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Started By
Message
re: California’s $20 fast food minimum wage balloons menu prices
Posted on 4/3/24 at 1:33 pm to Oilfieldbiology
Posted on 4/3/24 at 1:33 pm to Oilfieldbiology
quote:Raising wages by 25% does not reduce profits by 25%.
Reduce a companies profit by 25-33% and see what happens to the company. Hint, it’s not nothing.
2
Posted on 4/3/24 at 1:35 pm to Obtuse1
quote:
The 53% increase in the fish sandwich meal can not be completely attributed directly to the increase in min wage at all, there are other factors at play there.
Cost of labor everywhere going up has ripples all along the supply chain and impacts costs at each step. Yes, this law is only for fast food workers, but you don’t think other minimum wage workers are getting raises from this, increasing prices everywhere else?
Posted on 4/3/24 at 1:36 pm to mindbreaker
quote:
Oh good for you. Instead of countering my argument with any reasonable facts or counter arguments you instead chose to attack my education
Ok let's say you own $100k in McDonalds stock. How much of your personal money would you be willing to sacrifice to make sure their burger flippers make $50k/yr? 50%? 75%? All of it? How much should Mickey D's take out of the pocket from the people who own the company & give to people who don't?
Posted on 4/3/24 at 1:37 pm to mindbreaker
quote:No one here cares about the effect on McDonalds and other large corporations...
Keep shilling for those billion dollar companies though.
Posted on 4/3/24 at 1:38 pm to Chicken
Democrats don't understand economics
Posted on 4/3/24 at 1:38 pm to Smeg
Don’t eat fast food. Problem solved.
Posted on 4/3/24 at 1:39 pm to Korkstand
quote:
Raising wages by 25% does not reduce profits by 25%
Of course not, the company raises prices and or cuts employees to offset it.
Posted on 4/3/24 at 1:40 pm to mindbreaker
Franchise owners getting rolled but simpletons babbling about the corporation.
Posted on 4/3/24 at 1:40 pm to Mushroom1968
quote:
You are aware most small businesses aren’t billion or even million dollar companies don’t you? My dad owned a mechanic shop and in the 90s his business brought in around 400k, he cleared around 80k. Do you understand how this kind of stuff works?
we weren't talking about small businesses but this is a good point. Because I have no problem paying more for services at a small business in order to compensate for payment for their employees.
The issue here is the mantra that the giant corporations can't afford this and have to pass on costs to us. Sorry I call bullshite on that. Is there a middle ground? absolutely. Maybe base it on the size of the business or number of employees. I don't know the answer to be fair but letting huge companies screw over employees in the name of share holders isn't one.
And to also be fair creating a non competitive space where small business can't survive isn't one either.
Posted on 4/3/24 at 1:41 pm to mindbreaker
quote:
Tell me what happens? Who makes less money? because I need economics classes remember I'm just a dumb guy. So by all means you made the statement I didn't. If Mcdonalds makes 10 billion a year as opposed to 14 billion a year and decides to not artifically raise prices to compensate. What exactly happens?
First I was wrong with the $3.9 billion being all to McDonald’s, but that’s not the point now.
If a public companies profit, or profitability, decreases stock evaluations will go down, lowering the overall value of the company. This will make borrowing money less favorable/more expensive in the future meaning companies will need to control costs even further and more harshly.
As for immediate impact if the company refuses to raises prices to make up for the lost profitability or profit, the company will begin firing people to reduce their overall costs. Salaries and wages is almost always the largest cost most business encounter that they can control.
Posted on 4/3/24 at 1:42 pm to Figgy
That definitely makes it easier to hit “no tip” button.
Posted on 4/3/24 at 1:43 pm to chinhoyang
quote:
They picked on fast food because many minimum wage industries can easily move to a new state. Fast food restaurants can close, but they aren't in a position to move.
Very true. Another stupid thing that they did was to make no differentiation between franchise and corporate stores. Franchise owners don't necessarily have the pockets to just absorb these additional costs. I'm not in favor of any of this but the corporate stores, say an In-N-Out, are in a far better position to navigate this than the small business owner that has a couple Arby's. Then you have the worst case scenario playing out:
Local Fox story on restaurant closing
A quote from the business owner:
quote:
I tried to the end to try to figure out a way to make it work. Last thing I ever wanted was to close down," he said. "By Friday night I knew I was most likely not gonna be able to stay open but I didn't want to ruin their Easter Sunday. Small businesses can't survive a 120% plus min wage increase over the last 10 years. We are all more broke than we were 10 years ago it's clear raising min wage isn't helping....I am sad to see my employees off, and sad to see lemoore off. This location has been in business for 35+ years and lemoore has been such a good place. It's painful to realize that raising min wage and regulating fast foods are putting people put if business but that is the path california leadership has taken. Thank u to my staff for everything and thank u lemoore for all the support over the years."
And another one..
Small business is going to get hammered in a big way.
Lemoore is where they filmed a lot of Top Gun: Maverick with the naval air station being there.
Posted on 4/3/24 at 1:44 pm to mindbreaker
quote:
And to also be fair creating a non competitive space where small business can't survive isn't one either.
This is the biggest reason why big business is secretly ok with regulations and increased government involvement. They can afford the legal and compliance teams required to make a profit in this environment. The person trying to start up a mechanic shop, burger place, plumbing business, hair salon, etc. cannot.
Posted on 4/3/24 at 1:45 pm to Oilfieldbiology
Profit margins for these franchise bubbas is 6-9 percent.
Labor cost sky rockets. They will be reducing labor costs one way or another.
Simpletons babble about big corp.
Labor cost sky rockets. They will be reducing labor costs one way or another.
Simpletons babble about big corp.
Posted on 4/3/24 at 1:46 pm to Figgy
quote:
We are all more broke than we were 10 years ago
This guy must be an OT moderate given this emotional response lmao.
Posted on 4/3/24 at 1:46 pm to mindbreaker
quote:
The issue here is the mantra that the giant corporations can't afford this and have to pass on costs to us
No one has said this. Only the second part, because it's a fact.
quote:
I don't know the answer to be fair but letting huge companies screw over employees in the name of share holders isn't one.
No one is making this argument.
quote:
And to also be fair creating a non competitive space where small business can't survive isn't one either.
That's exactly what an artificially high minimum wage for low skill workers does.
wHy ArE yOu ShIlLiNg FoR cOrPoRaTiOnS??
Posted on 4/3/24 at 1:48 pm to Finkle is Einhorn
quote:
The problem is not paying the employees a fair wage.
The problem is low-IQ dolts like you that have no idea what a fair wage is and want more money for being lazy and low value.
quote:
And I get the work and risks associated with starting businesses and franchises etc. But the people running these places now are not the people who took these risks getting these businesses off the ground in most big fast food or other big box store chains
They are still the ones making billion dollar decisions. Let me know when the burger flipper has to answer to shate holders, if they don't get replaced by a robot that is smarter and more reliable first.
This post was edited on 4/3/24 at 1:53 pm
Posted on 4/3/24 at 1:49 pm to Mushroom1968
quote:Did you mean "of course not except in the specific case where wages equal profit, which is possible but unlikely given that wages and profits vary by industry and company"?quote:Of course not, the company raises prices and or cuts employees to offset it.
Raising wages by 25% does not reduce profits by 25%
Posted on 4/3/24 at 1:50 pm to Oilfieldbiology
quote:
Cost of labor everywhere going up has ripples all along the supply chain and impacts costs at each step. Yes, this law is only for fast food workers, but you don’t think other minimum wage workers are getting raises from this, increasing prices everywhere else?
Yes, shite is gonna go up throughout the whole supply chain and increase prices. The median average income in cali is 60k, they absolutely will not get a 25% (same as fast food got) raise to 75k. They will get a fraction of that.
I'm flabbergasted by people saying this 25% raise for 3% of the workforce will raise the cost of everything by 25% to offset it.
would you hold the same opinion if you raised 0.25% of the workforce salary by 200%? or is 3% and 25% just the magic number where it comes out to increase inflation by the exact same amount?
I don't support the new minimum wage, but the hyperbole that the min wage earners will see ZERO increase in purchasing power is delusion.
Posted on 4/3/24 at 1:51 pm to Corinthians420
quote:
I'm flabbergasted by people saying this 25% raise for 3% of the workforce will raise the cost of everything by 25% to offset it.
I'm flabbergasted that you make shite up to keep posting your ignorance nonsense.
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