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this post was submitted on 16 Jan 2024
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chapotraphouse
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I think they actually get almost all of the profits of the store. The fast food company makes money from the franchise license, rent, and supplying the equipment and food
Correct. The corp gets paid first out of the gross, totally protected. Franchisees only wiggle room to increase their profit is labor costs.
Technically they could also just increase revenue with better marketing and customer service but we all know they would never try that first over slashing employee operating expenses
Well yeah, that would actually take work and require them to spend money. Fucking with prols is free, and they enjoy it
The franchise sets the food prices on both sides too so they can precisely control profitability.
I wonder if anyone has ever looked into the idea that labor is the source of all profits
yes, though restaurants are notorious for low profit margins