ITT: People with no idea how franchises work.
I think people know, but it’s going to be like they treat landlords. Ideologically opposed. EDIT: thanks for the downvote for a neutral prediction. I’d like to thank the Academy, Spez, and users like you.
If they think McDonald’s are the one paying employees then they don’t know shit.
I think people know? A franchise brings in x million per year, from the gross x percent goes to head office, remainder is used for operating costs and the balance is whats left for the franchisee. What you seem to be ignoring is that a shift in one cost doesnt mean everything else remains static. McDs head office wont enforce x percent of gross in a high labour market if it forces the franchise to close down.
Analysts create forecasts on the sustainable extraction of wealth from the community. By way of example. If there is a change in law meaning labour is now paid $4/h the franchisee wont jusy make 300k insteaf of 150k per year. The monthly fees will also go up, and the franchisee may make 200k a year now, with an additional 100k going to head office.
Prices also dont double with doubling of labour costs, the entire system is dynamic, with a readjustment of how much value each stakeholder takes from the overall pie.
I dont know if people act purposefully dense when these things come up or actually cant see beyond their immediate situation, but you dont get “double prices, all businesses close down, the economy will collapse” when you force a slight shift of the value pie towards labour that creates the value.
Sorry if the franchisee will now only get $100k per year in the bank per franchise managed by their team, instead of $150k, and head office can only capture 3.5% of gross instead of 4.5%, its totally worth it if hundreds and thousands of employees are not staying up at night worrying about paying for their gas, electricity, prescriptions or clothes for their kids.
Go fuck yourself, world’s leading fast food restaurant and the inventor of the chain franchise. Billions served, hundreds of billions of dollars made, millions of tons of food thrown away, and still can’t afford to pay people a living wage? Instead of eating McDonald’s, let’s just eat McDonald’s. Eat the rich!
No it won’t, you’ll just make slightly less profits, but you’ll still be profitable. If it helps sweetie, you shouldn’t have been making that much profit in the first place, you’re just getting called out on your bullshit now.
Awww. I’m so sad for these billionaires.
Would you pay $20 for a Big Mac? …though they’ll probably automate the cooking and cashier positions, so they don’t have to pay an employee what I make as a robotics technician.
Have we seen any of that happen in the places the company already operates that enforce a decent wage?
No, I wouldn’t. That’s why they won’t price it at $20. They’re gonna have to figure something else out or just have a complete negative loss in the state. You can try to price gouge people but they’ll likely just go somewhere else. This is some bs thinking through and through
Their business can’t just absorb this cost. That’s not how businesses work. What they can do is raise prices a few cents each and pay the cost.
Franchisees are empowered to set their own pricing, so this is a non-issue.
I can almost guarantee a lot of locations wouldn’t even need to do that. The owner would just have to not take a bonus. God forbid that though.
