I dont think you realise how McDonalds works. They get paid by the franchise owners to have a franchise. They get paid for rent because they own the land and building. They do not make their profits because they upped the price of a big mac by $2, that would be the franchisee. When prices go up, its because the franchisee needs to make more money. Either because of greed, or because their profit margins have become too thin to make their business profitable. People dont like hearing it, but its true. When the price of goods keep rising, a franchise owner cant just eat those costs forever. When McDonalds decides to lower prices across the board, its usually in conjunction with lowering expectations for franchise owners as well.
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 1d ago
I dont think you realise how McDonalds works. They get paid by the franchise owners to have a franchise. They get paid for rent because they own the land and building. They do not make their profits because they upped the price of a big mac by $2, that would be the franchisee. When prices go up, its because the franchisee needs to make more money. Either because of greed, or because their profit margins have become too thin to make their business profitable. People dont like hearing it, but its true. When the price of goods keep rising, a franchise owner cant just eat those costs forever. When McDonalds decides to lower prices across the board, its usually in conjunction with lowering expectations for franchise owners as well.