Have they thought about not charging exorbitant prices on their food?
I’m sure they have. But when rental prices are skyrocketing and margins on meals are collapsing, there’s not a ton of wiggle room. One of the smart long-term moves that McDonalds made - way back in the 1980s - was to make sure they owned the real estate under all of their corporately owned restaurants. This was an expensive move up-front, but it paid enormous dividends long term.
Burger King, Wendy’s, Taco Bell & KFC, etc - they’re all largely operating out of a retail rental market that’s consolidated into a handful of mega-REITs. And as those REITs demand steadily increasing ROI, the cost of operating storefronts has driven quite a few of these storefronts out of business.
I’m sure they have. But when rental prices are skyrocketing and margins on meals are collapsing, there’s not a ton of wiggle room. One of the smart long-term moves that McDonalds made - way back in the 1980s - was to make sure they owned the real estate under all of their corporately owned restaurants. This was an expensive move up-front, but it paid enormous dividends long term.
Burger King, Wendy’s, Taco Bell & KFC, etc - they’re all largely operating out of a retail rental market that’s consolidated into a handful of mega-REITs. And as those REITs demand steadily increasing ROI, the cost of operating storefronts has driven quite a few of these storefronts out of business.