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How much more will your Big Mac cost if we raise the minimum wage?

hal9000

hal9000

Duke status
Jan 30, 2016
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grapedrink said:
www.mashed.com

How Much McDonald's Franchise Owners Really Make Per Year - Mashed

McDonald's is the most successful restaurant in the history of the world. How much does a McDonald's franchise owner really make each year?
www.mashed.com www.mashed.com
Actually they would notice. The average franchise owner nets $150k/store/year on $2-3M in sales, not including the initial investment. Which puts their profit margin in the single digits. Ruthless!

To pay a living wage (which amounts to how much exactly?) would absolutely require raising wages, to the point where people will simply spend less money there because the price increases far exceeds the value of the food, and/or owners will cut hours and invest in labor saving machinery to compensate. Labor accounts for 25-30% of the overhead, therefore an hourly pay increase of $5-10/hr would absolutely have an effect.

Math is hard.


Then given how low the profit margins are, they aren’t doing a very good job at it. The facts don’t match your feels.
Click to expand...

in other words, profit margins are predicated on exploitation of cheap labor.
 
grapedrink

grapedrink

Duke status
May 21, 2011
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Sharkbiscuit said:
LOLOLOLOLOLOLOL

MCD profit margin is publicly available. I don't need to account for what Wall Street Journal told Reader's Digest told Mashable to come up with it.

On the one hand, the argument is made that raising the minimum wage has a 100% inelastic effect due to inflation and everyone else's bargaining power.

Except the franchisee. The franchisee, well there's some elasticity there because they are getting squeezed. And the child care. And the grocery store. And.....
Click to expand...
I'm not sure what your point is. I brought up the franchisee because it shows the profitability on a per location basis. Where after it's all said and done, a location profits maybe $150K/year to the owner, which aint much considering that they do a couple million in sales per year. A corporate owned store not having to pay the franchise fees would maybe do double that, and possibly more in choice locations.

Sure, that same franchisee could save the fees and make their own burger concept that is vastly superior and at a similar price point, but how much will they have to pay on marketing to get people through the door the way that a typical McDonalds can?

Point being it each individual store is not exactly printing money. And nobody will even touch my point about what happens when you divide total worldwide net profits by US based employees, which adds up to about $3k/person. Again- how do you actually give someone a meaningful wage increase without raising prices?
 
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S

Sharkbiscuit

Duke status
Aug 6, 2003
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Jacksonville Beach
grapedrink said:
I'm not sure what your point is. I brought up the franchisee because it shows the profitability on a per location basis. Where after it's all said and done, a location profits maybe $150K/year to the owner, which aint much considering that they do a couple million in sales per year. A corporate owned store not having to pay the franchise fees would maybe do double that, and possibly more in choice locations.

Sure, that same franchisee could save the fees and make their own burger concept that is vastly superior and at a similar price point, but how much will they have to pay on marketing to get people through the door the way that a typical McDonalds can?

Point being it each individual store is not exactly printing money. And nobody will even touch my point about what happens when you divide total worldwide net profits by US based employees, which adds up to about $3k/person. Again- how do you actually give someone a meaningful wage increase without raising prices?
Click to expand...
I am not arguing that you can give someone a meaningful wage increase without raising prices.

I am arguing that it's not going to result in an instantaneous increase, across the board, in costs, at all strata of personal and business finance, eg it will have some non-zero positive effect and tangibly decrease the inequality it claims to decrease.

Part of my point is that capital at the very top is squeezing everyone else, and it's Ronald Reagan's fault, specifically, along with most of the other economic backsliding the American Middle Class has faced since 1980.

Look at Hazlett's attempts at explaining labor costs, or taxation's affect on the workforce. It's fucking comical.
It's also the type of "reasoning" driving conservative intransigence. It's how we got at an entire GOP field saying they'd turn down $9 in spending cuts for $1 in tax increases - a question framed to demonstrate just how wingnut the Right is, economically/fiscally speaking.
 
grapedrink

grapedrink

Duke status
May 21, 2011
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Sharkbiscuit said:
I am not arguing that you can give someone a meaningful wage increase without raising prices.
Click to expand...
Thank you, exactly, my point. /Thread

I am arguing that it's not going to result in an instantaneous increase, across the board, in costs, at all strata of personal and business finance, eg it will have some non-zero positive effect and tangibly decrease the inequality it claims to decrease.

Part of my point is that capital at the very top is squeezing everyone else, and it's Ronald Reagan's fault, specifically, along with most of the other economic backsliding the American Middle Class has faced since 1980.

Look at Hazlett's attempts at explaining labor costs, or taxation's affect on the workforce. It's fucking comical.
It's also the type of "reasoning" driving conservative intransigence. It's how we got at an entire GOP field saying they'd turn down $9 in spending cuts for $1 in tax increases - a question framed to demonstrate just how wingnut the Right is, economically/fiscally speaking.
Click to expand...
Nowhere here am I defending Reagonomics. Like I said, we would be better off simply mandating a modest 1-2% annual increase.

That said, the other main point of my thread is that minimum wage laws are a band-aid on a broken leg for bigger socioeconomic issues that we should be addressing. Wages are just as much a symptom as they are a cause, if not more so.
 
S

Sharkbiscuit

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Aug 6, 2003
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grapedrink said:
Thank you, exactly, my point. /Thread


Nowhere here am I defending Reagonomics. Like I said, we would be better off simply mandating a modest 1-2% annual increase.

That said, the other main point of my thread is that minimum wage laws are a band-aid on a broken leg for bigger socioeconomic issues that we should be addressing. Wages are just as much a symptom as they are a cause, if not more so.
Click to expand...
I agree we'd be better off simply mandating a modest 1-2% (or inflation-indexed like Social Security?) increase.
But it's almost like a political party sells White Identity and Victimhood to rubes so they can prevent this from happening.

I am open to minimum wage laws being a band-aid on a broken leg as a point of view.
It's almost like a political party has, as an agenda, the outright prohibition of x-rays.

Given the choice between do nothing at all, or bleed slightly slower, it appears bleed slightly slower is better than nothing at all.

Edit: Problem #1 to me is people thinking Biden is a socialist but voting for a $15/hr minimum wage. That's labor I'm in favor of culling. Cull it, write it off as depreciation or some sh!t. Fully irredeemable.
 
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grapedrink

grapedrink

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May 21, 2011
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Sharkbiscuit said:
I agree we'd be better off simply mandating a modest 1-2% (or inflation-indexed like Social Security?) increase.
But it's almost like a political party sells White Identity and Victimhood to rubes so they can prevent this from happening.

I am open to minimum wage laws being a band-aid on a broken leg as a point of view.
It's almost like a political party has, as an agenda, the outright prohibition of x-rays.

Given the choice between do nothing at all, or bleed slightly slower, it appears bleed slightly slower is better than nothing at all.
Click to expand...
Agreed. The bigger question is why there are wide swaths of the country and adult populace who's best prospects professionally is working a minimum wage job for the rest of their life. Very few politicians are even willing to touch that one.
 
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StuAzole

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Jan 22, 2016
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GDaddy said:
100% of the increases in the minimum wage and minimum-adjacent have gone straight into rents in this region. Enabling everyone to pay more for their housing has led to everyone paying more. The trend has been even more noticeable in the outlying areas. In California, anyway.

The only people who are actually coming out ahead are the landlords and the govt.
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Rental rates are dictated by supply and demand. Not the minimum wage.

You know when rents started to really jump in North County - the same time families were losing their homes to foreclosure. Many of those families never made it back to home ownership and they're still renting. More recently, people selling their homes to take advantage of the current run up in values have bumped rental demand even higher. More renters = higher rents.
 
laidback

laidback

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Feb 9, 2007
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I think the only solution is for the burger flipper, franchisee, & mcd Corp should all get equal pay
 
plasticbertrand

plasticbertrand

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Jan 12, 2009
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hal9000 said:
we could get into this endless loop of

“people buying sh!t is what keeps the economy going“

followed by

”if people didn’t buy so much sh!t, they’d have more money for things”

ad infinitum.
Click to expand...
Trickle down works, you just wait!

Grapedrink is his usual petty self.

"People on minimum wage spend money on iPhones so they don't deserve to get paid a living wage."

"it's not supposed to be a career therefore people should not be properly compensated and be on foodstamps"
 
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