1) Profit margin is likely 5-10% because 1) it's a food-service business, a type of business that is known for low profit-margins do to a long list of unavoidable expenses and high overhead cost and 2) they aren't being run as efficiently as possible (aka sloppily). Sure, it could be improved, but that's irrelevant to the context of the issue I'm raising.
Most of the fast food companies have operating profit margin around 30%, like MCD and BKW.