If you had experience MANAGING a business, you wouldn’t be able to do easily discount “business expenses”ousdahl wrote: ↑Tue Dec 06, 2022 6:01 pm
If a burger flipper makes $1000 worth of Big Macs in an hour but only gets paid $8, where's that other $992 go? Yea there's business expenses, but at the end of the day the bulk of the value generated by that labor is going to everything BUT the laborer, right?
Just a sampling of the costs associated with that hamburger:
Cost Of Goods Sold (how much did the INGREDIENTS cost)( say a $1.59 burger costs .80 to make= .79 gross profit)
Rent factor (those buildings aren’t cheap, and typically have a 10-18 year duty cycle
Utilities (trust me, significantly more than you think)
Supplies (oil, wrappers, straws, etc)
Payroll (do $17/hr times average of 10 employees times hours the store is staffed, usually a few hours more than it is open to the public)(don’t forget managers, they make more)
Franchise fees (MUCH higher than you think they are)
Payroll taxes
Shrinkage ( dropped on the floor, stolen, etc) (1 burger lost takes 4 hamburgers sold to break even)
Insurance (what do YOU think a solid “slip and fall” policy costs?)
Facility maintenance (parking lot, HVAC, roof repairs, equipment, disposal fees)
McDonalds stores are barely profitable. I have a friend that owns 4 of them.
He claims that he wishes he had never gotten into it.
They HAVE to turn volume at a level that is honestly unmanageable.