AUBURN — The two McDonald’s locations in Auburn are now operated by a franchisee that also runs six other restaurants in the Southern Tier. Chicago, Illinois–based McDonald’s Corp. (NYSE: MCD) on June 7 finalized a franchise agreement with Cayuga Restaurant Group, which has its main office in Elmira Heights in Chemung County. Courtney and Mike […]
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AUBURN — The two McDonald’s locations in Auburn are now operated by a franchisee that also runs six other restaurants in the Southern Tier.
Chicago, Illinois–based McDonald’s Corp. (NYSE: MCD) on June 7 finalized a franchise agreement with Cayuga Restaurant Group, which has its main office in Elmira Heights in Chemung County.
Courtney and Mike Feehan, Lansing residents and co-owners of the Cayuga Restaurant Group, have added the McDonald’s at 198 Grant Ave. and the one at 357 Genesee St. in Auburn to their restaurant portfolio.
The Feehans have owned and operated McDonald’s restaurants since 2012.
Both locations are part of the Cayuga Restaurant Group as wholly owned subsidiaries, says Mike Feehan. Cayuga Restaurant Group is a McDonald’s franchisee.
The two restaurants in Auburn join locations in Ithaca, Lansing, Elmira (2), Horseheads, and Big Flats, says Courtney Feehan. Both Feehans spoke with CNYBJ in a phone interview on June 25.
They contend that they’ll be able to “substantially increase” the sales at both Auburn McDonald’s eateries.
“Just by going in and taking a hands-on approach and treating the customers’ right and treating the employees right,” says Mike Feehan.
Refranchising
McDonald’s first contacted the Feehans about the Auburn locations in early spring, they say.
McDonald’s was operating both Auburn restaurants, according to Mike Feehan. The company refers to those locations as McOpCos, or restaurants that don’t have a franchisee. He notes that the company has “traditionally” operated about 10 percent of its U.S. eateries as McOpCos, but says McDonald’s wants to reduce that percentage figure by refranchising.
“These restaurants were chosen to be sold to franchisees and become franchised locations,” says Feehan
McDonald’s has owned the land for both locations for several years at both sites, so the land ownership “did not change hands,” he says. “And I can’t comment on the rest of the real estate portion of that.”
The company issued the franchise agreement and the restaurant’s equipment as well.
When purchasing a McDonald’s restaurant, Feehan explains, the price is based on the location’s “profitability potential.” Both Auburn restaurants “historically have done a little bit better than average.”
When asked if they could reveal the cost figure, he replies, “Unfortunately, we can’t.”
Plans for locations
Each Auburn restaurant has about 80 employees in full- and part-time roles, according to Feehan.
The couple plans to rebuild the McDonald’s at 357 Genesee St. and remodel the restaurant at 198 Grant Ave. sometime in 2019.
“We won’t know the timing of that until it’s much closer because we will have to agree with McDonald’s on when that will happen,” says Mike Feehan.
It was too early to share details on a contractor or architect, and the company will help the Feehans select local vendors.
McDonald’s doesn’t provide any financing for rebuilds or remodels, but Mike Feehan says the company has a “network of lenders” in the U.S. that provides financing to McDonald’s franchisees.
“Our banking relationships are mixed between local banks that handle our deposit accounts and national McDonald’s lenders,” he adds.
The Feehans work with Tompkins Trust Company and Chemung Canal Trust Co.