Small restaurants and franchisee restaurants across the country are closing down and laying off employees. Meanwhile, McDonald's is actually adding stores this year--1,000 of them. McDonald's continues to be recession-proof, as I dubbed the fast-food giant.
As the BBC reports, McDonald's global same-store sales rose 7.2 percent in the fourth quarter, and 5 percent in the U.S. alone.
Small businesses competing with McDonald's in Texas might be getting a slight advantage soon. Texas Gov. Rick Perry wants to exempt businesses with under $1 million in revenue from a tax that currently applies to many businesses in the state. Texas's franchise tax brought in $4.5 billion when it was administered in 2006, and it applies to corporations, LLCs, parterships, etc. Currently the exemption for the tax is at $300,000, but Perry wants to expand it to give more relief to more businesses.
As large businesses like McDonald's expand while small businesses shut down, maybe we'll see more governors follow Perry's lead.
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HillbillyBill of TN 12:57PM January 28, 2009
HillbillyBill of TN 12:56PM January 28, 2009