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That franchise owner is not "rich".
That is who gets hit with increase wages.
You're making up numbers.
Go read up on SeaTac and labor costs due to the increase. It's more than $15 as that is not total labor cost.
You see the self checkouts...you have 6-8 self checkouts and ONE person watching over them.
In your case you're going to keep the 8 and have 8 watching over them ?
The franchise owners I have known in my life make pretty good money, they also typically own 20-30 fast food places. You aren't going to find a franchise owner owning only one or two locations.
The franchise owners I have known in my life make pretty good money, they also typically own 20-30 fast food places. You aren't going to find a franchise owner owning only one or two locations.
You apparently know some very rich franchise owners. The ones in my acquaintance are lucky to own two.
No but Seattle will be seeing many more undocumented immigrants popping up looking for work than before.
I'm scanning this for entertainment since I live in the Seattle metro. Everyone has these dire predictions and honestly, who knows the result but they are phasing it in over time so they can adjust if needed. But the idea that this will attract a huge number of low income workers? Do you know the costs to rent in Seattle? Do you know the cost of real estate? Seattle is a relatively expensive city.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Quote:
Originally Posted by urbanlife78
The franchise owners I have known in my life make pretty good money, they also typically own 20-30 fast food places. You aren't going to find a franchise owner owning only one or two locations.
True, the ones doing well have at least 3-4. Those with only one are struggling. The experiment that is Seatac is too small a a sample to tell what could happen in Seattle, but I do know that people working in hotels there getting $15 are coming out with less. Their employers have cut benefits such as free parking, food, and overtime.
The franchise owners I have known in my life make pretty good money, they also typically own 20-30 fast food places. You aren't going to find a franchise owner owning only one or two locations.
I only know one franchise owner and he owns 2 McDonalds.
He's not hurting but I wouldn't consider him rich.
That franchise owner is not "rich".
That is who gets hit with increase wages.
You're making up numbers.
Go read up on SeaTac and labor costs due to the increase. It's more than $15 as that is not total labor cost.
You see the self checkouts...you have 6-8 self checkouts and ONE person watching over them.
In your case you're going to keep the 8 and have 8 watching over them ?
The fact that the franchise owner is not rich has a LOT more to do with the franchise. Franchises often look at their customers (the franchise owners) and say to themselves "your profit margin is my potential income".
And that automation is coming anyways.
Lets look at mcdonalds. Mcdonalds charges a 12.5% royalty fee. IE they get 12.5% of your income.
In general, McDonald’s franchisees pay about 20 percent in labor costs, according to Richard Adams, a consultant out of San Diego who works with McDonald’s operators.
So if we increased a mcdonalds employees pay from $7.25 to $10.10, that would be a 28.2% increase of that 20% number, IE assuming no other changes your % of income going to employees would change from 20% to about 25.6% If mcdonalds wasnt quite as greedy they could simply change their royalty % to 7% say and swallow the wage increases, while STILL being profitable. Weird huh?
The fact that the franchise owner is not rich has a LOT more to do with the franchise. Franchises often look at their customers (the franchise owners) and say to themselves "your profit margin is my potential income".
And that automation is coming anyways.
Lets look at mcdonalds. Mcdonalds charges a 12.5% royalty fee. IE they get 12.5% of your income.
In general, McDonald’s franchisees pay about 20 percent in labor costs, according to Richard Adams, a consultant out of San Diego who works with McDonald’s operators.
So if we increased a mcdonalds employees pay from $7.25 to $10.10, that would be a 28.2% increase of that 20% number, IE assuming no other changes your % of income going to employees would change from 20% to about 25.6% If mcdonalds wasnt quite as greedy they could simply change their royalty % to 7% say and swallow the wage increases, while STILL being profitable. Weird huh?
Oh but there were changes..McDonald's reported lower sales at their restaurants this last quarter.
And the "mother ship" does not change their royalty percentage when business slumps..guess who takes that hit..the franchise owner.
The franchise owners have already asked for a lowered royalty fee because the price of commodities are skyrocketing and were told no.
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