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Subway's discounting strategy runs into the California wage hike

The Bottom Line: The company recently started requiring franchisees to accept digital coupons. That rule comes just four months before a large swath of its system starts paying a $20 wage. Some operators want the coupons turned off.

Financing

McDonald's has a major impact on the U.S. economy

The fast-food burger giant contributes $76 billion a year to the U.S. gross domestic product, according to an economic impact report released this week. That impact is spread throughout the country.

The Bottom Line: Restaurant chains have been unleashing a torrent of new technologies on their stores over the past few years. This effort can sometimes have unforeseen consequences.

McDonald’s and Chipotle have seen a shift in business from earlier in the day toward dinner, according to data from Placer.ai. And that shift seems permanent.

The fast-food chain, continuing to push breakfast, is offering a burrito with as much bacon as its Baconator. But it’s only available in select markets.

The fast-food sandwich giant paid for automated slicers for each of its 20,000 locations. But some operators are still waiting to see the benefits. "Nobody is saying this is the greatest thing since sliced bread."

The sandwich giant is partnering with Auntie Anne’s and Cinnabon on new footlong pretzels and churros. Both chains are owned by Roark Capital, which plans to buy Subway.

The burger chain said that Kirk Tanner will lead the company into its “next phase of growth and expansion.” He replaces Todd Penegor.

A Deeper Dive: Bill Mathis, chairman of the North American Association of Subway Franchisees joins the podcast to talk about the group’s relationship with management.

The Atlanta-based chain signed a pair of deals to expand into Canada and Latin America, its first international development agreements.

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