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I just don't see this fast food worker being worth $15/hr(non-Vegas)

TsuDoNihm
TsuDoNihm
Jul 15, 2014
7:02am
Block User
In case anyone is interested, the Motly Fool wrote this article entitled "What Will a Minimum Wage Increase Cost You at McDonald's? a little over a month ago and came up with these numbers:

An increase from $7.25 to $10 would result in an increase of 9.7%
An increase from $7.25 to $15 would result in an increase of 27.3%

And now we return to our regularly scheduled forum.
rdwoodpecker
rdwoodpecker
Jul 15, 2014
7:04am
Block User
I don't just think of the franchise fast food restaurants, I think of the small business.
If you own a silk screen shop or T-shirt shop are you gonna stay in Seattle? I think a number of these kind of operations will look to re-locate or simply close down. If you compete against someone in say Oregon or other parts of Washington that is paying $9 per hour how you gonna make that work?
Margins for many of these folks is slim already.
Time will tell.
esteskefauver
esteskefauver
Jul 15, 2014
8:16am
Block User
A $15 min wage will have a big negative effect on their economy. As BobOrme pointed out the implementation would not drag out over several years if they thought the impact would be positive. At $15, you've unemployed a segment of the population. The 90 iq man that needs constant supervision will never have a job in Seattle again. He was marginally worth $9/hr. In fact, most of the current fast food workers will never work in Seattle with a $15 min wage. They'll be replaced with automation where possible and with workers that are more productive and reliable. Lots of people in the suburbs that wouldn't drive in for $9 will for $15.

If my business was in Seattle the first thing I'd do is move to a suburb with a more reasonable min wage. I'm sure commercial real estate owners are thrilled at what the $15 min wage is going to cost them. If I had a business that moving wasn't an option the next thing I'd do is cut jobs. I'd cut down to 2.5 jobs for every 4 jobs. The 2.5 employees left will have to work harder make up for the lost labor of the 1.5. If they don't there is a long line in the $15/hr pool that can.
forkushV
forkushV
Jul 15, 2014
8:18am
Block User
Quote
Originally posted by: Roulette Man
Quote
Originally posted by: pjstroh
Quote
Originally posted by: Roulette Man
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Originally posted by: malibber2
Gosh, I am in tears right now crying for the Walton family and Mc Donalds they are the real victims here lets not forget that.

I don't think you know how much a McDonalds franchise owner nets or you wouldn't be using such sarcasm. While they are not starving it isn't nearly as much as you think.


Franchisers were paying an inflation adjusted $10/hour for their help in 1970..and that was with less technology and less productivity (in other words - more workers required to operate the store). Yet somehow they seemed to make it...and their employees didn't need to apply for food stamps.


They either have to lay people off or raise prices or do a combination of the two. As I stated earlier, a job at McDonalds should not be a career unless you have moved into management.
You conveniently ignored PJ's point.

Since the lowest paid McDonalds employees were making an inflation-adjusted $10 per hour, and had less technology and lower productivity, how did McDonalds survive? Were their prices unaffordable or were their franchisees being squeezed out of business or did they have to lay off employees. No - just the opposite, right?

Once again, Roulette Man, history is your enemy.

Roulette Man
Roulette Man
Jul 15, 2014
8:46am
Block User
Quote
Originally posted by: forkushV
Quote
Originally posted by: Roulette Man
Quote
Originally posted by: pjstroh
Quote
Originally posted by: Roulette Man
Quote
Originally posted by: malibber2
Gosh, I am in tears right now crying for the Walton family and Mc Donalds they are the real victims here lets not forget that.

I don't think you know how much a McDonalds franchise owner nets or you wouldn't be using such sarcasm. While they are not starving it isn't nearly as much as you think.


Franchisers were paying an inflation adjusted $10/hour for their help in 1970..and that was with less technology and less productivity (in other words - more workers required to operate the store). Yet somehow they seemed to make it...and their employees didn't need to apply for food stamps.


They either have to lay people off or raise prices or do a combination of the two. As I stated earlier, a job at McDonalds should not be a career unless you have moved into management.
You conveniently ignored PJ's point.

Since the lowest paid McDonalds employees were making an inflation-adjusted $10 per hour, and had less technology and lower productivity, how did McDonalds survive? Were their prices unaffordable or were their franchisees being squeezed out of business or did they have to lay off employees. No - just the opposite, right?

Once again, Roulette Man, history is your enemy.


Of course you could care less about these people, because you would rather see them unemployed. I didn't miss anything. I'm telling you what current conditions are and you MISSED the point. Get your act together.
chefantwon
chefantwon
Jul 15, 2014
10:07am
Block User
The whole thing comes down to this....

At some point it will come down to a matter of profits vs cost of staff. Higher wages means less profits and at some point staff will be reduced to get back to the margins that one needs to make.

Also one forgets that people will want a raise every so often then what do you do? What happens next year when some politician introduces a $20/hr min wage?

This cycle ends when businesses leave and the city doesn't have the eateries around....
forkushV
forkushV
Jul 15, 2014
10:38am
Block User
Quote
Originally posted by: chefantwon
The whole thing comes down to this....

At some point it will come down to a matter of profits vs cost of staff. Higher wages means less profits and at some point staff will be reduced to get back to the margins that one needs to make...
Except in 1970, when the $10 inflation adjusted equivalent minimum wage didn't manage to sink McDonalds or the economy. Why was that? Any ideas?

For some reason Roulette Man took a pass on answering that question. How about you, chief?
Roulette Man
Roulette Man
Jul 15, 2014
10:53am
Block User
Oh sheesh. Mr. Know is only a static thinker and is not a dynamic thinker.

I actually prepare a return for a McDonalds owner. He netted a little over $95,000. Does Forkie not think something will give with a 27% increase in wages? Is the owner to take the hit?
chefantwon
chefantwon
Jul 15, 2014
11:05am
Block User
Quote
Originally posted by: forkushV
Quote
Originally posted by: chefantwon
The whole thing comes down to this....

At some point it will come down to a matter of profits vs cost of staff. Higher wages means less profits and at some point staff will be reduced to get back to the margins that one needs to make...
Except in 1970, when the $10 inflation adjusted equivalent minimum wage didn't manage to sink McDonalds or the economy. Why was that? Any ideas?

For some reason Roulette Man took a pass on answering that question. How about you, chief?


Gee I don't know, maybe the inflation rate along with interest rates were both through the roof? Maybe the cost of supplies were MUCH cheaper than they are today.... and they raised the prices to cover the increased cost?

linky
malibber2
malibber2
Jul 15, 2014
11:19am
Block User
Just maybe out of control executive compensation has taken a toll on workers wages?
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