Biden's 15 $ minium wage
May 5, 2021 16:42:00 #
Harry0 wrote:
Mickey D also has a low overhead rate.
The owner is not going to hire a platoon of office workers eating into HIS money.
The owner is not going to hire a platoon of office workers eating into HIS money.
"Overhead rate" is a very broad category, and covers a host of costs. Indirect labor, fringe benefits, utilities, repairs and maintenance, rent/leasing, etc. Certain overhead items aren't negotiable, such as gas and electric utility rates, water/sewerage, etc.
I mentioned in an earlier post that Mickey D has an edge because it brings economy of scale to the business. However, their restaurants are franchise operations, with the franchisee bearing the cost of running the business. Unless Mickey D owns the real estate, the franchisee must deal with property maintenance and repairs, and landscaping, etc. However, franchisees are rarely single location operations. Most are multiple location owners, so they gain from scaling up. A very close friend of mine owns a contractor referral service, and she has a national contract with Mickey D, among others, for coordinating maintenance.
The "non-Mickey D" owner usually takes care of the administration and overhead costs him/herself. Unless the individual owner can participate in some type of cooperative buying, they get no breaks. Now, there are innovations such as electronic accounting packages, payroll services, HR services, but those are still fairly expensive for the single proprietor.
The franchise contracts are very complicated, and franchisees pay fees to corporate covering those "platoons of office workers".
May 5, 2021 18:31:42 #
pendennis wrote:
The reason is economy of scale. br br Let's say M... (show quote)
9 out of10 McDonalds areprivately owned small businesses
May 5, 2021 20:44:21 #
DennyT wrote:
9 out of10 McDonalds areprivately owned small businesses
Mickey D restaurants are all franchised by McDonalds. That 90% number is true, but only to a point. The franchise contracts are very tightly written, even up to and including the menus and pricing.
I knew a franchisee who had a half-dozen Mickey D's. And while the franchise contracts are tightly written, he made a boatload of money for years. He started as a local Mickey D restaurant manager, and quickly saw the money was in the owner, and not manager end. Mickey D also has "talent scouts" looking for folks who can become franchisees.
I attended the University of Louisville in the 1960's-70's. Some of our classes concentrated on franchise business studies. One of the more remarkable stories was KFC. Harlan Sanders owned a couple of restaurants in the Corbin, KY area. He did well with his local fried chicken recipe, until Interstate 75 k**led his business. He did have some success selling his cookers and "secret recipe". John Y. Brown, Jr., was a most successful Encyclopedia Britannica salesman while a student at University of Kentucky. After graduation from law school, he bought a number of barbecue restaurants in Louisville by the name of "The Porky Pig House". Brown met Sanders, and saw the future of fast fried chicken, and the rest is history.
May 5, 2021 21:05:15 #
Not only must the businessman pay the higher minimum wage but he must also make a larger SSi payment for each employee.
May 5, 2021 21:11:01 #
Leo_B
Loc: Houston suburb
pendennis wrote:
I attended the University of Louisville in the 1960's-70's.
I attended the University of Louisville in the 1960's-70's.
Mike Linnig's. You made a lucky choice of university when it comes to good eating opportunities.
May 5, 2021 23:24:14 #
Leo_B wrote:
Mike Linnig's. You made a lucky choice of university when it comes to good eating opportunities.
They still have some of the best fish around. We also really love Kingfish when we get back to Louisville. Best hush puppies around.
Across from campus on 3rd Street, we had Masterson's, and just south of Eastern Parkway, Lum's. They had beer-steamed hot dogs!
May 6, 2021 08:25:28 #
Leo_B
Loc: Houston suburb
pendennis wrote:
They still have some of the best fish around. We also really love Kingfish when we get back to Louisville. Best hush puppies around.
Across from campus on 3rd Street, we had Masterson's, and just south of Eastern Parkway, Lum's. They had beer-steamed hot dogs!
Across from campus on 3rd Street, we had Masterson's, and just south of Eastern Parkway, Lum's. They had beer-steamed hot dogs!
My best friend was from Louisville. He lived about half way between Mike Linnig's and Mark's Feed Store on Dixie Highway. There is a diner a little ways up Dixie Highway on the right as you go north that was really good for breakfast but I can't remember the name. I'm not familiar with the others you mentioned. I probably made it to Louisville a 12-14 or so times through the year for MATS and en route on jobs for Fedex. I always worked it to get to eat at Mike Linnig's and on the best runs got to eat there and Mark's both. Mark's has the best buttermilk pie ever.
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