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.
If only the people got what they order at these fast foods shops. You are bombarded with commercials with fresh made products that actually look tasty. When you get your food if looks like someone sat on it and was prepared very sloppy. Give the people what they see in the ads, not a poor excuse for it.
If I could go to McD just ONCE and get a large decaf with 3 cream and 3 Splenda without a problem, I might be able to whip up some sympathy. Until then, whoop de doo.
from what i’m witnessing here on the west coast, McDonald’s is being overtaken by IN and OUT fast-food.. one franchise is building a new business ACROSS the street from a McDonald’s … i expect that mcdonald’s to close by years end…
Sounds ripe for a huge class-action lawsuit. Mickey Deez would not want me on that jury.
Unappetizing, unhealthy food made with the cheapest ingredients, served by sullen halfwits who can’t even get the order right. What’s not to love?
Oh that and their promise to keep Whites out of management (50% “diversity” is the target) instead of just promoting the competent is a factor for many. I won’t eat somewhere that openly discriminates against my family.
When McDonald’s was just cheap crappy food, it filled a certain market niche. Now that it’s more expensive, woke but still crappy food, that niche is being filled by others. This is as it should be.
The food is crap (except for the egg mcmuffin – which, if they were smart, they would’ve started to have “all day breakfast” about a decade before they did) and so I’m not surprised. The only thing that’s a shame is that the “Happy Meal” will be gone. I didn’t take my kids there often, but for a treat, with a toy, it was great.
mickey d’s here in fenton,mi seems to be really slow the last couple of years. lots and lots of competition.
Unfortunately I think a lot of White customers avoid restaurants with a mostly black staff. Every time there’s a George Floyd type incident, thousands of fast food workers go online and say how they’re going to spit or worse in the food of White customers. Jesse Jackson say he used to do that when he worked in restaurants.
I remember when Jesse Jackson said that, and that is the same old reason my family never eats out where the staff is black, I just don’t want to chance it. Maybe all of them are upright and honest but tell me how someone can be sure? You just can’t, and you must always remember that 50% of the crimes are committed by 5 to 6 % of their population.
Go woke
Go broke
One other reason is that the food is terribly unhealthy. Before the Covid scam, I would go occasionally and eat a couple things on the menu I thought were relatively healthy. Since my health epiphany almost three years ago I haven’t been to any fast food restaurant and never will again. Let’s home more of the American people do the same.
Corn syrup and yellow dye #40 mmmm.good..
I used to love McD’s but the quality of the food has suffered. A burger used to be juicy. Now it is dry. Over cooked. Has the texture as if it was cooked hours ago and has sat drying out in some warming drawer.
However, during morning rush hour the food seems much better. BE&C biscuit is my go to. With as much business as my local McD’s gets in the morning the food has to be freshly cooked and perhaps that is the difference.
one problem is I and most whites will no longer eat food prepared by blacks.
They telegraphed that they want to harm us and ‘get back at us’…..why would we go there?
When i see blacks….i leave, I won’t eat if blacks handle my food.
👍🏼
There are some many more places now where you can get a fresh hot burger and fries for just a few bucks more. About ten years ago , I was on a long trip and went thru the drive-thru and got a QP and fries. I threw out the window at the end of the entrance ramp it so bad. Haven’t been back since.
Good riddance, McDonalds. Your food has become terrible and your prices are astronomical. At one time, you could feed an entire family at McDonalds, now you’d have to take out a bank loan to do that. In addition to the food being unhealthful, it tastes like SH*T! The sooner that company goes out of business, the better.
What could go wrong with Force inject us Bill Gates being the new potato grower and supplier for McD’s. GMO wheat, MRNA meat, fryer oil with silicon anti foaming agent. Could any of these be a health issue?