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There are approximately 40K McDonald’s in the world. That’s about USD 50,000 in profit per location. If you think that’s egregious, then we aren’t going to agr

by MR4D 3y ago

There are approximately 40K McDonald’s in the world. That’s about USD 50,000 in profit per location. If you think that’s egregious, then we aren’t going to agree on much.

adgjlsfhk1 3y ago
Note that given the franchise model, that's 50k profit on basically no expenses (i.e. you aren't looking at the profit of the stores, that's the amount of money being taken out of each store by McDonalds in addition to the profit that the owners are making). McDonalds isn't paying for the employees or the food or the buildings. That's just the tax they are charging the franchises for the privilege of calling themselves a McDonalds store.
- AussieWog93 3y ago
  >basically no expenses I could imagine marketing and PR alone on the scale of a McDonalds would be hugely costly, easily in the high hundred millions or billions.
- badpun 3y ago
  > Note that given the franchise model, that's 50k profit on basically no expenses Profit is already past expenses. > That's just the tax they are charging the franchises for the privilege of calling themselves a McDonalds store. McDonalds does plenty for the franchise restaurants: 1. Brand recognition and marketing which bring in tons of customers, without the franchise owner having to spend a cent. 2. Recipes that will sell. Franchise owners does not have to know anything about cooking, people's tastes etc. It's all covered by McDonald's R&D. 3. Efficient operations. Similar to the above, franchise owner's does not need to know anything about running an efficient restaurant. All equipment design as well as day-to-day operational procedures are standardized, highly efficient, and provided by McDonalds. 4. Employee training. 5. Restaurant interior design. Again, provided by McDonald - no need to think about it, no area to make costly mistakes by inexperienced owner. 6. Supplies. No need to worry about managing supplies and suppliers - it's all provided by McDonalds. In fact, McDonalds does so much for a franchise owner that he's somewhat closer to a glorified manager with a profit sharing agreement, that to a real business owner.
- MR4D 3y ago
  > McDonalds isn't paying for the employees or the food or the buildings. I would suggest doing at least a little research on this topic before commenting. For instance, "McDonald's owns about 70% of the buildings and 45% of the land at its locations worldwide. Once all the math is done, calculations show that McDonald’s owns around 47,037 acres of land." Source: https://www.yahoo.com/video/owns-more-land-bill-gates-132113385.html https://www.yahoo.com/video/owns-more-land-bill-gates-132113...
DANmode 3y ago
Does that include the real estate dealings?

by MR4D 3y ago

There are approximately 40K McDonald’s in the world. That’s about USD 50,000 in profit per location. If you think that’s egregious, then we aren’t going to agree on much.

adgjlsfhk1 3y ago

Note that given the franchise model, that's 50k profit on basically no expenses (i.e. you aren't looking at the profit of the stores, that's the amount of money being taken out of each store by McDonalds in addition to the profit that the owners are making). McDonalds isn't paying for the employees or the food or the buildings. That's just the tax they are charging the franchises for the privilege of calling themselves a McDonalds store.

AussieWog93 3y ago
>basically no expenses I could imagine marketing and PR alone on the scale of a McDonalds would be hugely costly, easily in the high hundred millions or billions.
badpun 3y ago
> Note that given the franchise model, that's 50k profit on basically no expenses Profit is already past expenses. > That's just the tax they are charging the franchises for the privilege of calling themselves a McDonalds store. McDonalds does plenty for the franchise restaurants: 1. Brand recognition and marketing which bring in tons of customers, without the franchise owner having to spend a cent. 2. Recipes that will sell. Franchise owners does not have to know anything about cooking, people's tastes etc. It's all covered by McDonald's R&D. 3. Efficient operations. Similar to the above, franchise owner's does not need to know anything about running an efficient restaurant. All equipment design as well as day-to-day operational procedures are standardized, highly efficient, and provided by McDonalds. 4. Employee training. 5. Restaurant interior design. Again, provided by McDonald - no need to think about it, no area to make costly mistakes by inexperienced owner. 6. Supplies. No need to worry about managing supplies and suppliers - it's all provided by McDonalds. In fact, McDonalds does so much for a franchise owner that he's somewhat closer to a glorified manager with a profit sharing agreement, that to a real business owner.
MR4D 3y ago
> McDonalds isn't paying for the employees or the food or the buildings. I would suggest doing at least a little research on this topic before commenting. For instance, "McDonald's owns about 70% of the buildings and 45% of the land at its locations worldwide. Once all the math is done, calculations show that McDonald’s owns around 47,037 acres of land." Source: https://www.yahoo.com/video/owns-more-land-bill-gates-132113385.html https://www.yahoo.com/video/owns-more-land-bill-gates-132113...

DANmode 3y ago

Does that include the real estate dealings?