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First some facts:
Small businesses employ half the country's workforce.
Only 10% of all small businesses had revenue above $100k, which speaks nothing to profit.
Where are you getting that this fictional gym has 227 members? Are there not property costs, taxes, insurance, electricity, utilities, etc?
- I would say the majority of small biz owners would be happy netting $150k / yr. how much do you think independent coffee shops, bakeries, etc make? So your argument that these are failing businesses just holds no merit. Take any variable cost that is likely a businesses largest expense line item and double it, and what do you think is going to happen?
- so these employees can't get a job paying $10/hr now? But a ton of small biz are going to close, and they will just be able to walk down the street and get a job making $15/hr? Right, got it.
Simple math and google searching, the average monthly cost of memberships for a gym is $55, that is $660 a year. Divide $150K by $660 and you get 227 members. So either that small gym employees too many people or doesn't have a high enough membership.
So should we reduce the minimum wage to $2/hr so that a bunch of businesses that were run poorly could survive? We shouldn't be coddling poorly run businesses, I have no sympathy for poorly run businesses because better run businesses succeed and replace those that fail.
So you would keep your profit margins just above the cost of minimum wage for your employees? That sounds like a bad business practice....which means it will be a business that will be going out of business.
How much profit do you think a fast food franchisee makes off a sale? I can tell you that they don't make much. You aren't talking about the McDonalds corporation, you are talking about a franchise that is subject to the terms of McDonalds. To purchase one of these franchises is very expensive and to operate it is no picnic. There just isn't much return over initial investment. Now there is the advent of self check out registers. I use them in a few places and it works pretty well for those companies that have them. There is no longer anyone behind the counter asking you "will you have fries with your order?" If I were on the fence as to whether to put these units into operation in my franchise, a large minimum wage increase would make my decision much easier. As far as your knowledge of what keeps or sinks a business, I wouldn't suggest in reality that you ever consider entering into the small business arena...
How much profit do you think a fast food franchisee makes off a sale? I can tell you that they don't make much. You aren't talking about the McDonalds corporation, you are talking about a franchise that is subject to the terms of McDonalds. To purchase one of these franchises is very expensive and to operate it is no picnic. There just isn't much return over initial investment. Now there is the advent of self check out registers. I use them in a few places and it works pretty well for those companies that have them. There is no longer anyone behind the counter asking you "will you have fries with your order?" If I were on the fence as to whether to put these units into operation in my franchise, a large minimum wage increase would make my decision much easier. As far as your knowledge of what keeps or sinks a business, I wouldn't suggest in reality that you ever consider entering into the small business arena...
Well tell us, how much does a fast food franchisee make off sales? So based off this post, if a franchise doesn't produce much profit, then why would anyone want to take the risk of opening up a fast food franchise that will potentially lose money?
Also, we all know fully well that the reality of minimum wage doubling overnight will NEVER HAPPEN.
Well tell us, how much does a fast food franchisee make off sales? So based off this post, if a franchise doesn't produce much profit, then why would anyone want to take the risk of opening up a fast food franchise that will potentially lose money?
Also, we all know fully well that the reality of minimum wage doubling overnight will NEVER HAPPEN.
That's a good question. One that I have never figured out and the reason that I never was interested in a fast food franchise. No, minimum wage will not double any time in the near future and honestly there is not need for a minimum wage at all.
That's a good question. One that I have never figured out and the reason that I never was interested in a fast food franchise. No, minimum wage will not double any time in the near future and honestly there is not need for a minimum wage at all.
Then how do you know that they don't make much? And I will continue to disagree with you about the minimum wage, there is a reason for it to be created and there is a need for it today.
Then how do you know that they don't make much? And I will continue to disagree with you about the minimum wage, there is a reason for it to be created and there is a need for it today.
I have inquired about a couple franchises. Did my homework and I don't want one, but feel free to jump into it if you think it's a get rich quick scheme. No, there is no need for minimum wage and never has been. The laws of supply and demand apply to employment as well. Make yourself worth what you want to make and you will.
I have inquired about a couple franchises. Did my homework and I don't want one, but feel free to jump into it if you think it's a get rich quick scheme. No, there is no need for minimum wage and never has been. The laws of supply and demand apply to employment as well. Make yourself worth what you want to make and you will.
I have no interest in running a fast food franchise, regardless of how much or little money there is to be made....though that isn't the point of this thread....as with the laws of supply and demand, if you don't sell enough product to cover the cost of paying your employees the least you can pay them, then that is a business destined to fail.
I have no interest in running a fast food franchise, regardless of how much or little money there is to be made....though that isn't the point of this thread....as with the laws of supply and demand, if you don't sell enough product to cover the cost of paying your employees the least you can pay them, then that is a business destined to fail.
No, it's a business that needs restructured to reduce costs. First place and easiest place to reduce cost is employees.
That's a good question. One that I have never figured out and the reason that I never was interested in a fast food franchise. No, minimum wage will not double any time in the near future and honestly there is not need for a minimum wage at all.
Until urban camping is legal, there is a need for a minimum wage.
Paying someone 15 dollars an hour to flip a burger or bag groceries is just plain stupid. How is that going to encourage people working those type of jobs to develop/train skills for better jobs?
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