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Old 04-22-2016, 10:29 AM
 
Location: Los Angeles (Native)
24,149 posts, read 13,668,407 times
Reputation: 11363

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Good point and I agree..but lot's of idiots out there will say...but then employers will only pay workers $1 an hour!
That's dumb though because nobody would work for $1 an hour. We shouldn't have minimum wage , if two people want to have an agreement to work for an amount that works for BOTH of them they should be allowed to.
When minimum wage is $15 hr..it's crazy that it will be illegal to hire someone for $14 an hour. What if that's a high school kid just trying to save up for college or even a college kid or college grad?

Everything is just going to go up a lot more . In L.A I see a lot of jobs for $15, but they aren't fast food jobs..it's more like office work and stuff..Now they will probably have to pay those people $20 or MORE..so cost of all services will go up too.
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Old 04-22-2016, 11:21 AM
 
Location: Los Angeles (Native)
24,149 posts, read 13,668,407 times
Reputation: 11363
Average profit margin of the greedy fast food owners is 3%
Average Fast-Food Restaurant Has Small Profit Margin
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Old 04-22-2016, 12:03 PM
 
Location: On the water.
10,310 posts, read 6,371,527 times
Reputation: 8590
Quote:
Originally Posted by jm1982 View Post
Average profit margin of the greedy fast food owners is 3%
Average Fast-Food Restaurant Has Small Profit Margin
Oh great link!
Quote:
The Heritage Foundation is an American conservative think tank based in Washington, D.C. The foundation took a leading role in the conservative movement during the presidency of Ronald Reagan, whose policies were taken from Heritage's policy study Mandate for Leadership.[2]
Btw, jm, "fast food" restaurants are the corporate chains, whose extraordinary profits I posted multiple times elsewhere in these threads of yours. Businesses that operate on high volume sales often earn low percentage profit margins that nevertheless are HUGE. That is the nature of the game.

Mom & Pop food joints aren't fast food. And neither are their margins the same if they have any business ability and good sense.

Just to refresh you:
Quote:
An average McDonald's franchise makes between $500,000 and $1 million in profits per year as of 2013, according to McDonald's Franchise Disclosure Document. For restaurants open at least 1 year in the United States, average total revenues are $2.6 million.
And the average McDonald's franchisee own five franchises. Speaking of greedy.
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Old 04-22-2016, 01:50 PM
 
Location: West Coast
1,291 posts, read 3,488,552 times
Reputation: 674
Quote:
Originally Posted by Tulemutt View Post
Oh great link!

Btw, jm, "fast food" restaurants are the corporate chains, whose extraordinary profits I posted multiple times elsewhere in these threads of yours. Businesses that operate on high volume sales often earn low percentage profit margins that nevertheless are HUGE. That is the nature of the game.

Mom & Pop food joints aren't fast food. And neither are their margins the same if they have any business ability and good sense.

Just to refresh you:
And the average McDonald's franchisee own five franchises. Speaking of greedy.
Where did you get those numbers? Not saying you are wrong. Are profits just gross, ie. Before overhead expenses like rent, payrolls, maintenence? Also those "greedy" franchisees may have taken a huge loan and are paying that back. Owning a McDonald's franchise costs a lot of money.
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Old 04-22-2016, 01:52 PM
 
Location: West Coast
1,291 posts, read 3,488,552 times
Reputation: 674
If it is from the above link it shows overhead of >800 k and net before tax profit as a paltry 27 k.
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Old 04-22-2016, 01:54 PM
 
Location: West Coast
1,291 posts, read 3,488,552 times
Reputation: 674
Owning a franchise is a lot of work too with competition aND loans.
If you are jealous of those greedy guys why don't you open one up then? Yeah, easier said than done. Don't forget that the owners work way more than the employees. You are on the hook even when you go home and pretty much 7 days a week.
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Old 04-22-2016, 02:07 PM
 
Location: On the water.
10,310 posts, read 6,371,527 times
Reputation: 8590
Quote:
Originally Posted by vdy1985 View Post
Where did you get those numbers? Not saying you are wrong. Are profits just gross, ie. Before overhead expenses like rent, payrolls, maintenence? Also those "greedy" franchisees may have taken a huge loan and are paying that back. Owning a McDonald's franchise costs a lot of money.
You know, interesting you should ask. Since the answer to your question is right in the short quote. They are part of the legally mandated franchise disclosure statements of the McDonald's corporation. Your further questions are also hilarious in that they contradict the definitions the statement presents. If you don't know how to read these things, why would you think readers here would take your posts seriously?

Quote:
Originally Posted by vdy1985 View Post
Owning a franchise is a lot of work too with competition aND loans.
If you are jealous of those greedy guys why don't you open one up then? Yeah, easier said than done. Don't forget that the owners work way more than the employees. You are on the hook even when you go home and pretty much 7 days a week.
Who said I was in the slightest jealous? I have more money than I need already. And how do you know owners work way more than employees? Some do. Many don't. And yes, I did own my own business for over 35 years before retiring.
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Old 04-22-2016, 02:12 PM
 
Location: On the water.
10,310 posts, read 6,371,527 times
Reputation: 8590
Quote:
Originally Posted by vdy1985 View Post
If it is from the above link it shows overhead of >800 k and net before tax profit as a paltry 27 k.
Are you referring to the Heritage Foundation linked statement provided by jm?

The one which lists "wages and payroll taxes" at $217,484 without specifyng if it includes an owner's salary?

And then mysteriously lists another line item as "other" for $193, 965 as an "expense" without identifying what it is even though it represents 24% of the total?

That link?

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Old 04-22-2016, 02:13 PM
 
Location: So California
8,372 posts, read 8,440,546 times
Reputation: 4556
Quote:
Originally Posted by Tulemutt View Post
Oh great link!

Btw, jm, "fast food" restaurants are the corporate chains, whose extraordinary profits I posted multiple times elsewhere in these threads of yours. Businesses that operate on high volume sales often earn low percentage profit margins that nevertheless are HUGE. That is the nature of the game.

Mom & Pop food joints aren't fast food. And neither are their margins the same if they have any business ability and good sense.

Just to refresh you:
And the average McDonald's franchisee own five franchises. Speaking of greedy.

There is no way they make $1m on $2.6m in sales.
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Old 04-22-2016, 02:41 PM
 
Location: On the water.
10,310 posts, read 6,371,527 times
Reputation: 8590
Quote:
Originally Posted by slo1318 View Post
There is no way they make $1m on $2.6m in sales.
Look up the franchise statement. And while you are readiing that portion (as I recall it is on page 36 of the download), note that it doesn't say they make $1 million on $2.6 million in sales. It says, and this was right in that quote, "from $500,000 - $1 million". Period. End of sentence.

The $2.6 million figure is a statement of average gross revenues for franchises open at least one year in the U.S.

Rough extrapolations might guess that the margins then could be as high as 20%. But that's a guess without more information.
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