McDonald's Reintroduces Bagels in California to Counteract Wage Hike Effects
The fast-food giant aims to boost sales and manage rising labor costs with the popular breakfast item and a $15 million advertising campaign.
- McDonald's reintroduces bagel sandwiches at California locations as a strategy to offset the new $20 minimum wage for fast food workers.
- The 'Rise and Dominate' task force developed this initiative, which includes a significant advertising spend aimed at increasing store traffic and sales.
- Franchisees express concerns that price increases alone cannot compensate for the wage hike, prompting innovative solutions such as the bagel reintroduction.
- The reintroduction of bagels is expected to increase sales by 10%, with a focus on digital sales for better profitability.
- Other measures include new scheduling systems and better traffic projections to further support franchisees under the new wage law.