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Franchisees own 82% of US Mcds. Initial investment 1-2 million, must have 500k liquid cash on top. Average profit 150k annually (6% of revenue). How much lower do you want store profit to be? If they insured 3/shift, 9/day, half family, half single, their profit drops below 50k per year on a multi million dollar investment. (The corp hq does not insure franchise staff.)
Wal Mart btw insures 50% in an industry that insures 40%. The industry makes about 4% profit per dollar of sales. Its publicly traded. Think it would not see stock tank if half the profits vanished?
Truthfully I have a bigger issue with the sleazy way Subway operates. Delucas and Buck have made all other franchisee models look like a family. Subway gets sued more internally, than externally, I was told by solid sources. The store owners will be delighted when they sell the company.
That’s profit after the owner, his wife and kids all took a salary from it. Don’t try to tell me a McDonald’s owner only makes 6%. Most own multiple franchises and are multi-millionaires. George Mitchell owns several franchises. He started out at the bottom, worked his way up to manager and bought a franchise. Today’s he’s a multi-millionaire living in Darien. The Department of Labor just had to recover over $800,000 in backpay he owed his workers. Don’t feel sorry for him at all. His workers are still fighting him. Jay
That’s profit after the owner, his wife and kids all took a salary from it. Don’t try to tell me a McDonald’s owner only makes 6%. Most own multiple franchises and are multi-millionaires.
With a sound financial analysis background, I could see where 6% would be routine McD's profit. There are tons of costs folks forget about, from not just materials, but freight in, labor including matching SS/Medicare, FUTA, SUI, Workers comp, overheads include utilities, repairs, cleaning supplies, interest on the debt to build, and, of course, royalties to the parent corp.
The average franchisee (away from the coasts) owns just 1 to a few stores, btw. We formerly employed the wife of a man who owned just 1 in Tn. She had a low pay grade job in one of our plants. She stayed with us about 5 years after the McD's opened.
Multi-millionaires in 2021 are not uncommon, at all, btw. Its not 1970. Now the hedge fund/pe ones I abhor, as they leave corps they buy in awful shape, far more often than not. They are part of "vulture capital".
The rest of them I have few issues with.
Last edited by BobNJ1960; 08-11-2021 at 06:46 PM..
There's a specific forum for comparing places, but since your off-topic post was allowed, I'm hoping I'll be allowed to reply. Afterwards, I'm staying on-topic...which is CT's economic climate...
Why have so many 50+ wealthy CT residents left your state recently? That crushes CT's economic climate.
You failed to mention CT's higher cost of living or repressive taxes that caused them to leave.
You failed to mention CT being $92B underwater on their pension funding, that will drive taxes even higher in the future.
You failed to mention CT inferior colleges/universities that rank 46th in the USA.
You failed to mention the low quality of CT's hispanic immigrants, & how poor, uneducated, & illiterate they are compared to non-santuary states'.
You fail to mention the lower #/% of retirees CT has, & how that impacts median incomes.
If CT's gov't were better, CT wouldn't have lost a net 200,000 residents recently, yet, you claim CT's Gov't is working well
If CT's gov't & economic climate was so good, why is youth crime rising to record levels? No jobs for them? Bad higher education?
If the economic climate was good in CT, & the gov't was excelling, CT wouldn't be losing like this...especially in "maker" headcount, brain & wealth drain.
Now, let's stay on topic, as none of this has anything to do with where any poster resides. Focus on the topic, & stop deflecting. I'm happy to continue this debate in the proper forum.
You're so weird about this topic. It would actually be funny if it weren't so sad.
Venice, FL has a median HH income of $38K and the poorest cities/town in CT has the same or even higher in some instances. Why are you so concerned with CT wealth when you nor your neighbors can relate?
Per a 2015 article, a $2.4 million revenue average store was making about 6.7% before taxes. If the owner were also a working manager, they are making about $100K annually on top of that.
The average McD's franchisee owns about 6 stores and is most likely not working the drive through.
Minimum wages did not create a middle class. What created much of it was the infrastructure spending of the great depression (which unfortunately also expanded segregation since it was locally administrated), high taxation rates, low immigration - from the 1930's to 1970 immigration actually dropped. I'm not anti immigrant at all, infact if it wasn't for covid I'd be all for letting more people in. Check the chart https://www.migrationpolicy.org/prog...tion-over-time
So if you have no immigration, peace at home, high taxes, high regulations, low labor participation rates (remember pre civil rights, womens rights, ADA, same sex rights, no clean air and water act and o yeah 1/3rd of the working class in a union of course it created a middle class. The minimum wage wasn't really that big of factor in this. The creation of the interstate highway system alone....
No one in the history of the USA has been able to afford a mortgage payment or rent in any market on minimum wages. I cross referenced rents with BLS minimum wages by market years ago. It frankly didn't exist. The other part you should mention though is child labor was restricted and we also had blue laws in many states.
I get a bit tired and frustrated when people think the 50's or 60's were good times when they really weren't. I'm sorry but baby boomers pretty much had easy lives unless they were a woman, person of color, gay, disabled or served in the military.
Profit margins vary by industry. You can't assume higher costs mean a better product as Consumer Reports pretty much has disproven that for generations.
Here's a list of industries by NYU that show margins with taxes being a factor https://pages.stern.nyu.edu/~adamoda...le/margin.html
Look at gross vs net. The difference is huge infact some are in the negative. Why would a business take a loss? Well there's razor blade theory. Basically you sell a product at or below cost to make it up with a supplemental product that can only be used for that. So your Gillette razor system can only use their razors so they don't mind it if they lose money at first if you have to buy their razors. Look at every system we have with tech and see how it is in their ecosystem or garden. Amazon, Apple, Google etc. Some businesses can also try to buy each other out to prevent each other from getting another company. Then there's your non disclosure agreements and non competitive agreements. I really don't like non competes.
When we have higher standards and costs quite a bit of that is passed down. Consider things that have happened and what happened afterwards. When we expanded civil rights and womens rights it was the right thing to do but it also added significantly to the labor market, it didn't really create more jobs though as regulations continued to go up so of course you had to have a household where more than one person had to work. If you went back in time to the 70's banks wouldn't even care what a wife brought into the household. Fast forward a few decades and they had to. Then we had neoliberal economic policies that lowered taxes and tarrifs. The fall of the soviet union and rise of china and we could get a fair amount made around the world. Now it's services (i.e. call centers in india) I'm not taking a left or right wing point of view here. I can try to balance Ross Perot and the book one world ready or not. Some try to belittle or be racist against immigrants and other countries talking about the days of yor. Like or it not neither trump nor any other president is going to bring your great grandfathers break pad factory back. Today manufacturing isn't dumb grunt manual labor but much more skilled and generally has far fewer people. We started using robotic arms in making cars in 1965. Manufacturing used to be about churning out as much as possible but post six sigma is more on quality. That's also why some goods costs more as we again have more standards. Nothing wrong with that but it's just the way it is. Could AMC built a car with a airbag? We don't know since it's no longer there. Could Packard bell had made a laptop? Same thing
So where does this leave CT? Personally I think there has to be some limits. It's hard to argue that there's local control if it isn't democratic. If it means some limitation of property taxes. I mention prop 2 1/2. Ok fine but put *some* limit. Is 10% too low? How about 15%? 20%? Something HAS to be done about energy. Put that hate of eversource to use. The poorest place in Mass has rock bottom electric rates (holyoke) via hge it's attracted businesses that would otherwise be turned off by some of the highest property tax rates in the state,it's that much of a difference. Allow for more towns to start up their own local muni electric co's. Maybe some type of collaborative or co-op etc. Maybe get non profits involved. Can we lower the cost of living without lowering the quality of life?
It think it would be worth it to have some type of business survey. What exactly is preventing employers from adding jobs? Energy, taxes, water or sewer rate, rents, traffic issues, property taxes, lack of qualified employees, lack of customers, lack of suppliers, insurance costs, issues with neighbors etc. Then I'd also ask if things got worse would you have layoffs and by how many.What's the work from home situation looking like ?
You are right that minimum wage did not create the middle class but it did greatly expand it. The middle class existed long before the Great Depression so your contention that the infrastructure projects to combat it created it is wrong. Prior to the institution of minimum wages, employers could pay whatever they wanted. They were particularly harsh on women and children. In 1912 Massachusetts set the first minimum wages for them and soon other states followed suit. This along with strong labor laws helped assure employers did not take advantage of it workers.
I too am tired and frustrated that people think things were easy in the 50’s and 60’s were easy to live in. They do not understand what it was truly like. Being a child during this time means nothing since few parents let their children know the struggles they faced. They see low price fees for many things and think “how cheap” but they don’t realize how little people made back then. That makes a big difference. And don’t discount the problem of inflation. It got insane. It’s hard to appreciate how that impacted people in these low inflation times but it reaped havoc on families. Jay
Fast food, btw, is at a competitive disadvantage vs sit down casual dining. Our tipped minimum wage (the part employers pay) is $6.38, just under half the full one.
If McD's has on average 6 mw staff on at any time, the cost w/o benefits is $78 an hour. If Chilis has 3 full MW, 3 tipped wage, their cost is (3 * 13) + (3 * 6.38) or $58.14/hour. That is a $20 an hour fast food disadvantage.
Ct did NOT change the tipped mw this year, and IMO, it should stay the same % of the full mw every year.
Yes, McDs average around 6% profits. The state had a clause in the old lease on the rest stops that enforced a competitive wage. Higher than minimum. This was not in the new lease however that Project Services entered for 35 years some years ago. This is when they were remodeled and Subway etc went in.
Shortly thereafter the state tries to renegotiate the lease, enforcing the wage issue. The state is in the wrong here, which is why there needs to be more private enterprise. But it's hard to fight city hall. Hence this 800k claim.
So this McD owner didn't wake up one day owning X stores!
He started with one. Signed his life away, hoping he would succeed. Many don't. Without the possibility of huge success, no one would take a huge risk.
I can't find the original by beach43forus post. Beach43forus comments are in blue and I respond in black.
Why have so many 50+ wealthy CT residents left your state recently? That crushes CT's economic climate.
I have been over this many time. I know this because am a baby boomer and my husband was born at the peak. People have been retiring down south for decades. My grandmother had a condo in FL, my parents moved to NC. Tons of my friends and cousins (all baby boomers) are buying condos and houses down south or already have them. PEOPLE RETIRING FROM CT AND GOING DOWN SOUTH IS NOTHING NEW. When the people I know who retire and moving away have lower incomes. The ones who are wealthy have a house in CT AND FL. So lets take a look at some income metrics. I am going to use 2019 also because 2020 & 2021 are so crazy with the pandemic.
You failed to mention CT's higher cost of living or repressive taxes that caused them to leave.
CT has a PROGRESSIVE tax system. States with a FLAT INCOME TAX are regressive. States with no income tax but have sales tax on food, clothes are really regressive because the poor pay more. Here is a link with income taxes by state. On this link you can see CT has the 5th most progressive state by state income tax meaning the wealthier pay more. https://www.nerdwallet.com/article/t...come-tax-rates
You failed to mention CT being $92B underwater on their pension funding, that will drive taxes even higher in the future.
CT has changed the pension system but you are correct about the current pension funding. We are the 4th worst on this list. This metric for CT stinks.....no other way to put it. Link is from 2020 https://www.usatoday.com/story/money...nked/115099952
You failed to mention CT inferior colleges/universities that rank 46th in the USA. Where did you get this info?
This list is from 2021.....CT is #10 best.
#10. Connecticut
- Schools in top 250: 6
- Highest ranked schools: Yale University (#3 national rank), Wesleyan University (#54), University of Connecticut (#163) https://stacker.com/stories/3667/sta...anked-colleges
You know the buy who is kicking azzzzz on Jeopardy.....he goes to Yale University RIGHT NOW.
You fail to mention the lower #/% of retirees CT has, & how that impacts median incomes.
See above in your first sentence and my reply. Also see my regressive and regressive posts. The state has many programs for the elderly. It is ironic you complain about CT taxes......the progressive tax system in CT helps poorer seniors.
If CT's gov't were better, CT wouldn't have lost a net 200,000 residents recently, yet, you claim CT's Gov't is working well
Again see your first sentence and my reply above.
If CT's gov't & economic climate was so good, why is youth crime rising to record levels? No jobs for them? Bad higher education?
Safest States 2021 https://worldpopulationreview.com/st.../safest-states
CT is #9 safest on the list above
If the economic climate was good in CT, & the gov't was excelling, CT wouldn't be losing like this...especially in "maker" headcount, brain & wealth drain. States that are "givers" and "takers" https://www.smartcitymemphis.com/202...ce-of-payments
The Donors or "Makers" as you put it.
Here are the 15 largest donor states and the amount of federal spending for every $1 remitted to the federal government (the ranking is in order of millions of dollars in federal receipts and expenditures): Top "Donor/Giver" States
1. New York – $0.86
2. New Jersey – $0.82
3. Massachusetts – $0.83
4. Connecticut – $0.74 Top "Taker" States
1. Virginia – $1.97
2. Florida – $1.24
3. Kentucky – $2.35
4. Maryland – $1.53
You did not post any links to backup your claims or what you are saying. I do and even proved one of your points. I look up the info and let the chips fall where they may.
You should probably learn (read up on) what regressive and progressive tax structures are also.
The Hartford Financial Services Group Inc. said Wednesday it will indefinitely delay a planned Oct. 4 return to its offices, citing the spread of the COVID-19 delta variant.
The Hartford will then “begin to embrace a flexible work model,” he said. Other major employers in the Hartford area, including Pratt & Whitney, Stanley Black & Decker and the Travelers Cos have also moved to hybrid models after months of remote work during the pandemic.
About half of Hartford employees will continue to work remotely full-time, as they did before the pandemic. Many of those who worked full-time in the office before the pandemic will move to a hybrid model, going to the office for tasks that are better performed together and working remotely, if they prefer, for “focused time to accomplish objectives,” Sturdevant said
“We’d obviously love to see all of our companies back in person as fully as soon as possible,” he said. “The empty and part-empty buildings are a big hit. It’s hit our restaurants especially hard.”
With a sound financial analysis background, I could see where 6% would be routine McD's profit. There are tons of costs folks forget about, from not just materials, but freight in, labor including matching SS/Medicare, FUTA, SUI, Workers comp, overheads include utilities, repairs, cleaning supplies, interest on the debt to build, and, of course, royalties to the parent corp.
The average franchisee (away from the coasts) owns just 1 to a few stores, btw. We formerly employed the wife of a man who owned just 1 in Tn. She had a low pay grade job in one of our plants. She stayed with us about 5 years after the McD's opened.
Multi-millionaires in 2021 are not uncommon, at all, btw. Its not 1970. Now the hedge fund/pe ones I abhor, as they leave corps they buy in awful shape, far more often than not. They are part of "vulture capital".
The rest of them I have few issues with.
Yes, they have overhead. Don’t forget the owner’s family’s cars (just happens to be expensive luxury vehicles):and cell phones as well as vacations, oh wait, business trips every year. Then there’s the home office with pricy furniture that just happens to end up in other rooms of their house because “it didn’t quite fit in it”. Believe me, I’ve seen all the BS business owners pull.
Let’s start with the owner of the first company I worked for. Somehow his giant RV, everything in it including its well stocked pantry and bar and multiple box tickets to the Giants, their ski house in Park City and his girlfriends new private master suite we’re all business expenses no matter who he entertained. After I left he was caught faking his employees 401k account statements to embezzle money from them. His employees lost tens of thousands.
The second company I worked for was also a family business. This guy’s family trust bought or built the office buildings the company had offices in. The lease were ALL very pricey, among the highest rents paid in the town’s they were in. All of this guys kids drove luxury company leased vehicles even though they didn’t all work for the company. The guy lived in a brand new waterfront home that was truly stunning. When a recession hit, the company started laying off people. It was kind of hard to watch people lose their jobs while the owners daughter got a brand new high end BMW and the owner got $10,000 worth of new office furniture. After seeing that I went to work for an employee owned company.
One of our “disadvantaged” subs used to cry poverty ALL the time. Imagine our surprise when I saw in the local paper one day that he bought a $750,000 home in town. This was over 20 years ago so it was a real stunning home. He said it was his wife that wanted it. After that his cries of poverty rang hollow with us and his employees.
Then there was my BIL’s neighbor, a very successful auto repair guy. A couple years ago I had to sit one evening with him and listen to his never ending complaints about the taxes he paid to the state and how expensive everything was here. Granted he lived in a luxury condo overlooking the TPC, had a beach house on the shore and a winter home on the beach in Florida. Because he was friends with family I said nothing as long as I could. Finally I said, “if it so bad here, why do you stay?” His wife answered because he tried opening a place in one of those low cost areas and it made no money. Oh yeah, keep complaining, all the way to the bank.
Don’t get me wrong, I don’t begrudge a guy who takes the chance and starts a business. The rewards are all his but don’t cry poverty or take advantage of your workers to do it. Pay your fair share without complaint, especially when you have nothing to complain about. Jay
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