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re: Report: Fast food prices would go up 38% if wages raised to $15
Posted on 9/5/14 at 11:04 am to Hawkeye95
Posted on 9/5/14 at 11:04 am to Hawkeye95
quote:
right, what the analysis fails to mention is there is no fricking way the wages are going up to $15/hr
This doesn't really matter to the study. The study was done to combat the current push to move it to $15/hr (that livable wage crap). People aren't protesting right now to move it to $10, which I still think would be high. They are trying to get it to $15.
0
Posted on 9/5/14 at 11:06 am to Lsut81
wouldn't this be an effective way of dissuading so many people from eating crappy food?
Posted on 9/5/14 at 11:07 am to a want
quote:
Not to mention the huge ripple effect it would have on people currently busting thier arse for $15/hour
I've already said, if a Mcdonalds worker can make 30k a year with no education, what the frick are the people who spend 10s of thousands on a college degree, only coming out to make low to mid 30's going to do?
The entire pay scale is going to trend upward along with costs associated with everything... So in the long run, the $15 person is going to be in the same boat when all their living costs increase during the ripple effect.
Posted on 9/5/14 at 11:09 am to SirWinston
quote:
wouldn't this be an effective way of dissuading so many people from eating crappy food?
Sure, if you hate freedom, and the fast food industry was the only one affected by this.
Posted on 9/5/14 at 11:24 am to Lsut81
quote:
Prices go up
Less people eat fast food (Yeah, good for health, but....)
Fast food prices go up even further to compensate for lost sales
So in general, you believe that price increases are the response to lower demand?
Posted on 9/5/14 at 11:28 am to GoCrazyAuburn
I am a businessman. not only my labor would go up as a % of sales , so would ALL prices down the line. Food prices at the wholesale end - fuel - paper goods - insurance - health care - cost of capital goods....get the picture.....every thing would be much higher than the 38 %, book it
Posted on 9/5/14 at 11:32 am to 1DuckyBoy
My favorite part of all this is the absolute certainty that the people demanding a $15 minimum will be worse off down the road than they are now. No doubt. And they can't see it. I'm in a position to withstand a good bit of inflation, so I'm in a watch the world burn mood on this one.
Do it.
Do it.
Posted on 9/5/14 at 11:33 am to Hawkeye95
quote:
No, it seems very high. I find the analysis dubious. I am sure labor is a high component cost, but this is telling me that labor is likely more than 40% of their unit cost (since its a 67% increase). I have no idea how those places stay in business if their labor costs are that high. Margins are tight enough already. I saw analysis last year saying it would be a 20% increase, which is much more believeable to me.
quote:
Labor Cost Percentages
Varying industry standards put labor costs between 30 to 35 percent of the restaurant's total sales. The standard for manager salaries should be around 10 percent of total labor costs, leaving 20 to 25 percent of labor costs for hourly employees. Labor costs tend to fluctuate depending on your restaurant's busy and slow seasons, so it's a good idea to average your weekly labor costs to obtain your monthly labor costs. You can then use your monthly labor cost averages to obtain your annual average labor costs.
LINK
According to the article linked above, national averages in the food service industry are 30-35% of total sales. I would imagine "fast" food with be the higher (35%) because their facilities and products are lower in quality then a standard sit in restaurant
remember you have on the check costs of labor, but you also have benifits (if given) and labor burden (SS/medicare/fed & state unemployment ins/workers comp ect) which can run 28-33% of on the check labor costs
Posted on 9/5/14 at 11:35 am to tigeraddict
quote:
According to the article linked above, national averages in the food service industry are 30-35% of total sales. I would imagine "fast" food with be the higher (35%) because their facilities and products are lower in quality then a standard sit in restaurant
remember you have on the check costs of labor, but you also have benifits (if given) and labor burden (SS/medicare/fed & state unemployment ins/workers comp ect) which can run 28-33% of on the check labor costs
a) 10% of that cost is salaried employees, who would likely see much less increase in salary, although I bet many make less than $15/hr
b) I would imagine fast food is in the lower end of the costs, since its low touch, and limited menu, and much of it is self service (napkins, ordering, clean up).
c) someone above said 20% for labor, who has experience. Seems reasonable to me.
Posted on 9/5/14 at 11:59 am to tigeraddict
quote:You also have to remember that suppliers also employ minumum wage earners. So... it's not JUST labor that will see increases, but the entire supply chain and maintenance...
remember you have on the check costs of labor, but you also have benifits (if given) and labor burden (SS/medicare/fed & state unemployment ins/workers comp ect) which can run 28-33% of on the check labor costs
Posted on 9/5/14 at 12:01 pm to SirWinston
quote:Sure. Let's drive up the cost of nearly every good and service produced in the country so that we can decide for other people what they should be allowed to eat. Makes perfect sense.
wouldn't this be an effective way of dissuading so many people from eating crappy food?
Posted on 9/5/14 at 1:00 pm to mmcgrath
quote:
Do you agree with the assertion in the study that the average profit for a fast food restaurant is $27K?
That's not what it said. It said for all restaurants. Subways, Quiznos, and that segment have lower profits. But most fast food chains would probably have closer to $80k-$200k EBITDA for a store depending on the store. That changes nothing in the argument.
Posted on 9/5/14 at 1:35 pm to Poodlebrain
quote:
Not to mention the cost of having to get new signs to advertise their $1.38 menu items
I lol'd
Posted on 9/5/14 at 1:39 pm to SirWinston
If fewer people eat fast food, that may be good for the people's heath, but bad for the bottom line of the restaurants. It may be necessary to lay off employees due to lower demand.
In essence, those who do not want to pay for the minimum wage hike by purchasing more expensive food will wind up helping those minimum-wage employees lose their jobs.
Those people who want a hike in minimum wage to $15 are idealists who don't understand the real-world impact on business and economics.
In essence, those who do not want to pay for the minimum wage hike by purchasing more expensive food will wind up helping those minimum-wage employees lose their jobs.
Those people who want a hike in minimum wage to $15 are idealists who don't understand the real-world impact on business and economics.
Posted on 9/5/14 at 1:42 pm to jamboybarry
quote:
Not surprising, yet somehow progs/SJW's think that argument is false.
You missed the point. This is saying that the prices won't go up that much, even if you more than doubled the min wage.
Posted on 9/5/14 at 1:43 pm to FooManChoo
quote:
Those people who want a hike in minimum wage to $15 are idealists who don't understand the real-world impact on business and economics.
Labor unions see an opportunity to mobilize a new segment. A $7/hr employee won't pay dues. A $15/hr might.
As for the employees themselves, if they had economic acumen, they wouldn't be working the fryer.
Posted on 9/5/14 at 1:43 pm to FooManChoo
quote:
Those people who want a hike in minimum wage to $15 are IDIOTS who don't understand the real-world impact on business and economics.
FIFY
Posted on 9/5/14 at 1:45 pm to Asgard Device
quote:
You missed the point. This is saying that the prices won't go up that much, even if you more than doubled the min wage.
A 38% increase in price is not anywhere in the ballpark of "not that much."
Posted on 9/5/14 at 1:47 pm to Asgard Device
quote:
You missed the point. This is saying that the prices won't go up that much, even if you more than doubled the min wage.
Wat? a 38% jump, just for raising the floor wage, is a huge jump. This is operating purely in a vacuum where that would be the only wage change.
Posted on 9/5/14 at 1:49 pm to FooManChoo
quote:
Those people who want a hike in minimum wage to $15 are idealists who don't understand the real-world impact on business and economics.
If the new living wage increasing to $15/hr puts a crimp on fast food chains, the govt can step in and bail them out. Wendy's is too big to fail. Duh!
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