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(BusinessWeek)   "The average McDonald's earns $2.6 million every year, while the average Burger King takes in $1.2 million." Behold the power of the Happy Meal   (businessweek.com) divider line 56
    More: Interesting, Burger King, Mcdonald, Darren Tristano, Wedbush Securities, Happy Meals, McCafe, QSR Magazine, Kings  
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738 clicks; posted to Business » on 27 Mar 2014 at 5:55 AM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2014-03-26 11:48:12 PM  
And the average McDonald's employee earns just above minimum wage.  But, hey if you believe all the bootstrappers on Faux News, they're lucky to get that.
 
2014-03-27 12:00:33 AM  
"We got rid of the creepy king character that tended to scare away women and children EVERYONE"

Fixt.
 
2014-03-27 12:12:55 AM  

Prey4reign: And the average McDonald's employee earns just above minimum wage.  But, hey if you believe all the bootstrappers on Faux News, they're lucky to get that.


Is Burger King paying any better?  WTF?
 
2014-03-27 12:16:31 AM  
I'll say this, I'm not normally a huge fan of McDonalds for anything other than their breakfast menu, but their new bacon clubhouse burger is the best thing they've had since the Arch Deluxe.  I've actually chosen to go to McDonalds a couple times for lunch (as opposed to just submitting to the will of others or having no other options) since its come out.
 
2014-03-27 12:36:00 AM  
The Whopper Jr is a mighty fine sandwich.

I had one for the first time a couple of weeks ago. It looked very much like the Glamor photos in the ads which was pretty amazing.
 
2014-03-27 12:44:09 AM  

TuteTibiImperes: I'll say this, I'm not normally a huge fan of McDonalds for anything other than their breakfast menu, but their new bacon clubhouse burger is the best thing they've had since the Arch Deluxe.  I've actually chosen to go to McDonalds a couple times for lunch (as opposed to just submitting to the will of others or having no other options) since its come out.


I have to confess that I think that is one tasty burger myself.
 
2014-03-27 12:57:03 AM  

Nabb1: TuteTibiImperes: I'll say this, I'm not normally a huge fan of McDonalds for anything other than their breakfast menu, but their new bacon clubhouse burger is the best thing they've had since the Arch Deluxe.  I've actually chosen to go to McDonalds a couple times for lunch (as opposed to just submitting to the will of others or having no other options) since its come out.

I have to confess that I think that is one tasty burger myself.


It's no Arch Deluxe, but it's by far the best thing they've done since their focus on expanding the Quarter Pounder menu.  I'm still holding out for Wendy's to bring back the Jalapeno burger - crunchy peppers were a novelty on a fast food burger.

/yes, I'm getting fat.
 
2014-03-27 02:38:22 AM  
I vaguely recall an article nearly 25 years ago in WSJ that showed practically the same thing; McD per store revenue was nearly double any other franchise in the area.  Amazingly, the article then was well researched to show revenue from 5 other competitors which gave even more context and contrast, as well as additional factors that help drive McD profits such as studies regarding store location, corporate closure of under-performing stores, and an un-paid 2-year management training program to weed out potential franchise owners that didn't have "ketchup in their blood".
 
2014-03-27 04:29:32 AM  
Many years ago my ex-wife was a manager of a Burger King. They sent her to "Whopper College" to learn the business. She told me that one of the instructors was puzzled why Burger King wasn't as popular as McDonald's because they had stores in the same locations and spent (at the time) as much on advertising as McDonald's. I told her the difference was that Burger King's food was crap and their stores were dirty. She said Yeah, that was pretty much what her fellow student-managers told him.
 
2014-03-27 06:26:03 AM  
What's the deal with all the Burger King/McDonalds threads lately? Weird
 
2014-03-27 06:28:01 AM  

CruiserTwelve: Many years ago my ex-wife was a manager of a Burger King. They sent her to "Whopper College" to learn the business. She told me that one of the instructors was puzzled why Burger King wasn't as popular as McDonald's because they had stores in the same locations and spent (at the time) as much on advertising as McDonald's. I told her the difference was that Burger King's food was crap and their stores were dirty. She said Yeah, that was pretty much what her fellow student-managers told him.


Interestingly enough I stopped going to McDonalds because their food was crap and their stores were dirty.

Then again, I only eat fast food about once a year anyway but when I quit McDonalds I was going several times a week.
 
2014-03-27 06:43:53 AM  
I don't eat fast food much, but when I do I crush 2 of those Burger King original chicken sammiches.

Yum!
 
2014-03-27 06:57:07 AM  
All the people at Burger King are rude knobs. Sure, they all speak English as their 1st language, but they were all rejected by McDonald's... probably because they can talk back to the asshole managers that work there.
 
2014-03-27 07:05:53 AM  
Wait a minute!!!!  How much is McDowell's making then?
 
2014-03-27 07:06:50 AM  

TuteTibiImperes: I'll say this, I'm not normally a huge fan of McDonalds for anything other than their breakfast menu, but their new bacon clubhouse burger is the best thing they've had since the Arch Deluxe.  I've actually chosen to go to McDonalds a couple times for lunch (as opposed to just submitting to the will of others or having no other options) since its come out.


way to support the slave labor system, you dirty fascist.
 
2014-03-27 07:23:16 AM  
One of the things not mentioned, and has always been McD's financial backbone, is the idea that McD's CORPORATION, through a subsidiary, owns the land where its stand alone outlets sit, The franchisees actually pay RENT to the company as well as whatever fees are there.


There are some interesting things about the Carrol's company mentioned as BK's largest franchisee  Carrols was at one time a medium sized burger chain in the northeast - and was actually pretty good, Their Club Burger was a good Big Mac pastiche, and everything else was pretty good. They, like a lot of medium sized chains,  were getting squeezed by the McD's advertising in the mid 70s. They got lucky, as most of their locations were in areas with no BKs, so they struck a deal where they converted most of their locations into BKs - my very first job as a kid was opening a newly converted Carrols/BK.

Carrols owns almost 600 BKs - thats bigger than some regular chains!
 
2014-03-27 07:26:08 AM  
Useless article was useless without maths. What are each restaurants gross profit margins, labor percentages, net operating profit, etc etc etc?

/needs maths to form an opinion right now
 
2014-03-27 07:43:14 AM  
I would feel that there are more McDonald's than Burger Kings as well. Well at least where I live.
 
2014-03-27 07:44:57 AM  
The last Burger King I was in had this sheen of grease on the floor near the bathrooms that was almost as bad to walk on as a sheet of ice. Nothing they serve there is worth putting up with that.
 
2014-03-27 08:00:03 AM  
cineawesome.com

That is one tasty burger.
 
2014-03-27 08:31:13 AM  

zeppo: One of the things not mentioned, and has always been McD's financial backbone, is the idea that McD's CORPORATION, through a subsidiary, owns the land where its stand alone outlets sit, The franchisees actually pay RENT to the company as well as whatever fees are there.


There are some interesting things about the Carrol's company mentioned as BK's largest franchisee  Carrols was at one time a medium sized burger chain in the northeast - and was actually pretty good, Their Club Burger was a good Big Mac pastiche, and everything else was pretty good. They, like a lot of medium sized chains,  were getting squeezed by the McD's advertising in the mid 70s. They got lucky, as most of their locations were in areas with no BKs, so they struck a deal where they converted most of their locations into BKs - my very first job as a kid was opening a newly converted Carrols/BK.

Carrols owns almost 600 BKs - thats bigger than some regular chains!


I remember Carrols, there was one that opened in my hometown and the owner was buddy-buddy with the town fathers so they were able to keep out McDonalds.  They changed to a BK when Carrols collapsed and held on as literally the "only fast food joint in town".  Shortly thereafter the owner of the local dairy which also had a mini-mart decided to retire, he sold to McDonalds and since it was zoned for food service virtually overnight the dairy disappeared and the new shiny McDonalds went up and no one went to the BK anymore.
 
2014-03-27 08:36:03 AM  
That article left out the most important thing. Booger King is nasty! Nasty awful "food".
 
2014-03-27 08:42:02 AM  
Virtually the only time I stop at a fast food burger joint is for breakfast. My town has a Burger King and a McDonald's on the same road within 1/4 mile of each other. I drive by both on my way to work.

McDonald's has better coffee, so the 9 times out of 10 I'm only getting coffee it wins.

The other 1 time I stop at McDonald's for a breakfast sandwich becasue the Burger King doesn't open until 7:00 AM which is about 5 minutes too late most of the time.

I, however, like Burger King's breakfast sandwiches better.

This story had no real point, I just needed something to do while the other computer at my desk finished installing some updates.
 
2014-03-27 09:03:48 AM  
Derped in one.
 
2014-03-27 09:09:43 AM  
img.printfection.com
 
2014-03-27 09:25:25 AM  

Prey4reign: And the average McDonald's employee earns just above minimum wage.  But, hey if you believe all the bootstrappers on Faux News, they're lucky to get that.


I shouldn't bother, but..

The McDonalds in your town earns $26mm per year.

If all of the cooks were replaced with new 16 year olds, do you think that would suddenly drop to $5mm or $1mm? or even $22mm?

That's why they earn at or near minimum wage.
 
2014-03-27 09:25:41 AM  
Been off fast food going on ten years now.  Do not regret it one bit.  Every once in a while I get hungry in an airport and have no other options.  Gun to my head BK or McD, I'd probably do BK.
 
2014-03-27 09:27:33 AM  
I would assume that with McDonald's international reach, they have access to more high yield locations than BK does. More countries = more big cities = better revenue/store ratio. Or BK could have more locations in crappy tiny towns that get very little business (but could still be profitable) so they really don't care what their revenue to store ratio is.

As others mentioned, we'd need to see A LOT more data to determine what is really going on here.
 
2014-03-27 09:31:46 AM  
As a dad who takes long car trips, I will often stop by a nearby store for fries and/or a carbonated drink. Maybe it's a Florida thing, but there seems to be a concrete difference between McD and BK.

McD's employees are, almost universally, pleasant to deal with and feign interest in their customers very well.  BK employees treat their customers like an interruption to their day.

Maybe it's a training issue, maybe it's a culture thing, but even two restaurants across the street from one another will show this difference.

(Having worked at McD, I thought that maybe I was just looking for the training material items I recalled back in the day. So, I asked my kids (who are usually the reason I'm pulling over for fries). Every last one said the McD staff were nicer.)

Can anyone outside Florida confirm this?
 
2014-03-27 09:38:24 AM  

fusillade762: "We got rid of the creepy king character that tended to scare away women and children EVERYONE"

Fixt.


Came to quote that line also. New mascot suggestions?
i2.kym-cdn.com
 
2014-03-27 09:42:46 AM  
Lived in Ohio and Florida, and yes, I have noted the same thing between BK and McD's staff. Arby's can even be worse than BK. There was one Arby's in a city I will not mention, that seemed to have a staff turn over every 90 days or so.

The McD's located near I-75 seem to have more competent and speedier staff than the stores in the city. And higher prices as well.
 
2014-03-27 10:04:34 AM  

gfid: CruiserTwelve: Many years ago my ex-wife was a manager of a Burger King. They sent her to "Whopper College" to learn the business. She told me that one of the instructors was puzzled why Burger King wasn't as popular as McDonald's because they had stores in the same locations and spent (at the time) as much on advertising as McDonald's. I told her the difference was that Burger King's food was crap and their stores were dirty. She said Yeah, that was pretty much what her fellow student-managers told him.

Interestingly enough I stopped going to McDonalds because their food was crap and their stores were dirty.

Then again, I only eat fast food about once a year anyway but when I quit McDonalds I was going several times a week.


It depends largely on the local management. I've walked into some McDonald's I walked immediately out of they were so nasty, and I've been in a couple where you could literally have eaten right off the floor they were so damn clean.
 
2014-03-27 10:05:34 AM  
Reason #1 is why.  I actually prefer the Whopper to the Big Mac, but McDonald's just crushes BK at breakfast
 
2014-03-27 12:09:32 PM  

TuteTibiImperes: I'll say this, I'm not normally a huge fan of McDonalds for anything other than their breakfast menu, but their new bacon clubhouse burger is the best thing they've had since the Arch Deluxe.  I've actually chosen to go to McDonalds a couple times for lunch (as opposed to just submitting to the will of others or having no other options) since its come out.


I'm cautious with how they got rid of the Big and Tasty, then did the Angus 1/3 lbers, then the 1/4 lbers, now this.

They keep pulling their "high end" burger and replacing it with cheaper versions, citing the old one as selling poorly. So I'm not entirely convinced that it doesn't have like fake beef pink slime or something. I know its McDs so it isn't high quality to begin with but...
 
2014-03-27 12:10:03 PM  
I might be dating myself here, but Burger King had nothing on the original flame broiled goodness that was Burger Chef. The works bar was friggin' awesome.  My step-mom worked for them as one of her first jobs when she moved to Indy. They used to have these characters: Burger Chef & Jeff. If you were in the Indy area and ever saw these characters in the mid-70s, it was likely my mom in the Jeff suit.

Of course, that chain got sold to Hardees, eventually.  We don't have any locally, but I'm a sucker for their Frisco Burger. I always try to snag one after a visit with the in-laws.

I avoid McD's when I can, but I absolutely detest Burger King. My husband wonders why I have an unholy biatch fit if he ever brings BK home. He apparently likes their food. Never mind the fact that myself and our two daughters think it's nasty. Although, he's finally learned to avoid the place and eat there on his own time.

Pumpernickel bread: ...but McDonald's just crushes BK at breakfast


This.

Their breakfast sandwiches are the worst. They had these egg, cheese, and bacon burritos with some sort of sauce at one point called BK Wraps. They were cheap but sorta decent. However, they made them into some sort of Mexican thing with jalapenos in the sausage. I thought it was odd when they asked if I wanted hot sauce for my BK Wrap.  (I hadn't even noticed the change, which tells you how often I actually go... which is like next to none.)

When I saw what they gave me, I was like "WTF is this shiat?"

Manager: "We don't serve the BK Wrap anymore."

Me: "Well, if I asked for a farking BK Wrap, wouldn't it have been behoove of you to tell me you didn't sell it anymore?"

[Blank look from manager.]

Me: "That means when someone asks for a BK wrap, you say...."

Manage: "We don't sell them anymore."

Me: "Right--"

Manager:  "Although, in our defense, we thought you wanted a burrito."

Me: "Did I ask for a farking burrito? No."

Of course, I asked for my money back or to be compensated with a "suitable" replacement on their menu. Most of their stuff is crap, so I went with a soggy crosanwich when they refused to refund my order. Because that's basically what it turns into by the time you make it to home, work, or wherever you actually get to eat it. Their hashrounds are often over-cooked and feel like your trying to eat jagged rocks when you try to chew them. More often than not, you can tell they haven't changed the fryer recently because you can taste the stale chicken and fish from the day or two before. It's nasty.

I do like the sausage, egg, and cheese McGriddles from McD's and their chocolate chip frappes. It's about the only thing I get these days. Although, I was highly pissed when I was forced to wait 15 minutes for my frappe the other week. They needed to change out the caramel machine, which is fine. I understand that things happen, but the pimple-faced jerk that waited on me brought it out smothered in caramel syrup without any chocolate and very little whipped cream. He just told me to take it and shut the hell up when I voiced a complaint and refused it.  These are the same little snots who want $15/hour for what they do. I know I'm paying $3 for a farking drink, but it's my $3, not yours. I expect to get what I ordered. I made him take it back and have the manager to bring me a new one. The manager apologized and asked if I wanted my money back. I was like, "No, I just wanted what I paid for." He still gave me card for a free frappe, which I appreciate, but I wasn't looking to get anything for free. I just wanted it done right to begin with. Plain and simple.

The thing is, I don't care who you are but have some pride in your farking work. I've worked fast food; of course it's a shiat job. You have people out there you'll never please, but if the goddamn picture for the product shows chocolate AND caramel syrup, you put the goddamn chocolate on too. Same for sandwiches or whatever the hell I order. And if I'm ordering more than one drink.... PUT THEM IN A DAMN DRINK CARRIER for Christ's sake. Don't try to hand me all four drinks and expect me to have a place to put them. Especially when I'm alone in the car. Likewise, don't huff and puff when I ask for one either. If it's that big of a job, hand the farking carrier to me and I'll put them in the goddamned thing while you walk two feet to fetch my food. It takes all of three seconds. I'm sorry it's such an inconvenience to you.

/feeling ranty and a bit stabby today... must be the weather
 
2014-03-27 12:14:43 PM  

gfid: CruiserTwelve: Many years ago my ex-wife was a manager of a Burger King. They sent her to "Whopper College" to learn the business. She told me that one of the instructors was puzzled why Burger King wasn't as popular as McDonald's because they had stores in the same locations and spent (at the time) as much on advertising as McDonald's. I told her the difference was that Burger King's food was crap and their stores were dirty. She said Yeah, that was pretty much what her fellow student-managers told him.

Interestingly enough I stopped going to McDonalds because their food was crap and their stores were dirty.

Then again, I only eat fast food about once a year anyway but when I quit McDonalds I was going several times a week.


My experience has been that McDs remodels their stores more frequently, so they look more modern (and therefore cleaner). The color scheme of the floor tiles at BK for example makes it look kind of "dirty" and "old" because we associate those color schemes with the early 90s versus how newer fast food stores look today.

In general, Wendys feels the same way at the locations near me. It pushes me away from Wendys because I don't have the childhood memories of eating there like I do with BK.
 
2014-03-27 12:15:43 PM  

diaphoresis: All the people at Burger King are rude knobs. Sure, they all speak English as their 1st language, but they were all rejected by McDonald's... probably because they can talk back to the asshole managers that work there.


Seems the opposite near me. I feel like the McDs workers come in from the city while the BK workers are more of the local high school kids.
 
2014-03-27 12:18:50 PM  

SordidEuphemism: As a dad who takes long car trips, I will often stop by a nearby store for fries and/or a carbonated drink. Maybe it's a Florida thing, but there seems to be a concrete difference between McD and BK.

McD's employees are, almost universally, pleasant to deal with and feign interest in their customers very well.  BK employees treat their customers like an interruption to their day.

Maybe it's a training issue, maybe it's a culture thing, but even two restaurants across the street from one another will show this difference.

(Having worked at McD, I thought that maybe I was just looking for the training material items I recalled back in the day. So, I asked my kids (who are usually the reason I'm pulling over for fries). Every last one said the McD staff were nicer.)

Can anyone outside Florida confirm this?


Seems opposite up in WNY. The McDs people are mostly "swag" kids who can't speak English properly, while the BK tends to be more white kids or middle aged people with a second job.
 
2014-03-27 12:22:42 PM  
Oh and with #3 on the article, I'd suspect the drive thru takes longer at BK because they microwave less food than McDs does. My cousin who is the same age as me was a worker/manager at McDs during college/grad school and he used to talk about employees starting stuff on fire in the microwave on a regular basis.
 
2014-03-27 12:44:50 PM  

Bullseyed: Oh and with #3 on the article, I'd suspect the drive thru takes longer at BK because they microwave less food than McDs does. My cousin who is the same age as me was a worker/manager at McDs during college/grad school and he used to talk about employees starting stuff on fire in the microwave on a regular basis.


img2.wikia.nocookie.net
 
2014-03-27 02:16:13 PM  

phoxxy: I might be dating myself here, but ...


This is fark; we all "date our-self"  on occasion.
 
2014-03-27 02:55:49 PM  

Mark Ratner: Bullseyed: Oh and with #3 on the article, I'd suspect the drive thru takes longer at BK because they microwave less food than McDs does. My cousin who is the same age as me was a worker/manager at McDs during college/grad school and he used to talk about employees starting stuff on fire in the microwave on a regular basis.

[img2.wikia.nocookie.net image 441x300]


I didn't say BK doesn't microwave food too, only that they do it slightly less. Slightly.
 
2014-03-27 03:01:44 PM  

Bullseyed: Mark Ratner: Bullseyed: Oh and with #3 on the article, I'd suspect the drive thru takes longer at BK because they microwave less food than McDs does. My cousin who is the same age as me was a worker/manager at McDs during college/grad school and he used to talk about employees starting stuff on fire in the microwave on a regular basis.

[img2.wikia.nocookie.net image 441x300]

I didn't say BK doesn't microwave food too, only that they do it slightly less. Slightly.


Is this comment going to funny voted, too?
 
2014-03-27 03:06:43 PM  

Enormous-Schwanstucker: Useless article was useless without maths. What are each restaurants gross profit margins, labor percentages, net operating profit, etc etc etc?

/needs maths to form an opinion right now


http://finance.yahoo.com/blogs/the-exchange/fast-food-chains-aren-t- ri ch-protesters-think-192549497.html

That's a pretty dang healthy margin right there and while BK's isn't bad it can't compare. Remarkable if the disparity in spending on advertising between the two is correct. All of the ones listed have pretty good margins except for Wendy's.
 
2014-03-27 03:20:05 PM  

Greybrd: Enormous-Schwanstucker: Useless article was useless without maths. What are each restaurants gross profit margins, labor percentages, net operating profit, etc etc etc?

/needs maths to form an opinion right now

http://finance.yahoo.com/blogs/the-exchange/fast-food-chains-aren-t- ri ch-protesters-think-192549497.html

That's a pretty dang healthy margin right there and while BK's isn't bad it can't compare. Remarkable if the disparity in spending on advertising between the two is correct. All of the ones listed have pretty good margins except for Wendy's.


I know, I should have done it but hanks for looking that up. I was curious about overall margins at the store level though. I imagine cost of goods is relatively static across the board with the big chains. It's the real estate, labor and other ancillary costs that I am most interested in. However, the average is low though, at the corporate level. Just look at Wendy's as an example.  At .3% are they burning through their profit due to advertising or paying down debt? I suppose I should go dig that up too :)
 
2014-03-27 03:26:12 PM  

Bullseyed: Mark Ratner: Bullseyed: Oh and with #3 on the article, I'd suspect the drive thru takes longer at BK because they microwave less food than McDs does. My cousin who is the same age as me was a worker/manager at McDs during college/grad school and he used to talk about employees starting stuff on fire in the microwave on a regular basis.

[img2.wikia.nocookie.net image 441x300]

I didn't say BK doesn't microwave food too, only that they do it slightly less. Slightly.


BK only microwaves breakfast burritos, muffins, and apple pies now.  And those two breakfast ones are just to melt the cheese more.

/works at BK a couple days a week
//also Breakfast Supervisor
///only open every other Sunday
////likes to keep busy so has 3 jobs, one full time.
 
2014-03-27 04:01:08 PM  

Enormous-Schwanstucker: Greybrd: Enormous-Schwanstucker: Useless article was useless without maths. What are each restaurants gross profit margins, labor percentages, net operating profit, etc etc etc?

/needs maths to form an opinion right now

http://finance.yahoo.com/blogs/the-exchange/fast-food-chains-aren-t- ri ch-protesters-think-192549497.html

That's a pretty dang healthy margin right there and while BK's isn't bad it can't compare. Remarkable if the disparity in spending on advertising between the two is correct. All of the ones listed have pretty good margins except for Wendy's.

I know, I should have done it but hanks for looking that up. I was curious about overall margins at the store level though. I imagine cost of goods is relatively static across the board with the big chains. It's the real estate, labor and other ancillary costs that I am most interested in. However, the average is low though, at the corporate level. Just look at Wendy's as an example.  At .3% are they burning through their profit due to advertising or paying down debt? I suppose I should go dig that up too :)


Store level margins would probably be harder to determine. I would imagine you have some with even higher margins and others whose margins fall well short of the corporate numbers. It probably will vary based on how long they've been in operation, therefore how much debt they still have as well as location.

Wendy's numbers surprised me a bit but even though they're one of the largest three or four chains, they don't have nearly the number of locations as McD's or BK. They probably do spend a higher percentage of revenues on advertising just to try and maintain their market share. I will say, the Wendy's around here has horrendous service. Of all the chains around here and we've got just about everyone, they're as likely to fark up your order as they are to get it right. I don't know if that's a widespread issue but it may play into it if it is.

My worst FF experience ever? Dairy Queen. Now, I've been going there for over forty years and always liked their food. One time 7 or 8 years ago, we hit their drive through and took our order home. I had a cheese burger and included in my first bite was a big wad of hair over an inch across. I dang near threw up, took it back and they offered to replace it. Uh, no thanks. They gave us store credit, which my better half used on ice cream. It was a couple, few years before I could bring myself to eat something from there again.
 
2014-03-27 04:36:45 PM  

Greybrd: Enormous-Schwanstucker: Greybrd: Enormous-Schwanstucker: Useless article was useless without maths. What are each restaurants gross profit margins, labor percentages, net operating profit, etc etc etc?

/needs maths to form an opinion right now

http://finance.yahoo.com/blogs/the-exchange/fast-food-chains-aren-t- ri ch-protesters-think-192549497.html

That's a pretty dang healthy margin right there and while BK's isn't bad it can't compare. Remarkable if the disparity in spending on advertising between the two is correct. All of the ones listed have pretty good margins except for Wendy's.

I know, I should have done it but hanks for looking that up. I was curious about overall margins at the store level though. I imagine cost of goods is relatively static across the board with the big chains. It's the real estate, labor and other ancillary costs that I am most interested in. However, the average is low though, at the corporate level. Just look at Wendy's as an example.  At .3% are they burning through their profit due to advertising or paying down debt? I suppose I should go dig that up too :)

Store level margins would probably be harder to determine. I would imagine you have some with even higher margins and others whose margins fall well short of the corporate numbers. It probably will vary based on how long they've been in operation, therefore how much debt they still have as well as location.

Wendy's numbers surprised me a bit but even though they're one of the largest three or four chains, they don't have nearly the number of locations as McD's or BK. They probably do spend a higher percentage of revenues on advertising just to try and maintain their market share. I will say, the Wendy's around here has horrendous service. Of all the chains around here and we've got just about everyone, they're as likely to fark up your order as they are to get it right. I don't know if that's a widespread issue but it may play into it if it is.

My worst FF experience ever? ...


Well, really, the owners should be able to do so and it should be a trivial matter. I examine our sales and margins every week and do a final analysis each month with projections for food and beverage for our place and I know when we expand into catering we're going to need a loan and you better believe a lender will want to see how we're doing.

When we were frequenting any kind of FF we had fairly good service at a particular Wendy's. Occasionally someone would get lazy and wave the ketchup over the sandwich but generally it was better quality than the other FF places.

DQ on the other hand, holy crap the one up the road from us sucks. Awful quality and extreme indifference.

Which reminds me of one visit to MD's last year.I ordered fries only and the girl underfilled the container then had the nerve to tell me they were sold by weight. I laughed at her and told her to show me the scale. The manager apologized and she wasn't there a month later which didn't surprise me.
 
2014-03-27 05:24:13 PM  
@Enormous-Schwanstucker, I hear you when it comes to monitoring sales and margins. Although I never worked in the food industry, I managed retail back in the 80s and was always a stickler about such things.

Our Wendy's has fairly quick service but they almost never fail to omit an item we ordered and this is over the course of years so it probably reflects on management. They're the only chain that we frequent(Though not often), where we always check our order before leaving the lot.

We have a couple of DQs within 6, 7 miles of us and the difference in quality is obvious. The one has great service and good food while at the other one, the service is sketchy and it was the also the home of the hairburger. The next time I ate from there, it was from the former.

McD's is the second worst when it comes to service around here. The franchise owners of the local one own multiple locations in our county and even though they keep them up very well, I believe they have themselves spread too thin when it comes down to maintaining service quality at all of their locations.
 
2014-03-27 06:41:04 PM  

Greybrd: We have a couple of DQs within 6, 7 miles of us and the difference in quality is obvious.


There's a DQ about 3 miles from me in one direction that I wouldn't go in if I was wearing a giant body condom. What a greasy, dirty mess and the food is just as bad. On the other hand, there's a DQ about two miles in the other direction that is one of the cleanest restaurants around. I've seen the owner there cleaning the place at 3:00 in the morning. It even smells clean and you could eat off the floor.
 
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