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Also look at how many chain restaurants are structured in their financing and it is not great. Usually some portion (40% or more) of the net goes to the parent
by sumtechguy 5y ago
Also look at how many chain restaurants are structured in their financing and it is not great. Usually some portion (40% or more) of the net goes to the parent corp. Then out of that you pay the lease on the building, any required decorations, and buy from locked in vendors. Both all owned by the parent corp or some sister corp. Then out of what is left you pay your employees, taxes (on the net), and yourself. You are looking at maybe 10-15% of the net to do that with too.
People can say 'oh just make the wages better'. But that may literally be the difference between there being a restaurant and nothing at all.
Many gas stations run the with the same model. The twist is the gas companies own the land, and the pumps, and set the price. You just run the business.
Basically most of these places someone 'bought a job'.
Think I heard somewhere that places like McDonalds is one of the largest land owners in the world. Yet most of their stores are not 'corporate'.