McDonald's Is Poster Brand For Credit Crunch

Posted by: David Kiley on October 1, 2008

McDonald’s has become the poster brand for the credit crunch. But should it be?

Both Presidential candidates have repeatedly used the example of McDonald’s franchisees not being able to get loans and lines of credit to, for example, install McCafe coffee making equipment in their stores. TV pundits and legislators have also turned to McD’s franchisees as the main vehicle to communicate the dire need to pass the bailout legislation.

I guess there is nothing more “Main Street” than a Mickey D’s.

Using The Google, I came up with 3.1 million hits for “McDonald’s credit.”

But, reports now indicate that Mickey D store owners aren’t having quite so many problems getting credit. Bank of America, for example, has said it is not freezing or denying credit to McD’s franchisees, though a letter from the fast food giant to its operators had said so. GE Capital has said that it is tightening its credit requirements for restaurant operators. But that would seem to invite more business for B of A, as McD operators are actually considered low risk borrowers.

Maybe all this talk of the poor McD franchisees will draw some sympathy business from Main Street.

Reader Comments

AAG

October 2, 2008 10:39 PM

Interesting post. It does stand to reason that established franchises, like McDonald's, would be more attractive to banks in times like this. We know they work.

These are shaping up to be tough times for anyone who chooses to go their own way.

www.anonymousadguy.com

Mark Robbins

October 3, 2008 5:07 AM

I just heard Kathy Ireland speak at the On-Line Market World conference in San Francisco and her key-note speech was on "Growing a Brand in Difficult Times". I know her company Kathy Ireland Worldwide has diversified themselves so they don't put all there eggs in one basket. From Socks to Skincare from Furniture to Infant Bedding her company is still finding new opportunities in these difficult business times

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News, opinions, inflammatory meanderings and occasional ravings about the world of advertising, marketing and media. By marketing editor Burt Helm, Innovation Editor Helen Walters, and senior correspondent Michael Arndt.

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