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The clincher might come when they realize that they are 'paying' themselves the same or even less than, their $15 an hour employees while having taken all the responsibility and risk.
Being that we are a low wage service economy it has become a career for some. If you don't get a STEM degree there are few other options.
Don't kid yourself. There are plenty of people with STEM degrees who are unemployed or underemployed (and often involuntarily-out-of-field) or employed in the field at low wages. See:
There are also tons of college-educated people who are unemployed or underemployed at jobs that require less than a college education. It might even be possible that the number is over 48%.
About 48 percent of employed U.S. college graduates are in jobs that the Bureau of Labor Statistics (BLS) suggests requires less than a four-year college education. Eleven percent of employed college graduates are in occupations requiring more than a high-school diploma but less than a bachelor’s, and 37 percent are in occupations requiring no more than a high-school diploma;
The proportion of overeducated workers in occupations appears to have grown substantially; in 1970, fewer than one percent of taxi drivers and two percent of firefighters had college degrees, while now more than 15 percent do in both jobs;
About five million college graduates are in jobs the BLS says require less than a high-school education;
Here's the Moo Cluck Moo menu. The prices don't seem at all unreasonable for "premium" burgers. They aren't much different than the likes of Five Guys and Smashburger. Heck, the prices for full-sized burgers at the traditional fast food chains have gone nuts in recent years and Moo Cluck Moo's prices don't seem much higher.
Actually, you have it backwards. The Tea Party would support any business that CHOOSES to pay employees whatever amount it believes is appropriate.
It's you Big Government Nanny State people who oppose businesses choosing what to pay people.
Exactly.
No one who has ever actually owned a fast food place would support overpaying low to no skilled employees over $15 per hour (except in expensive areas like New York City or San Francisco).
No one who has ever actually owned a fast food place would support overpaying low to no skilled employees over $15 per hour (except in expensive areas like New York City or San Francisco).
At which point, paying $15 an hour in those locations, isnt overpaying.. You are simply paying the mininum required.
As someone who has worked in the fast food industry during College there is a bottom line to how much your "Labor costs" impact your "profits". From what I have seen from this company they just aren't employing "flipper burgers" but people who are trained to be "managerial" and are skilled to order food and basically run the joint.
If that is the case $15 a hour isn't much more than a "entry level" manager at most fast food places except this place expects you to put in the "muscle".
I have known to many "restaurant" managers making $35-40k a year with full benefits and are nothing more than hyping hyeanas.
Imagine "indexing" the "Minimum Wage" to the Cost of Living Adjustment/ Cola / Inflation? People with money in their pockets will burn it!
Workers being taught to run the joint! What a bright idea!
Time will tell if paying employees double the minimum wage is sustainable. (I have a funny feeling if this business goes bankrupt we'll never hear a peep about it though.) If you're not getting double the work out of them, you could have a problem.
I know a family that runs four fast food operations. While they probably have a quarter of a million in profits (I don't know their profits but I do know the kind of lifestyle they lead so I'm guessing here.), they spend a lot of time working in the stores themselves, to keep costs down and do not pay $15/hr. I can't imagine they'd have much left if they doubled their employees wages and didn't get double the work out of them.
If they increased wages from $7.50 to $15.00 for 10 full time employees per store (no idea how many they actually employ), they'd be paying out $624,000 more in wages per year. If I were a gambling person, I'd bet that would eat up all of their profits and then some. So the question is, will employees do more so employers need fewer employees in exchange for higher wages (which will result in fewer people being able to find jobs so this is a two edged sword.) and will the customer pay more to maintain employers paying employees more. Each store paying those 10 full time employees an extra $7.50/hour needs to take in an extra $3000 in profit per week to pay those extra wages assuming productivity stays the same. What can't be recovered through greater productivity must be recovered at the cash register.
Celebrating this operation choosing to pay double minimum wage may be premature. We have to wait to see if they can actually run a profitable operation this way. Check back in 5 years to see if 1) they're still in business and 2) they're still paying double minimum wage. I'd be willing to bet that the answer to one of these questions will be no but we have to wait 5 years to find out.
It is hard to take your story about that family as a fact not to raise min wage when you do not even know many important things like how much they make how many employees they have. I know this that paying your employees more motives then more and puts money in their pockets that they can spend at that business or at other businesses. You are right we have to wait in see but we do not have to see what this does to see how a higher min wager can benefit business look at companies with much higher wages then min wage at places like Costco, IN and OUT Burger and Aldi's.
So this happened October 1, 2013 right? What happened to the company? Did revenue and market share increase? Stay the same? Decrease? Did the company go bankrupt?
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