Exactly, they shure as shit don't have a problem giving their "food" away now. The truth is most likely that telling their investors that they won't make so much money will be a devastating financial blow.
In our local fast foods most places are already advertising at least $19 hour for new hires. Is also over $20 for a kids meal and one adult meal “deal”, which takes less than 5-6 minutes to sell me.
The group said the costs “simply cannot be absorbed by the business model.”
They can do business, just not be as profitable if they can't pay slave wages. The problem here is in the quote... they don't want to change the model where the franchisee's earn a little less and their crews can actually afford rent.
Why the heck should the franchisee be footing the bill? Make corporate McDonald’s pay for it. Surely they’ve made enough money off ice cream machines by now to afford it…
The irony of you asking for smarts to be considered in regards to a mega billion dollar corp, who can more than afford this change for the entire country, let alone just California, is astounding while you are commenting the stupidest crap about "free markets" in relation to this news. It is hilariously pedantic....
In this case, the franchisees (small business owners) are saying the big business (McDonalds, which makes its money off of real estate and franchise fees) is going to be fine but they (the people that make money from owning a restaurant) are in trouble.
For many of them, it's true; they didn't consider whether they could open this business if they had to pay a living wage. Unfortunately, that's not our problem, but it won't be a problem for McDonalds either.
Good. I hope they go out of business and the owners have to cry themselves to sleep. I hope they have to sell everything they own before having to work a minimum wage job.
In my Inaugural I laid down the simple proposition that nobody is going to starve in this country. It seems to me to be equally plain that no business which depends for existence on paying less than living wages to its workers has any right to continue in this country.
The guy who owns the franchise my nephew worked at in high school drove an actual Rolls Royce. He owned a few, but goddamn. The guy who owned the franchise I worked at 20 years earlier owned like 3 houses or something and flew planes as a hobby (idk if he owned one).
Excuse me for not giving a shit about a financial blow to people like them.
And? Of course it'll cost them money. They have been hoarding pay increases for years. 8f your business model doesn't support paying a decent wage, your business model sucks.
That's what it says, but it's just marketing. Capitalists don't actually believe in fair competition. They believe in themselves having all the stuff, not anyone else, by any means necessary.
McDonald's operates in many, many countries, several of which require minimum wage way higher than what they pay workers in the US. I'm sure they'll be fine.
Boo hoo. If you can’t run your business without exploiting the fuck out of people then you don’t deserve to be in business. Fuck off already your food is SHIT.
If, like me, you're concerned that franchisees may not be able to raise prices and offset this $250k in yearly expenses, worry no more because they totally can.
This whole complaint is nonsense. That's a trivial markup per food item.
Well, their problem is they already planned to increase prices with zero added benefit to employees or customers. Asking them to actually contribute something in exchange for their gains? Psshhh
Restricting your own wage increase in the hope that companies won't add to inflation is very much like trying to be extra nice to an abusing partner in the hope that they won't hit you.
I know that you later wrote that you're in favor of a law restricting their ability to increase prices so please take this as an aside.
Exactly, how many burgers would a staff of three people push out every hour? 100? If their wages went from $15 to $20 that's an increase of $15 an hour or an extra $0.15 increased burger cost.
I live in a small town, McDonald's is the only "fast food" place here until last week when a Popeye's chicken opened. That place had been packed every day since they opened. You can get an equivalent meal for two at nearly the price of one meal at McDonald's.
Yeah, doing some quick math, if the rental wants 3x the rent in income to qualify and you make $40k, you're at best going to be able to qualify for something that runs ~$1100. That's a really crappy 1-bedroom in my medium-sized FL city if you're really lucky.
BS. They said the same thing about $15, then COVID forced it on them (and presumably also raised their own costs for supplies), and it's been fine. I think my McDs charges 1.25 for a soda now instead of a dollar.
Would you pay $20 for a Big Mac? ...though they'll probably automate the cooking and cashier positions, so they don't have to pay an employee what I make as a robotics technician.
Are you ignorant or what? There's proof worldwide that paying your workers decent wages doesn't cost more. Also, imagine what would happen if workers actually had money to spend... Guess where they'd spend.
No, I wouldn't. That's why they won't price it at $20. They're gonna have to figure something else out or just have a complete negative loss in the state. You can try to price gouge people but they'll likely just go somewhere else. This is some bs thinking through and through
So it turns out that you are underpaid just like these McDonald's employees. Unless by robotics technician you mean something like a roomba repairman. Maybe support your fellow laborers when they are fighting for fair wages. It shouldn't be a competition.
No it won't, you'll just make slightly less profits, but you'll still be profitable. If it helps sweetie, you shouldn't have been making that much profit in the first place, you're just getting called out on your bullshit now.
Go fuck yourself, world's leading fast food restaurant and the inventor of the chain franchise. Billions served, hundreds of billions of dollars made, millions of tons of food thrown away, and still can't afford to pay people a living wage? Instead of eating McDonald's, let's just eat McDonald's. Eat the rich!
They always say this, it never happens because the min wage when it was originally implemented would be 35 dollars now. It didn't happen then, it won't happen now, but the press just reports this stuff like McD's is serious.
Without doxxing yourself, can I ask where? I live in one of the lowest COL states and McDonalds managers are still advertised at least $18/hr or more. Even the part time employees usually start around $14 from the signs outside the store.
Oh noooo other restaurants managed even without universally well known name to back them up. How could Mcdonald ever survive? The Mcdonalds in Europe have to be in shamble, surely.
they just pass the bill on to the consumer. from the dollar menu to the 1 2 3 dollar menu. soon it'll be the "under $5 club" but the cheapest item will be a small fry for $3.79
These prices have nothing to do with their actual cost. The "inflation" is them raising prices arbitrarily to flirt with the line of when poor people will finally revolt. They are just flying closer to the Sun by choice today, these aren't in reaction to any real world choice or condition that the business needs to make to "survive"
I think people know, but it’s going to be like they treat landlords. Ideologically opposed. EDIT: thanks for the downvote for a neutral prediction. I’d like to thank the Academy, Spez, and users like you.