How much more will your Big Mac cost if we raise the minimum wage?

[Sharkbiscuit]

The franchise fee is around 4% of gross sales, which ain’t all that much either. Seems that the rent that McDonalds is charging is the bigger moneymaker. Either way, even if corporate is overcharging them, the difference between that and what would be considered fair is probably not enough to give everyone an extra $10/hr.

Actually, we can do some quick math right now. In 2018 the corporation netted $6B worldwide. When divided by 1.9M employees in the US alone (not including internatonal), that equals just under $3200/employee/year, which equals $1.57/hr if the employees were to take all of the profits.

Another way to look at it is that the corporation nets $1.57/hr off the back of each employee, and if you were to do this math with domestic profits only, even less.

Math is hard.


Glad you are finally making that distinction.




After all the points I made in previous posts, you are going to call me out for not addressing this one?

MCD makes 25%. The franchisee is getting bent over and forked bloody.

I am sorry California wants chicken handled separately from grilled cheese. You should recall Newsom.

 

[plasticbertrand]

Yes, after a whopping 16 minutes.

Still nothing to say.

 

[plasticbertrand]

MCD makes 25%. The franchisee is getting bent over and forked bloody.

He built a fabulous strawman with that argument.

 

[CutnSnip]

Back in high school a number of my classmates worked in fast food and convenience stores. When was the last time you saw a high schooler working in McDs?

time's have changed but i imagine it also matters you live.

LA/NY, not teenagers working at Mcdonalds

Oklahoma, Nebraska, Kentucky - Id bet you see teen agers working in McDonalds.

 

[grapedrink]

MCD makes 25%. The franchisee is getting bent over and forked bloody.

In a business agreement that they entered into 100% voluntarily.

Also- these are the numbers I am seeing "4 percent of a location's gross sales. After that, franchise owners pay a rental fee each month which works out to be an average of around 10.7 percent of sales."

10.7% that goes to rent, which aint cheap but doesn't sound too egregious for what commercial rent costs these days. Plus they are getting marketing with their service fees.

Not sure where your 25% number comes from?

 

[2surf]

Back in high school a number of my classmates worked in fast food and convenience stores. When was the last time you saw a high schooler working in McDs?

Back in the 70s-80s, I saw white kids (me included) doing construction work. Now contractors won't hire them because they as a group lack a work ethic.

 

[plasticbertrand]

In a business agreement that they entered into 100% voluntarily.

How the fukc does that relate to the fact that McDondals is ripping them off just like the employees?



You got your ass PWNED in this thread.

 

[Sharkbiscuit]

In a business agreement that they entered into 100% voluntarily.

And how do you think Florida wound up passing $15/hr minimum wage.

With Bernie Sanders stalking the halls of the Capitol with zip ties?

Or was it voted on, as a single issue, by the citizenry???

I spent most of 2020 earning 85%. Did the world have to stop because my margins got squeezed?

No, so f--k the franchisees right up the turd cutter.

 

[grapedrink]

Still nothing to say.

Again, in that 16 minute gap where you accused me of dodging, I was busy typing a response to your other garbage posts that ignore elementary mathematical concepts that you really seem to struggle with. There are also tons of points I've made above that you are unwilling to touch, probably because they prove you wrong, so maybe I should be quoting those as well?

To answer your question, I would not be opposed to minimum wage increases that is tied to inflation. However that wouldn't solve the issue of vast swaths of the work force who have minimal job skills in adulthood who will still struggle, no matter what that minimum wage happens to be, because prices of goods and services will also increase in kind.

 

[GromsDad]

Actually, we can do some quick math right now. In 2018 the corporation netted $6B worldwide. When divided by 1.9M employees in the US alone (not including internatonal), that equals just under $3200/employee/year, which equals $1.57/hr if the employees were to take all of the profits.

That's not a very good ratio.

 

[plasticbertrand]

To answer your question, I would not be opposed to minimum wage increases that is tied to inflation. However that wouldn't solve the issue of vast swaths of the work force who have minimal job skills in adulthood who will still struggle, no matter what that minimum wage happens to be, because prices of goods and services will also increase in kind.

Goods and services cost increase is also tied to inflation and would rise proportionally, dummy.

 

[grapedrink]

How the fukc does that relate to the fact that McDondals is ripping them off just like the employees?

If the franchise owners didn't see the benefit of paying those fees to have the name recognition and marketing, they would invest their money elsewhere. Plain and simple. Open up a no name burger shack instead of a McDs off the side of a highway next to a burger king and let us know how that works out.

Again, check my math and tell me where I'm wrong. The corporation is not making all that much of the backs of each employee. The reason why they are able to make so much is because it's a volume game.

You got your ass PWNED in this thread.

No, I'm not. I post facts, you post feels. Math is hard!

 

[Sharkbiscuit]

In a business agreement that they entered into 100% voluntarily.

Also- these are the numbers I am seeing "4 percent of a location's gross sales. After that, franchise owners pay a rental fee each month which works out to be an average of around 10.7 percent of sales."

10.7% that goes to rent, which aint cheap but doesn't sound too egregious for what commercial rent costs these days. Plus they are getting marketing with their service fees.

Not sure where your 25% number comes from?

MCD's is publicly traded; click the Statistics tab below.

McDonald's Corporation (MCD) Income Statement - Yahoo Finance

Get the detailed quarterly/annual income statement for McDonald's Corporation (MCD). Find out the revenue, expenses and profit or loss over the last fiscal year.

finance.yahoo.com

 

[grapedrink]

Goods and services cost increase is also tied to inflation and would rise proportionally, dummy.

Which is my entire point, genius. Everything gets more expensive as people make more money.

 

[grapedrink]

MCD's is publicly traded; click the Statistics tab below.

McDonald's Corporation (MCD) Income Statement - Yahoo Finance

Get the detailed quarterly/annual income statement for McDonald's Corporation (MCD). Find out the revenue, expenses and profit or loss over the last fiscal year.

finance.yahoo.com

Well those numbers don't match what my source says. Even if its 25%, that's not out of the realm. Most restaurants pay 30% of gross sales on overhead, which does not include labor and food costs, each of which account for 30% on their own.

 

[Sharkbiscuit]

Well those numbers don't match what my source says. Even if its 25%, that's not out of the realm. Most restaurants pay 30% of gross sales on overhead, which does not include labor and food costs, each of which account for 30% on their own.

Your source doesn't say what McDonalds' profit margin is so I am confused why you say it doesn't match.

It also looks like business took a downward turn since 2014 if their gross revenue numbers are correct, because it's been more around 20B the last few years, vs the 27.4B back in 2014.

Thanks Obama!

 

[GDaddy]

Supposedly, 80+% of McDonalds outlets are owned by franchisees. Not by a "mega corporation".

 

[plasticbertrand]

Which is my entire point, genius. Everything gets more expensive as people make more money.

LOL wut?

Where's the problem if both are tied to inflation rate and rise proportionally?

 

[Sharkbiscuit]

Yes, McDonald's is like a shittier version of being a black sharecropper in Mississippi circa 1880s.

I don't care if everything gets more expensive. If the minimum wage worker is less relatively destitute, the policy was better than nothing.

 

[Duffy LaCoronilla]

If it's not that complicated, you should try living on $10/hr and see how it goes.

I don't know what kind of business you run but McDonalds and other mega corporations would never even notice if they paid their employees a living wage instead of relying on government to do it for them.

Except they are ruthless, greedy fucks who would do anything to maximise profit - unless there's a law that prevents them from doing that.

That's exactly what government's role is and that's exactly why minimum wage laws even exist.

Again, entry level jobs aren’t meant for people to “live on” indefinitely.

As for my business, we prevent air pollution from VOCs and ground water contamination from petroleum products.