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    McDonald’s Plans Global Changes as Longtime Exec Retires

  • Doug Goare is retiring from the company after 40 years.

    McDonald's
    McDonald’s first rolled out its Velocity Growth Plan in March 2017.

    Doug Goare, McDonald’s president of international lead markets and chief restaurant officer, plans to retire December 31 after 40 years with the company.

    The executive change will usher in structural shakeups for the fast-food giant as well, McDonald’s announced in a September 24 release. Beginning January 1, McDonald’s will operate under a new organizational structure defined by global business segments. The chain said the evolution reflects continued refranchising efforts and is “designed to continue the company’s efforts toward driving growth as a better McDonald’s through the Velocity Growth Plan.”

    Here’s how it will break down:

    U.S.—will continue to operate under the leadership of Chris Kempczinski, 49, president, McDonald’s USA.

    READ MORE: Inside the plan to fix McDonald’s.

    International Operated Markets (IOM)—comprised of wholly-owned markets, or countries in which the company operates restaurants, including Australia, Canada, France, Germany, Italy, Netherlands, Russia, Spain and the U.K. Joe Erlinger, 45, will lead this segment as president, international operated markets, and will continue to report to CEO Steve Easterbrook.

    International Developmental Licensed Markets (IDL)—the remaining markets in the McDonald’s system will be led by Ian Borden, 50, as president, international developmental licensed markets. Borden will continue to report to Easterbrook. Corporate activities will also be reported within this segment.

    “Doug has been an important leader whose career at McDonald’s has spanned multiple continents and his expertise has contributed greatly to the success of our business today,” Easterbrook said in a statement. “I have always valued his wise counsel and his passion for elevating the experience for our customers and crew. We thank Doug for his steadfast leadership and wish him all the best in his well-deserved retirement." Goare is 66 years old.

    “The organization we created as we were beginning our turnaround in 2015 helped us make decisions more quickly, act with greater agility and strengthen the performance of our markets,” added Easterbrook. “This new organizational structure provides us the opportunity to continue building on our progress, making sure McDonald’s remains positioned to run great restaurants and better serve our customers.”

    In June, the company unveiled some U.S. organizational changes following news that it was trimming its corporate team. McDonald’s eliminated its region structure in favor of field offices and removed layers from the field organization while increasing resources in key strategic areas, such as technology and field consulting. The company said its U.S. operations would be fully transitioned to the new structure in the third quarter of 2018. These organizational changes resulted in McDonald’s recording a pre-tax charge of about $80–$90 million in the second quarter, mostly consisting of severance and other employee-related costs and costs associated with the closing of certain field offices.

    McDonald’s added that the organizational changes would help the company reach its previous target of net G&A savings of about $500 million set at the beginning of 2015.

    McDonald’s first rolled out its Velocity Growth Plan in March 2017. This included the Experience of the Future store prototype, delivery in partnership with UberEats, and customer-forward tech platforms like the mobile order and pay app functionality. In McDonald's Q1 earnings call, Easterbrook reported that 11,500 restaurants now offer delivery. McDonald’s revealed in August that it was planning to boost $6 billion into the massive redesign project, which includes digital self-order kiosks, remodeled counters for new table service, bright and easy-to-read digital menu boards, designated parking sports for curbside pick-up through mobile order and pay, and expanded McCafé counters and larger display cases.