McDonald's Franchisees Are Furious About How Much It Costs To Operate A Restaurant

[xchrom]

http://www.businessinsider.com/mcdonalds-franchise-owners-hold-meeting-2013-8



McDonald's franchise owners are mobilizing against corporate.

The franchisees, who operate 90% of McDonald's restaurants, say the company is charging too much for rent, remodeling, and fees for training, reports Leslie Patton at Bloomberg News.

A franchise owner told Patton that running a McDonald's "is not as profitable business as it used to be." Franchisees have reportedly been holding rogue meetings to discuss ways to get the company to bring costs down.

The higher costs mean that franchisees are “less likely to open new restaurants and refurbish them, potentially constraining sales," Patton writes.



Read more: http://www.businessinsider.com/mcdonalds-franchise-owners-hold-meeting-2013-8#ixzz2bHndZeaz

[Happyhippychick]

1. Fewer McDonalds? Oh the humanity!

[xchrom]

2. !

[Demit]

6. LOL!

[bemildred]

3. Nobody gets madder than a wised up chump. nt

[AndyA]

4. ...And of course, they simply can't afford to pay employees higher wages...

I think I see where this is going. Interesting timing, with the workers striking.

[CanonRay]

11. Yes, the timing of this is mighty suspicious

all of a sudden these rich bastards are going broke? Yeah, right.

[tridim]

5. Feels like the dam is about to burst on corporate crap policy.

Hey franchisees, ask about executive compensation at corporate. Make them justify every dollar they put in their pocket.

[on point]

7. Franchise squeezed from both sides? Corporate growth at the expense of little guys...

Wokers and franchise owners alike perhaps.

[global1]

9. Corporate Greed Is Setting In......

The squeeze is on. Will there be a movement to more company stores?

[Downwinder]

8. McDonalds going the way of Dairy Queen?

It is a well worn path.

[OneGrassRoot]

10. I've been wondering how much the average franchisee makes a year...

Do they all tend to draw a salary or do they draw proceeds from profit?

The recent study regarding raising minimum wage and it's impact on the cost of a Big Mac seemed to have a lot of holes in the numbers.

I wonder if any franchisee salaries are included in the labor costs, for example.

Forget the Almighty Profit aspect; I always want to see the earnings of those at the top cut...voluntarily...as part of being a decent human being.

Heck, I want to see a ratio instituted as common practice with businesses of integrity, where the top salary is no more than x times that of the lowest wage being paid (I lean toward 15-20%). If the business succeeds, everyone benefits.