Labor is often the biggest expense, but it’s far and away not the only one. They may pay extractive rent, property upkeep costs, property taxes, administrative costs like bookkeeping and legal advisory, and insurance. (Any business involving the safety and well-being of more than a couple kids has to have unbelievable premiums just for liability.)

I wouldn’t be so quick to point fingers at the people running a fucking daycare ffs. If they run a tight ship, the owners are making at best a moderately decent salary - they’re not fleecing parents because they literally can’t. Look instead at all those auxiliary industries which are required for legal compliance - especially the “consultant class” - legal, tax/accounting, and insurance. They have leeches attached all the way up the chain, starting with individual workers.