McDonalds franchisee hopes to create North East jobs

Jul 22 2010 by John Hill, The Journal

McDONALDS franchisee Ahmed Khan hopes to create 150 new jobs after taking on five fast-food restaurants in the region.

Khan, 44, moved from London with his family to take on three outlets in the Metrocentre, one in Metro Retail Park and another in Northumberland Street, Newcastle, in April.

He is also looking into investing £800,000 in the Metrocentre green mall and Northumberland Street outlets in the early months of next year. He will take on more staff to deal with the extra custom he expects at the restaurants.

He said: “We had 300 staff when I got here in April and we’re now up to 350. By the end of September, I hope to be up to 450 which is what I feel we need to take us through to the Christmas period.”

The Essex-born businessman started his career at McDonalds, cleaning floors and serving customers while completing his A-levels, and worked his way up through the ranks before being offered a chance to be a franchisee in Cricklewood, North London, 10 years ago.

He said: “I started as a crew member in Southend-on-Sea. I got hooked into the McDonalds lifestyle. The opportunity came up to get promoted and when you’re on that ladder the next opportunity is always there.

“It’s a full-on job and it’s different every single day. I remember when I got promoted at a restaurant in Lakeside shopping centre. I was working a 70-hour week because I just couldn’t keep away.”

Khan sold franchises in Cricklewood, Swiss Cottage and Kilburn to seek out new opportunities in Newcastle. Franchisees buy company- owned outlets on a 20-year lease and have control over staff and local marketing, while McDonalds handles corporate marketing, standards and menus.

Khan said: “I can’t come up with my own burger and start selling it. But people are a massive asset and it’s important to develop them. We have 14 people doing apprenticeships at the moment and I’ve already made two or three promotions in a short period of time.

“I suppose in London there were a lot of temporary staff coming in and the turnover was greater. There are a lot more long-serving employees here who are more settled. We have people in their 70s who have been doing the job for years.”

Approximately 60% of McDonalds restaurants are franchised, with the remainder under company ownership. Khan is putting his money into “reimaging” his stores, changing the front counter and replacing the coffee machines at the Northumberland Street branch and adding new seating at the green mall outlet.

The retail park outlet may trial 24-hour opening for two days a week, and open 24/7 if it is successful.

Footfall in the restaurants ranges from 40,000 to 70,000 people a month, but Khan says that tastes have changed since he started with the company.

He said: “Customers have become more discerning now. Beforehand the menu wasn’t as varied, but now we’re offering carrot sticks, sandwiches and salads, although milkshakes and fries are still there from back in my day.

“Wi-fi is being introduced into restaurants and coffee is a big part of the business now.”