McDonalds is considering abolishing indoor dining

Some fast food restaurants in the U.S. are considering closing indoor spaces or restricting hours of operation as the Delta variant of COVID-19 spreads, franchisees report. McDonald's Corp (NYSE: MCD) temporarily closed indoor areas at almost all U.S. restaurants in early 2020, but reopened 70% by last month. On July 28, the global burger chain announced that it was well on its way to being close to 100% open by Labor Day - unless there is a COVID-19 resurgence. But last week, McDonald's ordered its franchisees to close their dining rooms again in areas where the Delta variant is spreading rapidly, according to internal company filings available to Reuters. "We have a much better sense of what security measures make a difference to our restaurant teams and crews," said Joe Erlinger, president of McDonald's USA, according to the records during a meeting on Wednesday. On Wednesday's conference call, McDonald's executives recommended franchisees to consider closing indoor spaces in districts where the number of COVID cases on a rolling three-week average exceeds 250 per 100,000 people. The documents did not reveal how many locations have closed the indoor seating or will be able to do so shortly. A McDonald's franchisee who operates multiple branches told Reuters that it had to rule out indoor seating in several restaurants. However, the expected closings are fewer than the number of closings in spring 2020 when the pandemic first hit the United States. "We are closely monitoring the impact of the Delta variant and recently sat down with our franchisees to highlight existing safety protocols, reaffirm our human first approach, and update on the rise in cases in the country to deliver, "said McDonald's Corp in a statement on Friday. Senior U.S. health officials said on Friday that the number of coronavirus cases in the U.S. continues to rise amid the rapidly spreading delta variant. The vaccination rates are also higher. The number of deaths and cases rose 11% and 3%, respectively, nationwide in the past seven days, and hospitalizations rose 6% in the past week, their highest level in eight months, the U.S. Centers said Disease control and prevention on Friday with. Drive-thru, carry-out, and delivery services all helped fast food sales soar this year despite closed dining rooms. Franchisees told Reuters that sales continued to rise when the interiors reopened. PMTD Restaurants had to cut hours at some of its nearly 40 KFC and Taco Bell restaurants in Alabama and Georgia because several employees were infected with COVID-19, according to Bill Byrd, president of PMTD Restaurants. This is especially true for the Taco Bell restaurants, because if they close at 8 p.m. instead of midnight or later, they lose customers who come late in the evening and can account for up to 20% of the business, Byrd said.