McDonald’s Is Closing 200 US Locations This Year—Here’s Why
Your local golden arches may be disappearing. McDonald's is closing up shop on 200 locations due to heavy drops in revenue.
The coronavirus pandemic has made its mark on 2020 in plenty of ways. Many retailers, like Aldi and Costco, now require you to wear a face mask during your weekly grocery run, and a majority of fast-food restaurants closed their dining rooms in favor of contactless drive-thru or mobile ordering. With declining sales, this means plenty of locations across the fast-food board are calling it quits.
McDonald’s has announced that it will be closing 200 locations by the end of 2020. Here’s what we know.
Why Is McDonald’s Closing?
According to Restaurant Business Online, McDonald’s CFO Kevin Ozan confirmed the suspicion that as many as 200 locations will be closing their doors. This comes after McDonald’s recently suffered a revenue loss of 30%, says The Financial Times. Over half of the closing locations live in Walmart stores, a trend that erupted among fast-food chains back in the ’90s.
McDonald’s is seeing its lowest profits in 13 years, though the slowdown in revenue is likely because of coronavirus. Several chains, like Starbucks have taken measures to temporarily, and sometimes permanently, shut down less profitable locations. In fact, Starbucks has plans to close up to 400 stores. However, fast-food chains are also finding their feet again and learning to adapt in this tough time.
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But Wait—Here’s the Good News
While McDonald’s will be disappearing from Walmart locations by the end of the year, the rest of the golden arches won’t be following suit anytime soon. As of 2018, there are more than 13,000 McDonald’s locations in the US alone and nearly 40,000 locations worldwide. McDonald’s also has plans to open up 350 new locations in 2020, according to CNBC.
We sure will miss grabbing McDonald’s at the end of our grocery run, but we’re looking forward to stopping at the new locations for a coffee and Egg McMuffin. Nothing beats McDonald’s breakfast!