Comment on McDonald’s CEO is grappling with a ‘two-tier economy’ as he slashes prices on value meals—and signals backing for a minimum wage increase

• bitjunkie@lemmy.world ⁨2⁩ ⁨weeks⁩ ago

  Yeah the BBQ place’s pricing has stayed more or less the same, while McD’s has steadily increased their prices into that range.

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  • brucethemoose@lemmy.world ⁨2⁩ ⁨weeks⁩ ago

    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.

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    • bitjunkie@lemmy.world ⁨2⁩ ⁨weeks⁩ ago

      I thought home office made money on franchise fees, not sales. My info is probably outdated, though.

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      • brucethemoose@lemmy.world ⁨2⁩ ⁨weeks⁩ ago

        From their website: www.mcdonalds.com/ca/en-ca/…/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.

        thefranchiseking.com/how-much-is-a-mcdonalds-fran…

        But according to other sites:

        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.

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