Explain how a business can afford $15 an hour. (minimum wage, cost, dollars)

[non-linear]

Lets hear you theories. The increased sales argument doesn't wrk either. If you've got a pizza chain and you have twice as many orders to fill, then obviously you have to hire twice as many delivery drivers to meet demand. According to Forbes, the average restaurant franchise makes a profit of 86k annually, at a place I worked they spent approximately 3k per week on labor, so how in the hell can a company afford to double that cost, adding an extra 156k in labor expenses when there isn't even 156k left over in profit? Even if sales doubles, the net profit comes out to about 20k even without hiring extra labor (which is obviously unrealistic). Who gets the shaft? The franchisee. Why should the guy running the place make less then his employees?

[jim9251]

Simple, businesses will raise prices to cover the cost of their employees OR fire half their staff to be able to pay the remainder.

[~HecateWhisperCat~]

Depends on the business really.

[Osito]

Most can't.

[~HecateWhisperCat~]

Originally Posted by Osito

Most can't.

Very true.

[urbanlife78]

Originally Posted by Osito

Most can't.

Then they are probably not successful businesses or too small to have employees.

[shiftymh]

They can raise prices which will screw the rest of us by lowering our purchase power.

[urbanlife78]

Originally Posted by shiftymh

They can raise prices which will screw the rest of us by lowering our purchase power.

Prices go up anyway, those who don't see their wages increase also lose purchase power.

[pknopp]

Lot's of places pay $15 an hour or more. You need to come up with a much better argument to try and make your point.

[FrankMiller]

Originally Posted by non-linear

Lets hear you theories. The increased sales argument doesn't wrk either. If you've got a pizza chain and you have twice as many orders to fill, then obviously you have to hire twice as many delivery drivers to meet demand. According to Forbes, the average restaurant franchise makes a profit of 86k annually, at a place I worked they spent approximately 3k per week on labor, so how in the hell can a company afford to double that cost, adding an extra 156k in labor expenses when there isn't even 156k left over in profit? Even if sales doubles, the net profit comes out to about 20k even without hiring extra labor (which is obviously unrealistic). Who gets the shaft? The franchisee. Why should the guy running the place make less then his employees?

McDonald's in Australia is subject to a minimum wage of over $15/hr, and a Big Mac there currently costs around 50 cents less than in America. So it's obviously doable.

(Figures given in US dollars.)