{"id":8619,"date":"2013-04-20T22:00:49","date_gmt":"2013-04-20T22:00:49","guid":{"rendered":"https:\/\/www.thefranchiseking.com\/?p=8619"},"modified":"2021-07-16T14:30:20","modified_gmt":"2021-07-16T18:30:20","slug":"mcdonalds-franchisees-mad-low-profit-margins","status":"publish","type":"post","link":"https:\/\/www.thefranchiseking.com\/mcdonalds-franchisees-mad-low-profit-margins","title":{"rendered":"Why Are McDonald\u2019s McFranchisees Mad?"},"content":{"rendered":"

\"McDonalds<\/a><\/p>\n

For a dollar, I\u2019ll tell you why McDonald’s franchise owners<\/b> are mad.<\/p>\n

I\u2019m McKidding.<\/p>\n

One reason that McDonald\u2019s franchisees<\/b> are mad is the recent news out of corporate.<\/p>\n

 <\/p>\n

For the first time in a decade, McDonald’s first quarter sales in the US have dropped.  <\/i><\/h3>\n

 <\/p>\n

What\u2019s the deal with that<\/i>?<\/p>\n

Everyone<\/i> in the US can afford to eat<\/a> at McDonald\u2019s, right?<\/p>\n

Right?<\/p>\n

 <\/p>\n

And, McDonald’s franchise owners can afford to pay higher wages, right?<\/p>\n

You should read this New York Times article<\/strong><\/a>.<\/p>\n

 <\/p>\n

McDonald\u2019s Franchisees And Their Dollar Menu Woes<\/h2>\n

The reason that most Americans can afford to eat at their local McDonald\u2019s restaurant has to do with price; there are a lot of menu items that can be purchased for a dollar.<\/p>\n

While the Dollar Menu<\/a><\/b> is good for consumers, it\u2019s not so good for McDonald\u2019s franchisees\u2026and their relationship with the executive team in Illinois.<\/p>\n

According to Nations Restaurant News, \u201cFrustration over discounting has kept the franchisor-franchisee relationship strained, according to the results of the operator survey. When asked to rate that relationship on a 1-to-5 scale, with 1 meaning \u2018poor\u2019 and 5 meaning \u2018excellent,\u2019 the franchisees produced an average response of 1.93<\/i>. \u201c Read more<\/a><\/p>\n

 <\/p>\n

Big Mac\u2019s Are<\/em> Big Money<\/h2>\n

You\u2019re welcome to give me crap about eating fast food. Anyway\u2026<\/p>\n

The last time I motored up to my local McDonald\u2019s Double Drive-Through<\/a>, I was amazed.<\/p>\n

Dinner for three was almost $20<\/em>.<\/p>\n

Now, remember, I live in Cleveland, Ohio\u2026not New York City. Our cost of living is almost reasonable.<\/p>\n

But, still\u2026$20?<\/p>\n

A Big Mac was $4.00<\/b>. A large fry was almost $3.<\/p>\n

That\u2019s a lot of money for fast food.<\/p>\n

 <\/p>\n

Profit McMargins For McDonald’s Franchisees Are Dropping<\/h2>\n

McDonald\u2019s franchisees <\/strong>keep insisting that their profit margins are getting lower and lower.<\/p>\n

But, it\u2019s not like they\u2019re paying their employees<\/a> a lot of money-that can\u2019t be the reason for it.<\/p>\n

They\u2019re selling Big Mac\u2019s for $4.00 each-those must be profitable. Right?<\/p>\n

And, the soft drinks?<\/p>\n

They have huge<\/i> profit margins.<\/p>\n

$1 Double Cheeseburgers don\u2019t<\/em><\/strong>.<\/p>\n

I get it.<\/p>\n

But, when it\u2019s all said and done, McDonald\u2019s franchisees are still doing pretty darn well.<\/p>\n

So, why are they getting angry?<\/p>\n

Is their anger what I call, \u201cfuture-anger<\/i>?\u201d<\/p>\n

Are they starting to get freaked out about Obamacare?<\/p>\n

It\u2019s coming.
\nImage courtesy of SportSuburban on Flickr<\/p>\n","protected":false},"excerpt":{"rendered":"

For a dollar, I’ll tell you why McDonald’s franchise owners are mad. I’m McKidding. One reason that McDonald’s franchisees are mad is the recent news out of corporate.   For the first time in a decade, McDonald’s first quarter sales in the US have dropped.     What’s the deal with that? Everyone in the […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[15,18,522,52],"tags":[1092,1234,1233],"class_list":["post-8619","post","type-post","status-publish","format-standard","hentry","category-economy","category-food-and-drink-franchises","category-franchisee","category-mcdonalds","tag-dollar-menu","tag-double-cheeseburgers","tag-profit-margins"],"yoast_head":"\nMcDonald's Franchise Owners<\/title>\n<meta name=\"description\" content=\"It seems that a whole lot of McDonald's franchise owners are mad. Really mad! 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