McDonald’s is set to begin evaluating its franchisees on how effectively their pricing offers value for customers, as it revises its franchising standards.
Effective from 1 January 2026, the move comes as cost-conscious customers cut back on eating out.
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In a memo obtained by CNBC, McDonald’s global franchising, development and delivery senior vice-president Andrew Gregory stated: “Effective January 1 2026, we are enhancing our global franchising standards across all segments to reinforce accountability for value leadership.
“With enhanced standards, we aim to provide greater clarity to the system to ensure every restaurant delivers consistent, reliable value across the full customer experience.”
McDonald’s franchisees operate around 95% of the brand’s outlets worldwide and currently set menu prices themselves, using input from external pricing consultants.
Under the revised framework, the business will assess franchisees’ pricing choices in terms of how effectively they deliver value.
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By GlobalDataThe change follows a period during which McDonald’s has highlighted weaker spending among lower‑income diners, who have been visiting less frequently since late 2023.
In response, the chain has introduced value-led offers in the US and major markets including France and Germany.
For the quarter to 30 September 2025, McDonald’s reported a 3.6% rise in global comparable sales.
However, CEO Chris Kempczinski cautions that financial strain on consumers is expected to persist.
On the company’s earnings conference call in November 2025, he stated: “We continue to remain cautious about the health of the consumer in the US and our top international markets, and believe the pressures will continue well into 2026.”
In the US, the new franchising standards are likely to be closely watched by operators, where relations between some franchisees and McDonald’s corporate leadership have been tense.
An independent advocacy group has urged the company to help fund discounts to ensure they are financially viable for franchisees.
Changes to McDonald’s franchisee evaluation system had previously drawn criticism from some operators, who argued that the revised grading structure risked damaging staff morale in a challenging labour market.
Alongside the forthcoming standards update, McDonald’s has been investing in tools designed to help franchisees decide how to structure value propositions in their individual markets.
In a separate memo sent to US franchisees, McDonald’s USA chief restaurant officer Mason Smoot stated: “While owner/operators continue to set their own prices and make decisions that reflect local market nuances, we’ve now strengthened individual accountability for value leadership – equipping you with approved pricing consultants, tools, and other levels that support informed choices and elevate the overall guest experience across all order points.”
