The Economy

I’m no longer surprised when almost any thread veers off into discussions/rants about chain restaurants.

I guess SJ.com can only churn for so long before it’s gotta eat.

 

I am not sure if this is still true.

But when Ray Kroc bought McDonalds he set up a subsidiary that started buying up land and leasing it to the franchisees. The franchises would then pay to build the store on the leased land. The reason Kroc did this is when he bought the McDonalds chain he had agreed to give the McDonalds brothers, who had founded the chain, a cut of the royalties from the franchisees, But collecting the money as lease income, rather than royalties, Kroc could cut the McDonald brothers out.

So McDonalds would buy the land but the franchisee would have to pay to build the store. The franchisee would work hard for the period of the land lease and establish a nice business. When the land lease expired McDonalds would evict the owner and take over the store and franchisee would lose the investment.

Kroc's CFO, Harry Sonneborn, who thought all this up, was considered one of the great CFO's of all time when I got an MBA in the 80;s.

 

Why? Threads taking unusual turns happens all the time around here.

 

Are you sure about that? I know that when the franchisees bought the land, they also paid for construction. But it makes no sense to rent land, then build a building that you can be evicted out of.

Fuck, do that to me as a franchise owner, and I'll blow the building up the way they did on the Little House on the Prairie finale.

This story says a typical McDonald's succeeds not by owning but by sub-leasing.

McDonald's Secret Sauce: Commercial Real Estate | QuickLiquidity - Blog

 

Willie Mays died and this board responded by eulogizing...Rickey fucking Henderson.

The ADD of this board no longer surprises me. Phil Collins cured me of that.

 

America is on the verge of re-electing Donald Trump as president in part because Big Macs are too expensive.

Seems relevant.

 

The story to me is Americans don’t cook. They don’t make things. It’s an important detail in our transformation into a purely consumerist economy that requires low-paid workers who if paid a living wage or lacks a constant influx of younger, more hungry workers from other countries bring the entire thing toppling down.

It’s not sustainable.

 

I often think of this.

How much does it cost to feed a family of four a single meal at McDonald's? (Not including climate change, heart disease, diabetes, etc., etc.)

How much farther would that money go for cook-'em-yourself groceries at Harris Teeter or Stop n' Shop?

I'll be interested to hear how people square those costs against "convenience."

 

People will tell you they don't have "time" to cook.

Yet we seem to find time for streaming video, social media and (ahem) posting on SJ.com.

Robble robble ... pass me that double cheeseburger.

 

Something called Ike’s Love and Sandwiches opened near me.
Ordered two subs for me and my wife. They were about 8, maybe 10 inches. They were delicious. They were also $16 each, with no chips!!!! Ridiculous. (Thanks Gavin)

 

I live alone. After I work my 8-to-5 from home I’m out driving 3-5 days a week for UberEats because baby needed braces and I needed somewhere to live when she visits that’s a step up from a hood rat apartment. By the time I wrap up at 9 or 10 pm, damn right I don’t feel like cooking at home.

 

I thought microwaves were supposed to be the answer to "convenience."