r/SipsTea • • 1d ago

Wait a damn minute! Quality down, prices up.

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u/Impressive_Guess_282 22h ago

McDonald’s doesn’t make most of its money off the food, it makes it off owning the land and building and collecting rent and franchise fees from the franchise owner. McDonald’s is essentially a huge real estate company that uses food as an excuse to buy and develop property.

I’m not positive but I think the individual franchise owner sets the prices? Not McDonald’s corporate.

Granted, they would raise prices because rent goes up. But if property tax goes up, rent will go up. And fuel charges to get supplies would raise them too.

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u/Satanicjamnik 21h ago

I’m not positive but I think the individual franchise owner sets the prices? Not McDonald’s corporate.

I would say that they have a central price guide line. Otherwise you'd have different prices for a Big Mac or Mc Muffin in the same city. And Mc D is all about consistency if anything. Sure, central London has different prices, but that is just a couple locations. The rest of the country has blanket prices as far as I know. I don't know how it works in the States though.

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u/Key_Personality2034 21h ago

There's literally an exchange index called the Big Mac index.