This is mostly bunk.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Minimum wage, or Living wage
- Thread starter nitro
- Start date
This is mostly bunk.
Says the guy who uses zero data to back up his assertion......carry on.
I don't see any data to support your assertion that franchisees are all perpetually in debt, presumably receiving no return on their investment.Says the guy who uses zero data to back up his assertion......carry on.
So these are about franchisers. Where is the data showing franchisees typically don't make a return (or even get their investment back)? Go ahead, crush my dream of opening a Subway.
So these are about franchisers. Where is the data showing franchisees typically don't make a return (or even get their investment back)? Go ahead, crush my dream of opening a Subway.
Ricter, why do you think most restaurants fail? From making too much money? Come on dude, give it up. Walk into any bank in America and ask to speak to a small business loan officer and inquire about getting a loan to open a restaurant. In fact, if you think it's so easy, why don't you do it. God knows you don't trade for a living. So why not? Or better yet, walk into your local courthouse to take a gander at the local bankruptcy announcements. I mean are you just trying to be dense. I never thought in a million years anyone would believe the restaurant business was good business model. There are thousands of books on this stuff. Terabytes of data out there. Come on man.
Ya, that's it. Seems the key is to have a bunch of shops. Restaurant franchises are a very common small business people get involved with. Tim Hortons always do well up here. Its such an old and ubiquitous franchise its been sort of tied into our national identity as 'being Canadian'. The Pizza Nova owner told me never to buy a franchise since they basically own the store and there's no autonomy. Then again, maybe he's just trying to scare away competition. Sounds like you owned a restaurant or two?I know the pizza business pretty well. A good friend of mine was in the business and his brother owns 3 different locations. My buddy went out of business and closed shop while his brother is making a killing. I saw the receipts and the cash flows of the business for years. Pizza places are a little unique and you are right, they DO pay under the table. Most drivers made most their money in tips and never claimed the money. The owners got the drivers to also work inside the shop for little money but higher delivery fees. Labor costs in pizza places are very low. My buddies brother who is making a killing realized the secret to the business was getting rid of the dining room and moving to all delivery and pick up where labor costs were almost zero. This does not work in the sit down restaurant model but pizza joints milk this. Generally to do well you need to own a bunch of these. So the guy who is "making a killing" is not really making that much on the margin, he is simply leveraging capital (shocker huh). Their per restaurant return is small but if you own 5 of them you are doing well.
I thought we were talking about franchises, which you mentioned initially. From what I can see there are more of these than ever around, despite min wage increases.Ricter, why do you think most restaurants fail? From making too much money? Come on dude, give it up. Walk into any bank in America and ask to speak to a small business loan officer and inquire about getting a loan to open a restaurant. In fact, if you think it's so easy, why don't you do it. God knows you don't trade for a living. So why not? Or better yet, walk into your local courthouse to take a gander at the local bankruptcy announcements. I mean are you just trying to be dense. I never thought in a million years anyone would believe the restaurant business was good business model. There are thousands of books on this stuff. Terabytes of data out there. Come on man.
I got a buddy who owns 10 bar/restaraunts, basically to make about 300k in a bar he has to do over 3 million in sales, if you have 20 fulltime staffers at a bar, and maybe 10 part timers (Which would be even less than a place like mcdonalds), and you raised minimum wage by six or seven bucks an hour they are out of business, or barely holding on by a thread, essentially if you raise minimum wage by six bucks an hour you can count on the cost of everything you pay for at a restaraunt doubling as well.
Also in the example i gave because those are roughly the numbers he has given too me, it doesnt factor in that bars get trashed and need to sink in about a half a million dollars in renovations every 4-5 years just to keep the place looking fresh, and keep it from looking like a total shit hole, so the 300k per year net on 3 million ends up being even less, probably only about 200k per year on 3 million in sales.
Keep in mind this is a guy who knows what hes doing, who owns 10 bars, and has had numerous bars fail, so he would be at the top end of bar owners, on the lower end most are hanging on by a thread.
Also in the example i gave because those are roughly the numbers he has given too me, it doesnt factor in that bars get trashed and need to sink in about a half a million dollars in renovations every 4-5 years just to keep the place looking fresh, and keep it from looking like a total shit hole, so the 300k per year net on 3 million ends up being even less, probably only about 200k per year on 3 million in sales.
Keep in mind this is a guy who knows what hes doing, who owns 10 bars, and has had numerous bars fail, so he would be at the top end of bar owners, on the lower end most are hanging on by a thread.
Do they? I know people who own pizza and burger king franchises here, and they make pretty good money.
Last edited: