If I owned a breakfast diner...

[BatteryOaksBilly]

You're not factoring in the $15/hour "worker" that has to pile it all together. Turns the equation into a net loss of a billion dollars.

That's why I said Gross Profit.

 

[Tim]

Yep! McDicks probably pays .03 cents or less for and egg portion, .10 or less for sausage, and less than a nickel for cheeze, total .22 cents. That's a pretty good Gross Profit on a Sausage, egg, and cheeze biscuit. Over 1,000%.

McDonald's franchisee's net margins hover around 6-7%. Roughly $150K/annual net profit for a single store on average.

 

[Hashknife]

McDonald's franchisee's net margins hover around 6-7%. Roughly $150K/annual net profit for a single store on average.

Now think about this statement made by Ray Kroc....

McDonalds Corporate is not really in the hamburger business or in the restaurant business.... It is in the real estate business.....



McDonalds Corp owns some of the most prime located real estate around the globe. They basically purchase land and increase its value by building on it. The burger business is just a way to keep the buildings busy and generate monthly revenue from the property.

McDonalds Corp also owns the largest cattle company in the world...

 

[Alfred]

McDonald's franchisee's net margins hover around 6-7%. Roughly $150K/annual net profit for a single store on average.

Is that net of the franchisee taking a salary, or before he pays himself ? Just thinking that's a lot of cat-juggling for 150K

 

[Tim]

Is that net of the franchisee taking a salary, or before he pays himself ? Just thinking that's a lot of cat-juggling for 150K

Franchise owner's net after operating costs, fees, etc. i.e. the Franchise Owner's 'salary'. That's for 1 store. Scaling up with additional stores improves the franchise owner's efficiency, so store 2, 3, 4, + realize better returns.

 

[Get Off My Lawn]

Now think about this statement made by Ray Kroc....
McDonalds Corporate is not really in the hamburger business or in the restaurant business.... It is in the real estate business.....

Quite true, it’s a stretch to call their product “food”.

 

[J R Green]

I "sling hash" (steaks actually) a night or two a week. There are two types of people who decline refills. Those that will never need one, and those that will need one in the next two minutes, but don't want one now. Never fails haha!

There's also the one who has got the mixture just right.

 

[Hashknife]

Franchise owner's net after operating costs, fees, etc. i.e. the Franchise Owner's 'salary'. That's for 1 store. Scaling up with additional stores improves the franchise owner's efficiency, so store 2, 3, 4, + realize better returns.

Yep... Multiple stores is where the Franchise owner starts to get really good returns. They get great returns if they lock out a territory or state(s).

 

[Culper]

There's also the one who has got the mixture just right.

No worries on that. In my experience, the ones turning down the proactive refill will be asking for one as soon as your in the middle of something else. Maybe it's all part of the experience for them..