Ever Wanted To Know How Much Things Cost At McDonalds?

bonsaihorn
reply to post by tothetenthpower

 

I think what bothers me the most is that they refer to over 2/3 of the items on that list as waste. I'm sure it is a food service term but when I read it I can't help but imagining them recycling garbage and creating those items.

Waste is used for accounting + food safety, in the food industry. It's quite possible those items are worth a different amount but that is the allotted amount given for food waste claims in their books.

(I don't know exactly, I'm speculating.)

But waste is waste in the food industry.

If I drop a burger on the floor it goes in the garbage. If I don't wash my hands and then prepare food and suddenly remember, it goes in the garbage. If meat is left out of the fridge for over (x) hours -different times in different regions, usually ~2hours- … it goes in the garbage.

All this is claimed at the end of the year as "food waste" ,in other words, a loss.

And it's all done out of food safety. When you travel to India or some sunny place in the developing world and you get a ring of burning fire soon as you hit a toilet, that's because they don't practice this kind of thing.

McDonald's is under no obligation to sell food. They do it to make money, that's it. I have a business and I charge a lot more over my material cost than McDonald's does and don't feel the least bit bad about it. Businesses exist for one reason only, to make money. They don't have to justify how much they charge or balance it with better salaries or anything else. I don't understand why people are always so surprised to learn that companies charge more for things than it costs them, that's called making a profit. I know this much, McDonald's hasn't gotten one cent from me for decades; not because I disagree with their practices but because they sell poison and I can't understand how rational people consume it.

I would have to ask if that is for the finished product or just parts of it. For example I see “big mac” listed, but I also see the “big mac bun” listed separate. So by the time you add in all the other bits to make a complete sandwich, the price is actually higher then I would have expected.

While that still might not seem like much you have to add in all the fractions of other expenses that have to be covered by the sale of that sandwich, for example:
Employee salary, workman's comp insurance, taxes, SSI, etc...
Rent/loan on the building, insurance, taxes, building maintenance, etc...
Rent/loan on equipment, maintenance of that equipment.
Utilities, licenses, and other business costs.

Now how many of those low cost, low value, items do you have to push/day to cover all that?
Its the overhead that kills businesses. As overhead goes up for you and me, it also goes up for them.

TruthSeekerMike
McDonald's is under no obligation to sell food. They do it to make money, that's it. I have a business and I charge a lot more over my material cost than McDonald's does and don't feel the least bit bad about it. Businesses exist for one reason only, to make money. They don't have to justify how much they charge or balance it with better salaries or anything else. I don't understand why people are always so surprised to learn that companies charge more for things than it costs them, that's called making a profit. I know this much, McDonald's hasn't gotten one cent from me for decades; not because I disagree with their practices but because they sell poison and I can't understand how rational people consume it.

To elaborate:

I don't understand why people are always so surprised to learn that companies charge more for things than it costs them, that's called making a profit.

profit revenue.

Many companies operate for a long time before even seeing profit. Companies with large revenue streams eventually seek to make profit and then cut costs to make it a reality.

But for any small and medium business it can very frustrating to be doing millions in revenue simply to scrape off a very small profit margin. Or possibly none at all.

Which is why the banking industry Which is a symptom of how the banking/investment industry has come up with a million ways to monetize assets through borrowing and lending power based on revenue streams.

^This, this right there is what people should take issue with.

It certainly isn't the days of old where traders and businessmen could make fortunes actually buying and selling. Now it is more about creating revenue and then someone coming along to create a derivative which will then create profit for people who are not even part of the industry doing all the work.

A derivative is a financial contract which derives its value from the performance of another entity such as an asset, index, or interest rate, called the "underlying".[1][2] Derivatives are one of the three main categories of financial instruments, the other two being equities (i.e. stocks) and debt (i.e. bonds and mortgages). Derivatives include a variety of financial contracts, including futures, forwards, swaps, options, and variations of these such as caps, floors, collars, and credit default swaps. Most derivatives are marketed through over-the-counter (off-exchange) or through an exchange such as the Chicago Mercantile Exchange; while most insurance contracts have developed into a separate industry.

en.wikipedia.org...(finance)

Hence you get companies that operate fine but are bottomed out by some financial institutions that wanted to cross a line on their books. Or some useless company that gets a truck load of capital injected because they have the right people on the board.

Free market?

TruthSeekerMike
They don't have to justify how much they charge or balance it with better salaries or anything else.

I will disagree with you somewhat here.
The same way that you are in business to make money, so are your employees. Their “product” is the work that they do for you, and they have every right to try and get as much profit their “product” as you do. Where it becomes unfair to everyone is when companies pay so little that it requires the tax payers to pick up the difference and provide your benefit package for your employees while you pocket the difference. Many big companies do this, and IMHO, it's nothing short of theft from the US tax payers.

Prices should be driven by market demand rather than Government regulated based on a supposed "actual value". A business person being able to freely choose price gives rise to customer choice and market variety. Furthermore, the value of a McDonalds Franchise is not only measured by "what the food is actually worth". You have to look at the big picture, at what it does for the many who like to eat there as an "event" or "happening" in their lives (disclaimer: No, I personally do not like McDonalds), what it does for Business on the street it is located, what it did for the real estate guys who brokered the deal for the building, what it did for the architects and construction company and their wider families, what it does for the Franchisee and his wider family, what it does for all the staff who may not otherwise have found employment, what it does for advertisers and their wider famililies, what it does for the investments the beneficiaries invest in. So ONE SINGLE MCDONALDS does more for a town then a thousand anti-capitalist protesters would likely contribute in their entire lifetime.

reply to post by Skyfloating


To play devils advocate 1 single McDonalds will take away a ton of potential business from many others in your local region. The money being spent there will not be reinjected into your local economy. And with that, because of the long term advantages of the franchised corporation, it will create a very hard atmosphere to compete with for your local food entrepreneurs who wish to compete.

However, if your town has a factory creating McD's buns, pink goo burgers or cardboard McNuggets, then sure, it's great for all.




And for the sake of being fair. Franchises are not inherently bad. I think there is a line crossed somewhere when they may as well be serving up Soylent Green in soup lines. A place where the "food" they are producing no longer is food, and all the local establishments which used to neighbour them close shop and turn into hair salons.

MysterX
reply to post by DeadSeraph

 

When you were 13??

Really?

Isn't that...kinda illegal?

It wasn't back then. It was a part time afterschool job. I think at the time the law here was that you could work at 13 as long as you didn't exceed so many hours.

reply to post by boncho


The prices listed are most likely those used to calculate what the 'waste' cost of that food is.

I showed it to my Son, who has worked at McD's and he said it's a standard form they fill out when determining what to throw out and what to count for inventory purposes.

~Tenth

As a consumer, you have all the power who stays in business. No matter how grimy, how underhanded, how many regulations or back room deals the larger corporations are involved in. And if there is nothing around, pack your own lunch or cook at home. Support your local restaurants and diners.

The Big Mulitnationals Lobbied for the Foreign Trade Agreements we have with China and Mexico.
Customers do have a choice on what they buy in the markets, but what is made available hinges on foreign and domestic economic policies that were lobbied for.

Still, I don't support Walmart and China, so I don't go there.

Take a look at Monsanto and GMO as another example.

The majority of countries outright banned it because many citizens said no thanks.
Many in this country wont nothing to do with it either.
The consumer has spoken but the Crony Capitalist's want to shove it down our throats anyways.
Then we said, at least label it so that consumers can still have the choice.

The Crony Anti Market Corporations said NO DEAL.

GMO aside, as the consumer how would I put Monsanto out of business if their products are not labeled as being made by Monsanto?

The only way the citizen has the true power is to grow their own garden and raise their on livestock.

The system is designed however out of necessity that we serve government or business.

reply to post by tothetenthpower


Great find! Really puts things into perspective. I used to work at McDonald's years ago, in my teens, and I never would have guessed. At that time, I was cooking fries and serving customers, not viewing paperwork.

thedoctorswife
Sure, theyre a business out to make money. NO-ONE is forced to eat there, ive seen eight year olds eating a box of twenty nuggets plus fries, surely more of a contentious issue is that people eat this food regularly. Dont blame Macdonalds, if it wasnt for theyre customers they wouldnt exist. We all have the element of choice in our lives.

You cannot argue the element of choice here, and in Britain at least, you cant say its cheap food that appeals to poorer people, an adult meal being on average around £4.

edit on 4-1-2014 by thedoctorswife because: (no reason given)

Fair enough, but don't estimate the power of advertising, which you can hardly escape anymore. Not everyone's personality is strong enough to withstand it, especially when it comes to young people. I'm against so much advertising if it concerns an unhealthy product. A bit like advertising for tobacco has been completely limited in most western countries, for good reason.

soulwaxer

tothetenthpower
reply to post by boncho

 

The prices listed are most likely those used to calculate what the 'waste' cost of that food is.

I showed it to my Son, who has worked at McD's and he said it's a standard form they fill out when determining what to throw out and what to count for inventory purposes.

~Tenth

Right. Thanks for adding that in.

To clarify on the point I was making, this doesn't exactly tell us the franchise cost of the food. For instance, the individual franchise may buy a Big Mac for $1.50, from the franchise distribution centre, but when they accidentally drop one, it gets claimed as a loss for $0.77.

This would simply be for easier accounting, where in different regions companies are allowed ~20-50% of their waste as claim for loss.

Again, not saying this is exactly how it works in this case. Merely pointing out that one form from any company with a spreadsheet on it, calculating something out of context does not give us much insight into it.

Cheers.

boncho


It certainly isn't the days of old where traders and businessmen could make fortunes actually buying and selling. Now it is more about creating revenue and then someone coming along to create a derivative which will then create profit for people who are not even part of the industry doing all the work.

A derivative is a financial contract which derives its value from the performance of another entity such as an asset, index, or interest rate, called the "underlying".[1][2] Derivatives are one of the three main categories of financial instruments, the other two being equities (i.e. stocks) and debt (i.e. bonds and mortgages). Derivatives include a variety of financial contracts, including futures, forwards, swaps, options, and variations of these such as caps, floors, collars, and credit default swaps. Most derivatives are marketed through over-the-counter (off-exchange) or through an exchange such as the Chicago Mercantile Exchange; while most insurance contracts have developed into a separate industry.

en.wikipedia.org...(finance)

Hence you get companies that operate fine but are bottomed out by some financial institutions that wanted to cross a line on their books. Or some useless company that gets a truck load of capital injected because they have the right people on the board.

Free market?

edit on 4-1-2014 by boncho because: (no reason given)

Excellent Post.
The Finance Market has only inflated cost to insure they get their cut.
Student Loans, Housing market, Small Business, Health, all inflated so they get their cut.

They do not produce anything either other than figuring out how to get a hold of more people's money.
There are many in the finance markets that may be working long hours, but a Bank Robber also can put in a lot of hours casing the Bank and figuring out who is coming and going. Both unethical.

I'm all for going back to traders and sellers if it cuts out the leeches in the middle.

thedoctorswife
reply to post by MysterX

 

Im not going to get into an arguement with you about this, because obviously your mind is made up, but frankly, myself and most of the people I know, find the adverts for Macdonalds CRINGWORTHY. Maybe we can agree that our generations reliance on fast food is a symptom of the fast pace of society today, people work, its easier to get a fast food takeaway than cook a meal, HOWEVER that is a choice. I work ,but i choose to cook healthy, tasty meals for my children, we rarely have takeaway because that is what i CHOOSE.

Don't missunderstand me thedoctorswife...i happen to agree with you over the state of the food industry, especially mega-corp food factories...but i don't happen to believe the blame ought to be laid at the feet of the general public.

That's all.

Skyfloating
So ONE SINGLE MCDONALDS does more for a town then a thousand anti-capitalist protesters would likely contribute in their entire lifetime.

Perhaps McDonalds is not a good example, but with Walmart, they do more damage to a local economy than contribute to it. Think of all the small mom and pop type shops put out of business. The profits from the mom and pops stay in the local economy circulating, while the profits for Walmart makes it way to Walmart Headquarters and into the Walton's Hands.

I am all for empowering and giving the power back to local governments and economies, not dis empowering them so that everything becomes concentrated at Government Wall Street.

thedoctorswife
reply to post by MysterX

 

Im not going to get into an arguement with you about this, because obviously your mind is made up, but frankly, myself and most of the people I know, find the adverts for Macdonalds CRINGWORTHY. Maybe we can agree that our generations reliance on fast food is a symptom of the fast pace of society today, people work, its easier to get a fast food takeaway than cook a meal, HOWEVER that is a choice. I work ,but i choose to cook healthy, tasty meals for my children, we rarely have takeaway because that is what i CHOOSE.

And how many hours a week do you work? I know too many people that are working a job and half, or two, or even three; busting 60 or 70 hours a week (or more) to get by. I know that if I was working that much, I wouldn't have the physical or emotional energy to cook "healthy, tasty meals for my children". I don't think you have the slightest clue just how sanctimonious and condescending that sounds, or is frankly. Not to mention (as you already have) cost. For a lot of people "eating out" is McDonalds, and they don't do it every day, or even every week, and yet... I think you would be surprised how many people like I have described make up that customer base. This goes waaayyy past the fast paced lifestyle today, into people will take what small pleasures they can afford, in either time, or money.

I'm lucky enough (to still be) middle class. I think it is far too easy to sit back and judge people with oblique criticism without bothering to get the whole picture. I see a lot of it, and I'm fed up with it.

It is true that there is a great deal of information out there about nutrition so the population is informed, but there isn't an social infrastructure in place that makes that a realistic goal for many people. What it does do is create a culture that encourages those who have the resources (time, energy, and money) to make those positive lifestyle choices to in turn look down their noses at those for whom it is a far greater struggle.

Looks like a losses sheet for the day. why you see they have thrown out two nuggets. Why would they order two nuggets???
Clearly a losses sheet.

In Australia we don't have the prices on our sheets, I would imagine this private.

Yea its a business, just like most they get a nice profit margin. I use to work at a store that sold adult dvds when I was young bout 2002, before it was free and easy to get off the net. I would look at the invoices and the company would buy a dvd for 1 to 4 dollars on average and sell them anywhere to 39.95 to 59.95 and they would sell easily. Now u can get it off the net so no need to buy them anymore, but just an example.

MysterX
reply to post by DeadSeraph

 

When you were 13??

Really?

Isn't that...kinda illegal?

Depends upon how old they are now. I held a summer job when I was thirteen and so did most of my classmates.

The most coveted job back then was working at the go-kart tracks.

Hell, by the time I was sixteen, I was running second shift at the municipal airport. Radio, refueling, etc. It was all me....mainly because I was the only one. LOL