McDonald’s is a fast food empire with over 40,000 restaurants across the globe and more than 13,000 locations in the United States. With an annual revenue of over $23 billion a year, the company is by far the largest burger chain in the world.
Since the pandemic, it saw profits ballooning, despite citing rising operational costs and supply chain issues as major problems dragging growth and even passing along a series of price increases to its customers to allegedly offset sales losses. With its stock rallying at the moment, and higher menu prices resulting in a significant increase in average ticket costs, it’s hard to imagine how a business of this size and magnitude can be struggling right now.
The answer is not simple, but in today’s video, we’re going to explain why the biggest fast food chain in the entire industry is facing a rare and yet unsurprising wave of bankruptcies in 2023.
Despite being the greatest fast-food corporation the world has ever seen, 95% of McDonald’s restaurants in America are operated by independent owners, and the war between corporate and franchisees seems to be getting worse this year. For decades, operators have been fighting McDonald’s tightening rules and expensive demands, and now many of them are hitting a breaking point.
For about 40% of franchisees, McDonald’s new financial requirements may end their years-long leases because the company’s rising expenses are not allowing these stores to hit profit targets. Simply put, these franchisees may have their contracts canceled, losing all of their investment if they fail to meet corporate expectations. In other words, one in four McDonald’s operators is at risk of going bankrupt due to the actions of the company itself.
But their strategy of expanding their business on the back of operators isn’t a clever one. At some point, its entire model could be at risk if enough of them decide to leave the company. When they signed their contracts with the megachain, franchisees were promised to become partners with the company. But over the years, corporate changed rules and regulations, so that the operators were the only ones responsible for the risk of managing a low-margin restaurant business during economic downturns.
On a consumer level, things aren’t going great either. The brand’s push for more expensive burgers has not been well-accepted by customers. Even though the average ticket prices have risen by roughly 15% over the past 12 months due to higher menu prices, there are fewer people visiting McDonald’s locations on a monthly basis, and they are even fewer people revisiting its restaurants multiple times in a month.
Put simply, customer loyalty is going down, and that was one of the main pillars that helped McDonald’s to build its brand since its foundation in 1955. Unfortunately, McDonald’s case is a clear demonstration of how a great business can rot from within due to its own greed. That’s a reality more people are waking up to right now, and that ultimately will contribute to the demise of the greatest fast-food chain America has ever seen.
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Article and video cross-posted from Epic Economist.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
I love MickyDs but now a meal burger fries in $8 bucks. I can go to a lot of places for that or get healthy premade salad or meal from decent grocery store. On top of that it is not fast anymore takes for ever. Feel sorry for people who invested millions took risk then slave to corporate, defeats purpose owning a business. Take those millions buy some residential rental properties and will make more money and full control no employees and 1/100 headaches
Did Biden-omics kill the McRib?
Maybe their business model should change to one where real, unadulterated food is served.
This is nothing more than the corporate’s Harvard MBAs getting bigger bonuses without knowing where their bonus money comes from. Haven’t been in a Micky D’s in years after convincing me they cannot make a cup of coffee that isn’t rancid or bitter or putting an old hamburger on a roll in the microwave and serving it. .
I recently paid $11.40 for a quarter pounder meal. A double cheeseburger meal at Culvers is $2.00 less. It’s no wonder they’re going bankrupt.
People used to go to the Golden Arches because it was cheap… then because it was reasonable… then with Bernie Sanders’ 15 dollar minimum wage, two adult meals and two happy meals costs over 40 bucks as predicted. Of course franchises are going to fold, their product is 2 out of 10 stars. McDonalds is doomed… Bidenomics.
This is what happens when wall street instead of main street runs the show. Plus I refuse to eat at fast food anymore because there have seen one too many postings online of workers at fast food that molest the food or refuse to wash their hands after they use the bathroom and that makes me wanna hurl because of it. No thank you I’ll pack my own.
The new restaurants are cold and uninviting, local bars are comfortable. Prices are nearly as high as local bar burgers that are better. After the plandemic, I began supporting local businesses as much as possible. Inflation has spiked and my wages have not. McDonald’s lost my business due to those 4 reasons.
Too expensive for me now. Sad, but true.
Remember the 5 dollar foot long from 2021? It’s 9 dollars plus tax now. Subway is doomed too. Thanks Bernie and AOC. Those unemployed employees are going on the taxpayer provided dole… Bidenomics.
I haven’t eaten at McDonalds in at least 5 years because of a combination of poor quality and high prices. I don’t intend to go back.
Last time I was in McDonald’s was in the early 90’s.
Not all, but a lot of the employees are ignorant. Not stupid, just have no people skills, a lot don’t appear to WANT to work, that customers are interrupting them from playing grab a** with the each other.
Other than places like Chic FIL-A & a few others, I don’t bother with fast food places. It’s cheaper to eat at home, thanks to Brandon
Their business model, of keeping burger prices low via grinding up human trafficking victims and mixing it in with whatever else their patties consist of, was severely disrupted by Trump and they are starting to feel the pinch. Good riddance.
Cuckoo… cuckoo
The ridiculous 15 dollar minimum wage brought us 13 dollar big mac meals, and doomed Burger King, McDonalds and other cheap fast food restaurants. Democrat donkeys screw up everything they touch.
Best things on the menu are the original hamburger/cheeseburger. I’d like to see them focus on that and even offer six-packs like some of their competitors.
Also–bring back the beef tallow and salt for french fries.
THEY HAVE TOO MANY PRODUCTS AND TOO MANY PEOPLE WORKING1
Streamline the offerings, get rid of the fancy coffee. Offer about 5 different burgers and fries. 1 Chicken sandwich and nuggets. Start marketing to families and kids again instead of millenials wanting coffee! Break with Disney and go back to coole Happy Meals. The Happy Meals used to bring them in.