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re: Five Guys, Chic-fil-A, Panera Bread vs. McDonald's, BK, Taco Bell (not food related)

Posted on 6/14/17 at 11:26 am to
Posted by dgnx6
Baton Rouge
Member since Feb 2006
69375 posts
Posted on 6/14/17 at 11:26 am to
quote:

Not even close. The owner of a CFA is a glorified manager. They share a significant portion of the profits with the corporation. My understanding is the average CFA cash flows between $150K and $250K. And it's rare to get more than 1 location and nearly impossible to get more than 2.


I'm just looking at what a unit does in sales, I'm not sure on their cost of goods or franchise fees. Im thinking you have to have more locations to equal the sales of one chic fi la. But then again, if you have a very well run McDonald's in a good location, you could kill it.


On another note, McDonald's are open for more hours during the week. So think about that, you have to be open 1 extra day a week and most of them open earlier and close later than chic fi la.
This post was edited on 6/14/17 at 11:28 am
Posted by Dave Worth
Metairie
Member since Dec 2003
1831 posts
Posted on 6/15/17 at 10:33 am to
quote:

I'm just looking at what a unit does in sales, I'm not sure on their cost of goods or franchise fees. Im thinking you have to have more locations to equal the sales of one chic fi la. But then again, if you have a very well run McDonald's in a good location, you could kill it.



Average McDonald's does about $2.6M while CFA is around $3M. Fairly close, especially considering McDonald's has 10 times the locations.

And that's the rub. The only way McDonald's can do $2.6M at 15K locations is to have a much wider variety of products. Similar to the jack of all trades and master of none. Leads to a much tougher work environment.
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