Some McDonald’s locations could soon charge customers for drink refills, according to a new report.
Individual franchisees will soon be able to choose to eliminate free refills, a spokesperson for the fast food giant told USA Today. The move comes as McDonald’s plans to eliminate its self-serve drink machines inside its restaurants.
Last month, McDonald’s posted lower-than-expected Q1 results amid an ongoing boycott due to its presence in Israel. The results showed a drop in international franchised markets for the first time since 2020 when the Covid-19 pandemic began.
To battle the boycott, the fast-food chain announced last month it would buy back all 225 restaurants from the Israeli franchise Alonyal Limited.
“We thank Alonyal Limited for building the McDonald’s business and brand in Israel over the past 30 years,” Jo Sempels, president of International Developmental Licensed Markets at McDonald’s Corporation, said in a statement. “McDonald’s remains committed to the Israeli market and to ensuring a positive employee and customer experience in the market going forward.”
The McDonald’s boycott is one of several called for by pro-Palestine activists as the death toll in Gaza surpasses 35,000 people. Israel’s continued bombardment of Gaza comes in response to 7 October, when Hamas militants killed 1,200 people in Israel and took another 250 hostage.
Meanwhile, rising inflation is also taking a toll on fast food sales as more and more people choose to eat at home.
In light of this, McDonald’s will launch a new $5 meal deal that will last for one month beginning 25 June.
Some customers expressed frustration about the temporary deal.
“Doesn’t sound like much of a commitment to its customers to me,” one X user said earlier this month. “Putting it on the menu and leaving it there sounds like a commitment.”
Franchise owners also pushed back on the deal with 95 per cent of franchisees rejecting the $5 Meal Deal due to concern over further loss of earnings earlier this year.
McDonald’s is being further hit by California’s new law mandating a $20 minimum wage for fast food workers. As a result, the fast-food giant raised its prices in the state.
Despite this, McDonald’s CEO Chris Kempczinski said on a recent earnings call that the company had to be “laser-focused on affordability.”
