McDonald’s in talks with UK landlords to reduce rents as the company prepares to re-open restaurants

McDonald's in talks with UK landlords to reduce rents as the company prepares to re-open restaurants
McDonald's in talks with UK landlords to reduce rents as the company prepares to re-open restaurants

McDonald’s in talks with some of its UK landlords to reduce rents as the company prepares to re-open restaurants.

The company says that it has paid in full for the current quarter but “given the unprecedented situation” it is in negotiations with landlords to see how they could “offer support” with the rent. The company was forced to close all of its outlets in the UK as a result of the Coronavirus pandemic.

A spokesman for McDonald’s said, “We have opened dialogue with some of our landlords to discuss how they might offer support on rent and service charges for a short period due to our restaurants not trading.”

On May 13, McDonald’s plans to open some sites to offer a delivery service.

Some food chains and retail outlets have held back rent for March which has resulted in some disputes with landlords. The government has put in place some measures to help businesses with their rent payments but this is not deterring some landlords from considering legal action.

McDonald’s have said that the Coronavirus has caused their first-quarter sales to drop around 3.4%. However, while around 3/4 of the restaurants remain open for drive through and delivery customers around the world, they have been completely locked down in the UK, France, Italy, and Spain.

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