return2ozma@lemmy.world to Work Reform@lemmy.world · 2 days agoMcDonald’s CEO is grappling with a ‘two-tier economy’ as he slashes prices on value meals—and signals backing for a minimum wage increasefortune.comexternal-linkmessage-square134fedilinkarrow-up1537arrow-down16cross-posted to: news@lemmy.world
arrow-up1531arrow-down1external-linkMcDonald’s CEO is grappling with a ‘two-tier economy’ as he slashes prices on value meals—and signals backing for a minimum wage increasefortune.comreturn2ozma@lemmy.world to Work Reform@lemmy.world · 2 days agomessage-square134fedilinkcross-posted to: news@lemmy.world
minus-squarebitjunkie@lemmy.worldlinkfedilinkarrow-up4·9 hours agoYeah the BBQ place’s pricing has stayed more or less the same, while McD’s has steadily increased their prices into that range.
minus-squarebrucethemoose@lemmy.worldlinkfedilinkarrow-up1·8 hours agoBingo. I wonder what McDonald’s profit margin at the individual store level is, these days? I would bet they have to send a pretty outrageous cut back to HQ, whereas even if the BBQ place is a small chain, they’re probably not hand tied like that.
minus-squarebitjunkie@lemmy.worldlinkfedilinkarrow-up1·6 hours agoI thought home office made money on franchise fees, not sales. My info is probably outdated, though.
minus-squarebrucethemoose@lemmy.worldlinkfedilinkarrow-up1·5 hours agoFrom their website: https://www.mcdonalds.com/ca/en-ca/about-us/franchising/the-financials.html During the term of the franchise, fees paid to McDonald’s for each restaurant, include: Royalty: 4%-5% of monthly gross sales Rent: a monthly base rent and/or percentage rent that is a percentage of monthly gross sales. License Fee: a one time fee of $45,000 is paid for 20-year term. https://www.thefranchiseking.com/how-much-is-a-mcdonalds-franchise But according to other sites: https://www.franchiseba.com/mcdonalds-franchise/ That doesn’t include marketing fees, so its more like 8%+ of gross sales, not profit, which is a lot! On top of tons of other fees.
Yeah the BBQ place’s pricing has stayed more or less the same, while McD’s has steadily increased their prices into that range.
Bingo.
I wonder what McDonald’s profit margin at the individual store level is, these days? I would bet they have to send a pretty outrageous cut back to HQ, whereas even if the BBQ place is a small chain, they’re probably not hand tied like that.
I thought home office made money on franchise fees, not sales. My info is probably outdated, though.
From their website: https://www.mcdonalds.com/ca/en-ca/about-us/franchising/the-financials.html
https://www.thefranchiseking.com/how-much-is-a-mcdonalds-franchise
But according to other sites:
https://www.franchiseba.com/mcdonalds-franchise/
That doesn’t include marketing fees, so its more like 8%+ of gross sales, not profit, which is a lot! On top of tons of other fees.