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This is an inaccurate meme that needs to die. Yes, McDonalds is a large owner of real estate. Does this mean that's where they get their profits? Not so much.
by greedo 3y ago
This is an inaccurate meme that needs to die.
Yes, McDonalds is a large owner of real estate. Does this mean that's where they get their profits? Not so much.
Most franchisees pay roughly 10% of gross sales to McDonalds as "rent" (this is in addition to the 4% they pay as a monthly service fee for other aspects of the relationship).
Since this "rent" is based on gross sales, the primary incentive on McDonalds part to increase the franchisee's sales.
Your argument also ignores that roughly 30% of McDonalds profits comes from stores it operates itself.
- manquer 3y agoAs always hanlon’s razor applies: far more likely incompetence than malice. They don’t care to fix the software product or service here because they don’t have to , it is a captive market , you can buy realistically machines [1] from one company and service from. McD also benefits from this due to Veblen luxury good like effects : being a limited product, you are far more likely to now the ice cream when the machine when it is running as it is now a special occasion adding to the overall satisfaction, we wouldn’t be talking about it so much if those damn things worked, like we dont talk about French fries machines . [1] the Italian alternative is not the good enough they don’t have state side ops , parts can take weeks to arrive , few restaurants will actually buy them