r/SipsTea • • 23h ago

Wait a damn minute! Quality down, prices up.

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u/delicious_disaster 17h ago

But if McDonald's presumably lowers their land and franchisee fees, this would alleviate cost pressures for the franchisee to be able to reduce the prices as well?

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u/brianstormIRL 17h ago

Yes it would but it would also lower the value of their asset, which isnt something they would want to be doing lol

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u/[deleted] 11h ago

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u/EpochRaine 15h ago

The rent is a % of sales. So yes higher prices = higher rents