Gross profit: $1,782,000
Crew Payroll - $540,000
Manager Payroll - $108,000
Payroll taxes - $54,000
Advertising - $108,000
Promotions - $13,500
Outside Services - $27,000
Linen - $5,400
Operating Supplies - $27,000
Maintenance - $40,500
Utilities - $81,000
Cash over/short - $2,700
Misc - $13,500
------------------------------
$761,400
Rent - $391,500
Legal/Accounting - $8,100
Insurance - $54,000
Taxes - $27,000
Misc - $2,700
Depreciation - $94,500
Interest Expense - $27,000
Net nonproduct - $2,700
------------------------------
$153,900
When I checked, a Big Mac costed 21% less in Denmark ($4.50 vs $5.67 at the current exchange rates, 2 years ago). A year ago, the relationship was reversed, but in both cases the price difference wasn't that significant.It's tricky getting the numbers across all ~80 McDonalds outlets in Denmark. But McDonalds Corporate runs 4 of those outlets, and they break the revenue out for them. We looked at the 2016 grosses, divided by the 4 stores and converted to USD, and the topline for those stores looked identical to those of the typical US McDonalds outlet.
Average crew count in Denmark McDonalds appears to be the same as that of US outlets, so automation doesn't seem to be a factor.
Further, McDonalds doesn't subsidize health insurance for crew, so the Danish social safety net can't have much to do with the viability of this wage.
It does not look like there is room in these numbers to double crew salary. I'm confused as to how these stores can be viable.