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Usually you hear the “we need to pay our workers low wages” from companies that have very low margin unit economics. McDonald’s for example has a high number of
by danielrhodes 9y ago
Usually you hear the “we need to pay our workers low wages” from companies that have very low margin unit economics. McDonald’s for example has a high number of cheap products. Same with Wal-Mart. They need a lot of people to service all the offerings they have. In-n-out has like 5 things on the menu, so they probably need far fewer employees overall. Costco is another example: they carry very few products compared to Walmart and thus need far fewer employees. Guess which companies offer their employees lots of benefits?
- mc32 9y agoNothing's keeping McD's or KFC from whittling down their menus. Let's see all our companies pay our workers a decent wage rather than what they have done for the last 30 years, race to the bottom in terms of wages, and ingredients.
- azernik 9y agoMcDonald's is actually a very bad example; they're famous in the industry for their ridiculously high margins, on the order of 15-20% rather than the medium single digits for most fast food chains.
- danielrhodes 9y agoCorporate or the individual stores? Most McDonald's franchises are owned separately.
- greedo 9y agoMost McD franchises would kill for 15-20% "margins" depending on how you measure that. At the end of the day, a franchisee usually sees a 10% margin after controllable expenses, and before any taxes.
- GFischer 9y agoWhich is still pretty good :) . From what I know, stores in popular areas have surprisingly big revenues, I'd love 10% of that (my brother used to work at a store with a million dollars in monthly revenue).