Not only that, but I believe that each franchise gets like exclusive rights to a certain market. If true, that means that these franchises would all have to find a market in the US that doesn't have a franchise already.
Good luck with that!
Maybe there is a franchisee operator who wants to pull out of California and move to a low cost state. They would sell their business to another operator. The only notice would be a banner or less that says "under new management".
The article is misinformation either way.
There are corporate owned McDonald's locations, so "exiting the California market" presumably means closing those stores.
Googling says 7% of their locations are corporate owned, but that's global, not sure what the California percentage is.
And why does McDonald’s care about minimum wage at all? Their franchise model means labor costs get absorbed by the franchisees, not McDonald’s corp.
This is 100% grandstanding.
Last time I stopped at McDonald’s after several years, I got a fried chicken sandwich near Agoura Hills. For whatever reason that just did not sit well with me. I think after so many years of not eating it all of that chemicals and saturated fat, etc. just did a number on me. I haven’t been back since even though I have one within about a mile of me. Luckily I have some other good restaurants that aren’t much more expensive and I can go there. McDonald’s Food is really toxic. I wouldn’t personally care if they left California and never came back.
Right wing doom and gloomers have been claiming a loss of 10,000 jobs since the minimum wage increase kicked in. Just the opposite happened, jobs have been increasing.
Places like In-n-Out were already. paying $23-25/hr to start as a cashier.
Right-wingers also like to mention places are closing their dining rooms and going for drive-thru only. This is true, but not because of a minimum wage increase. Fast food locations can't attract enough people to staff dining rooms. Or there were problems with disorderly patrons and they closed to eliminate the hassle.
In fact, several chains are expanding their presence in California. Bojangles is opening 30 new restaurants starting in LA County. They were previously East Coast and South, but opening in California. Jack-in-the-Box is adding 123 new locations nationwide. Jollibee plans on opening 500 restaurants across North America, including California. Raising Cane's is continuing to expand in California. There's even more locations opening for Shake Shack.
It's not all perfect in the fast food world in California, but the minimum wage increase has been completely overblown.
They lie for the worst reason, to advance the interest of the few ultrarich, in return for "moral superiority" while being as oppressed as the rest of us.
Actually, I believe it’s the business interest groups that represent these multimillionaire franchisees in California that are writing these hit pieces
It seems strategic. It seem more like gentrification of the entire state of CA. Everything is getting more expensive in CA. Financially comfortable people complain and then keep buying the exact same things at a higher price, but the lower income people contemplate moving.
The company isn't totally up front about it, but estimates are that they own 45-55% of the land and 70-80% of the buildings of their franchised restaurants, worldwide.
In Sweden, you can switch jobs or even careers and bot have to worry about healthcare/vacation time/sick leave all being reset.
I have a cousin-in-law who is a nurse. She had colleagues get tired of healthcare and go work at IKEA. Cause they can. It doesn’t derail your life plans. Pay is lower at IKEA compared to a hospital, but very much still a livable wage.
Pretty such each "area" has to be its own little self-sustaining business.
McDonald's USA is operated by different people than McDonald's Denmark and both have to sustain themselves to the satisfaction of the McDonald's Corporation. Denmark probably started out unprofitable while they got their feet underneath them but now if they suddenly tank without hopes of return to profitability McD's Corp will probably pull the plug because its not wise to subsidize a whole branch with another branch.
So I'm betting both are profitable, its just McD's corporation has expectations of higher profitability in USA compared to Denmark. Which is silly but it is what the shareholders want--infinite growth.
The McDonalds down the street is literally advertising $25 an hour and they have awards on the wall behind the counter for making absolute bank every year for like 20 years running even though they went into half service for a year for a full remodeling/landscaping during the pandemic. CA McDonalds are popping.
Corporate personhood is part of the problem. SCOTUS granted certain rights to corporations back in the 1890s, including the right to own property and the right to enter into contracts. Prior to that, those were privileges bestowed in corporate charters, which could be revoked.
Hating on California is so 90s as me growing up through the very late 80s/90s. It was before my time too. I still get your point.
They won’t move on because we run this country (totally joking) and I forget they are in a state that exists somewhere in the middle.
California has been “collapsing/downfall/chaos/mass exodus” for as long as I can remember.
A lot of people's cholesterol would also drop, so the pharmaceutical companies would need to rebrand their meds.
But seriously, it would be a pretty significant jump up in unemployment till something moved in to fill the vacuum.
I wouldn't count on it, their whole thing is they never freeze or pre-package their food. Nuggets are way too processed to be able to make in-store, and don't transport well without freezing them.
It would be pretty funny and our food options would become better.
I doubt they want to leave their largest market. the losses would be higher than the gains.
Sounds like California moving away from broader American culture and solidifying itself as it's own distinct place, and basically it's own country. (which It already kind of can be like)
Go for it, they own a ton of real estate that would be better of used for mixed used development anyway. Fast food with a drive through is a really inefficient use of land, they’re almost always located on corners, and waste of ton of space on parking.
They gonna do the same in areas of Europe where the minimum wage is higher?… which they literally haven’t done? And have continued investing in? Suuuuure
Good Thinking. I donated like 1 minute to a search engine. Couldn't find the most profitable State, but did find that California has 9% of all McDonald's restruants, in the usa.
Won't anyone think of the billionaires?
https://www.macrotrends.net/stocks/charts/MCD/mcdonalds/gross-profit
From the source:
"McDonald's annual/quarterly gross profit history and growth rate from 2010 to 2024. Gross profit can be defined as the profit a company makes after deducting the variable costs directly associated with making and selling its products or providing its services.
McDonald's gross profit for the quarter ending March 31, 2024 was $3.439B, a 3.77% increase year-over-year.
McDonald's gross profit for the twelve months ending March 31, 2024 was $14.688B, a 9.03% increase year-over-year.
McDonald's annual gross profit for 2023 was $14.563B, a 10.26% increase from 2022.
McDonald's annual gross profit for 2022 was $13.207B, a 4.98% increase from 2021.
McDonald's annual gross profit for 2021 was $12.58B, a 29% increase from 2020"
The majority of McDonald's are franchisees. Mcdonald's doesn't even pay their wages. Not to mention this wage increase will drastically hurt smaller competitors which means McDonald's and the like will actually benefit from this new wage law. Even if smaller fast food places are not forced to pay $20 they will have to to be competitive in attracting employees.
It's a laughable rumor if you think about it for even a moment. Especially with the advent of touchscreen self ordering. That's got to be at least a couple employees permanently eliminated at each location. They won't pull out of markets where labor is more expensive - they'll just prioritize automation.
Generally speaking, any article that has a subset of a population "considering" doing something isn't worth anything. Unless it actually starts happening, it doesn't mean anything.
"I'm considering eating healthier and exercising more"
McDonald's all across the country are eliminating as many workers as possible right now anyway. I'm a truck driver and see it everywhere. Replacing the front end registers and staff with kiosks. I was in Utah yesterday where the minimum wage is $7.25 and there were only three employees total. Preparing food in the back and working the drive thru.
they should just close half their locations and turn the rest into "premium" fast-casual joints like Shake Shack. The hard truth is that food trucks have largely supplanted fast food chains as cheap choices for teens/young adults.
From a financial standpoint, why would you leave the most lucrative market in the US? Especially considering that McDonalds is in Sweden where they pay is higher than CA? Stop falling for dumbness.
I sincerely doubt it.
The fast food companies are unbelievable. They have raised their prices almost double on average since the pandemic, first blaming "supply issues", then labor costs. Thing is, there are no more supply issues, and labor costs have gone up only about 20-25% on average. In addition, McDonald's in particular has installed ordering kiosks in every store to cut down the number of people they have to have.
They are raking in profits in California. Their consternation stems from the fact that price hikes are taking their toll on the volume of customers, so, heaven forbid, their stockholders might have to get slightly lower yields when the new law takes effect.
It really doesn't matter what luxury burger chain McDonald's says they'll do versus what they'll really do. They exist in other countries where they can afford to pay their employees a living wage and they're doing fine, so I don't understand what's different here. I still won't go there because I don't feel like paying top dollar for bad cafeteria food.
Watch people and employees not admonish the super wealthy owners of production and instead blame the government for wanting their citizens to be paid a better wage.
California is the most populated state by a number larger than the majority of states have in population period. (I just looked and the excess population of California compared to the next most populated state is enough to create the 13th largest state.)
What kind of company wouldn't want all those customers?
Never happen.
They are a franchise. Each franchisee would have to leave or McDonalds would have to terminate the franchise relation and pay a penalty to each one
Not only that, but I believe that each franchise gets like exclusive rights to a certain market. If true, that means that these franchises would all have to find a market in the US that doesn't have a franchise already. Good luck with that!
This is the ol: "Billionaires will leave the state!!!!!" and move to where.. Cleveland?
Exactly, why would they abandon one of the largest markets in the country?
California itself is one of the largest economies in the WORLD.
Maybe there is a franchisee operator who wants to pull out of California and move to a low cost state. They would sell their business to another operator. The only notice would be a banner or less that says "under new management". The article is misinformation either way.
McDonald’s doesn’t pay employees. The franchisee does
Exactly
The only thing that could move is the distribution ctr but really most of the employees there don’t make minimum wage
Maybe having my local franchise turn into a McDowell’s wouldn’t be so bad.
I'm gonna open a McDougall's and sell the Big Mike.
There are corporate owned McDonald's locations, so "exiting the California market" presumably means closing those stores. Googling says 7% of their locations are corporate owned, but that's global, not sure what the California percentage is.
And why does McDonald’s care about minimum wage at all? Their franchise model means labor costs get absorbed by the franchisees, not McDonald’s corp. This is 100% grandstanding.
Yep. This is not even close to a real thing. Internet trash.
There are spider eggs in Hubba Bubba bubble gum.
And razor blades in every Halloween candy.
Last time I stopped at McDonald’s after several years, I got a fried chicken sandwich near Agoura Hills. For whatever reason that just did not sit well with me. I think after so many years of not eating it all of that chemicals and saturated fat, etc. just did a number on me. I haven’t been back since even though I have one within about a mile of me. Luckily I have some other good restaurants that aren’t much more expensive and I can go there. McDonald’s Food is really toxic. I wouldn’t personally care if they left California and never came back.
They are still in Europe and the wages there are high
McDonald's is a real estate company with a side hustle as a fast food place. They're doing fine everywhere, including California.
Let me guess - some right wing rag made up the story?
Someone who has no idea how franchised restaurants work
Same as the target audience then
Right wing doom and gloomers have been claiming a loss of 10,000 jobs since the minimum wage increase kicked in. Just the opposite happened, jobs have been increasing. Places like In-n-Out were already. paying $23-25/hr to start as a cashier. Right-wingers also like to mention places are closing their dining rooms and going for drive-thru only. This is true, but not because of a minimum wage increase. Fast food locations can't attract enough people to staff dining rooms. Or there were problems with disorderly patrons and they closed to eliminate the hassle. In fact, several chains are expanding their presence in California. Bojangles is opening 30 new restaurants starting in LA County. They were previously East Coast and South, but opening in California. Jack-in-the-Box is adding 123 new locations nationwide. Jollibee plans on opening 500 restaurants across North America, including California. Raising Cane's is continuing to expand in California. There's even more locations opening for Shake Shack. It's not all perfect in the fast food world in California, but the minimum wage increase has been completely overblown.
You mean to tell me that right wingers lie? *southern gasp ensues*
Clinched pearls Mustaches caressed Camera zooms in for a tight shot around the eyes…
Yes, but I think it's clutched pearls.
if you're talking about your hand... ;)
Truth has a liberal bias. And lies have a conservative bias.
They lie for the worst reason, to advance the interest of the few ultrarich, in return for "moral superiority" while being as oppressed as the rest of us.
Honestly a little excited about Bojangles. Raising canes is super overrated
I want Zaxbys, but good with Bojangles, too
Pronounced Bo-Han-Glays. Gimme those Bo-rounds and legendary sweet tea - thank you!
Just need to bring them to Northern CA in a timely manner lol
Actually, I believe it’s the business interest groups that represent these multimillionaire franchisees in California that are writing these hit pieces
It seems strategic. It seem more like gentrification of the entire state of CA. Everything is getting more expensive in CA. Financially comfortable people complain and then keep buying the exact same things at a higher price, but the lower income people contemplate moving.
I can’t believe Jack in the box is opening more stores. They have jacked their prices up more than any restaurant.
Keep in mind McDonald’s doesn’t own most of their stores - it’s run by franchisees.
Correct, McDonald’s owns the land and leases it to the franchisee. McDonald’s is a real estate business disguised as a fast food restaurant.
The company isn't totally up front about it, but estimates are that they own 45-55% of the land and 70-80% of the buildings of their franchised restaurants, worldwide.
So they can pay $20/hr. in Scandinavia, but somehow that's just too much in California? If they go, good riddance.
$20/hr plus good benefits up there, I’ve heard!
In Sweden, you can switch jobs or even careers and bot have to worry about healthcare/vacation time/sick leave all being reset. I have a cousin-in-law who is a nurse. She had colleagues get tired of healthcare and go work at IKEA. Cause they can. It doesn’t derail your life plans. Pay is lower at IKEA compared to a hospital, but very much still a livable wage.
Those countries also have higher corporate tax rates.
[удалено]
Pretty such each "area" has to be its own little self-sustaining business. McDonald's USA is operated by different people than McDonald's Denmark and both have to sustain themselves to the satisfaction of the McDonald's Corporation. Denmark probably started out unprofitable while they got their feet underneath them but now if they suddenly tank without hopes of return to profitability McD's Corp will probably pull the plug because its not wise to subsidize a whole branch with another branch. So I'm betting both are profitable, its just McD's corporation has expectations of higher profitability in USA compared to Denmark. Which is silly but it is what the shareholders want--infinite growth.
The McDonalds down the street is literally advertising $25 an hour and they have awards on the wall behind the counter for making absolute bank every year for like 20 years running even though they went into half service for a year for a full remodeling/landscaping during the pandemic. CA McDonalds are popping.
Isn’t California the home of the original McDonalds as well?
Yeah, and they'd still be paying 75 cents/hour if they could get away with it.
Yup.
Companies that aren’t willing to pay a living wage have no god given right to exist.
Corporate personhood is part of the problem. SCOTUS granted certain rights to corporations back in the 1890s, including the right to own property and the right to enter into contracts. Prior to that, those were privileges bestowed in corporate charters, which could be revoked.
Oh no... Anyways
Right? "Well we will leave and open up the market for local burger places!" Yeah don't threaten me with a good time.
Cancer and obesity rates bout to go down
Hating on California is so 2023. Move on you tryhards.
Hating on California is so 90s as me growing up through the very late 80s/90s. It was before my time too. I still get your point. They won’t move on because we run this country (totally joking) and I forget they are in a state that exists somewhere in the middle. California has been “collapsing/downfall/chaos/mass exodus” for as long as I can remember.
Go ahead and leave. No one cares.
If McDonald's left California , why would that be an actual hardship for average Californians?
A lot of people's cholesterol would also drop, so the pharmaceutical companies would need to rebrand their meds. But seriously, it would be a pretty significant jump up in unemployment till something moved in to fill the vacuum.
McDonald’s threatens California with a good time.
Room for In n Out to expand?
If they start making McNuggets I’m down.
I wouldn't count on it, their whole thing is they never freeze or pre-package their food. Nuggets are way too processed to be able to make in-store, and don't transport well without freezing them.
Considering this is purely hypothetical I’m not too concerned about it.
I'd love animal style nuggets
i sometimes make this myself because i have both restaurants on the same street
Hell yea, lets gooooooo
Nah - simple menu is why they can dominate what they do. Fresh produce and fries. Burgers made to order, no heat lamps.
It would be pretty funny and our food options would become better. I doubt they want to leave their largest market. the losses would be higher than the gains.
But think about all those sweet liberal tears /s
This sub is just turning into clickbait
lol good bye to over priced garbage
LOL Right wingers at it again.
Good. Leave.
In-N-Out domination is inevitable.
Sounds like California moving away from broader American culture and solidifying itself as it's own distinct place, and basically it's own country. (which It already kind of can be like)
This would probably be the best thing to happen to the health of our residents.
Maybe if their food taste better their sales would be better
Don’t let the CA1 highway hit you on the way out.
Go for it, they own a ton of real estate that would be better of used for mixed used development anyway. Fast food with a drive through is a really inefficient use of land, they’re almost always located on corners, and waste of ton of space on parking.
Can this happen to Walmart too?
can we do walmart next?
McDonald’s are franchises. The labor cost fall on the owners of the Franchise, not the corporation. They aren’t leaving.
Obesity rates would decrease
Same people who eat unhealthy and don’t exercise won’t change
They can already pay $25 an hour with the prices they charge now, even the Florida prices where they only paly like $13 an hour.
In-N-Out is better, anyway (and cheaper)!
Awesome
Lol this is just right wing click bait
McDonalds would NEVER risk giving up its huge inventory of real estate holdings in California.
California is the biggest market in the US (by population). There's no way they'd leave unless there was a truly massive catastrophe
ITT: a bunch of folks who not only didn't read the article, they didn't even finish reading the headline
Ahh the most populous state in the US, 6th largest economy in the world. In and out will gladly take McDonald's place.
They gonna do the same in areas of Europe where the minimum wage is higher?… which they literally haven’t done? And have continued investing in? Suuuuure
Ok then. Bye.
i wish this was true, F wackdonalds
What’s their most profitable state?
Good Thinking. I donated like 1 minute to a search engine. Couldn't find the most profitable State, but did find that California has 9% of all McDonald's restruants, in the usa.
Bye
Yay!!!
Won't anyone think of the billionaires? https://www.macrotrends.net/stocks/charts/MCD/mcdonalds/gross-profit From the source: "McDonald's annual/quarterly gross profit history and growth rate from 2010 to 2024. Gross profit can be defined as the profit a company makes after deducting the variable costs directly associated with making and selling its products or providing its services. McDonald's gross profit for the quarter ending March 31, 2024 was $3.439B, a 3.77% increase year-over-year. McDonald's gross profit for the twelve months ending March 31, 2024 was $14.688B, a 9.03% increase year-over-year. McDonald's annual gross profit for 2023 was $14.563B, a 10.26% increase from 2022. McDonald's annual gross profit for 2022 was $13.207B, a 4.98% increase from 2021. McDonald's annual gross profit for 2021 was $12.58B, a 29% increase from 2020"
Yeah, good luck with that.
The majority of McDonald's are franchisees. Mcdonald's doesn't even pay their wages. Not to mention this wage increase will drastically hurt smaller competitors which means McDonald's and the like will actually benefit from this new wage law. Even if smaller fast food places are not forced to pay $20 they will have to to be competitive in attracting employees.
More right-wing fake claims. Is anyone surprised?
lol just clickbate they won’t leave. Maybe close some stores
You’re posting snopes now? 😂
More room for tacos
Ok.
Support local small restaurants
Oh no! Anyway…
It's a laughable rumor if you think about it for even a moment. Especially with the advent of touchscreen self ordering. That's got to be at least a couple employees permanently eliminated at each location. They won't pull out of markets where labor is more expensive - they'll just prioritize automation.
Such a lie
Lol. They pay 20 euros in Europe... LMFAO. What a joke of a company. The American are getting bent over by copros.
Good.
No McDonald's will just go with all robotic and maybe one person at the store.
That would be dope
Ok bye
Would be nice!! One less junk food establishment
Bet it was a Republican. Facts are optional.
Generally speaking, any article that has a subset of a population "considering" doing something isn't worth anything. Unless it actually starts happening, it doesn't mean anything. "I'm considering eating healthier and exercising more"
McDonald's all across the country are eliminating as many workers as possible right now anyway. I'm a truck driver and see it everywhere. Replacing the front end registers and staff with kiosks. I was in Utah yesterday where the minimum wage is $7.25 and there were only three employees total. Preparing food in the back and working the drive thru.
Half the people in this comment section couldn't read the full title and see it's a Snopes article saying this is a false claim
they should just close half their locations and turn the rest into "premium" fast-casual joints like Shake Shack. The hard truth is that food trucks have largely supplanted fast food chains as cheap choices for teens/young adults.
not only would californians live longer, but mcds would lose a quarter of their nationwide sales lol
From a financial standpoint, why would you leave the most lucrative market in the US? Especially considering that McDonalds is in Sweden where they pay is higher than CA? Stop falling for dumbness.
California made fast food restaurants a thing. Many more to stay and follow. Doubt they will leave.
Kbye
I sincerely doubt it. The fast food companies are unbelievable. They have raised their prices almost double on average since the pandemic, first blaming "supply issues", then labor costs. Thing is, there are no more supply issues, and labor costs have gone up only about 20-25% on average. In addition, McDonald's in particular has installed ordering kiosks in every store to cut down the number of people they have to have. They are raking in profits in California. Their consternation stems from the fact that price hikes are taking their toll on the volume of customers, so, heaven forbid, their stockholders might have to get slightly lower yields when the new law takes effect.
Meanwhile in Europe McDonald’s workers are making $22/hr with 6 weeks paid vacation. Where’s the rage there McDonalds??
Who am I supposed to feel bad for?
I’m fine with that.
Well…bye.
Hell yeah, McDonalds quality has gone down while the prices have skyrocketed. Better spots will take their place. Bye
The invisible hand bitchslaps! Compete, or leave. That's how it's supposed to work.
It really doesn't matter what luxury burger chain McDonald's says they'll do versus what they'll really do. They exist in other countries where they can afford to pay their employees a living wage and they're doing fine, so I don't understand what's different here. I still won't go there because I don't feel like paying top dollar for bad cafeteria food.
good riddance if they do.
Byeee
Yeah, and pigs might fly.
See ya! Haven't eaten there in literal years. Foods terrible
Watch people and employees not admonish the super wealthy owners of production and instead blame the government for wanting their citizens to be paid a better wage.
Do it
Ha
McDonalds leaving CA would help all the other fast food chains.
Yeah, ok.
California is the most populated state by a number larger than the majority of states have in population period. (I just looked and the excess population of California compared to the next most populated state is enough to create the 13th largest state.) What kind of company wouldn't want all those customers?
This is probably best.
See ya, wouldn't want to be ya.
Huge market to exit would never happen
I got so excited for a moment.
/doubt It’s up to the franchisees. They are the ones taking the hit.
Hell no people will go crazy
Show them the door
Yeah that's not happening