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As Mc Donald’s works on this transition, the company has been witnessing growth in operating profits.
However, a franchise-based model can lead to less control of day-to-day operations, and Starbucks’ management wants to maintain a certain level of control over its stores and therefore still favors company-owned restaurants.
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The company’s management is focused on ensuring that the company culture is maintained in the key locations where it operates its own restaurants, and this strategy is crucial for the company’s brand value and growth in the long term.
While Mc Donald’s is moving towards a 95% franchised model and Burger King is already operating an efficient franchised model, nearly 50% of Starbucks' 25,000 restaurants are still company owned.
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