For the First Time in 40 years, McDonald’s Plans on Shrinking in the US

For the first time in nearly 40 years, McDonald’s, arguably America’s most famous fast food restaurant, plans to shrink the number of US restaurants it will have. It has plans to close more restaurants than it will open this upcoming year, the first time since 1970 according to the Associated Press. A McDonald’s spokesperson stated the reduction would be small compared to its 14,300 stores nationwide.  For the most part, McDonald’s has only seen positive growth in its history, but new chains like Chipotle, who are known for serving better food and ingredients, have taken some business away from McDonald’s, along with better burger places opening up such as Burger-Fi and Five Guys.

This April, McDonald’s said it will close around 700 stores that are not meeting expectations. New CEO Steve Easterbrook also said the structure of McDonald's will be changing as well to help perform better. Specific locations haven’t been listed yet, but it is expected to be a mix of Franchises and also company-owned stores. While this reduction seems to have a negative tone, McDonald's rapid expansion and unparalleled success in the fast food industry it was only a matter of time until they had to shrink the amount of stores.

Shrinking the amount of stores they have nationwide could actually help the company become more prosperous, as sales should return to a more healthy level. Even with closing 700+ locations, McDonald's will still remain the nations largest fast food chain.  McDonald's believes that closing these stores is their way of strengthening its base of stores. 

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Virginia MacKoul

Virginia is a graduate from the University of Florida's College of Design Construction and Planning with a degree in Sustainability and the Built Environment, and a minor in Urban Regional Planning. Virginia joined the Front Street team in 2011, as an intern. Upon graduation, Virginia joined the Front Street team full-time as the Director of Client Services. Ms. MacKoul’s addition furthers Front Street’s continued growth and expansion within Gainesville and other North Central Florida markets. She was promoted to Director of Marketing in 2014 and now manages the firm’s team of interns and oversees all marketing and branding activity. Virginia was born in Boston and moved to Lee County, Florida in 1997. Virginia graduated her high school's International Baccalaureate program and started at the University of Florida with a focus on Architecture. Virginia shares Front Street's passion of giving back to the community and those in need. Virginia's hobbies include photography, cooking, football, movies, music, and spending time with her dog, Brinkley.

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