3 ms·

> they aren't the ones loosing money From what I'm seeing, besides the monthly rent (in most cases paid to McDonalds), and the required supply purchases, franc

> they aren't the ones loosing money From what I'm seeing, besides the monthly rent (in most cases paid to McDonalds), and the required supply purchases, franchisees also have to kick 4% of sales up to corporate. So corporate is indeed losing money when the machine isn't working (also, they're probably not going to be buying supplies for a broken machine, either).

burningChrome 3y ago
You also have to factor in the cost to profit ratio. What's more profitable? Kicking out a dozen Big Macs in the same time it takes to make one McFlurry? As an owner, I'm going to focus on where my profits are so that I can maximize those areas that are generating the most profit. Anything with ice cream is a net loss for my profit column so anything I can do to discourage people from increasing those sales which will then cut into my overall profits is just fine with me. Their McFlurry ice cream items were created to compete with Dairy Queens Blizzard items. I'm not sure why they decided they could compete with DQ, but they thought they would siphon some of that market share from them - which I don't think they ever did, but it didn't lose enough money for them to take the item off of their menus.
- Aloisius 3y ago
  And if people walk out the door because they wanted ice cream on a hot day and go somewhere else instead and stop coming because they assume your ice cream machine is down?
  - burningChrome 3y ago
    Its a McDonalds. They don't go there for ice cream. Yeah, they won't go back for ice cream which has a minimal impact. You can bet they'll still come back for burgers, shakes and fries though. It just confirms people fall into the trap of not going there for ice cream, which reduces the burden of the people having to use so much time to make ice cream for customers and can instead focus on the stuff that keeps the lights on and the profits coming in.

burningChrome 3y ago

You also have to factor in the cost to profit ratio. What's more profitable? Kicking out a dozen Big Macs in the same time it takes to make one McFlurry? As an owner, I'm going to focus on where my profits are so that I can maximize those areas that are generating the most profit. Anything with ice cream is a net loss for my profit column so anything I can do to discourage people from increasing those sales which will then cut into my overall profits is just fine with me. Their McFlurry ice cream items were created to compete with Dairy Queens Blizzard items. I'm not sure why they decided they could compete with DQ, but they thought they would siphon some of that market share from them - which I don't think they ever did, but it didn't lose enough money for them to take the item off of their menus.

Aloisius 3y ago
And if people walk out the door because they wanted ice cream on a hot day and go somewhere else instead and stop coming because they assume your ice cream machine is down?
- burningChrome 3y ago
  Its a McDonalds. They don't go there for ice cream. Yeah, they won't go back for ice cream which has a minimal impact. You can bet they'll still come back for burgers, shakes and fries though. It just confirms people fall into the trap of not going there for ice cream, which reduces the burden of the people having to use so much time to make ice cream for customers and can instead focus on the stuff that keeps the lights on and the profits coming in.