon reports.
The new additions can cost between $150,000 to $700,000 per location, according to the Journal, which reviewed a commitment letter from McDonald’s to US franchisees.
McDonald’s funding commitment is a first of its kind. The company typically requires franchisees to front the cost of upgrades — whether that’s new equipment or total restaurant renovations.
This requirement has led to friction between the company and its operators in the…