Right Winger – iOwnTheWorld.com
The ultimate issue is that liberal regressives have zero concept of how a business runs. McDonalds corporate does not dictate the wages for the franchises.
I was breaking down the math on the $5.5 billion in profit against 33,000 stores worldwide, which came out $166,666 profit/year per store. That fit in line with numbers at burgerbusiness.com on a typical McDonalds franchise.
Their numbers show (after everything is paid off), the franchise owner gets about $153,900 in profit after annual sales of $2.7 million. Hardly a rich salary.
Now, Crew Payroll is figured to be $540,000. If you took everybody making say, $8/hr and gave them a 25% raise to $10/hr, you’d be adding about $135,000 more to crew payroll expenses.
That takes the franchise owners profit down to less than 19K. Any regressive out there want to explain how a guy who owns a business is supposed to live off of $19,000 year? I challenge any regressive to go out there, buy a franchise and then you can pay these folks the $15/hr you think they deserve. You’ll be out of business in one year tops.
MNHawk – iOwntheWorld.com
Right winger did a great writeup on the business side. Let’s look at it from the consumer side. I’ll go with my personal experience., from my last vacation.
Manila, $1.50 hour minimum wage, a typical meal of a double burger, medium fries, medium drink is under $4. I think I was spending 150 pesos, VAT included.
Taipei, a higher minimum wage but I don’t think it’s much higher. You’re over $4 now for that meal. Probably NT$140-NT$150.
Here, $7.50 wage, that meal is over $7, last time I had one. You see where this is going?
Let’s double that to $15. Your meal went from $4 to $7 with another $5 in wages, where do you think it will go with another $7.50 in wages. $12 perhaps. So now it’s $24 to feed two a decent meal. That’s a restaurant level tab. Are you going to pay a restaurant level tab for a fast food experience?