The head of McDonald’s in the UK has pledged continued investment in restaurants and staff despite what she described as a difficult trading environment marked by rising costs and weakening economic conditions.
Lauren Schultz said the company was maintaining hiring levels across its UK operations, even as many firms respond to cost pressures by cutting jobs and scaling back investment.
“It’s hard to do business right now,” she said, pointing to pressure from both consumer weakness and intensifying competition.
“In this headwind-rich environment, people who run businesses not the way we do might contract and pull back to manage costs,” she added. “But cost savings never lead to growth.”
Her comments come as the fast-food giant unveiled an expanded work placement programme aimed at tackling rising youth unemployment and improving young people’s access to the labour market.
The scheme will offer five-day paid placements to around 2,500 people aged 16 to 25 across the UK, with a quarter of places targeted at those classed as NEET — not in education, employment or training — or at risk of becoming so.
The initiative comes against a backdrop of weakening youth employment prospects. Official data this week showed that an additional 70,000 students have moved into economic inactivity in the latest quarter, as more young people step back from job-seeking while continuing their studies.
Youth unemployment has also risen to its highest level in more than a decade, with employers increasingly cautious about hiring younger workers amid higher wage costs and recent tax increases on businesses.
McDonald’s said it currently employs around 100,000 workers under 25 in the UK, with roughly one in three managers under 25.
Schultz said many young people are being locked out of the labour market due to a lack of experience rather than a lack of willingness to work.
“They want to be in the workforce, but they can’t get any work because they don’t have that experience,” she said.
A survey commissioned by the company found that while 67% of young people want to undertake work experience, 69% say there are too few opportunities locally, and 61% say they cannot afford unpaid placements.
Participants in the programme will be paid in line with entry-level staff of their age group and will gain experience across restaurant operations, including food preparation, customer service, drive-thru work, delivery orders and stock management.
Work and Pensions Secretary Pat McFadden welcomed the initiative, saying McDonald’s had a strong track record of training young people and helping them overcome barriers to employment.
The announcement highlights a broader tension in the UK labour market: firms facing rising costs and cautious consumers, while also struggling to provide entry-level opportunities for younger workers.