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Old 11-06-2014, 09:36 AM
 
3,971 posts, read 3,507,178 times
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Quote:
Originally Posted by Chicago60614 View Post
Right, for their franchises the average cost of labor is around 20% of their total expenses. Raising the $8 per hour wage to $10 per hour would raise their labor costs by 25%, and raise their total costs by 5%.

.[/b]
That's incorrect, the average cost of total labor at an average mcdonalds comes to around 36% that's not accounting for food and operating and administrative costs.
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Old 11-07-2014, 08:28 AM
 
Location: Detroit
3,656 posts, read 4,611,604 times
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Quote:
Originally Posted by mjlo View Post
That's incorrect, the average cost of total labor at an average mcdonalds comes to around 36% that's not accounting for food and operating and administrative costs.
As someone who used to be a manager at McDonald's, part of my job was to control labor, we would get our asses chewed out if our labor was anywhere near 36%. On average, anywhere below 18% labor (depending on the day) kept the bosses happy. And this was a pretty profitable store.

The Chicago poster brings up a good point, prices would not raise by 500% like many people believe, it would be pennies on the dollar. Another thing is if you pay employees more, they would have more money to spend, which would increase demand, and in return bring more profit back to the company. People act like that extra couple of bucks won't be going anywhere but in reality it would more than likely increase demand for alot of businesses.

Another problem is the income inequality is just ridiculous. The CEO of McDonald's for example tripped his salary despite having falling sales overall.

This video was mind blowing to me, and after watching it, a $10.10 minimum wage is long overdue imo. I love how these people act like the world will end off of a couple of bucks when in reality many (not all) are just greedy. It's sad.

https://www.youtube.com/watch?v=QPKKQnijnsM
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Old 11-07-2014, 09:02 AM
 
3,971 posts, read 3,507,178 times
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Quote:
Originally Posted by MS313 View Post
As someone who used to be a manager at McDonald's, part of my job was to control labor, we would get our asses chewed out if our labor was anywhere near 36%. On average, anywhere below 18% labor (depending on the day) kept the bosses happy. And this was a pretty profitable store.


https://www.youtube.com/watch?v=QPKKQnijnsM

As someone who's been around McDonald's my entire life and knows the ins and outs of P&Ls and management systems, I understand there is a difference between crew labor costs which (usually run into the 18-22% yes) range and total labor costs which include crew labor, swing and shift management as well as staff management which then brings it into the 35-40% after benefits and payroll taxes. Or is the complete cost of paying all personnel somehow not relevant? Add in the cost of food, utilities which run into the multiple thousands a month and you have your controllable expenses. After that you have your rent and royalties to mcdonalds which are based of sales percentages and huge. Then you have your taxes advertising costs, administrative costs and so on.

I'm sorry guys there's just no utopian way to force "evil corporations" into redistributing wealth. Operating a business is not that black and white. So you can raise the minimum wage, and in turn those businesses affected by it will increase their prices to compensate for the increase in expenses. Thereby causing everyone to pay more for those basic goods and the people with the increased wages at the bottom deal with an increased cost of living and are in the exact same position but with a high dollar per hour.
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Old 11-07-2014, 11:29 AM
 
3,492 posts, read 4,966,969 times
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Quote:
Originally Posted by mjlo View Post
haha enjoy your $8 McDonald's cheese burger
Ignorant.

Look at Canada where the min wage is already equal to 9 USD/hour. Look at Denmark where the wages are running around 20/hour. The resulting increases in price were minimal. This infantile argument works against people with no education, but it doesn't work when you have a financial analyst that follows the QSR industry and researches international expansions. Tough luck dude, but this is some crap being spewed by the right wing that has been thoroughly refuted by several countries that already require substantially higher wages and have not seen a major increase in the price of low end merchandise.
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Old 11-07-2014, 11:35 AM
 
3,971 posts, read 3,507,178 times
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Quote:
Originally Posted by lurtsman View Post
Ignorant.

Look at Canada where the min wage is already equal to 9 USD/hour. Look at Denmark where the wages are running around 20/hour. The resulting increases in price were minimal. This infantile argument works against people with no education, but it doesn't work when you have a financial analyst that follows the QSR industry and researches international expansions. Tough luck dude, but this is some crap being spewed by the right wing that has been thoroughly refuted by several countries that already require substantially higher wages and have not seen a major increase in the price of low end merchandise.
I've been around the QSR industry my whole life there stud. Look up the definition of the word "hyperbole" and then try some decaf.
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