I'm a California restaurant operator preparing for the $20-an-hour fast-food wage by trimming hours, eliminating employee vacation, and raising menu prices
fast food margins are really thin. Not razor thin, but very thin
the biggest single outlay is labour. It's a huge percentage, and I remember it to be like 35% of costs
a 25% bump is not insignificant to the biggest cost with margins so thin
I invite someone with more recent time in fast food who knows better to correct me. My experience is 25 years old and I only got as high as shift manager before I got a better job related to my field.