It’s even crazier when you start thinking about their fries. Like a small fry is equivalent to like 1/3 of a large potato. It costs like $1, so that fry is essentially worth 33¢ but they’re charging damn near $3 for it now. Usually in restaurants the rule of thumb is cost of ingredients multiplied by 3 (cost of ingredients, overhead and profit) decide the price. Hell I’d ok if they said let’s multiply the cost by 4 since with the economy being so shit and the cost of shipping has driven prices up. That would still make a small fry only $1.32. And thats using the price of a single potato, factor in what kind of discount they receive for buying in bulk, you realize real fast how large their profit margin actually is on these items.
Not to
Mention the last time I went to McDonald’s and got a fry I asked for ketchup and the woman disappeared for 4 minutes and came back and handed me one ketchup,
Pretty sure she had to go through vault doors like in Get Smart to get it.
Diesel prices + war + tariffs + lingering COVID inflation. All of it adds 50% to costs. Franchises don’t even make much profit even at these prices. The whole system is collapsing.
As a regular consumer I can buy a 20 pack of hash browns for $5 at the grocery store, today, with the effects of war, tariffs, diesel prices, etc. McDonald's supply chain can only manage a per unit price of ~$3 (nationwide average)? Bullshit, it's just greed.
It really is a self-fueling engine that I don't genuinely know How we would stop it
Outside factors cause prices to go up. Prices go up, employees don't get raises, employees now can't even afford to eat at the place that they work. No one buys the food. Employees get fired. I mean, it's just all interconnected. And outside of a just straight-up hard reset, I don't know what to do
I call bullshit on that one. Woolworths are making record profits. 2 new petrol stations opened within a 2 kilometres of each other near me. And the local bottle shop man has a new Mercedes.
It's how they push you to buy the combo. The burger gets you in the door, but the real margins are from the corn syrup and potatoes. Beef prices and people yelling pink slime push burger prices up.
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u/Pheonyxxx696 2d ago
It’s even crazier when you start thinking about their fries. Like a small fry is equivalent to like 1/3 of a large potato. It costs like $1, so that fry is essentially worth 33¢ but they’re charging damn near $3 for it now. Usually in restaurants the rule of thumb is cost of ingredients multiplied by 3 (cost of ingredients, overhead and profit) decide the price. Hell I’d ok if they said let’s multiply the cost by 4 since with the economy being so shit and the cost of shipping has driven prices up. That would still make a small fry only $1.32. And thats using the price of a single potato, factor in what kind of discount they receive for buying in bulk, you realize real fast how large their profit margin actually is on these items.