📉The Fast Food World Is Changing... Just Ask McDonald’s

Welcome to the Franzy Five — your 5-minute fix on what’s moving in the franchise world.

From McDonald’s value crisis to PopUp Bagels’ rocket ship rise, this week is all about shifts in perception, pricing, and scale.

Here’s what we’re covering:

🍟 McDonald’s fights to stay affordable without alienating operators
🥯 PopUp Bagels locks in 300 units before most people have tried one
💼 How one franchisee scaled without quitting his day job
📉 Restaurant traffic plummets in key immigrant-heavy markets

Before we dive in, we want your input.

Help us shape future editions of the Franzy Five. What content are you most interested in?

🍟 McDonald’s Value Playbook Is Cracking — What It Means for the Rest of Us

As inflation rises, even the king of fast food is feeling the squeeze. McDonald’s is in the middle of a value war with its franchisees as it tries to win back customers without crushing operator margins.

📊 Here’s what’s going on:

• U.S. sales are down 3.6% as consumers say the brand no longer delivers on value.

• The $5 meal deal has helped boost traffic, and new $3-and-under menus are being tested to win back budget-conscious Gen Z and middle-income diners.

• However, franchisees, who run 95% of U.S. locations, are resisting such discounts and demanding more corporate support to keep them profitable.

🔍 Our Take:
McDonald’s isn’t just any brand — it’s the gold standard in fast food. But even the king isn’t untouchable. A generation that grew up on the Dollar Menu is now staring at $12 combos and wondering what happened. And while corporate is pushing hard on value plays like the $5 meal deal, the friction with franchisees is real. Franchisee margins are hurting, labor is expensive, and deals aren’t always profitable at the store level.

As McDonald’s loses its grip on value, it opens the door for other players — regional QSRs, fast casuals, or even savvy franchise upstarts — to steal share. Don’t expect a Subway-style freefall, but it’s worth watching how McDonald’s course corrects. The next few years could redefine what “value” means in American fast food and who gets to own that narrative. If McDonald’s can’t hold it, someone else will.

Link to the WSJ →

🥯 PopUp Bagels’ 300-Unit Breakout

Summary:

• PopUp Bagels has signed deals for 300 franchised units across 10 states, less than a year after launching its national franchise program.

• The brand is targeting 100 open locations by 2027, backed by experienced multi-unit operators and regional production hubs.

• With a small-footprint model (1,100 sq ft) and a unique rip-and-dip bagel concept, PopUp avoids sandwiches and toasters entirely.

• Despite fierce competition from Einstein Bros. and Call Your Mother, PopUp is betting on smarter growth and standout branding.

Our take:
PopUp Bagels is one of the few emerging brands we’ve consistently heard about in operator circles and for good reason. It’s got all the right ingredients: a simple menu, cult-like product love, and a founder-led story that’s converting into serious scale. It’s made waves on our podcast — and yes, we’ve seriously considered backing it ourselves. If they execute, PopUp will be a household name in three years. This is a brand to watch — or better yet, get ahead of.

Link to Restaurant Dive →

📈 How Scott Runs Franchises While Traveling 24/7

Summary:

• Business speaker Scott Greenberg launched and scaled two high-performing Edible Arrangements locations while traveling full-time.

• His playbook: choose the right franchise model, build airtight systems, and hire leaders who can run the show without you.

• He relied heavily on performance data, remote monitoring, and clear accountability to stay in control without being on-site.

Our take:
This is proof that franchising doesn’t have to be all or nothing. Scott scaled not by working more but by working smarter, with the right model, systems, and team. His story highlights what we hear so often at Franzy from high-performing multi-unit operators: choose the right model, systematize early, and find great people. Whether you want to quit corporate or keep your main gig, franchises can be the vehicle if you build with intention.

Link to Entrepreneur.com →

🍽️ Restaurant Sales Rise — But Immigration Policy Is Starting to Bite

Summary:

• May 2025 saw modest restaurant growth: same-store sales rose 1.4% year-over-year, while traffic dipped just 1%.

• Black Box data reveals that communities with high Mexican-origin populations have seen steeper traffic declines since late 2024.

• Quick Service and Fast Casual segments are struggling, especially in low-income zip codes, while economic uncertainty looms.

Our take:
This isn’t just a data blip; it’s a real-time signal that macro factors like immigration policy are shaping how, where, and how often people eat out. Brands that thrive will be the ones that localize, stay agile on pricing, and understand the pressure points their customers are feeling.For franchise operators, it underscores the need to dig deeper into local market trends, not just national averages. In addition, franchise operators may want to consider diversifying their portfolio across different brands and geographies.

Link to QSR Magazine →

✂️ Snippets

🏈 Ex Player Goes Franchise Mode (Franchise Times)

🕹️ Fantasy Claw Targets Big City Growth (Franchise Times)

🍦 Franchisee Buys Friendly’s Parent Company (1851 Franchise)

🎖️ Golden Corral Expands Military Support (Franchising.com)