A business can make a profit AND offer good service, including teaching.

I agree. At least in the West the evidence is all around us for such the existence of such businesses. Perhaps at the moment those businesses aren't located in the ESL sector or in China but that doesn't mean that at some point in the future this won't change. I've written before about the idea that the ESL market in this country will mature and at some point surely consumers (students and parents) will ask for more for their money. When this happens someone will be willing and able to provide that for them - simple supply and demand!

In fact, if you put me in charge of most of these chain schools, they could be good places to work.

Haha! Maybe you should re-consider leaving China and put your money where your mouth is! I was in charge of the academic department of a training school for 18months. During that time not one foreign teacher finished their contract early (most stayed on past he initial period) and the academic standards rose considerably (it would have been difficult for them to get much worse). However, i had to fight tooth and nail for every little concession that made the working and learning environment better. Given yourself and LondonGirl's previous posts on the standards of education in China and particularly training schools i'm sure you can understand how exhausting and soul destroying the experience was and why i now choose to stay away from such institutions. It's highly unlikely you'll ever find a school in China that'll give an experienced educator total control of all school affairs. My business philosophy was simple, if the teaching quality is high enough you won't even need a sales and marketing department. To quote a field of dreams, if you build it, they will come. But as you correctly point out, Chinese bosses and 'leaders' can't see past the tips of their own noses when it comes to making business decisions.