Fast Food Prices Have Doubled In Ten Years... Labor Costs The Main Issue
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They need that money to live rather than invest in McDonalds.
Now, I'll ask again, if the cost of labor is causing price increases, why are the profit margins continuing to grow?
So they need that money to live, rather than invest to make more money. Yeah, makes sense.
McDonald's profits are worldwide. The "suffering" is happening in the U.S., and at the franchise level. The very franchise that pays the employees. The franchisees aren't seeing growing profits.
In addition, profit margin increases at the franchise level are largely attributed to reduction in staff and labor costs (self-order kiosks, apps) and the shutting down of dining rooms.
The vast majority of fast food in the US is franchised. Lets look at that. Where's the money going? Lets look at CEO salaries on the big fast food chains, have they gone up at the same rate as average worker pay? Or has it outpaced it by a considerable sum?
So they need that money to live, rather than invest to make more money. Yeah, makes sense.
Yes. Because everyone can wait 5 years for a return on investments while bills pile up. Have you ever lived pay-check to pay-check, with inflation the way it is? Come on, be realistic.
The vast majority of fast food in the US is franchised. Lets look at that. Where's the money going? Lets look at CEO salaries on the big fast food chains, have they gone up at the same rate as average worker pay? Or has it outpaced it by a considerable sum?
The McDonald's CEO's salary was last at $1.4M per year. His total compensation is down from a few years ago.
And again, the McDonald's CEO is not paying restaurant employee wages.
Yes. Because everyone can wait 5 years for a return on investments while bills pile up. Have you ever lived pay-check to pay-check, with inflation the way it is? Come on, be realistic.
I have. You can start with $5, and slowly add in increments. If the stock does well, so too will your return, without it hurting the bank. Most everyone wastes more than $5/week on unnecessary junk.
The vast majority of fast food in the US is franchised. Let's look at that. Where's the money going? Let's look at CEO salaries on the big fast food chains, have they gone up at the same rate as average worker pay? Or has it outpaced it by a considerable sum?
You can't look at it from that angle because you don't have access to the individual franchises data.
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That's right. An individual franchisee could be barely paying the rent, while corporate is raking it in. As a franchiser, McD corporate is collecting the initial franchise fee, royalty of 4% of all sales, and a marketing fee of another 4% of sales. One that's right at a freeway exit on a major highway near gas stations is going to do far better than in a city with 4-6 other fast food choices in a strip mall. Here, there is a Taco Time, DQ and Habit Burger Grill nearby, and the high school students don't go there, they all buy food DQ or at Safeway. They never seem busy and appear limited to soccer mom's grabbing dinner for the kids after practice.
This opens up huge opportunity for family owned businesses and those less dependent on hiring employees. These regulations are the equalizer against big franchise owners.
That is how so many Asian eateries are thriving because they are using family laborers not illegals. And you can tell it's a family owned business with family workers because they do far better job than overpaid workers today.
Gotta love how the government handles inflation by taxing people. Pretty soon, all those franchises will be shutdown and there will only be mom pop and food trucks.
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