Thursday, July 16, 2015

Quote of the Day

July 16, 2015
McDonald's franchisees have never been this depressed

"Corporate has no answers," one respondent said. "They are throwing ideas at the wall hoping something will stick. Their collective arrogance has come home to roost."

Don't hold back. Tell us what you really think, lol. Sigh.

1. ZIRP creates new restaurants through "cheap" borrowing.
2. New restaurants hire new workers. Hurray!
3. Restaurant competition increases.
4. Old restaurants struggle.
5. Old restaurants eventually close.
6. Old restaurants eventually lay off old workers.
7. Investors suddenly realize that the Fed has not permanently put an end to recessions.

Perhaps someone could explain the flaw in my business cycle reasoning? Please. I'd like to be wrong here. Seriously.


fudge_hend said...

The flaw in your theory is that it assumes a limit in the ability of us the US 'Mericans to consume and get fatter. Wall-E-conomy to the rescue. If you are going to save the economy you need to get fatter.

Stagflationary Mark said...


I don't know. It seems to me that if we were getting a lot fatter then chairs would be getting a lot bigger. Not really seeing it.

An American sitting on a chair.

Troy said...

"My numbers are not good due to new competitors"

no moat = pain, just ask App Store entrants.

As for the minimum wage issue, ~$1/hr more for the 10 person crew is going to take $60 to $100k out of the operating margin for stores so I can see why owners are squealing like pigs about it.

Owners are supposed to get the lions share of the profit, not the p/t help.

Stagflationary Mark said...

no moat = pain, just ask App Store entrants.

No joke on that. Playing two different free-to-play games right now on my phone (not simultaneously).

How do they make money? Showing me ads for other free-to-play games! Well, mostly.