McDonald’s, Chipotle hiking menu prices after California raises fast-food minimum wage (interstate, Brown)

[gailjnh]

Originally Posted by Mathguy

Ok, so based upon no proof. Thanks.

Well if you had read the link in the first post, you would find your proof there. It's right in the article.

[Mathguy]

Originally Posted by AnywhereElse

In CA? They would probably qualify for at least some types of public assistance due to the high cost of living, plus those jobs are usually part-time, and if business is slow, they probably send people home.

That reminds me of what I had read on the price of produce if agricultural workers were to be paid a living wage, as it amounted to maybe 5 cents on a head of lettuce. Most of the workers probably aren't getting benefits with the job either, thus we subsidize the employers in that way.

Did you really just let a poster do a cost impact analysis for McDonalds based upon a $2 purchase?

[Mathguy]

Originally Posted by gailjnh

Well if you had read the link in the first post, you would find your proof there. It's right in the article.

Citing Dollars of revenue as proof of greed is like asking how many gallons are in a Kilometer.


But hey, I guess if my smaller company with less revenue pays workers even less I'm not being greedy because I have lower revenues?

[TMSRetired]

Originally Posted by Ponderosa

McDonald's franchisees labor cost is about 20%. So on a two buck burger, it's 40 cents. If the wage went up from $15 to $20 that is 12 more cents. 12 cents per burger. Wanna bet McDonalds raises prices three times that and blames the workers?

It's closer to 30% and that's direct employee labor cost not including indirect employee hiring costs.

And you forgot increased commodity costs, increased shipping cost, etc.

This isn't a vacuum where ONLY the employee wage went up.

[Brave New World]

Originally Posted by Suburban_Guy

No matter how much you try to reason with the "fast food workers deserve $40 an hour and if you disagree you're evil" crowd, they never seem to get it or care about the consequences of their wishes.

Utterly predictable end results of the never ending minimum wage hikes for service jobs.

https://www.msn.com/en-us/money/comp...fptaskbar&ei=5

The only reason anyone goes to McDonalds, Burger King, Wendy's etc in the first place is because it's a lot cheaper than the likes of Five Guys, Shake Shack or In and Out Burger etc etc, and the same applies to Chipotle and real authentic Mexican outlets.

If these cheap fast food chains continually increase their overheads then they will increasingly have to compete with establishments that offer a better product and experience.

The alternative is ever increasing automation and AI replacing these types of employees and leading to less employment and possible more poverty in relation to those already at the bottom of the employment chain, and who are often trying to fund their way through college or do not have enough qualifications or skills to secure better employment.

[MN-Born-n-Raised]

Originally Posted by Starglow

Paying someone higher unearned wages still isn't going to guarantee the bolded.

That's a given. But compare Sam's Club employees to Costco's for instance and see if wages correlate to brainpower. To my eyes, it's obvious. My key wouldn't fit in the ignition of my car for $200 a day to flip burgers. If you increase a person's income, you get a better employee. That assumes their buying power increased as well (and inflation didn't gobble up the wage increase). So as I stated, I like going to places where someone has a brain. And I am willing to pay for it. I'll let others patronize McDonalds.

[wamer27]

All the Taco Bell’s here have the screens you order on them and wait for your name to be called. It’s great in comparison.

[MN-Born-n-Raised]

Originally Posted by SAN_Man

Rent in Santa Monica has become stable at what...$4,000/month for a 1 bedroom?

Thank Goodness for that!

Edit, just looked it up, it's $3,250/month for a 1 bedroom, a 9% increase YoY. A 1-bedroom!!

Need a 3 bedroom for the family? Well that's $6,500/month in Santa Monica. Up 9% YoY.
[url]https://www.zumper.com/rent-research/santa-monica-ca[/url]

And..... You really don't want "an average place". Add $1K to get something in a decent neighborhood. Our son and his wife are Doc's in the Bay Area. That rent is closer to $7500-$8000 to get a nicer spot. But they are making around about $300 an hour each. That is a crazy amount of $$'s for rent! But it is still cheaper than buying.

[ntwrkguy1]

McDonald's -- and to a lesser extent, Chipotle -- are about to learn a valuable lesson about the price elasticity of demand.

The reality is that the vast majority of McDonald's menu is garbage, and people are only willing to pay so much for that garbage. Once demand falls off, revenue follows suit. The only problem is that at that point, your only variable cost is labor.

I would not feel good if I held McDonald's stock, which fortunately, I do not.

[Chowhound]

Fast food in general here is really expensive, I mean flabbergasting so. Some of it the higher and higher min wage they push here and some of it is inflation.

You go to places like Carl's Jr and grab a burger combo and you are out 10 bucks. It seems like just a few short years ago it was noticeable cheaper.

In a very short time frame we see more and more automation, they are already putting in self-serve kiosks, won't be long before that's all they have, you'll have as little workers in the back and as little as they can in terms of actually handing you your order. The whole damn thing might get automated at some point.

The whole thing feels so dystopian to me, like you are rats, put in an order on a screen and a tray of food comes out of a conveyor belt delivery system of sorts.