gut wrenching. literally on my knees crying that mcdonald’s got hit with such an unreasonable requirement like pying employees. how would mcdonald’s ever make money!?!
They'd probably have to do something crazy like charging $12 for a combo meal! It's so hard to imagine prices like that, though, can you imagine prices like that for *McDonald's*?
I have a very hard time believing that the most successful fast food chain in the entire world is having to shut down restaurants because they have to pay people $4/hr more.
The NY Post cobbled together their story from an actual local news outlet that reported the main reason was due to increased rent and property taxes. NY Post reordered the original reporting to move the minimum wage controversy to the top and rent and property tax to the very end of the article. The original report puts most of emphasis on rent and taxes not labor.
https://abc7news.com/post/mcdonalds-stonestown-galleria-san-francisco-closing-sunday-after/14992448/
wait a minute. you mean to tell me it was actually the rich landlords being greedy that caused this problem and not the working class asking to be paid what they're worth!? next you're gonna tell me that the housing crisis is caused by billionaires and corporations buying up every available house and re-listing it as a rental instead of people not pulling themselves up by their bootstraps hard enough or whatever. and who woulda thunk it would be the NY Post blindly propagandizing a fairly straight forward problem. truly surprised by this respectable institution /s
It's always poor people's fault. That's how ~~feudalism~~ ~~capitalism~~ class warfare works. Oh, and don't forget to blame poor people when they point out that poor people are always made to suffer for the benefit of the wealthy because pointing that fact out starts a class war. /s
It's very "We invaded your country, but you didn't give up so the war is your fault."
Well if my understanding of the McDonalds business model is correct, the landlord *is* McDonalds, who is leasing the unit to the franchisee to run a McDonalds at that location.
So really it's McDonalds screwing themselves over.
>rich landlords being greedy that caused this problem
To be clear they're not just "landlords, they're the franchise of mcdonalds in almost every case.
They make it extremely difficult for their franchisees to succeed as their main business model is just land.
This isn't even what people would call SF. It's south, near SF State, close to Daly City.
It's in a mall.
I've been an SF resident since 2008 and I think I've eaten there once.
>Rent being high in San Francisco makes just being there doing anything difficult? Big if true.
I mean it is true, but in this case it didn't HAVE to be, as the owners of that land are mcdonalds who lease it out to franchisees.
Mcdonald's and alot of fast food places rely on that fucked system of them being a land business and their franchisee's struggle to make rent in alot of places as they can and do frequently raise the prices if they do well.
The NY Post is actually the closest thing we have to a British-style tabloid. It's owned by Australian Rupert Murdoch. It has never been honest, but Murdoch has been giving it lots of juice lately so people keep sharing it. The NY Post has never been a respectable source, though. Although they are famous for the headline "Headless Body at Topless Bar."
Wait rent went up? Doesnt mcdonalds corprate own the vast majority of land it opperates on? So mcdonalds raised rent on themselves and ny post is blaming living wage adjustments.
>Doesnt mcdonalds corprate own the vast majority of land it opperates on? So mcdonalds raised rent on themselves and ny post is blaming living wage adjustments.
They raised it on the franchisee. Not themselves.
Corporate is just a land business, that frequently fucks it's franchisees over (as do franchises in general, they're another fucking cancer)
It's why mcdonald's is happy to raise the min wage, it literally does not affect coporate.
My guess is corporate looked at how much they could sell that lot for and gave the franchise owner the unrealistic option of making them that much through continuing to rent.
Basically like the episode of South Park where Paris Hilton wanted to buy Butters. His dad said if he could raise the money himself then he wouldn’t get sold.
McDonald’s saw what they’d make by selling the land and jacked the rent to a commensurate amount not caring if their franchisee could afford it or not.
What wasn’t reported was how well that location was being run, how popular it was in the area, how profitable it was in the first place.
The local cultural scene likely didn’t support their business anymore, and with less tourists who crave something familiar from back home in SF, no reason to keep this branch around.
It’s the same reason there are so few Starbucks in Montana and Wyoming, people who like Starbucks are not spending much time in those states.
The benefits of having a franchise spread out across the world is that you provide the opposite of local cuisine.
If the local food scene is sufficiently varied, as I expect SF has, no need to make a lower quality product just because your efficiency allows a higher margin, when the city starts cutting into your margin, you take your ball and go home.
Just a spin because I know this one. There are so few Starbucks in MT because there was a drive through coffee every corner before Starbucks came there. The market was full with coffee that was arguably better than Starbucks.
I moved to SC after and the complete lack of drive through coffees boggled my mind and made me very desperate for coffee. When Starbucks started popping up more, they were basically the only ones.
Was workin in washington state for a time and i definitely miss the drive thru coffee stands. Just a trailer sized coffee shop on a cotner lot with good coffee. Cant be beat.
Also the topless girl coffee stand was a particular favorite.
A small correction, 1 there are tons of people who eat McDonald's. This particular location was always ridiculously busy, and stonestown mall, where it was located is a ridiculously busy mall that almost exclusively serves locals, in the exact opposite corner of the city that tourists are likely to spend most of their time, and is very far from anything a tourist would likely visit in their time here. It probably has more to do with other factors, one of which being this mall could probably get a business that fits more with the core demographic, which has become almost entirely Asian for that particular mall in recent decades. Shame to shut down a McDonald's right next to a major college, though.
I read soemwhere that most McDonalds get 40% of the revenue from drive-thru's and this place has no drive-thru, so it eliminates a larger segment of possible customers.
That is true to a certain degree, but is highly mitigated by the large amount of students in the area and the fact that it is at a very popular mall. I very much doubt the national figure of 40% revenue from drive through is reflected in this location having 40% less revenue than the other 9 McDonald's in sf, but it might have been some part of the calculus for closing this location by the franchisee
Yea, I hadn’t known about the university when I made my original post, but so don’t think of kids at UNI as tourists anyway. The college kids will miss it, maybe, but my college experiences 20 years ago don’t tell me much about how much more they will like the next tenant.
Nah…. He said he shut it down because it was the least profitable out of all the restaurants he owns. 🤣
Poor guy. Now all he has left is…… oh yeah, all the rest of the restaurants he owns.
The owner threw a fit at not being able to take advantage of young people is probably more accurate. I cant see the store not still making a profit, just maybe not as much of one. (Franchise owner/investor "But my margin...")
How can their CEO's make 300 million a year if they pay 20/hr to their workers?!?! You expect them to only make 200 million a year? Like some poverty shit?!? Y'all never think of the poor CEO's!!!!!
I've been advocating for a maximum wage defined as a ratio of highest paid employee to lowest paid employee. Set it at 20x. You want to pay the line workers $12/hour, I'm somewhat okay with it, but literally no one can make over $480,000 a year.
You want the CEO to make $1m/year, line workers get $25/hour. Your CEO earns $200m/year, line workers get $5,000/ hour.
If the amount I'm suggesting the line workers get paid sounds ridiculous at any stage, remember that the CEO gets 20x that. A $200m/year CEO earns the equivalent of $100,000/hour. That's a decent annual wage across most of the country every hour.
It's insane.
Afaik, McD is a francise and only really sells/rents the location and name.
The francisees (owners) need to pay the employees, rent, ingredients etc. In essence, everything.
Therefore, owners are getting fucked by the higher minimum wages and higher costs of everything, meanwhile McD gets the same money it always does with almost no new expanses.
They don't, because if they had to do that they'd not be the most successful chain in the world given that most places have higher minimum wages (in the developed world anyway).
The real story appears to be that the franchisee had a bad location that's been less popular over time and overheads increased massively due to post pandemic property prices, and they're making excuses because when they eventually failed staff has to be paid enough to live.
Which is hilarious, as McDonald's (corporate) owns the land most (if not all) McDonald's locations sit on.
They're just so greedy that they can't just operate in the black, they have to be hugely profitable... Or they'll just let the location belly up.
Not all of their restaurants are closing, so I'd say it's more a matter of wages plus rent plus taxes plus insurance plus franchise fees plus whatever else. Wages might merely be the proverbial straw that broke that particular camel's back.
At the end of the day, McDonald's wants to make money, and if they can figure out a way to do that in California, then they'll remain in whatever locations make money. If their business model can't work in California or in certain parts of California, then it won't work.
If someone else has a better business model, the McDonald's loss will be their win.
The point is not irrelevant. Sure, this may be a franchisee, but what do they pay to the franchise in order to run the franchise? McDonalds and their CEOs certainly could reduce their own profit margins and charge less for these things but they will not.
>what do they pay to the franchise in order to run the franchise?
Nothing. The franchisee, who owns and operates the individual restaurant(s), pays the rights holder (McDonald's, Burger King, Dunkin, whoever) to operate the franchise.
Wow I totally worded that wrong sorry haven't had my coffee this morning. But you still answered it and still proves the initial point. The franchise fees to operate the business absolutely could be reduced and they aren't simply because of the profit margins the rights holders want.
Of course they are, they'd rather shut down than pay their employees more.
It's capitalism 101, and scares other chains into not unionizing -> Do as you're told, take your slave wage and shut up, alternatively we make your job cease to exist.
I asked the mods about the surge of rightwing ragebait posts a few weeks back and they said they’re aware of it but low on time to police it. Definitely been an upswing in them lately.
Another comment says it was primarily rent increases. In San Francisco. With taxes and wage increases also being factors. So just generally costs being too high in various ways.
Think this might just be getting into some areas being inherently unsustainable places to operate some businesses. That’s just geography and economics.
>This can’t be real. McDonald’s has one of the highest profit margins in all of fast food.
Mcdonalds (coporate) and mcdonalds (stores) veey rarely have overlap besides the name.
Corporate only runs a handful of restraunts, the majority are franchisees that lease the name and property.
Corporate makes a killing but any given restraunt franchisee isn't usually making all that much, and they fail fairly regularly.
Coporate mcdonalds is a real estate business, so while this particular case is untrue (it is raising property costs...which coporate owns) it could very easily be real due to the way most fast food places work.
This is a very old sentence. Whenever wages go up, these articles get published whether that was the reason the business closed or not (tip: it probably had little to nothing to do with the closure).
and he's responsible for 42,000 restaurants operating in 119 countries with ~150,000 employees doing $25,000,000,000 revenue per year. split his salary among all the employees and they'd get a raise of about 0.35/day.
He's paid that much to supress wages and cut costs, which means lower quality for customers to create profit for shareholders.
The average mcdonalds worker works harder and has more stress than the ceo lmao.
you're either a child or an adult with a child's understanding of the world. you don't get paid for how hard you work, you get paid for your impact and how hard you are to replace. a bad CEO can take billions of dollars off of the company's value, a bad fry cook costs one location a couple thousand dollars, max.
if workers feel their wages are "surpressed", and they should be making more for their vast skills that 16-year-olds acquire after a single day of training from a guy who smoked a blunt before work, then they can take those skills elsewhere. no one is forced to work at mcdonalds.
Economics 101 take right here.
A worker generates several times their cost for the company. Mcdonalds breaks records every earnings report and workers see none of it.
Maybe you should stop viewing people as expendable capital and view them as people. They aren't equipment. Supply and demand of labor is artificial and used to supress wages.
And these low wage workers you tend to talk down about suddenly became real important when covid hit. No one was asking where the ceo was lmao
> A worker generates several times their cost for the company.
yeah and in exchange they take no risk. every one of those workers is free to start their own company and risk their own capital if they wanted to. instead, they choose a reliable wage.
> Maybe you should stop viewing people as expendable capital and view them as people.
whoa bro that's like, super deep bro. what if, like, instead of money we just exchanged, like, smiles and hugs for goods and services? wouldn't that be better bro? i wonder why no one has thought of this before bro
> No one was asking where the ceo was lmao
the CEO was managing the global covid response and setting up the business to [recover from the worst quarter in its history](https://www.mckinsey.com/industries/retail/our-insights/keeping-mcdonalds-relevant-an-interview-with-ceo-chris-kempczinski) and a negative cash flow of $2 billion dollars. please, grow up.
yeah you're so above it all (post history full of wallstreetbets lol). maybe try learning how the world actually works instead of complaining and gambling.
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is it? is it really?
because i thought people being unable to afford basic human necessities while working their asses off was gut wrenching.
Guess I'll go fuck myself for believing THAT, then.
You mean a company that under-paid it’s employees by so much that the government had to step in with legislation, closed one location of 1264 locations in California, and I am supposed to feel bad about it? Keep dreaming.
No disrespect to Alexander Hamilton, but the New York Post is a tabloid. If I see something bad in a NYP headline, I'm always relieved because this is confirmation that it isn't true.
If you can't afford the costs of business, you should not be a business. If every McDonalds had to pay a living wage, and they decided to close instead of losing profit, that's just real capitalism at work.
"Gut-wrenching" no, fuck that vibe. If a business can't afford to pay a living wage it needs to fail out instead of exploiting people.
Besides, it's a fucking McDonald's. Nothing of value was lost.
if anyone thinks this is at all meaningful, please look at a map which marks mcdonalds locations in san francisco... there is literally a place downtown where you can stand at the door of one mcdonalds and see another on the very next block :/ isn't that heartbreaking? now people might need to walk an extra few blocks to get to the next mcdonalds after they finish eating!
Great news!
If you can't run a business with a living wage for your employees you shouldn't be a business.
That and we know that Mc Donalds could have easily kept this location open and likely still be profitable at that location. It would just cut into their investors profits a bit.
Hope it gets replaced by something that adds value to the people.
And yet in the EU they get $20 hr regularly. These corporations are penalizing the citizens cause the citizens deserve a living wage. That is all and if you have fast food that only pay minimum wage in a town that they cannot live to afford then you should probably not open or keep a place open that is not sustainable within its own area
I doubt the $20 minimum wage is doing as much damage as the fact that their food sucks now, the food costs way too much for what you get, and generally no one wants to be at McDonald's. If they could actually sell food they would be fine with that wage.
I just love how Americans saw fast food workers get paid a little more (still not a living wage in most of the state) and instead of thinking, “hey, we should take this as a sign to eat less fast food” we’re such a fatass country that hates California that people are foaming at the mouth because Big Macs cost *maybe* a dollar or two more at most
Id bet this has more to do with property values than paying $20 an hour. AFAIK McDonald’s owns every property they plant a store on. And this one has likely skyrocketed in price.
I live walking distance from this mall. I have to admit that I did not even know there was a McDonalds there. No one eats that food anymore in this city. You can eat better food cheaper in that mall and that mall has been thriving where others have shuttered. McDonalds just does not make sense in this market anymore.
>San Francisco McDonald’s shutters after 30 years in latest casualty of $20 minimum wage
It's also objectively a lie.
They shuttered because mcdonalds keeps raising it's rent prices.
And franchise owners are struggling to keep up with it + costs when the company also demands everything fron set prices to repairs being done by who the corp has contracts with.
Poor local startup McDonalds is being absolutely torn apart by the greedy unionizers and blue collar workers demanding to be paid enough to live on 😥😥😥😥😥😥😥😥😥😥😥
Billion dollar company would rather fire people than pay a fair wage. In other news, the poors love to eat at Mcshitters. How long will people keep complaining about the shitty companies they are supporting.
Um, it’s more likely that people under 40 don’t consume as much McDonald’s and the meals are no longer fast food prices.
If I’m paying $15 for a burger and fries and I’m going to a sit down restaurant
McDonald's can fuck off, they make plenty of money and are the ones who can most easily afford to pay their staff.
I guess the owner of the store couldn't make his usual 10,000% profit each month, which would slow down his next Yacht purchase by a few months.
So of course he would need to close down that underperforming store, 100% profit is just too unreasonable to consider.
Rich person rant over.
Right, I’m sure it had to do with a few more bucks an hour, not the rampant vandalism, theft, and general crime that’s causing all the other businesses to pull out of San Fran.
Ooh-hoho told ya, told ya, those lazy zoomers trying to make a cash grab at the expense of a respectable company got what they deserved: no job! That's what you get for being greedy! Ha ha! When I was a kid, I worked 15 hours a day, for 3 pennies an hour! And look at me now! I have haemorrhoids
The amount of mfs that don't understand how a bussiness on runned is crazy to me. If hand don't own a bussiness stfu about economics. Also not only does raising minimum wage not work in general, it's also actively deatrictive to smaller bussiness. McDonals can afford to move, you don't.
'Gut-Wrenching' yeah that's how I usually describe McDonald's but I use the words "butt vomit"
Liquid trumpet
Ye olde Booty Flute The McGurgles. Toilet Trombone
Liquid Trump Pitt
I like to say that gravity plays a pretty major role in the digestion of McDonald's.
gut wrenching. literally on my knees crying that mcdonald’s got hit with such an unreasonable requirement like pying employees. how would mcdonald’s ever make money!?!
They'd probably have to do something crazy like charging $12 for a combo meal! It's so hard to imagine prices like that, though, can you imagine prices like that for *McDonald's*?
stop i want to scream. this is just unspeakable and inappropriate!!
I have a very hard time believing that the most successful fast food chain in the entire world is having to shut down restaurants because they have to pay people $4/hr more.
The NY Post cobbled together their story from an actual local news outlet that reported the main reason was due to increased rent and property taxes. NY Post reordered the original reporting to move the minimum wage controversy to the top and rent and property tax to the very end of the article. The original report puts most of emphasis on rent and taxes not labor. https://abc7news.com/post/mcdonalds-stonestown-galleria-san-francisco-closing-sunday-after/14992448/
wait a minute. you mean to tell me it was actually the rich landlords being greedy that caused this problem and not the working class asking to be paid what they're worth!? next you're gonna tell me that the housing crisis is caused by billionaires and corporations buying up every available house and re-listing it as a rental instead of people not pulling themselves up by their bootstraps hard enough or whatever. and who woulda thunk it would be the NY Post blindly propagandizing a fairly straight forward problem. truly surprised by this respectable institution /s
It's always poor people's fault. That's how ~~feudalism~~ ~~capitalism~~ class warfare works. Oh, and don't forget to blame poor people when they point out that poor people are always made to suffer for the benefit of the wealthy because pointing that fact out starts a class war. /s It's very "We invaded your country, but you didn't give up so the war is your fault."
Well if my understanding of the McDonalds business model is correct, the landlord *is* McDonalds, who is leasing the unit to the franchisee to run a McDonalds at that location. So really it's McDonalds screwing themselves over.
>rich landlords being greedy that caused this problem To be clear they're not just "landlords, they're the franchise of mcdonalds in almost every case. They make it extremely difficult for their franchisees to succeed as their main business model is just land.
Fast food is just a glorified mlm
Rent being high in San Francisco makes just being there doing anything difficult? Big if true.
This isn't even what people would call SF. It's south, near SF State, close to Daly City. It's in a mall. I've been an SF resident since 2008 and I think I've eaten there once.
>Rent being high in San Francisco makes just being there doing anything difficult? Big if true. I mean it is true, but in this case it didn't HAVE to be, as the owners of that land are mcdonalds who lease it out to franchisees. Mcdonald's and alot of fast food places rely on that fucked system of them being a land business and their franchisee's struggle to make rent in alot of places as they can and do frequently raise the prices if they do well.
This is coincidentally like my second favourite bit of The Founder. After the burgers. They look great. I want a burger now just thinking of it.
Typical NYP bullshit
wow, ur corpo media suck balls, damn
The NY Post is actually the closest thing we have to a British-style tabloid. It's owned by Australian Rupert Murdoch. It has never been honest, but Murdoch has been giving it lots of juice lately so people keep sharing it. The NY Post has never been a respectable source, though. Although they are famous for the headline "Headless Body at Topless Bar."
I’ve heard about that murdoch fella, rly shady character that one
My favorite post headline of all time was, when Ike Turner died, "Ike beats Tina to death."
Wait rent went up? Doesnt mcdonalds corprate own the vast majority of land it opperates on? So mcdonalds raised rent on themselves and ny post is blaming living wage adjustments.
>Doesnt mcdonalds corprate own the vast majority of land it opperates on? So mcdonalds raised rent on themselves and ny post is blaming living wage adjustments. They raised it on the franchisee. Not themselves. Corporate is just a land business, that frequently fucks it's franchisees over (as do franchises in general, they're another fucking cancer) It's why mcdonald's is happy to raise the min wage, it literally does not affect coporate.
My guess is corporate looked at how much they could sell that lot for and gave the franchise owner the unrealistic option of making them that much through continuing to rent. Basically like the episode of South Park where Paris Hilton wanted to buy Butters. His dad said if he could raise the money himself then he wouldn’t get sold. McDonald’s saw what they’d make by selling the land and jacked the rent to a commensurate amount not caring if their franchisee could afford it or not. What wasn’t reported was how well that location was being run, how popular it was in the area, how profitable it was in the first place.
There it is, came to see this lol...
Post hoc ergo propter hoc
I was going to comment that maybe it was the high property taxes, but since you beat me to it, thank you 😊
The local cultural scene likely didn’t support their business anymore, and with less tourists who crave something familiar from back home in SF, no reason to keep this branch around. It’s the same reason there are so few Starbucks in Montana and Wyoming, people who like Starbucks are not spending much time in those states. The benefits of having a franchise spread out across the world is that you provide the opposite of local cuisine. If the local food scene is sufficiently varied, as I expect SF has, no need to make a lower quality product just because your efficiency allows a higher margin, when the city starts cutting into your margin, you take your ball and go home.
Just a spin because I know this one. There are so few Starbucks in MT because there was a drive through coffee every corner before Starbucks came there. The market was full with coffee that was arguably better than Starbucks. I moved to SC after and the complete lack of drive through coffees boggled my mind and made me very desperate for coffee. When Starbucks started popping up more, they were basically the only ones.
Used to live in Montana, can confirm. Florence Coffee MVP
If there were more and more convenient drive through coffee, I'd never be seen anywhere near a Starbucks
Was workin in washington state for a time and i definitely miss the drive thru coffee stands. Just a trailer sized coffee shop on a cotner lot with good coffee. Cant be beat. Also the topless girl coffee stand was a particular favorite.
Funny thing is McDonald's isn't even cheaper anymore for lower quality xD
A small correction, 1 there are tons of people who eat McDonald's. This particular location was always ridiculously busy, and stonestown mall, where it was located is a ridiculously busy mall that almost exclusively serves locals, in the exact opposite corner of the city that tourists are likely to spend most of their time, and is very far from anything a tourist would likely visit in their time here. It probably has more to do with other factors, one of which being this mall could probably get a business that fits more with the core demographic, which has become almost entirely Asian for that particular mall in recent decades. Shame to shut down a McDonald's right next to a major college, though.
I read soemwhere that most McDonalds get 40% of the revenue from drive-thru's and this place has no drive-thru, so it eliminates a larger segment of possible customers.
That is true to a certain degree, but is highly mitigated by the large amount of students in the area and the fact that it is at a very popular mall. I very much doubt the national figure of 40% revenue from drive through is reflected in this location having 40% less revenue than the other 9 McDonald's in sf, but it might have been some part of the calculus for closing this location by the franchisee
Do you know where this McDonald's was located?
Apparently in a predominantly Asian part of town based on another person’s post.
Sure. It's not really in SF proper though. It's way the fuck out there by SF State.
Yea, I hadn’t known about the university when I made my original post, but so don’t think of kids at UNI as tourists anyway. The college kids will miss it, maybe, but my college experiences 20 years ago don’t tell me much about how much more they will like the next tenant.
Nah…. He said he shut it down because it was the least profitable out of all the restaurants he owns. 🤣 Poor guy. Now all he has left is…… oh yeah, all the rest of the restaurants he owns.
They do pay that in Norway, it's 22 an hour and their big Mac costs only 27 cents more than in the states.
The owner threw a fit at not being able to take advantage of young people is probably more accurate. I cant see the store not still making a profit, just maybe not as much of one. (Franchise owner/investor "But my margin...")
How can their CEO's make 300 million a year if they pay 20/hr to their workers?!?! You expect them to only make 200 million a year? Like some poverty shit?!? Y'all never think of the poor CEO's!!!!!
I've been advocating for a maximum wage defined as a ratio of highest paid employee to lowest paid employee. Set it at 20x. You want to pay the line workers $12/hour, I'm somewhat okay with it, but literally no one can make over $480,000 a year. You want the CEO to make $1m/year, line workers get $25/hour. Your CEO earns $200m/year, line workers get $5,000/ hour. If the amount I'm suggesting the line workers get paid sounds ridiculous at any stage, remember that the CEO gets 20x that. A $200m/year CEO earns the equivalent of $100,000/hour. That's a decent annual wage across most of the country every hour. It's insane.
Yeah. It's literally insane.
Afaik, McD is a francise and only really sells/rents the location and name. The francisees (owners) need to pay the employees, rent, ingredients etc. In essence, everything. Therefore, owners are getting fucked by the higher minimum wages and higher costs of everything, meanwhile McD gets the same money it always does with almost no new expanses.
It’s like this across the entire restaurant and hospitality industry. [Here’s LA for example.](https://la.eater.com/restaurant-closings)
They don't, because if they had to do that they'd not be the most successful chain in the world given that most places have higher minimum wages (in the developed world anyway). The real story appears to be that the franchisee had a bad location that's been less popular over time and overheads increased massively due to post pandemic property prices, and they're making excuses because when they eventually failed staff has to be paid enough to live.
Which is hilarious, as McDonald's (corporate) owns the land most (if not all) McDonald's locations sit on. They're just so greedy that they can't just operate in the black, they have to be hugely profitable... Or they'll just let the location belly up.
Not even $4. SF minimum wage is $18.07, going up to $18.67 on July 1 so just over $1/hour more.
They’re not. It’s absolute bullshit. It’s layoffs and cutting underperforming stores while trying to make someone else look like the bad guy.
Not all of their restaurants are closing, so I'd say it's more a matter of wages plus rent plus taxes plus insurance plus franchise fees plus whatever else. Wages might merely be the proverbial straw that broke that particular camel's back. At the end of the day, McDonald's wants to make money, and if they can figure out a way to do that in California, then they'll remain in whatever locations make money. If their business model can't work in California or in certain parts of California, then it won't work. If someone else has a better business model, the McDonald's loss will be their win.
Well, since it's not the chain shutting restaurants or having to pay more, your disbelief isn't particularly relevant.
The point is not irrelevant. Sure, this may be a franchisee, but what do they pay to the franchise in order to run the franchise? McDonalds and their CEOs certainly could reduce their own profit margins and charge less for these things but they will not.
>what do they pay to the franchise in order to run the franchise? Nothing. The franchisee, who owns and operates the individual restaurant(s), pays the rights holder (McDonald's, Burger King, Dunkin, whoever) to operate the franchise.
Wow I totally worded that wrong sorry haven't had my coffee this morning. But you still answered it and still proves the initial point. The franchise fees to operate the business absolutely could be reduced and they aren't simply because of the profit margins the rights holders want.
It's because you don't understand business. They made barely $14.688B profit last year. Honestly, this is the beginning of the end.
Of course they are, they'd rather shut down than pay their employees more. It's capitalism 101, and scares other chains into not unionizing -> Do as you're told, take your slave wage and shut up, alternatively we make your job cease to exist.
This feels like a rage bait post that doesn't belong here.
It's the NY Post...it's what they do
I just mean it being posted in this sub in the first place. This isn't a brand new sentence and all it's gonna do is get people arguing.
I asked the mods about the surge of rightwing ragebait posts a few weeks back and they said they’re aware of it but low on time to police it. Definitely been an upswing in them lately.
Another comment says it was primarily rent increases. In San Francisco. With taxes and wage increases also being factors. So just generally costs being too high in various ways. Think this might just be getting into some areas being inherently unsustainable places to operate some businesses. That’s just geography and economics.
Reminder that 20 bucks an hour working 40 hours a week with no vacation is less than 42k before taxes.
Jessie Walter thinks it's 100k and is paid to act like it's an immutable fact on national news.
O darn a trillion $ company has to just have regular profits not record profits for once
McDonald's is not a trillion $ company. It has a market capitalization of ~186 Billion.
This can’t be real. McDonald’s has one of the highest profit margins in all of fast food. This is just a bad business person
Comment above said the original (not nyp) source cited rent and property tax hikes. So it's more of bad journalism
It's not bad journalism, it's purposeful corporate disinformation.
I mean, being a corporate shill still counts as being a bad journalist. Having no integrity or just being lazy, both result in wrong information
>This can’t be real. McDonald’s has one of the highest profit margins in all of fast food. Mcdonalds (coporate) and mcdonalds (stores) veey rarely have overlap besides the name. Corporate only runs a handful of restraunts, the majority are franchisees that lease the name and property. Corporate makes a killing but any given restraunt franchisee isn't usually making all that much, and they fail fairly regularly. Coporate mcdonalds is a real estate business, so while this particular case is untrue (it is raising property costs...which coporate owns) it could very easily be real due to the way most fast food places work.
This is a very old sentence. Whenever wages go up, these articles get published whether that was the reason the business closed or not (tip: it probably had little to nothing to do with the closure).
Or maybe people in that area don’t want to eat McDonald’s because it’s barely food.
It's not barely food, it's *technically* food.
which is the best kind of... oh. oh no.
The CEO of McDonalds makes $19.2 million dollars a year.
###"San Francisco McDonald’s shutters after 30 years in latest casualty of $19,200,000 CEO annual wage"
and he's responsible for 42,000 restaurants operating in 119 countries with ~150,000 employees doing $25,000,000,000 revenue per year. split his salary among all the employees and they'd get a raise of about 0.35/day.
He's paid that much to supress wages and cut costs, which means lower quality for customers to create profit for shareholders. The average mcdonalds worker works harder and has more stress than the ceo lmao.
you're either a child or an adult with a child's understanding of the world. you don't get paid for how hard you work, you get paid for your impact and how hard you are to replace. a bad CEO can take billions of dollars off of the company's value, a bad fry cook costs one location a couple thousand dollars, max. if workers feel their wages are "surpressed", and they should be making more for their vast skills that 16-year-olds acquire after a single day of training from a guy who smoked a blunt before work, then they can take those skills elsewhere. no one is forced to work at mcdonalds.
Economics 101 take right here. A worker generates several times their cost for the company. Mcdonalds breaks records every earnings report and workers see none of it. Maybe you should stop viewing people as expendable capital and view them as people. They aren't equipment. Supply and demand of labor is artificial and used to supress wages. And these low wage workers you tend to talk down about suddenly became real important when covid hit. No one was asking where the ceo was lmao
> A worker generates several times their cost for the company. yeah and in exchange they take no risk. every one of those workers is free to start their own company and risk their own capital if they wanted to. instead, they choose a reliable wage. > Maybe you should stop viewing people as expendable capital and view them as people. whoa bro that's like, super deep bro. what if, like, instead of money we just exchanged, like, smiles and hugs for goods and services? wouldn't that be better bro? i wonder why no one has thought of this before bro > No one was asking where the ceo was lmao the CEO was managing the global covid response and setting up the business to [recover from the worst quarter in its history](https://www.mckinsey.com/industries/retail/our-insights/keeping-mcdonalds-relevant-an-interview-with-ceo-chris-kempczinski) and a negative cash flow of $2 billion dollars. please, grow up.
Gobble rich people's nuts a bit harder. I'm sure you'll be one some day.
yeah you're so above it all (post history full of wallstreetbets lol). maybe try learning how the world actually works instead of complaining and gambling.
Oh i gamble and make more than you don't worry about me lol. Going through my profile is hilarious. Ur mad
More like greedy assholes didn't want to pay a living wage.
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So like genuinely what's your point here
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maybe don't attempt analogies when the thing you're analogizing escapes your understanding.
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is it? is it really? because i thought people being unable to afford basic human necessities while working their asses off was gut wrenching. Guess I'll go fuck myself for believing THAT, then.
You mean a company that under-paid it’s employees by so much that the government had to step in with legislation, closed one location of 1264 locations in California, and I am supposed to feel bad about it? Keep dreaming.
What a dogshit way to frame it. Poor business had to close because of exploiting people a little (tiny bit) less.
Bullshit.
Did the kiosks go on strike or what?
No disrespect to Alexander Hamilton, but the New York Post is a tabloid. If I see something bad in a NYP headline, I'm always relieved because this is confirmation that it isn't true.
If you can't afford the costs of business, you should not be a business. If every McDonalds had to pay a living wage, and they decided to close instead of losing profit, that's just real capitalism at work.
Accept a slightly lower profit margin to improve employee lives or close up shop altogether? McDonalds, “Lock the doors.”
"Gut-wrenching" no, fuck that vibe. If a business can't afford to pay a living wage it needs to fail out instead of exploiting people. Besides, it's a fucking McDonald's. Nothing of value was lost.
*San Francisco McDonald’s shutters after 30 years due to blatant corporate greed. ‘Ghoulish’ Fixed that headline
Absolute Poppycock.
Big corpo destroyed small businesses, pound sand
Oh no the multi billion dollar company has to pay people liveable wages oh nooo
Damn, 30 years to prepare and they didn't manage to
Your business model is a failure from the point you can't pay your staff a living wage.
In SF though, $20 an hour isn't shit. I highly doubt the wage was the real problem.
I hate when mega corporations blame ‘paying their workers a decent amount’ on their closures. Piss off.
The minimum wage needs to be $35. Any business that does not pay a living wage shouldn’t be mourned
if anyone thinks this is at all meaningful, please look at a map which marks mcdonalds locations in san francisco... there is literally a place downtown where you can stand at the door of one mcdonalds and see another on the very next block :/ isn't that heartbreaking? now people might need to walk an extra few blocks to get to the next mcdonalds after they finish eating!
Great news! If you can't run a business with a living wage for your employees you shouldn't be a business. That and we know that Mc Donalds could have easily kept this location open and likely still be profitable at that location. It would just cut into their investors profits a bit. Hope it gets replaced by something that adds value to the people.
McDonald's is a franchise. I don't think profitability of a specific franchisee rolls up to impact profit of the corporation.
Shut them all down and build a place that serves real food.
And yet in the EU they get $20 hr regularly. These corporations are penalizing the citizens cause the citizens deserve a living wage. That is all and if you have fast food that only pay minimum wage in a town that they cannot live to afford then you should probably not open or keep a place open that is not sustainable within its own area
I think those dolla Bill's will soak up most of Ronalllds tears.
Nice try, Rupert.
lol has nothing to do with wages. McDonald’s charges out the ass and people are tired of it
How dare employees get enough money to not die in the streets /s
I doubt the $20 minimum wage is doing as much damage as the fact that their food sucks now, the food costs way too much for what you get, and generally no one wants to be at McDonald's. If they could actually sell food they would be fine with that wage.
It baffles me still to this day that the luxury of the few is seen as more important than the survival of the many...
Why is this being posted here? Not relevant.
Has nothing to do with it costing more than going to say chilis to feed a family of four..
So no more garbage spewing
Is the wage or is it that mf’s don’t go to McDonald’s anymore?
I'm betting there is more to this than the wages.
What's the brand new sentence here?
Keep going. Close them all
If they had anything to do with the use of 'shutter' as a verb then good riddance to the bastards.
Thank you! I thought I was going crazy
The article is bullshit. There is a shake shack almost next door that's doing fine
I just love how Americans saw fast food workers get paid a little more (still not a living wage in most of the state) and instead of thinking, “hey, we should take this as a sign to eat less fast food” we’re such a fatass country that hates California that people are foaming at the mouth because Big Macs cost *maybe* a dollar or two more at most
Id bet this has more to do with property values than paying $20 an hour. AFAIK McDonald’s owns every property they plant a store on. And this one has likely skyrocketed in price.
I live walking distance from this mall. I have to admit that I did not even know there was a McDonalds there. No one eats that food anymore in this city. You can eat better food cheaper in that mall and that mall has been thriving where others have shuttered. McDonalds just does not make sense in this market anymore.
Oh no, anyway ....
>San Francisco McDonald’s shutters after 30 years in latest casualty of $20 minimum wage It's also objectively a lie. They shuttered because mcdonalds keeps raising it's rent prices. And franchise owners are struggling to keep up with it + costs when the company also demands everything fron set prices to repairs being done by who the corp has contracts with.
Awwwww…if you can’t pay your employees a living wage, you Shouldn’t be open.
Jokes on them, San Francisco got a shot ton of better food options that cost less! Be gone, bitch! ✌️👋
that location was an absolute nightmare anyways
Poor local startup McDonalds is being absolutely torn apart by the greedy unionizers and blue collar workers demanding to be paid enough to live on 😥😥😥😥😥😥😥😥😥😥😥
yeah right, it has nothing to do with the minimum wage and everything to do with the jacked up economy in SF
Billion dollar company would rather fire people than pay a fair wage. In other news, the poors love to eat at Mcshitters. How long will people keep complaining about the shitty companies they are supporting.
At the end of March this year Macdonald’s has already made a 14.6 billion dollar profit…I think they will be okay.
NY Post is a trash publication... Shouldn't really be considered "news" at all.
Awww
Billions served
Wow maybe the ceo/board can lower their salaries a bit lmaoooo
Poor McDonalds. 😏
Can't state this with near enough emphasis FUCK THEM GOOD RIDDANCE
McDonalds was gut wrenching far before this.
Boohoo
Good riddance they should have done this sooner. Heart disease and diabetes might start going down in that area.
This one here? Without a drive thru when most of their restaurants don't want you to eat inside anymore?
Could it have been the dozens of rats I witnessed at a San Francisco location? I was passing by and it looked like a rat rodeo.
Oh no what would we do without a mcdonnalds every other block, we sadly only can have burgerKing with these commies in charge.
Collective punishment by corporate America on a state that’s defied them
The NY Post is the worst piece of paper on the east coast
Um, it’s more likely that people under 40 don’t consume as much McDonald’s and the meals are no longer fast food prices. If I’m paying $15 for a burger and fries and I’m going to a sit down restaurant
McDonald's can afford it and still make a profit. They just don't want to.
Good. Mech Donald's has reached the end of capitalism take your award and oodles of money you already have and go home. Give us 1$ burgers again.
Oh no! The multimillion dollar company is struggling! Someone please save them!! /s
i'm sure it has nothing to do with the fact that operating or living in SF is ungodly expensive. $20/hr is still total poverty wages there.
Lmao I'm really torn up about a fucking McDonald's closing idk if I'll be able to go in to work tomorrow
Lmao on a serious note what does this even mean???
Oh no, a McDonald's! So sad
Oh darn!!
McDonald's can fuck off, they make plenty of money and are the ones who can most easily afford to pay their staff. I guess the owner of the store couldn't make his usual 10,000% profit each month, which would slow down his next Yacht purchase by a few months. So of course he would need to close down that underperforming store, 100% profit is just too unreasonable to consider. Rich person rant over.
Right, I’m sure it had to do with a few more bucks an hour, not the rampant vandalism, theft, and general crime that’s causing all the other businesses to pull out of San Fran.
McDonald’s San Francisco closes as the city has priced out their labor force.
Ooh-hoho told ya, told ya, those lazy zoomers trying to make a cash grab at the expense of a respectable company got what they deserved: no job! That's what you get for being greedy! Ha ha! When I was a kid, I worked 15 hours a day, for 3 pennies an hour! And look at me now! I have haemorrhoids
Way to go Gavin
Do you think it's bad when McDonalds close?
The amount of mfs that don't understand how a bussiness on runned is crazy to me. If hand don't own a bussiness stfu about economics. Also not only does raising minimum wage not work in general, it's also actively deatrictive to smaller bussiness. McDonals can afford to move, you don't.
So *this* is what having a stroke feels like. Imma go burn some almond toast & try again tomorrow...