TGI
Triumph Group, Inc.
stock NYSE

I agree with you. And that’s the vicious cycle of owning a struggling restaurant. The brand (like Wendy’s or TGI Fridays) falls out of favor, which means less revenue for the store. So the business owner may go from making 7% on their money (a pretty good investment) to 4% (would make as much if they just put their money in a CD account with no stress). Now his manager asks for a raise because their friend who manages a McDonalds is making more than them. The owner does the math and figures out that the raise would bring him to 3% return on his money, along with the risk that the manager talks to other employees and they get pissed that they’re not getting raises. So the manager doesn’t get the raise and gets pissed and leaves. The owner wasn’t trying to be mean, it just didn’t make financial sense for the business.
Now think about how the guy who began this thread (and somehow got upvotes from fellow idiots) who said “the owners should’ve foregone AI and paid the employees more” If the owner did that, his 4% return becomes -2%, meaning he would have to shut down the business and everybody loses their jobs.

You understand franchises go how the brand goes, right? Would you rather own a TGI Fridays franchise that’s perfectly managed, or a chik fil a that’s improperly managed? There’s only so much a franchisee can do if the brand falls out of favor.

I agree with you. And that’s the vicious cycle of owning a struggling restaurant. The brand (like Wendy’s or TGI Fridays) falls out of favor, which means less revenue for the store. So the business owner may go from making 7% on their money (a pretty good investment) to 4% (would make as much if they just put their money in a CD account with no stress). Now his manager asks for a raise because their friend who manages a McDonalds is making more than them. The owner does the math and figures out that the raise would bring him to 3% return on his money, along with the risk that the manager talks to other employees and they get pissed that they’re not getting raises. So the manager doesn’t get the raise and gets pissed and leaves. The owner wasn’t trying to be mean, it just didn’t make financial sense for the business.
Now think about how the guy who began this thread (and somehow got upvotes from fellow idiots) who said “the owners should’ve foregone AI and paid the employees more” If the owner did that, his 4% return becomes -2%, meaning he would have to shut down the business and everybody loses their jobs.

You understand franchises go how the brand goes, right? Would you rather own a TGI Fridays franchise that’s perfectly managed, or a chik fil a that’s improperly managed? There’s only so much a franchisee can do if the brand falls out of favor.