Every corner of the retail and restaurant world has been affected by the coronavirus — even massive global chains like McDonald’s.
The fast-food giant announced they’re closing 200 locations in the U.S. by the end of the year.
Here’s what you need to know:
You’ll see fewer McDonald’s locations inside Walmart.
Of the 200 McDonald’s locations set to close by the end of the year, more than half of them are inside Walmart stores.
Up to now, 700 Walmarts have had a McDonald’s inside.
The rest of the locations were pre-planned for closure.
McDonald’s says that the remaining restaurants were low-volume locations, originally planned for closure years from now but accelerated by the pandemic.
There’s no list of affected locations yet, but expect to see closures at locations without drive-thru service — in urban areas that have suffered low foot traffic since the pandemic.
The chain abandoned plans to reopen dining rooms in July.
Optimism about reopening in May was dulled by the harsh reality of COVID cases spiking nationwide.
McDonald’s has been forced to continue to rely on drive-thru, pickup and delivery options.
Meanwhile, customers who are allowed in store for pickup will be required to wear masks.
McDonald’s just had their worst quarter in more than a decade.
The Financial Times reported that McDonald’s had their lowest quarterly profits in 13 years, with their net income falling by 68% over the previous quarter. Overall revenues fell 30%.
Don’t worry too much about McDonald’s; they’re opening 950 new locations.
While closing 200 McDonald’s locations could seem alarming, that’s about 1.4% of the 14,000 U.S. locations. Meanwhile, McDonald’s will open around 950 new restaurants globally this year, with 400 of those being in China.
Not only that, McDonald’s closures have been common in recent years, as the company has looked to improve customer and sales averages per store.