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And I don't think prices will have to go up that much. Raising the minimum wage will not hurt companies like McDonald's..they make billions of dollars each year.. I'm sure they can afford a $3 raise.
This shows you really know nothing about McDonald's and other restaurants.
They are owned by local people, that buy a franchise to operate a restaurant. The owner of the local franchised restaurant pays on an average of $2,300,000 or more for the business, has had to come up with $500,000 out of their pocket, and can finance the balance. According to McDonald's, the average restaurant takes in about a 10% gross operating profit of $200,000, out of a $2 Million to$2.3 Million gross sales. Out of that $200,000 they have to pay off the loan of $1.5 Million or more which really cuts into the GOP, and replace any equipment changes, remodeling etc., out of that profit. Typical remodel every few years is $800,000. Putting in the coffee bar, causes a partial remodel, and is expensive. Adding WiFi can be another $10,000 plus per year cost.
Wages take up about 28% to 30% of the total income. Double the wages, and there is no profit. In the end, raising wages to $15 an hour, would make many McDonald's owners very much feeling like it is not worth even opening up each morning due to loss of profit.
In many parts of the country, McDonald's pays a lot more than minimum wage. In the oil patch, they have signs out front on their reader boards they pay $22 per hour. In our little town hundreds of miles from the oil patch and not effected by it, McDonald's has jobs available on their reader board at $14 per hour. One of my grandsons worked there 2 years ago while a student and got $11 an hour.
McDonald's and other fast food restaurants pay the going rate for the area. That pay rate is determined by a lot of businesses. And other businesses pay in accordance with what the bottom jobs pay. A lot of businesses pay less than $15 an hour, in an area where McDonald's pays $7.50 an hour. Why should McDonald's pay more for part time workers than what full time workers make in offices, etc.?
I think "the sky is falling" folks are kind of funny. Businesses will shut down, workers will be laid off left and right, yadda yadda. Yet I guarantee that in 5 years, it will still be business as usual in that area, the controversy having long been forgotten...
These workers will now be able to afford to pay rent and eat without relying on government subsidies.
I haven't seen people say the sky is falling. Certainly you didn't see that in my post. I basically just stated that I think it's probably going to get enacted in Seattle.
What I foresee in Seattle is ramped up automation and self-service. Look at gas stations--1 person now does the job that used to take 2 or 3. Years ago there were 'automat' restaurants in NYC. The last one closed in 1991. Maybe they will come back in Seattle. Automat - Wikipedia, the free encyclopedia
Most of the restaurant jobs will remain, as you say. But for $15/hr, employers will demand only the best and most productive and reliable. Teenagers, older people, substance abusers, etc. need not apply. If you're a teenager in Seattle, you're going to have to look outside of city limits to get your first job.
When i do get fast food(which isn't that often) 2 things usually happen. The person taking my order can barely speak English, and they get my order wrong. 15 an hour, nah...i don't think so.
Same here. In many places, fast food jobs are for high school age kids who still live with their parents and minimum wage gives them plenty of pocket change for movies, concerts, video games, etc.
In many other places, these jobs are filled by those who are pouring over the borders and who refuse to ever learn a word of English and really minimum wage is excellent in their minds.
This shows you really know nothing about McDonald's and other restaurants.
They are owned by local people, that buy a franchise to operate a restaurant. The owner of the local franchised restaurant pays on an average of $2,300,000 or more for the business, has had to come up with $500,000 out of their pocket, and can finance the balance. According to McDonald's, the average restaurant takes in about a 10% gross operating profit of $200,000, out of a $2 Million to$2.3 Million gross sales. Out of that $200,000 they have to pay off the loan of $1.5 Million or more which really cuts into the GOP, and replace any equipment changes, remodeling etc., out of that profit. Typical remodel every few years is $800,000. Putting in the coffee bar, causes a partial remodel, and is expensive. Adding WiFi can be another $10,000 plus per year cost.
Wages take up about 28% to 30% of the total income. Double the wages, and there is no profit. In the end, raising wages to $15 an hour, would make many McDonald's owners very much feeling like it is not worth even opening up each morning due to loss of profit.
In many parts of the country, McDonald's pays a lot more than minimum wage. In the oil patch, they have signs out front on their reader boards they pay $22 per hour. In our little town hundreds of miles from the oil patch and not effected by it, McDonald's has jobs available on their reader board at $14 per hour. One of my grandsons worked there 2 years ago while a student and got $11 an hour.
McDonald's and other fast food restaurants pay the going rate for the area. That pay rate is determined by a lot of businesses. And other businesses pay in accordance with what the bottom jobs pay. A lot of businesses pay less than $15 an hour, in an area where McDonald's pays $7.50 an hour. Why should McDonald's pay more for part time workers than what full time workers make in offices, etc.?
So true, these workers would win the battle and lose the war. It doesn't do any good to get 15$ an hour if you end up unemployed 2 months later as the franchise goes out of business or closes as there is no profit.
We all don't need to go to college, drive BMWs and own McMansions. What's wrong with someone working at McDonald's, for a decent wage, being able to afford reasonable rent, reasonable car and healthcare?
It requires NO training and half a brain. It's jobs like these that are for students, 2nd jobbers, and retired folks that want no responsibility any more. To pay a "living wage" for such work would just be absurd, and no employer would be that foolish.
$15 might be a bit much, but they definitely need to raise minimum wage. The cost of living keeps on going up, so it is necessary to raise minimum wage. I think they should raise it to $11. That's not asking very much. And I don't think prices will have to go up that much. Raising the minimum wage will not hurt companies like McDonald's..they make billions of dollars each year.. I'm sure they can afford a $3 raise.
And I think it's pathetic that college graduates are struggling to get a job that even pays $15 an hour. They should get paid $25 an hour minimum.
Perhaps to help pay off their labs that they needed to get just to goto college because it was the gateway to the middle class. Yah that rhetoric you heard in high school.
I went to high school in Scotland in the 1970s. Kids who were not "academically gifted" were steered towards more shop, home ec and so on. There was no assumption that every kid would on to higher education. It was not that easy to get into college or university back then. Not everyone could, even if they graduated high school - and almost everyone did.
no way in heck will fast food get 15$ an hour when you have people with "real/office type" jobs making less than 15$. I am all for getting paid more than minimum but 15$ I don't see that happening.
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