Keeping Up With the “Recession Watch”by Tim Manni
The Consumerist is a favorite stop for us in our daily perusal of different financial blogs and websites. Just one of many entertaining features on The Consumerist is their “Recession Watch,” especially went it pertains to the world’s most famous chain restaurant — McDonalds. The recession has hurt a lot of businesses in different ways, McDonalds being no exception. As the credit crisis has froze lending, resulted in thousands of lost jobs, McDonalds has also been forced to tighten up policy in order to cut costs:
On a more serious note, these “tightening of restrictions” could have been just one result of Bank of America declining to increase their lending:
McDonald’s Corp., the world’s largest restaurant company, told some U.S. franchisees to seek other ways to finance store improvements after Bank of America Corp. declined to increase lending.
Store owners have exhausted financing used to pay for upgrades and equipment to make lattes and espressos, and Bank of America won’t provide more money as it works on the planned purchase of Merrill Lynch & Co., McDonald’s said in a memo that was obtained by Bloomberg News.