Osito , 4 months ago

So if they’re around 30 cents at cost and 3.19 at sale, that’s about 11X markup to account for OH, G&A, and profit

Depending on the location of the restaurant, OH can be to to 400%, they have to pay a franchise fee, 45K a year, which is not significant compared to sales, but let’s its 5% of sales, that means that around 6X of the markup is profit

They can just lower their expectation of profit and still be more than ok