Originally posted by: Amused
Originally posted by: SuperSix
Originally posted by: BingBongWongFooey
i work at mcdonalds. i dont eat the burgers at all anymore, but i eat nuggets quite a bit, and sometimes crispy chicken, other little stuff here and there, etc.
someone mentioned it being a rip off, i'll give you an idea of how much. say you get a big mac meal, and supersize it. Every topping on the sandwich costs around 2-5 cents each, the bun is about 5 cents, and the meat patties are 12 cents each, so that's about 40-50 cents, and i think they charge over 2 bucks for it. the pop is a few cents, you pay a dollar or more for it. the fries, i'm not sure.
And the labor/building/utilities/insurance/maintenance is free..
Food cost is a small percentage of operating expenses, rent/land and labor are the biggest.
Exactly.
It amazes me how otherwise intelligent folks here are so damn simplistic when it comes to understanding how a business works.
In my business, the largest expense is not food cost, it's labor.
Think of it this way: Hire a full time cook to cook for you in your home. Now, what is a larger expense, his paycheck, or your grocery bill? Is your grocery bill larger than your rent? Is it higher than your insurance? Could you feed yourself on what you pay in taxes? I could feed an army on what I pay in business taxes alone.
Also consider that included in food cost is waste. You lose an ungodly amount of food each month to spoilage, employee error, and manufacturer defects. Of course, you do everything you can to minimize this, but you can't make it go away.
BTW, main food items like hamburgers and sandwiches actually have very low profit margins. Fast food makes it's real money in drinks, fries, chips, and deserts. And even then, your average fast food business has razor thin profit margins because of competition.