Scott Galloway

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We're back with Profiteer Markets.

It's been a rough year for fast food franchise operators.

So far, we have seen bankruptcy filings from operators for Subway, Applebee's, Popeyes, and Carl's Jr.

And some are blaming the franchise model itself.

One McDonald's franchisee said that operators, quote, cannot absorb all these costs, do all this discounting, and still pay to remodel our landlord's building.

This issue is especially relevant for McDonald's.

Its franchised and affiliated locations account for more than 95% of restaurants and roughly 62% of total sales.

Because of that exposure, the company has rolled out a new initiative called McDonald's Next, which is designed to make its restaurants, quote, easier to run and more enjoyable to visit.

What stands out is how explicitly the strategy focuses on operators, not just customers.