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Do you want to run the State Department of McDonald’s?

A couple of days ago, a tweet making fun at McDonald’s hiring a “Manager for Diplomatic Relations” went viral.

At first glance, the idea that McDonald’s, a burger franchise known for its double quarter pounders and perfectly salted fries, is expanding its diplomatic influence with policy makers in Foggy Bottom and the world at large sounds comical. But it’s actually crucial.

There are more than 40,000 McDonald’s locations spread across 115 countries around the world, and 90% of these stores are independently owned and operated franchises that pay royalties to the parent organization to operate. Tens of thousands of franchises operated by different owners with different beliefs, priorities, and values can get complicated, fast.

As we noted in Snacks in February, McDonald’s received heavy backlash from franchisees in countries including Saudi Arabia, Oman, Jordan, Kuwait, and Pakistan after McDonald’s Israel donated thousands of free meals to IDF personnel. But it wasn’t McDonald’s, as an entity, that made the donations. It was the owner of the company’s Israel franchises, who was acting under his own volition.

Still, the actions of franchise owners impact McDonald’s global brand, as well as the company’s relationships with its other franchises.

Even franchises that the company itself owns are vulnerable to international conflicts. McDonald’s previously owned 84% of its Russian stores, but after Russia invaded Ukraine, the restaurant chain joined a wave of American companies that fully sold/divested their Russian locations. 

International affairs is a complex business, and multinational corporations, even those that sell burgers and fries, need to stay in the loop with government actions that could impact their foreign businesses.

That, or Mayor McCheese is just attempting to dole out a cushy ambassador gig to a major fundraiser. But it’s probably the first one.

There are more than 40,000 McDonald’s locations spread across 115 countries around the world, and 90% of these stores are independently owned and operated franchises that pay royalties to the parent organization to operate. Tens of thousands of franchises operated by different owners with different beliefs, priorities, and values can get complicated, fast.

As we noted in Snacks in February, McDonald’s received heavy backlash from franchisees in countries including Saudi Arabia, Oman, Jordan, Kuwait, and Pakistan after McDonald’s Israel donated thousands of free meals to IDF personnel. But it wasn’t McDonald’s, as an entity, that made the donations. It was the owner of the company’s Israel franchises, who was acting under his own volition.

Still, the actions of franchise owners impact McDonald’s global brand, as well as the company’s relationships with its other franchises.

Even franchises that the company itself owns are vulnerable to international conflicts. McDonald’s previously owned 84% of its Russian stores, but after Russia invaded Ukraine, the restaurant chain joined a wave of American companies that fully sold/divested their Russian locations. 

International affairs is a complex business, and multinational corporations, even those that sell burgers and fries, need to stay in the loop with government actions that could impact their foreign businesses.

That, or Mayor McCheese is just attempting to dole out a cushy ambassador gig to a major fundraiser. But it’s probably the first one.

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Starbucks sells control of China business for $4 billion

Starbucks disclosed on Monday evening in a regulatory filing that it will sell control of its ailing China business to Boyu Capital for about $4 billion.

Under the agreement, Boyu will own a 60% stake in the China segment, which will become a joint venture between Boyu and Starbucks. The coffee chain will retain a 40% interest in the entity and will continue to own and license the brand and intellectual property.

Bloomberg reported earlier this year that the company was looking to sell its China segment. The American coffee giant has struggled to succeed in China, its second-largest market after the US.

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