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How Fast Food Restaurants Really Make Their Money

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If you're new, Subscribe! → http://bit.ly/Subscribe-to-Mashed It seems crazy that fast food restaurants like McDonald's can stay in business when the cost of their food is so low. How can anyone really turn a profit offering dollar menus, coupons, and value meals? While it may seem like fast food restaurants are pricing themselves out of business, the most successful ones employ lots of tricks to make sure patrons keep coming back. Plus, there are some factors most people don't consider. For example ... Real estate | 0:23 Limited menus | 1:12 Upselling diners | 1:47 Cashing in on extras | 3:03 Low prices, low wages | 3:32 Convenience | 3:57 Soft drinks, hard cash | 4:28 Read more here → http://www.mashed.com/69317/fast-food-restaurants-really-make-money/ Website → http://www.mashed.com/ Like us → https://www.facebook.com/MashedFood/ Instagram → https://www.instagram.com/mashedfood/ Pinterest → https://www.pinterest.com/mashedfood/ Mashed is the ultimate destination for food lovers. Whether you're just learning how to cook or ready to take your kitchen skills to the next level, Mashed has all the tips and tricks you'll ever need to be a chef… Or at least enough hacks to help you fake it til you make it. We’ve got your back at every step, from grocery shopping smarts to serving a perfectly prepared dish. Would you rather eat out than whip it up yourself? Mashed has all the info you’ll need for that, too — from the best and worst foods to order at your favorite restaurants, to what today’s most popular chefs really have up their sleeves. No matter what kind of foodie you are, Mashed has your recipe for success.
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Text Comments (1303)
kev3d (14 days ago)
It's a source of endless amusement to find those who rally for high wages for flipping burgers and dunking fries in hot oil, as though they are forced to work there.
Dave Erhardt (15 days ago)
They keep their prices low by paying low wages around minimum wage. These are low skilled jobs remember, and also for many workers their first job. Why would you pay them more?
ajeeth 79 (16 days ago)
Msg?
J SaV (23 days ago)
This scares me
GoGoHopping TV (30 days ago)
Don't forget government subsidies .. When you buy a $1 hamburger, the actual cost is closer to $2 considering where your tax money is being spent. https://www.washingtonpost.com/posteverything/wp/2015/04/15/we-are-spending-153-billion-a-year-to-subsidize-mcdonalds-and-walmarts-low-wage-workers/?noredirect=on&utm_term=.d94ea510ca17
Snake Eyed Ghoul (1 month ago)
"How Fast Food Restaurants Really Make Their Money" #1). Exploiting children #2). Exploiting children #3). Exploiting children #4). Exploiting children #5). Exploiting children #6). Exploiting children
Evin Scorcia (1 month ago)
Burger King has a 20% profit per burger.
sir eatsalot (1 month ago)
Hilarious when they say it might be hard for someone to find the time to cook so it's convenience. It's laziness. Unless you are working 60+ hours a week, no reason you can't cook a meal at home. It's just people are too lazy and don't want to cook, so they eat this stuff instead.
Paris Watkins (1 month ago)
gr8 video
Daniel Johnston (1 month ago)
What low prices? That 15 cent cheeseburger is now about $6 bucks! Try that with 3 kids and wife!
Haziq (1 month ago)
Fast food isn't even cheap tbh
Anthony Enos (1 month ago)
Hey I would like to upsell McDonald's executive a Big Fat u know what.Make me the world dictator force feed executives their own bullcrap.
God Makoto (1 month ago)
Fast food in America is horrible paradoxically its better on l.a.
Ruben Hayk (2 months ago)
i tried eating mostly fast food ,but Poor quality, high price and average taste, is the reason why i learned to cook.
Benjafovi1 CR (2 months ago)
GARBAGE.....But Fuck im hungry for a bigmac now. lol
donnell walker (2 months ago)
Wacarnolds is tearing this family apart!!
LooneyPlootzy (2 months ago)
Harder to say no? When asked? Here's advice on that... No
Mysterious Stranger (2 months ago)
Notice the handsome guy drinking the soda 4:48. Fact: you will not be or stay good looking for long if you drink soda or consume lots of sugar on a regular basis. Unfortunately most Americans are completely oblivious to this fact.
J Johnson (2 months ago)
Fun fact: McDonalds hamburgers are called 10:1, meaning it takes 10 hamburger patties (before grilling) to equal 1 pound. Considering how much they shrink while grilling I'd assume in the end each Patty is literally a 16th of a pound or 1 lousy oz.
John H (2 months ago)
How did they think we thought they made money. Selling us food for the same cost they paid for it, paying their employees more than they need to?
John H (2 months ago)
If employees are not happy with their wages, get another job. Is it McDonalds fault that they didn't pay attention in class. This video is explaining business as though methods of making more money is bad?? Did they mention the Ronald MacDonald foundation or any of their charitable giving?
Lily Pong (2 months ago)
Chinese movies
LukeL007 (2 months ago)
People want $15.00 an hour yet most fast food locations would be lucky to net $100K for the owner per year.
LadyScorpio39 (2 months ago)
subway is the worst! their employees are the rudest ive ever seen, they rush you through the line as if they were performing brain surgery instead of making a sandwich. and most times the veggies are not fresh, brown lettuce, yellow tomatoes, etc. i know, i worked for them, and they are the worst to work for. they got you doing 10 jobs for minimum wage. I had to work the checkout, stock the refrigerators, make subs, cut vegges, mop floors, do dishes, and all for a dam minimum wage. your doing the job of 10 people! I worked at mcdonalds in high school also, and i cant say anything good about them either. I'd never work fast food again! and i hardly ever eat fast food anymore. most supermarket have deli counters now where you can get ready made sandwiches, chicken, pizza, you name it, and its better priced and better tasting!
Vashawn Moseley (2 months ago)
I will subscribe to your channel if you subscribe to mine
Michael Felix (2 months ago)
They make money because most people are stupid animals.
TheHed94 (2 months ago)
If you are certain what do you want for the order and worker changes your mind for more food just by asking... then you wasnt certain about your order, or you have very weak will.
La Republica Jorgista (2 months ago)
Tax profits.. getting all that money back.. that’s what keep alive the business with the Real Estate profits.
Ben Chesterman (2 months ago)
Bullshit communists . franchise make fuck all money when your turnover is taxed 50% by democrats assholes 30 yrs
dave m (2 months ago)
No fast food restaurant ever serves what the food looks like in the pictures
Chambecd (2 months ago)
THE MEDIUM CUP IS A LIE! If you get full small cup, or a full medium cup! It's the same amount of drink! What a lie!
bubbaXzone (2 months ago)
sry i keto now your tricks wont work on me!
John Campbell (2 months ago)
Not to be argumentative, but when I visit McDonald's, I usually only get a few dollar menu items. They don't ever ask if I want fries. I'll get a couple cheeseburgers, and on some visits, a sundae or ice cream cone. So I mean, not everybody looks at the menu, and wants to order more than they planned to.
willard brickey (2 months ago)
I see nothing insidious about any of this. Do you?
Gusty (2 months ago)
my mom and i discovered one time that its cheaper to simply order the full combo meal than it is to try ordering individual items from the dollar menu depending on what item it is
heavymechanic2 (2 months ago)
The Dollar Menu is more of a Bait & Switch, credit cards are accepted because consumers spent 18% more when cash is not involved. You cannot compare 50 lbs of potatoes to frozen french fries and determine any cost/profit margin. Yeah, there are lots of unreasonable charges attached to a meal (2.39 for a coffee) the price of milk or orange juice? OMG! There is also a lot of expense that people do not understand, the prices are fair based upon the business model.
Trill Ville (2 months ago)
KEEP THOSE DAMN SODA MACHINES CLEAN ALSO!!! I try to not get fountain sodas period but I will get a milkshake or have to get them for others 1/3 of the time though.
Daniel Parrish (1 month ago)
MARVIN ZINDLER from channel 13 in Houston used to do inspections on fast food places every friday ...... he was known for his saying " SLIME IN THE ICE MACHINE" and everyone would join in and say it with him durning his report making a big production of it ...... I can still hear him now many years later
Trill Ville (2 months ago)
Each time I go to BK (or Checkers) it's with coupons like 99% of the time or Papa Johns 50% off code on the entire order only also. I hate 5 guys which is over priced & overrated that I have to order for others often.
Daniel Parrish (1 month ago)
BK was once running their Whoppers for 99 cents but their double Whopper was still regular price at $2.99 ....... I had a friend that went in and ordered two Whoppers and told the clerk to make the 1st burger all the way and on the 2nd burger he wanted them to hold the bun, pickles, no mayo , no pickle, no onions , in fact just hold everything but take the meat on the 2nd burger and put it on the 1st ....... that way he got a double meat whopper for $1.98 not $2.99
BigMacs 4Life (2 months ago)
If an what if I was a owner of a Dive id pay my employees $10.00 hr just for quality of job
BigMacs 4Life (2 months ago)
Rent @ McDonald's started around 15 a burger what's it at now
Leon Andrews (2 months ago)
Fast food places make a lot of money from not paying their employees shit.
Joseph Ybarra (2 months ago)
Most fast food resturants make their profits from their accessories like lettuce, tomatoes, and other added ingredients than from a burger made from simply 2 buns, a patty, and cheese.
Comical (2 months ago)
What's with the fucking earbleeding EDM track in the background?
Montage Matador (3 months ago)
i'm well disciplined with fast food places. I almost always order off the budget menu and rarely spend more than 5 dollars(depending on the place). WIth Mcdonald's I can easily grab a McChicken and a water and only spend $1.11. You can still eat fast food and not be overweight, believe me...I used to be quite overweight
TheDeathmail (3 months ago)
Also, their "dollar" menu stuff is often pretty small, so it's not as great of a deal as one would think...
Henry Stollard (3 months ago)
The "s" in Illinois is silent. ill-ah-noy
hihellokitty85 (3 months ago)
Wow! I literally learned nothing from this, as usual. Thanks! Is it called common sense?
My Muse (3 months ago)
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jennifer swanson (3 months ago)
You forgot the all mighty labor $. How low can they run their labor? When I was a manager at McDonald's, it was 11%
keiston slasher (3 months ago)
Fast food. Fast money
Kaila Kruger (3 months ago)
My husband and I go to lunch spend in 4 dollars and getting 4 sandwitchs
Scott Kopala (3 months ago)
ugh. there is a silent s in Illinois jezzzz
pawprints1986 (3 months ago)
in Ontario we went from 12 something to 14 for minimum wage. I was making above minimum... not anymore. Such BS after my years of service. If it wasnt for needing a job at all.... 😡
Luca Mameli (3 months ago)
Help me please, every time my family want to go to Mc Donald I need to go with them, the problem is: I know how Mc nuggets are made, but I can't resist. Do anyone know how I can stop myself?
John Doe (3 months ago)
Costs so low? It’s costs $10 for a little Mac!
David Carter (3 months ago)
You said in your video the "tactics" they use?! ...It's more like intense deception and trickery that the most popular magicians in the would envy having! SMH & LMAO! 🤣
David Carter (3 months ago)
How do fast food places make their money??? Low overhead, dirt cheap labor, even cheaper food with fillers and chemical additives and last but not least, their sleezy deception & common trickery, not to speak of them engineering ways that the food won't spoil prior to a decade or 3! Simple logic that most fast food joints apply! Haven't eaten at these fast food joints for over 10 years & believe me I don't miss it a single bit! Of course they're tasty, the chemicals they add to the food insures that at a mere cost of your health! Good for them, terrible for the consumers that eat that garbage they sell!Ughhh! SMH
eLEMENTARYimage (3 months ago)
Always knew sides and sodas were this industry's gravy.
Changbastard (3 months ago)
If you don't like the wage, don't work there.
UncleFeedle (3 months ago)
Deliberately uncomfortable seating, to keep you from hanging around too long once you've finished eating.
Charlie Brown (3 months ago)
I dont know what mcdonalds u talk about here in california ..in and out is cheaper and more quality mcdonalds is expensive and small portions..
Tim Tim (3 months ago)
In n out burger pays their employees quite well in comparison.
Smug Smugly (3 months ago)
I'll take a double wham burger Choco Wham Shake and an order of wham fries.
ElyssaAnderson (3 months ago)
Dollar menus are my weakness, especially after working out (because I'm not very bright 😳). After a spin class, I need french fries to live.
gwwayner (3 months ago)
A&W here in Canada have far superior hamburgers and fries than McDonalds at only slightly higher cost. Why anyone would eat the garbage at McDonalds is beyond me. Is it any wonder that heart disease is a leading cause of death in the USA?
Christopher Cardono (3 months ago)
All their food is GMO and it's very unhealthy and the beef is horse meat and their chickens are injected with growth hormones and that included Burger King, Wendy's and many others fast food chains. If you went to their farms or plants and I guarantee you would not ever eat their food again.Good luck eating that Garbage food.Think twice before bringing your kids to these disgusted fast food restaurants. Take my advice, don't eat any of these fast food restaurants.
Vandré Borba (3 months ago)
Cost so low? In Brasil its kind of expensive! You can eat better sandwich in a lot of places, better, and cheaper!
JJgams (3 months ago)
Dat thumbnail tho
Mr PePe (3 months ago)
Me: lemme get a big Ma... *Checks bank account* Me: nevermind lemme get cup of water
Michael S (3 months ago)
Franchise fees and labor costs eat up those profits.
blow me (3 months ago)
Low wages = workers who dont care = shit for food, service or both.
Tony Browns (3 months ago)
50 Pound Bag of Potatoes for Ten Bucks... WHERE???
M. A (3 months ago)
When you eat chicken it's probably chicken guts mixed with pork fat and fish skin. Things that usually go to trash. I'm loving it.
Javier Martinez (3 months ago)
Yall just broke
Brandon Pringle (3 months ago)
That’s why I always get soda with water cups
Sandy Vale (3 months ago)
15¢ hamburgers?? When was this made?
Peri Nestor (3 months ago)
Do not eat that shit,you fatso.👿👿
teammm (4 months ago)
So delicious
Capn Cummings (4 months ago)
Mcdonalds doesn't pay anywhere near min wage.
Jeffrey Jewell (4 months ago)
These companies are fucked up.
da jo (4 months ago)
that a lied it not low their prices are not low
SorcererUB (4 months ago)
AND the profit comment is ALSo ignorant. Again, typical franchisees make between 5-6% profits before taxes. Retail and Fast Food are LOW MARGIN industries
SorcererUB (4 months ago)
The comment on wages is ignorant and uninformed. Fast food restaurants make about 5-6% of sales, pre tax. Employee wages are generally 20-25% of sales
Jeff (4 months ago)
I always order from the dollar menu or use those smartphone coupons and get a cup of water. I don't really like soda, and fries arent worth how unhealthy they are. Fast food CEOs hate me
WuzNab (4 months ago)
With Ronald mc Donald Lincoln bills? Mc Rincoald bills?
Jay Jay (4 months ago)
It's pink slime lol...u wanna know more about this vid, watch FOUNDER
Carmelo Sgro (4 months ago)
i worked for Burger King / Hungry Jacks, the store buys a syrup from Coca Cola & water is added by the drink dispenser machine also supplied & maintained by Coca Cola. Price comparison that is way cheaper than buying whole bottles (600ml)
john coffey (4 months ago)
you forgot to mention 7.50 an hour cheap labor
Daniel Cortez (4 months ago)
Ronald McDonald is scary
Jeff & Jessica (4 months ago)
Does anybody else hate McDonald’s besides me?
Jeff & Jessica (4 months ago)
For anyone thinking about working at a fast food restaurant here’s some things I think you should know first. I work at a local Hardee’s. First thing is yes the pay does suck. But that’s kinda obvious something you may not know is when I first started I worked their for 2 months and they would only work me 2 days out of the week and for only 2 hours at a time. So if you have bills or a family I highly wouldn’t recommend fast food as a option. Another thing is depending on a good manager or not they don’t like you taking breaks. And one last thing what was once your favorite restaurant now the food sucks from eating it so much.
Clarence Aaron Jones (4 months ago)
It has now been 3 months since I had anything to eat at any burger joints. The very thought of putting that crap in my mouth makes me sick.
madbug1965 (4 months ago)
McDonald's Value Meals are not a value.
WackIt AllDay (4 months ago)
quantity over quality.
onenickelmiracle (4 months ago)
They sell food meant for animals to humans.
Novaximus (4 months ago)
Yes, I would like a delicious blend of apples and cinnamon baked in a flakey pastry pie crust.
Novaximus (4 months ago)
You still have to factor in payroll, rent, utilities, reapairs, costs of oil replacement and throw away items such as napkins, bags condiments. Then there's advertising, years worth of building brand loyality, law suits, cleaning products and inspections. They need those profit margins. A store's 3 hour rush out is where they probably turn a profit for the day. The slow hours they probably break even.
Takyi Kobbie (4 months ago)
We r waiting for McDonald's in Ghana
Damien Johnson (4 months ago)
Eh. McDonald's. I'd literally prefer hunger to eating that horse shit. Cardboard with tuna fish is more appealing than that joint
Juan (4 months ago)
I get 5-6 refills jokes on them

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