June 23, 2009

Wage Hike to Squeeze QSRs

Every time the minimum wage goes up the discussion centers around cost cutting at the restaurant level. Since most of the impacted stores are franchised - where is the discussion about the franchisor backing off on some fees and royalties?

As in This Dow Jones ARTICLE investors comfort themselves in the fact that the corporate entity is "Insulated" by being heavily franchised.

It sure was a good time to sell off all those McOpCos!


1 comment:

Anonymous said...

With unemployment headed to 10 perc. it is a very bad time to even think about raising menu prices. We already have a customer count decrease covered up by price increases!