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Because the wholesale price is under $2/lb or under $0.50/burger. I have no idea if they higher price is a big factor, but the fast food franchises are not doing well. Even McDs has been struggling. Others are on the verge of bankruptcy. And many of the individual stores are not profitable even if the franchise company is getting by.
Also in case you have not noticed, burgers are approaching the $10 price. I recently bought a whopper, fries and coke. The price was with tax was just under $9.
They've been doing that themselves for quite a while now... opening far too many stores, especially in places where saturation is already high. Many folks I know will only eat at them with coupons or other discounts (unless they truly have no choice like on the road). Their food quality hasn't really gone up (perhaps except for cutting out some artificial stuff), but yet, they STILL charge high prices for alot of their stuff.
When a business is struggling, I shall quote something that was posted in response to when I mentioned MY rents kept going up and up.....
Quote:
Originally Posted by Mircea
Yeah, you need to adjust your Life-Style and Standard of Living. You're not entitled to Cable/Satelliite TV.
I actually kept cable and TV. However, when I picked a place to rent many years back, I was sure to take rent increases into account so that if my rent went up $50 to $100 per year, I wouldn't by evicted as soon as my rent went up a mere $1200 per year.
Places like McDonalds needs to take these factors into account. If they can't properly account for such expenses, they truly deserve to accept the consequences. McDonalds is NOT entitled to bailouts.
If you live in the US, you need to follow US laws, as well as the laws of the state you're in. I'm sure there are plenty of third world countries who would be happy to hire people who get paid $2 an hour, or take them on as indentured servants.
Good points . It's going to change of eliminate many industries entirely . I don't think that is the type of change the pro $15 crowd was looking for ...
People are just looking at it from an emotional point of view.
They think it will be a quick easy fix , but aren't looking at all the negative consequences for working people .
Well, good thing you're not in charge. Else, washing machines would be illegal because they're taking the business of folks who used to wash their clothes by hand. Automobiles would be illegal because people who breed and raised horses couldn't sell enough of them in a sustainable industry. Smartphones would be illegal because they're taking away jobs that folks used to do, but can now be covered by an app.
Did you try to open up a Blockbuster Video recently, because you seem to be living in the past
Using McDonalds as an example. A 2X on wages needs only a $0.25 increase on a $5 item to cover it.
Labor costs are about 25% for fast food places and usually over 30% for most restaurants. Doubling wages will add 25%. For a $5 dollar item that would be an additional $1.25.
Labor costs are about 25% for fast food places and usually over 30% for most restaurants. Doubling wages will add 25%. For a $5 dollar item that would be an additional $1.25.
Most people do not care about an such a little bit of a raise price they probably will not even notice. Raises happen in other places occur all the time but you only seem to complain about these places that hire low wage workers. If you think they cost to much go somewhere else. I do not even think you care about the raises you just do not want people who you deem less then you to have more.
Labor costs are about 25% for fast food places and usually over 30% for most restaurants. Doubling wages will add 25%. For a $5 dollar item that would be an additional $1.25.
If the minimum wage were increased to $15 an hour, prices at fast food restaurants would rise by an estimated 4.3 percent, according to a new study by Purdue University’s School of Hospitality and Tourism Management. That would mean a McDonald’s Big Mac, which currently goes for $3.99, would cost about 17 cents more, or $4.16. The study notes that it doesn’t take into account the costs of turnover or any savings gained from higher wages.
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