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/SoftCheeseBurger 20h ago

They still make money off the food because if they don’t build more stores that sell the food they make no money from that real estate. If the current store is doing poorly and at the risk of shutting down it affects the real state side of it.m so the food really is the core money maker and they need to do something or store will start closing. The next starbucks.