this post was submitted on 03 Sep 2025
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Work Reform

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[–] bitjunkie@lemmy.world 4 points 3 days ago (1 children)

Yeah the BBQ place's pricing has stayed more or less the same, while McD's has steadily increased their prices into that range.

[–] brucethemoose@lemmy.world 1 points 3 days ago (1 children)

Bingo.

I wonder what McDonald's profit margin at the individual store level is, these days? I would bet they have to send a pretty outrageous cut back to HQ, whereas even if the BBQ place is a small chain, they’re probably not hand tied like that.

[–] bitjunkie@lemmy.world 1 points 2 days ago (1 children)

I thought home office made money on franchise fees, not sales. My info is probably outdated, though.

[–] brucethemoose@lemmy.world 1 points 2 days ago

From their website: https://www.mcdonalds.com/ca/en-ca/about-us/franchising/the-financials.html

During the term of the franchise, fees paid to McDonald’s for each restaurant, include:

Royalty: 4%-5% of monthly gross sales

Rent: a monthly base rent and/or percentage rent that is a percentage of monthly gross sales.

License Fee: a one time fee of $45,000 is paid for 20-year term.

https://www.thefranchiseking.com/how-much-is-a-mcdonalds-franchise

But according to other sites:

https://www.franchiseba.com/mcdonalds-franchise/

That doesn't include marketing fees, so its more like 8%+ of gross sales, not profit, which is a lot! On top of tons of other fees.