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Lets hear you theories. The increased sales argument doesn't wrk either. If you've got a pizza chain and you have twice as many orders to fill, then obviously you have to hire twice as many delivery drivers to meet demand. According to Forbes, the average restaurant franchise makes a profit of 86k annually, at a place I worked they spent approximately 3k per week on labor, so how in the hell can a company afford to double that cost, adding an extra 156k in labor expenses when there isn't even 156k left over in profit? Even if sales doubles, the net profit comes out to about 20k even without hiring extra labor (which is obviously unrealistic). Who gets the shaft? The franchisee. Why should the guy running the place make less then his employees?
Last edited by non-linear; 02-19-2015 at 08:15 AM..
Lets hear you theories. The increased sales argument doesn't wrk either. If you've got a pizza chain and you have twice as many orders to fill, then obviously you have to hire twice as many delivery drivers to meet demand. According to Forbes, the average restaurant franchise makes a profit of 86k annually, at a place I worked they spent approximately 3k per week on labor, so how in the hell can a company afford to double that cost, adding an extra 156k in labor expenses when there isn't even 156k left over in profit? Even if sales doubles, the net profit comes out to about 20k even without hiring extra labor (which is obviously unrealistic). Who gets the shaft? The franchisee. Why should the guy running the place make less then his employees?
McDonald's in Australia is subject to a minimum wage of over $15/hr, and a Big Mac there currently costs around 50 cents less than in America. So it's obviously doable.
(Figures given in US dollars.)
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