TOKYO — McDonald’s Holdings (Japan) has ended its financial support to franchise owners hit by a sharp decline in sales following a food-safety scandal.

The assistance, in the form of reduced royalties, was introduced after concerns about food quality arose in July 2014, prompted by expired chicken found in menu items.

Normally franchise owners pay about a fifth of store sales to headquarters as royalty, rent and system usage fees. But with the chicken issue dealing a major blow, the company gave an unusual blanket cut on royalties to help franchise stores, which account for two thirds of the 3,000 McDonald’s in Japan.

Later, as sales picked up, the reduction was revised to 2-3 percentage points of royalties according to sales growth. For July onward, however, franchise owners will pay at normal rates. The company has begun sending out notifications.

McDonald’s collects an average of a little over 20 million yen ($197,000) a year from each franchise location. The annual cut in royalties apparently amounted to 3 billion yen to 4 billion yen. While ending these general royalty reductions, the company will keep aiding individual owners of struggling stores.

Existing-store sales for the fast food chain rose for a seventh straight month in June. Sales have been up more than 10% on the year, showing a marked improvement from early 2015, when the presence of foreign objects in food came to light, leading to a 40% plunge.

New faces give boost

This year, a strategy of offering premium items for a limited time has proven successful. For example, the Grand Big Mac, released in April, became so popular it sold out at some stores. This bigger version of the signature Big Mac was priced at 520 yen.

That Japanese consumers are increasingly frugal may also be boosting McDonald’s, as more families opt for fast food rather than casual restaurants.

Fresh looks for the stores themselves appear to be drawing customers, too. About 400 McDonald’s eateries that underwent renovation last year have reported an average 5% increase in sales. Although existing-store sales have not recovered to pre-scandal levels, the bulk of franchise owners are not expected to face a financial crunch as headquarters’ aid winds down.

Last year, the company started shouldering part of renovation costs for franchise stores. With more owners open to remodeling stores in light of earnings growth, the company will keep this assistance in place. This year, 500 to 600 locations including non-franchise stores will be refurbished. Until last year, the focus was mainly on smaller outlets inside commercial facilities. This year, suburban stores with drive-thru windows will be revamped as well.

The Pokemon effect

This summer, McDonald’s Japan likely will get a boost from Pokemon Go. The company has partnered with the creators of the mega-hit smartphone game so that all of McDonald’s restaurants in Japan are designated as spots where players can collect items or engage in Pokemon battles with another player.

After the July 22 release of the game in Japan, a franchise owner has observed a sales surge. “Pokemon may have pushed up sales by nearly 10%,” the owner says, expressing pleasant surprise after minimal expectations.

McDonald’s Japan says the impact has yet to be determined. An official expressed caution, saying “a temporary boost means little,” after repeated food safety concerns drove customers away.

But as the company labors to turn profitable in 2016 for the first time in three years, the Pokemon lure likely will be a substantial help in August — during the summer break season when families spend time out together. For the time being, all eyes are turning to July results to be released Thursday.

Nikkei