Robot: please choose from the electronic menu below. (I would like to speak to a manager). Robot: I do not understand. Please choose from the electronic menu below.
Actually this is what you guys have been saying would happen if full time employees made enough for basically a $600 apartment. Shift workers have been organizing and getting raises for a century and a half in this country, but somehow this round will create a depression and fully automate a 70 year old business model.
Us guys? Who is that exactly? I have nothing against people organizing a strike for higher wages*. I just thought for practical reasons it was a poor choice (I think unskilled labor is relatively easily replaced). Maybe I'm wrong. Maybe McDonalds can't replace these folks and maybe their labor is worth more than anyone else is currently willing to pay. We'll see, I guess, but I'm skeptical. I never said anything about a depression, and I never said the industry would become fully automated. *Involving the state changes things, of course.
There has been age discrimination for years. I question how this would affect unskilled adults who need these jobs.
You are either stupid or hopefully just naively believed lies you were told. At most 25% 0f the cost of a burger is due to labor. Now let's take a $3.00 burger. at 25% the labor is $.75. Now double it and add $.75 and you get $3.75. or the dollar menu $1.00 multiply. .$.25 labor doubled to .$.50 equal a $1.25 burger.
If they raise the cost of fast food, they will need to raise the salary of every customer who dines there, including government workers, which means higher taxes for everyone.
Why? If the cost of gas goes up, does your salary go up, or do you simply adjust your spending habits? And who is the "they" in this statement?
Do you think it's an unreasonable number? http://www.cjr.org/the_audit/a_big_mac_miss_by_the_huffingt.php?page=all Corporate-owned stores, labor costs are 17%. Franchise-owned is estimated at 24%. It's more complicated than that, especially if you raise the legal minimum wage, but glynch's math is far more reasonable than asianballa23's nonsense.
Actually, the company-owned restaurants according to that article would be 25%, while franchisees are about 24%.
25% of the total. Labor costs would certainly vary by menu item. Drinks for instance would have very low labor cost, while cheaper menu items would probably have higher labor costs as a percentage.
Certainly - but if you're raising costs to cover labor cost increases, you're not likely to try to break it down by item to determine how much labor each one takes. glynch's point was simply back-of-the-napkin math showing how ridiculous asianballa's numbers were. Oddly, people seem to have a problem with his math not being precise but no one seemed to speak up or complain about the original crazy numbers.
I guess 25% is probably a decent estimate for franchisee owned restaurants. And yes asianballa's numbers were ridiculous, but glynch's numbers were absurd too. He was seeming to imply that doubling wages would have a small impact on prices. Everything I can gather is that franchisee's live and pretty damn thin margins. I'm bored so I'll read thru MCD's 10-K to see if I can guestimate some numbers. That link you posted left me with questions after looking at the income statement. It almost looked like corporate owned restaurants are just breaking even/slightly losing money.
Oh and it looks like McDonald's is looking at increasing prices because franchisee's are complaining too much about the dollar menu. http://adage.com/article/news/mcdonald-s-tests-higher-priced-items-appease-franchisees/243981/
No, you wouldn't necessarily break it down by item, but the stores would have to consider how price hikes would effect spending of customers. I don't think it as simple as Glynch wants it to be.
In the end, McDonalds still sucks. Maybe if they raise the wage to $16 they'll start making food that actually tastes good and maybe they'll hire people who aren't complete r****ds and assholes that f up your order and treat you like ****. I honestly have NEVER been to a McDonalds that hasn't had rude ass workers.
