After having kept several franchises open on Thanksgiving, and posting a surprising U.S. sales growth of 2.5% in November, McDonald's Corporation (NYSE:MCD) has decided to keep its franchises open on Christmas Day as well.
According to an internal memo obtained by Ad Age, the HQ of the national fast-food chain is forcing franchise owners to remain open on Christmas, going against their policy of allowing individual branches to observe a holiday on special occasions.
"Starting with Thanksgiving, ensure your restaurants are open throughout the holidays," wrote Chief Operating Officer Jim Johannesen in a Nov. 8 memo. Our largest holiday opportunity as a system is Christmas Day. Last year, [company-operated] restaurants that opened on Christmas averaged $5,500 in sales."
The Dec. 12 memo claimed that company-owned restaurants (around 10% of stores in the U.S.) each made more than $6,000 by staying open on Thanksgiving.
Peter Saleh, restaurant analyst for Telsey Advisory Group says "“If you’re open and other people are not, you tend to get more business.”
Ade Age reports that it was never in the custom of the company to remain functional on Christmas in the Past. Richard Adams, a consultant and former McDonald's Corporation (NYSE:MCD)'s franchise owner said "Thanksgiving was never open. Then 15 to 16 years ago, some started staying open."
McDonald's Corporation (NYSE: MCD) derived an unexpected sales by keeping its franchises open on Thanksgiving. The move was however essential to spike sales after a drop in October. With 1200 locations open on Thanksgiving, additional sales of $36 million compensated for the 2.2 percent drop in October.
Keeping this in mind, should the national fast-food chain remains open on Christmas, while other food stores observe a holiday, chances are that this move will bring the chain a sale worth $84 million.
Despite the decision to stay functional on the holiday, it is still not clear how many McDonald Corporation (NYSE:MCD)’s on the South Shore will remain open on Christmas.
Worse for McDonald's Corporation (NYSE:MCD) staffers, however, that no official overtime pay will be offered to employees volunteering to work on a holiday.