Slim margins make fast food worker pay hikes a tough sell for many franchisees

Recent fast food worker strikes have highlighted the question of whether fast food companies can afford to pay workers more than the typical $7.25 per hour, but many franchisees say their margins are already slim. Falcon Holdings CEO Aslam Khan said profit margins at his company's 165 Church's Chicken and 44 Long John Silver's units have dipped from 5% to 1% in the past three years, and paying more than the $8 to $13 per hour his company currently offers would be a stretch.

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