McDonald's deal may be unreachable

After months of negotiations and despite a signed letter of intent, Dining Services officials remain unable to reach an agreement with McDonald's on the lower-level Bryan Center eatery space. Although discussions continue between Duke and the multi-billion-burger company, it is no longer clear whether an agreement will be reached.

Director of Dining Services Jim Wulforst said he has asked McDonald's for a final answer by tomorrow, but added that he is not optimistic.

The sticking points involve specific wording in the 100-page McDonald's contract. For example, the two sides have stalled over the difference between "will" and "may" in the provision calling for an employee discount. The University has asked McDonald's to offer the customary 10 percent discount for Duke employees, but McDonald's has refused to commit to the reduced prices.

There is also disagreement over a stipulation allowing McDonald's to hire a private contractor to perform maintenance work if the University cannot address potential problems quickly enough. Duke does not usually allow privatized vendors to bypass Facilities Management.

Within Auxiliary Services, there is some disagreement about how substantial these difficulties will prove in the long run.

"Any of these alone is not necessarily a deal-breaker, but if there are enough of those items that don't give Duke a back door, we may have a situation we can't live with," said Wulforst, who added that he sees problems with the current contract and thinks it unwise to allow negotiations to drag on.

But Joe Pietrantoni, associate vice president for auxiliary services, said he remains "very positive" about the prospect of a deal. "I hope to have the deal done by Friday," he said. "But if it goes to Monday morning, then it goes to Monday, and I'm not going to close the door."

Pietrantoni said there is room for the University to compromise on several of these points. For instance, McDonald's might not need the employee discount because the food is already reasonably priced.

The potential collapse of the McDonald's deal is the latest in a series of Bryan Center fast food fiascoes. Last summer, Wendy's rejected the University's offer of the space, prompting a mad dash to find someone willing to fill the void left by Burger King's departure. But Mean Gene's Burgers came and went in just six months, and Duke was forced to open a self-run, impromptu eatery in its place. Since February, the University has been in negotiations with McDonald's, hoping to find a long-term tenant.

Given his experience with the Mean Gene's debacle, Wulforst said he will not rush to find a replacement if the McDonald's deal falls through. "At this point, if McDonald's backs out, my focus will be to continue on the process we've started with All-American Grill," he said. "I've spent a lot of time focusing on Burger King and Wendy's and McDonald's. Maybe it was the wrong focus."

The All-American Grill would continue to be staffed by Duke employees, Wulforst said, and there is still time to revise the menu slightly and continue to improve food quality.

McDonald's officials could not be reached for comment Wednesday.

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