Uber Eats devouring McDonald's franchise owners' profits: 'Bar Rescue's' Jon Taffer
‘Bar Rescue’ host Jon Taffer on McDonald’s franchise owners’ concerns about the cost of Uber Eats and the challenges for small businesses in finding workers to fill entry-level positions.
McDonald's franchise owners are bearing the brunt of the fees from a corporate partnership with delivery service Uber Eats.
The food delivery platform takes about 20 percent of each food delivery transaction, which is devouring franchise owners’ profits, according to “Bar Rescue” host Jon Taffer.
"The corporate franchisor McDonald's makes their money off the top,” said Taffer to FOX Business’ Stuart Varney on Wednesday. “Whereas the franchisee makes it off the bottom-- 20 percent is a big hit off the bottom.”
McDonald's teamed up with Uber Eats in the U.S. in 2017 after successful trials in Asia and the Middle East. The pilot began with 200 restaurants and has since grown to more than 8,000.
McDonald's is the world's leading global foodservice retailer with over 37,000 locations in over 100 countries, according to the company website. Over 90 percent of McDonald's restaurants worldwide are owned and operated by independent local businesses.