Dive Brief:
- McDonald's, finally answering to wage protests and social backlash about worker conditions, announced Wednesday it will raise pay to at least $1 more than local minimum wage at company-owned locations.
- The change will go into effect on July 1 and will affect over 90,000 workers, but it won't affect the 90% of McDonald's stores that are run by franchises.
- The move is in response to sluggish sales for the chain and the negative public image—same-store sales dropped 4% in February.
Dive Insight:
McDonald's has been working tirelessly to improve its social image and combat slowing sales, but efforts have been met with further resistance. The chain has run several ad campaigns seeking to focus on the positive side of McDonald's—like the feel-good spot "Signs"—but even those were met with backlash from consumers who disagreed with the company's practices.