Mike AndesFounder, Augusta Lawn Care and Homeworks · Founder of Homeworks and Augusta Lawn Care

How McDonald's Employees Make $85 Hour

20 Jun 2024 · 1 min

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Mike Andes argues that the average McDonald's employee generates over $128,000 in revenue per year for the business. Using an assumption that employees are productive about 75% of their time, he calculates that an employee produces roughly $85 of revenue per hour. He contrasts McDonald's short training-to-efficiency timeline (days to train a teenager) with home-service businesses whose employees take much longer to become profitable, and suggests simplifying services or hiring skilled people to shorten time-to-efficiency.

Questions this video answers

Over $128,000 per year.

About 75% productive (25% waste/training).

About $85 per hour.

About two days.

Chapters

The average employee at McDonald's earns over $128,000 in revenue for the business every single year. Assuming that someone works full time and they are efficient for about 75% of their day, and another 25% is waste training, etc. That means they make about $85 per hour, which is about the same as most home service businesses. The difference is the fact that McDonald's can take a teenager and with a matter of two days, train them on how to make that $85 per hour effic. Home service businesses, we're expected to like, drive trucks and trailers, dig trenches and with a backhoe and a excavator and do all these complicated things. And so the time to efficiency, the time it takes to get an employee to go from being entry level to actually profitable, is extremely important. You can do this and make this happen faster by simplifying your services, or you can go hire really skilled people. The first one is a lot easier.