Fast Food Franchisees Case Study

Improved Essays
When it comes to the case of franchisees, they must follow the standardized system that is determined by the franchisors. According to the article "Franchisors and the fast food industry: Franchisors sharing employment responsibility with franchisees" (n.d.) written for Working Washington, an American organization that contributes to the improvement of labourers' rights and benefits, fast food franchisees’ activities are strictly influenced by franchisors, particularly labour management practices and fees paid for employees. In other words, franchisees are not in the position to make the decision regarding working conditions or benefits for their employees. Fast food franchisees must follow the franchise agreements designated by franchisors, …show more content…
According to former executive of McDonald’s, Richard Adams (2015, as cited in Chen, 2015), fast food franchisees would not obtain the renewal agreement from the franchise if they are not compliant. This leads to the difficulties for restaurant owners to improve the working conditions or raise the minimum wages for their employees. To conclude, the existence of poor working conditions in the American fast food industry mainly lies in the fact that franchisors obtain the ultimate controlling power over their franchisees and the business as a whole, while restaurants must follow the rules and regulations from the managing companies in order to be given certain advantages.
Effects of poor working conditions
The existing poor working conditions in fast food restaurants directly imposes negative impacts on the business, as well as workers and their families. Firstly, poor working conditions affect fast food franchises by increasing unfavorable costs for turnover and harming their reputation. Specifically, it was stated in the report “Hands that feed us” of Food Chain
…show more content…
20 percent of families with a member working in the industry “has an income below the poverty line” (Allegretto et al., 2013, para. 6). Particularly, a crew member at a McDonald’s restaurant (as cited in Feuer, 2013) claimed that the minimum wage of $7.25 per hour is not enough to live. Since even working full-time can not cover the burden of low pay, the majority of fast food workers must do a second job to support families (Allegretto et al., 2013; Feuer, 2013). This trend reduces their concentration on fast food job and therefore worsens work quality. Additionally, labourers’ long workdays and working multiple jobs also affect their family members’ health status, as they “reduce time available for family dinners, with some parents resorting to calorie-dense fast food and convenience food to feed their families”, reported researchers Tammy D. Allen, Kristen M. Shockley, Laura F. Poteat in their article in Journal of Vocational Behavior (2008, as cited in Champagne et al., 2012, p.1). This results in the ill health, influences people’s ability to work effectively, and leads to the low job satisfaction, according to Champagne, Abreu, Nobrega, Goldstein-Gelb, Montano, Lopez, Arevalo, Bruce, Punnett in their 2012 study report about the role of working conditions in obesity and overweight. Consequently, the issue, to some extent, leads to the changes for other jobs with

Related Documents

  • Improved Essays

    In Amitai Etzioni’s essay, “Working at McDonald’s”, he boldly opens with “McDonald’s is bad for your kids. I do not mean the flat patties and the white-flour buns; I refer to the jobs teen-agers undertake, mass-producing these choice items.” His essay, through an eye-opening perspective, convincingly outlines how McDonald’s and fast food restaurants alike are bad for teenagers. With his strong use of comparing and contrasting traditional thoughts of teenagers in the fast food workforce versus his perspective of the effect of fast food restaurants, evidence based studies with statistics, and organizational flow, he clearly shows a perspective rarely touched on by many.…

    • 736 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Fast Food In The 1950s

    • 1421 Words
    • 6 Pages

    In “New Developments of in the Restaurant Industry”, the author explains that movies like Supersize Me caused many customers to become discouraged to eat a fast food restaurants, especially McDonald’s. In the movie Supersize Me, this man, Morgan Spurlock, embarks on a journey to eat only McDonald’s for 30 days with a camera monitoring the health effects from this challenge. The results showed the public how dangerous fast food on a regular basis could be. To change this, fast food companies have tried to change their approach. Places like Chipotle and Panera Bread have adapted this “new and growing concept, labeled ‘fast casual,’ ……

    • 1421 Words
    • 6 Pages
    Improved Essays
  • Great Essays

    Leidner wrote a book, Fast Food Fast Talk: Service work and the routinization of everyday life, in which she worked in and observed working life in a McDonalds and compared it to an insurance company. Her book focused on the routinization of service jobs and its effect on the people working, the customers consuming the product, and the effect it has on the company. This paper focuses on a McDonalds in the Southside of Jacksonville, FL and how it compares to the observations made in Leidner’s book. Going into this project, there were not many expectations made about what to expect in the McDonalds observed. The following are the expectations that were kept in mind while the field observations, discussed later in this paper, were conducted.…

    • 1668 Words
    • 7 Pages
    Great Essays
  • Improved Essays

    I thoroughly enjoyed reading the article, "Franchise Hostages: Fast Food, God, and Politics" by Robert W. Emerson and Jason R. Parnell. Prior to reading this article, I never thought about the possible negative effects that the freedom of speech has on a company. It made me realize that leaders of companies have to be cautious when speaking about politics. This highlights the fine line of free speech and politics. The examples given in this article show that when leaders of companies speak publicly about politics, there are likely negative consequences.…

    • 916 Words
    • 4 Pages
    Improved Essays
  • Decent Essays

    The growing interest in where food comes from has led to several investigations of franchises. These companies have to start being a lot more careful with how they handle food because people are starting to notice and bringing in government action. I believe that many fast food restaurants…

    • 249 Words
    • 1 Pages
    Decent Essays
  • Superior Essays

    Introduction: Throughout the course and expansion of this country, Americans have been able to distinguish themselves among several other countries due to their distinctive attributes. As time has went on, the movements and actions that people have taken to define themselves as Americans have been proven to be recurring characteristics. Whether it’s the repercussions of the fast food industry or simply the way that America has progressed, Americans have been characterized as enjoying convenience, being rather greedy, and not caring about their quality of food. As Americans are commonly known as being rather impatient, they sincerely enjoy the fast pace and convenience that fast food restaurants are able to provide them.…

    • 1412 Words
    • 6 Pages
    Superior Essays
  • Great Essays

    People might think of fast food as a benign convenience of modern times. The food is good, cheap, plentiful, easily accessible, filling, and the restaurants are clean. What could be wrong? Reading Eric Schlosser’s groundbreaking study Fast Food Nation, one learns that just about everything is. Schlosser uncovers a history of corruption, greed, and disregard for the welfare of workers and customers in franchises such as McDonald’s, Burger King, and Jack in the Box, to name a few.…

    • 1515 Words
    • 7 Pages
    Great Essays
  • Improved Essays

    The least that the restaurants should do is to improve the working conditions this the extra profit that they are getting. According to the article, it states that “The 13 million-plus restaurant workers in the United States face a poverty rate that is nearly three times that of the rest of the country’s workforce…” Even though the business creates a lot of revenue; most of its worker face poverty. Since most of these workers have to support a family of multiple children, it is very hard to comply with children’s’ needs.…

    • 1136 Words
    • 5 Pages
    Improved Essays
  • Superior Essays

    Fast Food Nation

    • 1210 Words
    • 5 Pages

    Through the exploitation of social stratification many big businesses are able to remain successful while at the same time placing those workers on the lower end of the bureaucratic spectrum in harms way. Utilizing an old form of exploitation that was made popular by former president Theodore Roosevelt, and usually seen in politics Schlosser exposed the atrocities that underpaid minimum wage workers endured in the meat packing industries. Again agreeing with his standpoint the fact that political lobbyist, individuals, groups or organizations that actively seek to influence government policy, fight for big business in order to prevent legislator from passing laws that can protect the franchises workers is baffling. To support the book of Fast Food Nation, in a less harsh manner there is the American Way of Eating: Undercover at Walmart, Applebee's, Farm Fields, and the Dinner Table, by Tracie McMillan. In this book the author goes undercover, much like Schlosser, in order to unveil the mysteries of the American food systems through the process of working with food throughout the various stages of produce, ranging from when it is first picked in the fields to actually being served in a restaurants.…

    • 1210 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    Overview In order to develop a successful strategy for a business, it needs to analyze both the external factors of the industry and the internal factors of the business. There are many tools that can be used to analyze the external environment. This paper will analyze the fast food industry, where Chipotle Mexican Grill, Inc operates, by using PESTEL analysis and Five Forces model. The PESTEL Framework It is an analytical tool that describes a framework of external factors that is used for strategic planning and managing.…

    • 1120 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    In Fast Food Nation, issues in management are causing the steps of Mickey’s fast food production process to each output a product worse than the last. Management issues in both the plant and restaurants cause unsafe byproducts to be produced. Hazardous working conditions…

    • 789 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Fast Food Nation: Final Exam 1. Schlosser paints quite a dire picture for how teenage workers are treated in the fast food industry. He describes how teenage workers are force to work long hours, even 12-hour shifts, after school and on the weekend, often in robbery-prone conditions. To make matters worse, the fast food industry is process-oriented and requires very little learned skills which lessen the teenager ability to negotiate working hours, salary, or others working conditions. Schlosser noted how the part-time nature of fast food work, and the high turnover rates also gave the workers little negotiating ability (p. 75).…

    • 1171 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    2.2 Negatively affects the Social and Culture of a nation The fast food industry negatively impacts the development of a country’s on social aspects by making people feel depress, being bullied as well as becoming impatient. These will make them become annoyed and wound up and affect their social communication. The more fast food people consume, the larger the possibility of depression develops. According to Public Health Nutrition (as cited in Morris, n.d.)…

    • 1549 Words
    • 7 Pages
    Improved Essays
  • Great Essays

    Introduction We define the restaurant industry and how it is connected to other industries. We also describe how the fast food industry is different from the regular restaurant industry. What are the usual challenges in the restaurant and fast food industry? Now, we go further and explain further the unique challenges and pressures that managers of fast food restaurants face.…

    • 1108 Words
    • 5 Pages
    Great Essays
  • Great Essays

    Case Study Of 7-Eleven

    • 1920 Words
    • 8 Pages

    Introduction The following case study is going to look at the case of 7-Eleven petrol and convenience store chains in Australia and the underpayment of wages. The wage tampering was first brought to light in 2008 and was investigated up until 2016. The essay is first going to introduce the company and the give an overview of the white-collar crime they committed. Following that, the essay will review two criminology theories, the theories are social learning theory and routine activities theory it will give a description of the theories.…

    • 1920 Words
    • 8 Pages
    Great Essays