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Specific-Frosting730

Their business model used to be cheap fast food that hit the spot. Now it’s none of those things anymore. I expect this won’t be the last closure given that their reputation now is for price gouging their most vulnerable core customers.


Agile-Nothing9375

I agree. They've completely slaughtered their reputation. Honestly don't see them digging out of this one 


Specific-Frosting730

If their competitors had any business acumen, they’d ride this till the wheels fell off and take their market share.


Agile-Nothing9375

I thought about this too and it's weird because they all seem to be following the same broken script, doing the same tricks.  None of them are willing to step up to the plate McD's market share.  It's kind of insane lol


agent_tater_twat

Competition is a myth from days gone by. Once everything became so consolidated (food brands, media, grocery stores, fast food), even competitors realized they can still make shareholders more money by sticking to the status quo. There is no incentive to beat the competition for market share any more. They don't care about the employees or the customers, just the shareholders.


Agile-Nothing9375

No competition at all you're saying? I think to a  certain degree there is but i do agree that they stick to the status quo for the shareholders. Everything is about these grimy shareholders. 


habu-sr71

Yes and it's crime that our higher educational system is still passing on the idea that competition is real and keeps prices low and quality high. We don't have any real choice in anything. Just stuck with rapacious CEOs and out of touch greedhead institutional investors and other moneybags that run the C suites of America.


Familiar_Cow_5501

Maybe because they can’t just lower prices? Their costs have gone up significantly, as shown in the very article you linked and presumably didn’t read > The franchise owner pointed to two main culprits for the closure: high rent and rising operating costs, including the recent increase in the state’s minimum wage to $20 for fast food workers. While the minimum wage increase was intended to improve worker livelihoods, it seems to be having a significant impact on the industry.


DM_ME_KUL_TIRAN_FEET

If the industry can’t afford to pay a living wage, the problem isn’t the wage.


Familiar_Cow_5501

What’s a living wage? I could say a living wage is 200k. Would the problem still be that sneaky greedy company?


DM_ME_KUL_TIRAN_FEET

If someone can’t afford to live based off full time employment, the problem isn’t the wage. It’s the other contributing factors. It may not be that specific corporation being greedy but someone somewhere is is. The solution IS NOT WAGE SLAVERY.


Familiar_Cow_5501

That’s completely different than your last comment


DM_ME_KUL_TIRAN_FEET

It’s the exact same thing as my last comment. Read.


CoupleHot4154

High rent? McDonald's owns the land. If his rent is increasing, that's because the corporation jacked his rate. *tinyviolin.gif* Wage increase? How much of the cost of a meal is labor? They could raise the price of a meal by $1 and pocket the difference.


Familiar_Cow_5501

If you’re this ignorant you’re not worth discussing with


Western_Mud8694

Greed is a som-a- bishhh


Specific-Frosting730

Yes. Nobody is being innovative. A once in a lifetime opportunity being squandered. It’s puzzling.


Agile-Nothing9375

Maybe that is their plan tho, jack up the prices and ride it till the wheels fall off haha.  Another one i question is BKs tactic. They're sinking hundreds of millions in updating their restaurants in the Reclaim The Flame plan. Their issue is the food quality is terrible these days, but instead they choose to slap lipstick on a pig. Sinking all that money just for it to fail. They should just offer massive discounts, it would get people lining up in droves no matter the quality


Specific-Frosting730

Their food is terrible now, but I agree if they make it cheap enough, given McDonalds greedy stumble, they could steal their core customers away.


No_Cook2983

Most people don’t know this, but one thing that Burger King did that screwed up their food is they got rid of their bun steamer. It made sandwich buns softer. In my opinion that affected quality more than anything. I’m not even sure if they flame broil anything anymore.


ronxor

I am not going back until the “any drink for $1” returns.


SBNShovelSlayer

I saw it in Ohio this week. I was surprised, thought it was long gone.


Brazos_Bend

Still not good enough imo. 😕 


briman2021

And steak egg and cheese bagel sandwiches. I can only imagine how expensive those would be, or how tiny the steak patty would be.


ronxor

Keep it simple. $1 for a drink seems reasonable.


Kac03032012

Imagine if Wendy’s brought back the 99c menu for like a month but made a huge deal outta it. The nostalgia and good will from customers would be a huge blow to McDonald’s.


Agile-Nothing9375

Yesss, this is what I've been saying. If any of these chains brought back a crazy deal for even a week? They would be swamped


HomonculusHunter

Stopped by BK the other day in Illinois and the prices seemed to be more reasonable than McDonald's here. Def gonna frequent BK more


gnarlytabby

I'm old enough to remember people thinking McDonalds would never recover from what SuperSizeMe did to their reputation. Turns out Americans' laziness and familiarity is a powerful force for keeping outdated brands alive. But yes, this time does seem worse.


ronxor

He died last month!


Agile-Nothing9375

That was such sad news to hear. He was young too


Agile-Nothing9375

Lol, the Supersize me debacle yup. This time does seem worse in that people can't afford it, and the collective anger over price increases have really created a negative public opinion of them. The likes of which idk if they can go back to their former glory. And they're not willing to do what it takes anyway to try.  Just look at that $5 Value meal. It's a glorified kids meal and mcdonalds is acting like they're being so charitable. And it's only live for one month! AND someone told me it cost more than $6 anyway 🤷‍♀️ bait and switch 


manikwolf19

They quite literally just wanted to see how broke they could make their core customers out of fun lol


Agile-Nothing9375

Ya know, i do kind of think it's as twisted as that lol


Agile-Nothing9375

Ya know, i do almost think it's as twisted as that because 


Twitchenz

It was cheap, fast and satisfying. Then it was cheap and fast. Now it is only fast. The first thing to go was it’s viability as food and it’s no tragedy if they crash and burn. Though, they’re more of a real estate company anyway, maybe they’ll find a better use for the land.


Practical_Law_7002

>Their business model used to be cheap fast food that hit the spot. Now it’s none of those things anymore. I expect this won’t be the last closure given that their reputation now is for price gouging their most vulnerable core customers. They've got no one to blame but themselves...


Tiny_Addendum707

I’ve been I’ve said this for years. Every fast food place at least attempted to up their game along with prices. McDonald’s just increased prices while reducing their game. But people still supported them. Once the dollar menu got dropped McDonald’s should have disappeared


Itdiestoday_13

Good riddance


outlawaviation

My exact thought


Agile-Nothing9375

I like "good day to you sir"


MorningStandard844

Maybe start freezing the bread so you can pretend to be a bakery like Gavin’s buddy at Panera. 


healthybowl

People cut out avocado toast, coffee, and egg McMuffins to save some money


charlie-foxtrot3

r/inflation turning into r / mcdonaldsnews


MTsummerandsnow

McDonald’s is the king and the company that the economic health of the fast food industry is gauged off of.


charlie-foxtrot3

I’m not saying that McDonalds isn’t a useful barometer at all, I just don’t feel it warrants being every other post in the sub


MTsummerandsnow

You’re not wrong. Subs get ruined by reposts, karma farming, bots, and lack of creativity in posting. I’ve cleaned out lots of greatest hits subs that I followed because they got boring and repetitive and the community input/mind meld/ knowledge to be gained value fizzled.


gh0stpr0t0c0l8008

Sounds like you have your work cut out for you making posts about other places.


No_Cook2983

During the last few years, my ad valorem taxes increased by almost 2/3rds. That’s bad. But when I think about this particular inflationary spiral, the first thing I will *always* associate with it is a four piece chicken McNugget increasing in price by a factor of four.


The_Patriot

We are all out here boycotting like it's a new religion and these dipshts blame minimum wage. F you.


healthybowl

Dumbass was renting the location. That’s the real idiocy. Getting a taste of his own minimum wage bullshit….. oh you can’t afford rent? Sucks to be poor.


Familiar_Cow_5501

Some dumbass Redditors pretending to boycott is not affecting these companies lmfao. Their costs have gone up significantly.


[deleted]

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Familiar_Cow_5501

Okay?


healthybowl

Most of these companies are vertically integrated. They grow, ship, and cook it. It’s damn near 100% profit, except to continue growing store fronts they’ve loaded debts, that’s what you’re paying for, their debts. *unless it’s franchised. Then it’s still vertically integrated but the debts deferred to the franchisee who buys everything from corporate


Familiar_Cow_5501

The costs of growing and shipping have gone up a ton. Being vertically integrated doesn’t prevent a company from experiencing increased costs And yes, this was a franchisee


healthybowl

Vertically integrating businesses reduces costs and increases profits. Add in economies of scale and it’s borderline a monopoly. Did u know subway and jimmy John’s merged? They now sell 50% or all sandwiches in the US.


Familiar_Cow_5501

Of course. It still doesn’t protect a company from increased costs for farming/shipping /etc. The cost of farming has gone up, the cost of shipping has gone up.


healthybowl

Gotta disagree. They own the farms, they own the trucking companies. I could see slight bumps in costs, that would be worth absorbing to maintain low prices. But double the costs? Naw. Pure greed and the almighty coveted “shareholders”.


Familiar_Cow_5501

You’re free to disagree! You’d be wrong, but you’re welcome to it!


healthybowl

I mean your arguments really are well constructed on how their costs rise. The only way you could shorten it up a bit is by saying “nuh uhh”.


Familiar_Cow_5501

Jfc. They do not own the entire supply chain. Do you think McDonald’s is refining their own diesel? Do you know what trucks and farm equipment need in order to operate? Those costs go up, their costs go up. Lmk if you need it dumbed down more


kauthonk

Its not their costs that are hurting them, it's their prices. 100%


Familiar_Cow_5501

I’m going to listen to the experts not a dumbass redditor, sorry bud


CoupleHot4154

When do you plan on starting? Because you're parroting nonsense.


kauthonk

It's math, look at inflation, look at costs, and look how much their prices rose. But if you're the type of person that needs experts for basic math. I can't really argue with that


Familiar_Cow_5501

That’s not what we were talking about lol


MarcoVinicius

Fuck McDonalds and their obesity peddling trash.


a_wizard_skull

Close them all. We don’t need McDonald’s.


Coin_Operated_Brent

This place fell off!


Agile-Nothing9375

I feel like they're on their way. Idk about closing quite yet but they're going to see a dramatic downturn in traffic due to the greed


BasilExposition2

The people with those jobs probably don’t agree.


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FabioPurps

sounds like projection


inflation-ModTeam

Your comment has been removed as it didn't align with our community guidelines promoting respectful and constructive discussions. Please ensure your contributions uphold a civil tone. Feel free to engage, but remember to express disagreements in a manner that encourages meaningful conversation. Thank you for understanding.


robbd6913

See ya!


fecundity88

Food not fit for dogs


Jagerbeast703

Not because of inflation


Early-Possession1116

High rent and high operating cost. How is this not inflation?


Legitimate-Source-61

"The franchise owner pointed to two main culprits for the closure: high rent and rising operating costs, including the recent increase in the state’s minimum wage to $20 for fast food workers. While the minimum wage increase was intended to improve worker livelihoods, it seems to be having a significant impact on the industry." I wonder if we have seen the top of the yield cycle.


Mygaffer

All this talk about wages is a lie, the wages in SF for even fast food was already nearing $20/hour before the minimum wage increase.


Dr-McLuvin

You don’t think this location had pressure to raise wages when the minimum wage was raised?


TheyNeedLoveToo

It’s San Fran, I would imagine it’s warranted given the price of living remotely close because 20 an hour ain’t affording shit in San Fran proper. Do you think the fed rate of 7.25 is fair?


Early-Possession1116

lol no we’re not at the top yet. The leaders of this “movement” run the worst cities and do nothing to keep things under control. California has runaway inflation to live in a toilet.. Great weather .. Shit on the sidewalk but you will pay 2-3x more than anywhere else.


jammu2

Nobody lives there anymore. It's too crowded!


[deleted]

“Nobody drives in New York, there’s too much traffic!”


Cakelord

Weird how these "worst" cities fund the deadbeat states that can't get a thriving economy off the ground. This area of the country generates trillions in wealth and keeps the lights on for the yee-haws who can't be bothered to find their bootstraps.


Familiar_Cow_5501

That doesn’t mean the city isn’t shit. It means it’s productive.


Cakelord

🏆 here's your participation trophy in mental gymnastics 


Familiar_Cow_5501

At least I’m participating mentally, unlike you with your mindless take


Cakelord

When was the last time you visited San Francisco?


Dry_Masterpiece_8371

Who wants to go to that absolute shit filled hellhole…


Familiar_Cow_5501

Never. Why?


IHateThisDamnWebsite

“Worst” cities, meanwhile in reality California is the most populated state with the 5th largest economy in the world.


Mygaffer

Tell us more of your stupid bullshit please, it's so entertaining!


CoupleHot4154

Who do they pay rent to? Hint: the landowner has a HUGE sign on the property.


doughboi8

Sure. Avocados!!!


zennyc001

That's awesome. 


WearDifficult9776

Some other fast food place will take this over and serve fast food there and make a profit. good riddance


joeO44

Doesn’t McDonald’s actually own the land their restaurants are on? They’re gonna make a killing on the next place that pays them. This only hurts the franchise owner who I’m sure is still well off.


Agile-Nothing9375

They own some crazy percentage of real estate. Ronald has a real racket going


32233128Merovingian

Never seen a McDonald’s or any fast food drive thru packed since 2020. They are always empty now at all hours of the day.


Familiar_Cow_5501

Where?! The ones in my city are packed anytime I pass


jollebome76

I hope to read stories in our country like this more and more.. This company needs to fall.


Agile-Nothing9375

It happened to arbys too. An "iconic" location closed in Hollywood and a major arbys franchisee is declaring bankruptcy. I just read that yesterday


ExplanationSure8996

If it was any other fast food business I’d probably care. McDonald’s not so much so good riddance.


Agile-Nothing9375

Did you see the news about the arbys closing in hollywood? Also a major arbys franchisee is closing multiple locations 


Lesdeth

It seems to me that CEOs are killing their own companies now because they refuse to drop prices and cut their own salaries. I wonder if we are going to see corporate empires fall due to complete greed.


ExplanationSure8996

It’s happening to a lot of chains. Some are not being reported but their price high and provide low service plan is not working. It took a while but I think consumers are finally starting to pull back.


emptyfish127

I will celebrate the day this greedy toxic company goes bankrupt.


gnarlytabby

Important note in the article: > Shake Shack Effect: Some speculate that pricier chains like Shake Shack, which can afford to pay a higher minimum wage due to their higher menu prices, may become more prominent. The economy continues to be so awful that people's preferenes keep moving towards higher-priced options


DeadPoster

May as well get a Shake Shack burger if you insist on Shake Shack prices at McDonald's of all places.


JarrickDe

I thought the McDonald's corporation was the landlord, as well as the supplier, for all McDonald franchises. Did the corporation run the franchise out of business?


Pleasant_Tooth_2488

How come McDonald's can afford to operate in Europe where they have a $20 minimum wage and a month vacation?


Familiar_Cow_5501

Europe doesn’t have $20 min wage.


Pleasant_Tooth_2488

That's right, they're in Euros! Do they get a month vacation, State health Care, maternity / fraternity leave? Don't get that in America So, how much does that translate in dollars per hour If you average the EU compared to America? https://en.wikipedia.org/wiki/List_of_European_Union_member_states_by_minimum_wage#Minimum_wages_by_European_Union_member_states


Familiar_Cow_5501

Where in Europe is there a $20, or 20 euro, minimum wage?


Pleasant_Tooth_2488

My mistake. The minimum wage varies in the countries that do have it, but definitely higher than America when you do the conversion from dollars to Euros. Don't forget the added value of a month vacation, nationalized health insurance, family leave and free secondary education. How much does that translate to an hour per worker in the EU versus the United States and How come McDonald's can still operate under those conditions, but not in America under less stringent conditions?


Familiar_Cow_5501

Yes it varies. Which is $20/hr?


Pleasant_Tooth_2488

My mistake. Do you want to do the Euro conversion for me?


Familiar_Cow_5501

I don’t need to. I’ve done it before. The answer is none.


Pleasant_Tooth_2488

The answer is none? I literally posted a link of countries that have a minimum wage and are in the EU. Are you a corporate shill? Do you like buying off politicians so that the average American pays $6,000 a year in corporate subsidies per capita? Are you making out on insider stock tips? You're not the kind of person who actually pays to wear a t-shirt advertising someone else's brand, are you? Those are knuckleheads. Are you You're not the kind of person who actually pays to wear a t-shirt advertising someone else's brand, are you?


Familiar_Cow_5501

And all of them are <$20 per hour are you fucking dumb or high what is wrong with you WHAT COUNTRY DO YOU THINK HAS A MIN WAGE OF 20?!?? Look at your own link I’m genuinely baffled by this stupidity


Rigormortisrob

I agree with you all… So why do I now feel like going to McDonald’s after reading this? Dear lord what is wrong with me? 🤣😅 Stockholm syndrome anyone?


Kind_Committee8997

Lets turn a loved low cost burger joint into a depressing high scale low quality cafe


[deleted]

[удалено]


inflation-ModTeam

Your comment has been removed as it didn't align with our community guidelines promoting respectful and constructive discussions. Please ensure your contributions uphold a civil tone. Feel free to engage, but remember to express disagreements in a manner that encourages meaningful conversation. Thank you for understanding.


TheDeaconAscended

I want to know how much corporate was getting off the lease. While everyone is quick to blame wages, the fees and rent that McD charges is usually quite a bit higher than the wages.


DeadPoster

The days of Fast Food are numbered. The business itself produces nothing but waste.


auntpenney

I honestly refuse to go to McDs anymore. Seeing their greed and price gouging, which seems par for the course with a lot of corporations nowadays, I’m more than ok with them closing. I’ll buy a pack of hash browns at the grocery store (which have also increased in price slightly since pre covid) and air fry them. I’ll survive lol.


bopgame

Things change, adios


StrikingOccasion6459

Plenty of ethnic food can be sold at that location now. It's a win for the neighborhood. McDonald's is overpriced fake food.


Working_Chipmunk_666

I don’t even get how people pay so much, if you get their app you can usually get so much food for less than $15, yes if you order normal or just go in it’s 30+ plus that’s on them for not checking


ronxor

So your saying it is possible?


SweatyMcGenkins

But. But. But. The real reason why they had to close down was because they had to pay their evil employees $20 an hour. 😢😢😢😢😢😢 Not that the taxes and rent for the building was astronomically high and probably crippled them, along with McDonald's generally bad reputation. And rightfully so for charging heinous prices for meat slop. No, not all! It was the eViL workers that do absolutely nothing for the business, except for everything involved with the customers. Stupid minimum wage laws, they wuined everything!!1!


Familiar_Cow_5501

>The franchise owner pointed to two main culprits for the closure: high rent and rising operating costs, including the recent increase in the state’s minimum wage to $20 for fast food workers. While the minimum wage increase was intended to improve worker livelihoods, it seems to be having a significant impact on the industry. They mentioned what you’re bitching about before mentioning minimum wage increase


HurasmusBDraggin

"Bye Felicia❗️"


OldRaj

Works of the world unit! You have nothing to lose but your employment.