‘Fast Food’ restaurants no longer fast, affordable or even convenient

Egg-McMuffin

Important Takeaways:

  • ‘What HAS the world come to?’ McDonald’s customer is left outraged after being charged $7.29 for single Egg McMuffin at Connecticut restaurant
  • A McDonald’s customer was left astounded after paying $7.29 for a single Egg McMuffin in a Connecticut drive through.
  • Bespoke Investment Group posted a picture of the customer’s receipt with the caption ‘$7.29 for one McDonald’s Egg McMuffin. What has the world come to?? These were 2 for $2 pretty recently.’
  • The bill records the purchase of two Egg McMuffins for $14.58 and one Bacon, Egg & Cheese McGriddle without two half-strips of bacon for $7.19.
  • The incident is even said to have spooked the Biden administration after critics claimed it was yet another symptom of the soaring inflation that has hurt millions of Americans’ pockets.
  • McDonald’s was among the many other fast-food chains that raised their prices in 2021 to account for inflation and increased labor costs.

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If you’re looking for a new vehicle don’t think prices are going to come down as Auto strike could keep prices high

UAW Strike chance

Important Takeaways:

  • Dingell: Auto Strike Odds 50/50 — ‘Biggest Issue’ Is EV Pay Difference, Some EV Workers Make Less than at McDonald’s
  • Debbie Dingell (D-MI) said she thinks there’s a 50/50 chance of an auto worker strike and that while there isn’t an either/or between the environment and workers, “Perhaps the biggest issue is the differentiation between the internal combustion engine and the battery and what they’re going to get paid for it.” And people “can’t make 16.50 an hour in Lordstown, Ohio, making a battery, when they can work at McDonald’s for $23 an hour, which is what’s happening right now.”

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McDonalds prepares for layoffs saying “Difficult decisions ahead”

Golden Arches

Revelations 18:23:’For the merchants were the great men of the earth; for by thy sorceries were all nations deceived.’

Important Takeaways:

  • McDonald’s temporarily shuts US offices, prepares layoff notices: report
  • McDonald’s Corp is temporarily closing its U.S. offices this week as it prepares to inform corporate employees about layoffs undertaken by the fast food giant as part of a broader company restructuring, the Wall Street Journal reported.
  • “During the week of April 3, we will communicate key decisions related to roles and staffing levels across the organization,” the company said in the message viewed by The Wall Street Journal.
  • “[W]e will evaluate roles and staffing levels in parts of the organization and there will be difficult discussions and decisions ahead,” the CEO wrote

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COVID-19 lawsuit takes on McDonald’s like it was a rowdy bar

By Tom Hals

(Reuters) – As U.S. businesses reopen, worried workers and their advocates are borrowing a legal strategy commonly used to shut down rowdy topless bars to try and force employers to strengthen protection against further spread of the coronavirus.

Workers and their families at McDonald’s Corp’s Chicago restaurants have filed a class-action lawsuit against the fast-food chain that does not seek money for sick staff, but compliance with health guidance such as providing clean face masks.

The strategy was unsuccessful against a meatpacking plant but experts said it could work against McDonald’s and other companies, and a business group warned about a flood of cases.

“The damage done by inadequate safety practices is not confined to the walls of a restaurant but instead has broader public health consequences,” Tuesday’s lawsuit said.

Like an April lawsuit against a meatpacking plant, the case targets McDonald’s as a public nuisance, a legal strategy previously used to shutter strip clubs and the famed Limelight nightclub in Manhattan.

Typically, workplace safety is a matter for the federal Occupational Safety and Health Administration (OSHA), which has the authority to inspect businesses and issue citations. By focusing on community health, the lawsuit attempts to move outside OSHA’s jurisdiction and into the courts.

McDonald’s workers around the country have protested and demanded safety gear.

In Chicago, workers filed at least four complaints with OSHA, but the agency declined to inspect work sites, according to the lawsuit.

OSHA did not immediately respond to a request for comment. Unions have criticized the agency for lax enforcement and failing to issue mandatory standards for businesses to stem the spread of COVID-19.

“When you don’t have an assertive OSHA you get these creative approaches,” said Michael Duff, a professor at the University of Wyoming College of Law.

McDonald’s called the allegations inaccurate. The company criticized the SEIU service union that is supporting the plaintiffs and said the chain has issued a 59-page guide its restaurants must follow to protect staff and customers.

The Fight for $15 group, which campaigns to raise the U.S. minimum wage to $15 an hour, is also helping the workers.

OSHA has said it is investigating thousands of complaints nationwide and that flexible guidance is better than rigid standards.

The public nuisance doctrine stems from medieval England, where it was used to promote safer roads and to fight infectious diseases.

To prevail, plaintiffs must prove a defendant interfered with public good, like the community’s health. Unlike a typical lawsuit, it does not generally require proof that the defendant directly injured someone.

Rather than prove someone was infected with the coronavirus at McDonald’s, the workers must instead show the company created an unsafe workplace that posed an imminent threat of contributing to its spread.

A similar public nuisance lawsuit filed in April against a Smithfield Foods Inc meat processing plant in Missouri was dismissed because the judge said workplace safety was a matter for OSHA.

But Smithfield was already being investigated by OSHA and unlike McDonald’s, there were no confirmed COVID-19 cases in the Missouri plant.

The Institute for Legal Reform, an affiliate of the U.S. Chamber of Commerce business group, has warned the pandemic could prompt a flood of “abusive” lawsuits, and cited the McDonald’s public nuisance case in a call with reporters this week.

“The danger is one case survives and like moths to light you’ll see cases all over the place,” said Michelle Richards, a law professor at the University of Detroit Mercy.

Richard Ausness, a professor at the University of Kentucky College of Law, downplayed the risk of a flood of cases, but said the mere filing of such a lawsuit could push a business to help its workers.

“Who wants to be accused of maintaining a public nuisance? It just sounds awful,” he said.

(Reporting by Tom Hals in Wilmington, Delaware; editing by Noeleen Walder in New York)

Wendy’s menu runs short as virus hits U.S. beef supplies

(Reuters) – Wendy’s Co said on Tuesday its restaurants may face a shortage of many menu items, including hamburgers, as beef processors in the United States struggle to keep their plants open amid the COVID-19 pandemic.

U.S. meat manufacturers, including Tyson Foods Inc, have signaled disruptions to food supply as they are forced to shut many meat plants to curb the spread of the coronavirus.

“Beef suppliers across North America are currently facing production challenges. Because of this, some of our menu items may be in short supply from time to time at some restaurants in this current environment,” a Wendy’s spokesperson said.

The burger chain, known for its fresh-never-frozen patties, said it would continue to supply hamburgers to all of its restaurants, with deliveries two or three times a week.

Just before the virus outbreak in the United States, Wendy’s launched a new breakfast menu that included sausages, eggs, croissants, and a hamburger variation in the hopes of attracting more footfall in the morning, a crucial daypart for restaurateurs.

The pandemic has also led to rival McDonald’s Corp trimming its menu to serve drive-thru and delivery customers faster, while its dine-in operations remain shut. Chief Executive Officer Chris Kempczinski last week told analysts that the company has had no break in supply till date.

Several retailers including Kroger Co and Costco Wholesale Corp have also limited meat purchases per customers.

(Reporting by Nivedita Balu in Bengaluru; Editing by Ramakrishnan M.)

Fast-food companies in China step up ‘contactless’ pickup, delivery as coronavirus rages

By Hilary Russ and Sophie Yu

NEW YORK/BEIJING (Reuters) – With the coronavirus outbreak in China continuing to spread, McDonald’s Corp, Starbucks Corp and other fast-food companies are ramping up “contactless” pickup and delivery services to keep their workers and customers safe, the companies said.

McDonald’s has implemented contactless pickup and delivery of Big Macs, fries and other menu items across the China as the outbreak has unfolded.

Customers order remotely – on mobile phones or by computers in store – and employees seal the meals in bags and put them in a special spot for pickup without human contact, McDonald’s says on its website.

For delivery orders, drivers drop McDonald’s packages at building entrances, disinfect their delivery bags and wash their hands more frequently. Drivers carry ID cards showing that they – and the people who made and packaged their food – had their body temperature scanned to prove they do not have a fever.

“While we look at how to further improve the process, the stepped-up preventive measures apply to all of our servicing channels,” McDonald’s said in a statement to Reuters.

The flu-like virus has infected more than 68,500 people globally and killed 1,665 as of Sunday, mostly in the central Chinese province of Hubei. Some major Chinese cities still resemble ghost towns as China struggles to get its economy back on track after a prolonged Lunar New Year holiday.

In early February, 83% of all stores on the Meituan-Dianping delivery platform – one of the largest in the country – were closed, according to Beijing-based data firm BigOne Lab.

Earlier this month, China’s National Health Commission recommended that deliveries limit contact.

Starbucks suggests customers order coffee via its app and then wait outside its cafés until they get a pick-up notice. Orders are placed on tables just inside café entrances.

If they do enter Starbucks locations, customers have their temperature taken at the door, as fever is one of the main symptoms of infection, and baristas wear masks.

For delivery, Starbucks said it regularly sterilizes containers and that its delivery people have their temperature taken daily. Indoors staff must wash hands every 30 minutes, and public areas are sterilized every 2 hours.

Starbucks delivery is provided by ele.me, owned by ecommerce giant Alibaba Group Holding Ltd.

The measures illustrate how companies are quickly adapting in order to sell prepared food while keeping people safe.

Yum China Holdings Inc rolled out contactless delivery on Jan. 30, with contactless pickup coming two days later at its KFC and Pizza Hut locations, the company said.

CHANGING HUMAN TRANSACTIONS

There had been contactless delivery in China prior to the crisis, when couriers would drop packages at a consumer’s door or lobby or place parcels in lockers for later pickup.

But since the outbreak, many residential compounds are limiting access for drivers and asking customers to pick up their own packages.

In transactions that previously would have involved one person handing a package to the other, the driver now puts the food down – on the back of a moped, for instance – and then steps back and waits for the customer to take it and leave.

One customer, for example, asked a delivery person to put a parcel in the elevator and press the button for the designated floor. The customer grabbed the package when the doors opened – unaccompanied by the courier, according to a post on CCTV News’ social media account on Weibo, said Allison Malmsten, a marketing strategy analyst at Daxue Consulting in Shanghai.

The outbreak “redefines contactless food delivery,” Malmsten said via email.

Since the start of the outbreak, Yum China has closed more than 30% of its locations. There have been “significant interruptions,” with sales off as much as 50% in those that remained open since the Lunar New Year holiday, versus the same time last year, Chief Financial Officer Ka Wai Yeung said in a Feb. 5 earnings call.

The crisis has accelerated the rollout of Yum China’s contactless services in China, it said in a statement.

“These services have been well-received by customers and are playing an important role in ensuring that our delivery business continues to hold up during this period of significantly reduced dine-in traffic,” it said.

Early during the epidemic, meal delivery took a hit because customers feared contact with drivers would put them at risk of infection, according to news reports.

Cases of couriers being diagnosed with the virus after working for days arose in Shenzhen and Qingdao cities.

The companies’ reliance on pickup and delivery to offset some losses does, however, have limitations.

Malmsten said many drivers cannot return to work due to travel restrictions, and those who can return face long hours and physical and mental fatigue. As a result, SF Express, the second-largest courier in China, has ramped up hiring, she said.

(Reporting by Hilary Russ in New York and Sophie Yu in Beijing; Editing by Bill Berkrot and Dan Grebler)

McDonald’s faces 25 new sexual harassment complaints from workers

FILE PHOTO: The logo of a McDonald's Corp restaurant is seen in Los Angeles, California, U.S. October 24, 2017. REUTERS/Lucy Nicholson/File Photo

By Jonathan Stempel

(Reuters) – McDonald’s Corp was accused on Tuesday in 25 new lawsuits and regulatory charges of condoning sexual harassment in the workplace and retaliating against employees who speak up.

The cases announced by the American Civil Liberties Union (ACLU), the labor group Fight for $15, and the Time’s Up Legal Defense Fund cover alleged misconduct at McDonald’s locations in 20 U.S. cities, including groping, indecent exposure, propositions for sex, and lewd comments.

McDonald’s is one of the world’s most recognizable brands, and the cases make the fast-food chain a primary target of a campaign to extend the #MeToo movement, which sprung from sexual harassment cases in Hollywood, to the workplace.

The Chicago-based company said it has more than 14,000 locations in the United States with some 850,000 workers.

More than 90 percent of the locations are franchised, and McDonald’s has long maintained it should not be liable for how employees in franchised restaurants behave.

Chief Executive Steve Easterbrook said his company has improved and more clearly defined its harassment policies, has trained most franchise owners, and will be training front-line employees and setting up a complaint hotline.

“McDonald’s is sending a clear message that we are committed to creating and sustaining a culture of trust where employees feel safe, valued and respected,” Easterbrook wrote in letters this week to Illinois Senator Tammy Duckworth and “Top Chef” host Padma Lakshmi, who supports the workers’ cause.

The 25 cases include three new lawsuits, two by workers who previously filed charges, and charges filed with the U.S. Equal Employment Opportunity Commission (EEOC).

McDonald’s has faced more than 50 such charges and lawsuits in the last three years, the ACLU said. Last September, McDonald’s workers in 10 cities staged a one-day strike to protest alleged sexual harassment.

Jamelia Fairley, a single mother who makes $9.60 an hour at a corporate-owned McDonald’s in Sanford, Florida, told reporters she went to the EEOC after a co-worker began groping her, rubbing against her and saying he could “give me a ride.”

She said that after she reported the harassment, McDonald’s transferred but did not fire her harasser, while her boss cut her weekly hours to seven from 25,

“Trying to raise a 2-year old on $67 a week is, well, I can’t do it,” Fairley said.

Sharyn Tejani, director of the Time’s Up fund, which is part of the National Women’s Law Center, said having to put up with workplace harassment should not be a cost of making a living.

“For McDonald’s, time is past up,” she said.

(Reporting by Jonathan Stempel in New York; editing by Bill Berkrot)

Iowa, Illinois investigating infections linked to McDonald’s salad

FILE PHOTO: The logo of a McDonald's Corp restaurant is seen in Los Angeles, California, U.S. October 24, 2017. REUTERS/Lucy Nicholson

(Reuters) – The Iowa and Illinois health departments said on Thursday that they were investigating cyclospora infections linked to salads at McDonald Corp’s restaurants.

McDonald’s shares fell 1.4 percent after-hours on Thursday.

The Illinois Department of Public Health said it had seen about 90 cases, and the Iowa Department of Public Health said it had recorded 15 cases.

In about one-fourth of the Illinois cases people reported eating salads from McDonald’s in the days before they became ill.

McDonald’s, the world’s largest restaurant chain, said in a statement that it had been in contact with public health authorities in both states.

It said that it had voluntarily stopped selling salads at the approximately 3,000 affected U.S. restaurants until it could switch to another lettuce blend supplier.

“We are closely monitoring this situation and cooperating with state and federal public health authorities as they further investigate,” the company said.

The parasite, cyclospora cayetanensis, infects the small intestine, typically causing watery diarrhea and frequent, sometimes explosive bowel movements. It is spread by ingesting food or water contaminated with feces and not directly from one person to another.

Several outbreaks have occurred in the United States in the past several years, especially during the summer months, that had been linked to imported fresh produce including raspberries, basil, snow peas, and lettuce.

(Reporting by Nivedita Balu in Bengaluru and Alana Wise in New York; Editing by Maju Samuel)

Not so fast: U.S. restaurant workers seek ban on surprise scheduling

McDonald's employee Ashley Bruce poses in front of the restaurant where she works in Chicago, Illinois, U.S.

By Peter Szekely

NEW YORK (Reuters) – The text message came as Flavia Cabral walked to a McDonald’s restaurant in Manhattan for her 6 p.m. shift on a May evening. It was from her manager. Business was slow and she was not needed.

Cabral said she was not too surprised. Her work hours fluctuate almost weekly, though losing an entire shift at the last minute happens only once every few months. This time the canceled shift took a $63 bite out of her average $350 gross weekly earnings from two part-time jobs.

“Every week you’re guessing how much money you’re going to get and how many days you’re going to work,” said Cabral, 53, who has been employed at McDonald’s for four years.But a measure of relief is coming for Cabral and 65,000 other New York City fast-food workers whose schedules and incomes often change with little or no notice.

New York recently became the largest U.S. city to require fast-food restaurants to schedule workers at least two weeks in advance, or pay them extra for changes.

The law, which the restaurant industry vigorously opposed, also requires employers to allow 11-hour breaks between shifts, offer part-time staff additional work before hiring new employees, and pay retail workers to be “on call.” It takes effect late this year.

McDonald’s Corp did not respond to a request for comment.

Nationwide, the issue of scheduling is becoming a new battleground in the fight to boost living standards for low-paid workers, waged largely by the “Fight for $15” movement. The five-year-old, union-backed initiative has already helped convince many jurisdictions, including New York state, to raise minimum wages.

In Oregon, a bill that would set regular scheduling for workers at large food service, hospitality and retail companies is awaiting the governor’s signature. Similar bills are pending in five other states.

Not only do fluctuating schedules wreak havoc with tight household budgets, they make it difficult to make appointments, arrange child care and plan family time, workers point out.

The restaurant industry vigorously opposed the New York City law. Combined with higher minimum wages, scheduling requirements will eventually cripple some fast-food outlets, which mostly operate on thin profit margins of 1.5 to 3 percent, it says.

With a business model based on offering workers entry-level opportunities, not living wages, fast-food restaurants need flexible scheduling to survive, said industry advocate Louis Meyer, who runs fast-food operations at New Jersey-based Briad Group.

“There’s no way you can stay in business,” said Meyer, whose company employs 1,000 workers at about two dozen franchised Wendy’s and TGI Friday’s in New York. “It’s like having a disease. It’s going to get you sooner or later.”

Workers at McDonald’s, whose restaurants are mostly franchised, said weekly schedules are usually posted a day or two before they take effect. Still, they say they are often told at the last minute not to come to work or to punch out early.

“You could only have been on the clock for two hours and they’ll tell you to go home,” said Ashley Bruce, 22, who has worked for four years at a McDonald’s on Chicago’s South Side. The Chicago City Council is considering a scheduling bill that would cover 450,000 hourly workers.

Variable scheduling began cropping up in the 1970s as companies sought to maximize profits to better attract investors, according to University of Chicago Associate Professor Susan Lambert, who studies scheduling practices.

“They’re really looking at those labor budgets,” she said. “So, that puts enormous pressure on managers to really keep close track of how many hours you’re using and how sales are going.”

Some use sophisticated “workforce optimization systems” to analyze sales, weather and other factors to determine how few workers they need to remain profitable at a given moment, Lambert said.

Although fluctuating schedules affect mostly lower paid workers, it is a management strategy that is starting to affect higher paid jobs as well, as companies seek to transfer the risk of unsteady revenue to their employees.

The New York City scheduling law was passed with strong support from unions, including Local 32BJ of the Service Employees International Union, even though almost all fast-food workers are not unionized.

But Local 32BJ President Hector Figueroa said winning scheduling rights for fast-food workers also helps his union’s 90,000 building service workers.

“Our members enjoy these rights under the contract,” he said. “But if other workers don’t enjoy them, it’s just a matter of time for an employer in a building or in a cleaning company to say, ‘Wait a minute, why do you guys need advance notice of scheduling?'”

 

 

(Reporting by Peter Szekely; Editing by Lisa Shumaker)

 

Hundreds protest over minimum wage at McDonald’s stockholder meeting

Cooks, cashiers and other minimum wage earners join anti-Trump activists on a march for an increase in the minimum wage to $15/hour during a “March on McDonald’s” in Oak Brook, Illinois, U.S., May 24, 2017. REUTERS/Frank Polich

By Bob Chiarito

OAK BROOK, Ill. (Reuters) – Hundreds of fast-food workers demanded wage increases as they marched outside McDonald’s Corp <MCD.N> headquarters during the company’s annual shareholder meeting on Wednesday.

The demonstrators were part of a nationwide protest organized by “Fight for 15,” a labor group that has regularly targeted McDonald’s in calls for higher pay and union rights for workers.

More than two dozen protesters were arrested outside the United Continental Holdings Inc <UAL.N> shareholder meeting in downtown Chicago.

“I saw my mother, who worked 30 years for Hardee’s, struggle on food stamps to raise her family and now I’m doing the same thing,” said Terrance Wise, a 42-year-old from Kansas City, protesting outside the McDonald’s meeting in a Chicago suburb.

Wise, who has worked at McDonald’s for three years, said he earns $7.65 an hour working full time. He said he also relies on food stamps to support his three daughters.

“Instead of paying their CEO $15 million, they should give him $10 million and pay their workers what’s right,” he said. The main demand of “The Fight for 15” is a minimum wage of $15 an hour.

Chief Executive Officer Steve Easterbrook earned $15.3 million in total compensation last year, according to company data.

Shareholders inside the McDonald’s meeting did not ask about the protests during a question-and-answer session.

Easterbrook focused on the fast-food giant’s plans for delivering food with UberEats and the rollout of new products.

The company says it invests in its workers by helping them to earn college degrees and acquire on-the-job skills. In 2015, the company raised the average hourly pay to around $10 for workers in the restaurants it owns.

However, most McDonald’s workers in the United States are employed by franchisees who set their own wages.

Hopes for an increase in the $7.25-per-hour federal minimum wage were dashed last year when Republicans retained control of Congress in the U.S. elections last November. Opponents of an increase say higher costs would force restaurants to cut hiring, and some businesses would not survive.

Still, voters in Arizona, Colorado, Maine and Washington have approved minimum wage increases in their states, encouraging advocates to continue pressing their case at the local level. Workers on Wednesday also gathered outside of a McDonald’s store near downtown Los Angeles.

In Chicago, 30 protesters outside the United Continental meeting were arrested and cited for blocking a road, Chicago police said.

More than 100 protesters were arrested during nationwide demonstrations several weeks after Donald Trump won the White House in November. At various times on the campaign trail, Trump suggested U.S. workers were overpaid, but also that the minimum wage should be raised.

(Additional reporting by Anya George Tharakan in Bengaluru and Lucy Nicholson in Los Angeles; Writing by Timothy Mclaughlin in Chicago; Editing by Frances Kerry and Jeffrey Benkoe)