McDonald's to help German franchise holders survive crisis

Fast food giant McDonald's is to defer leasing and franchise payments owed to it in Germany for the months of March and April in order to help its franchise holders survive the crisis caused by the novel coronavirus pandemic.

According to a report published on Friday by the business weekly Wirtschaftswoche, part of the rent will also not be charged. The costs to McDonald's are put in the tens of millions of euros.

In addition, McDonald's is planning a major new marketing campaign to coincide with the opening from Monday of its restaurants to diners seated indoors.

Most of the 1,480 restaurants trading in Germany under the McDonald's name are operated by around 200 franchise holders. Additional assistance could be provided on a case-by-case basis, the company told the magazine.

During the crisis, McDonald's has sought to boost sales through its drive-thru outlets selling its hamburgers and other fast food directly to drivers and their passengers in cars.

But McDonald's Germany head, Holger Beeck, told Wirtschaftswoche this had not by any means made good the loss of trade in its restaurants.