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McDonald's Is Testing Cost-Cutting Measures

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January 08, 1998|Reuters

The new corporate mantra at McDonald's Corp. is "hold the prices." The giant fast-food company is testing cheaper coffee roasts and paper sandwich wrappings instead of boxes as it tries to cut costs and boost profitability. In a recent memo, the Oakbrook, Ill.-based company suggested that operators use bulk items instead of, among other things, individually wrapped cutlery and catsup. "We're always looking for ways to simplify our restaurant operations to improve profitability," McDonald's Senior Vice President Richard Starmann said. But former franchisee Dick Adams, who founded a San Diego-based franchise owners' group, suggested that McDonald's consider another form of cost-cutting: "The other option is for McDonald's Corp. to back off on corporate profits. Personally, I'm offended by unwrapped straws."

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