Living wage advocates, how are restaruant owners supposed to deal with being squeezed like this?

[Camile.Bidan]

An 11-page thread on how "expensive" fast food is.

http://www.thecoli.com/threads/im-far-from-cheap-but-fast-food-done-got-ridiculous-iculous.348341/


franchise owners have to deal with 70% to 120% increase in labors costs but they can't raise prices without losing customers. They have slim margins and increased competition from grocery stores, who offer quick food, and lower prices at "sit-down" restaurants.

Their only options would be technological innovations to increase automation or shut-down.


What are they supposed to do?

 

[Tate]

Make a better product people are willing to pay more for. Wouldn't that be the market response to people refusing to buy your product if price reduction isn't an option?

Side note; why are the prices for French(~$12 minimum wage) and Australian(~$15 minimum wage) McDonald's meals similar to US meals? How can poor ol McDonald's function in these socialist dystopias? Why aren't these stores glorified vending machines at this point?

 

[ADevilYouKhow]

Bootstraps come in all shapes and sizes

 

[R. Money]

Slaves didn't get paid at all but they lived.


I had to sell some stocks when I was in college. We all struggle.

 

[Camile.Bidan]

Make a better product people are willing to pay more for. Wouldn't that be the market response to people refusing to buy your product if price reduction isn't an option?

Side note; why are the prices for French(~$12 minimum wage) and Australian(~$15 minimum wage) McDonald's meals similar to US meals? How can poor ol McDonald's function in these socialist dystopias? Why aren't these stores glorified vending machines at this point?

A better product costs more.

Are all other operational costs the same in these areas? Show me a P&L, maybe then we can talk about costs.

 

[kevm3]

The same way min-wagers are living despite having wages not keeping track with inflation. They'll have to struggle and find a way.

 

[Tate]

A better product costs more.

Are all other operational costs the same in these areas? Show me a P&L, maybe then we can talk about costs.

Ok. Again, if people aren't willing to buy your shytty product for $5 and you can't lower costs. Your only option would appear to be try to make a better product and sell it for $5.50.

You asked specifically about wages, I pointed out that higher wages haven't driven foreign McDonald's out of busines or driven costs out of the range enjoyed in the U.S. If you want to incorporate other operating costs into the discussion go find some facts and bring them to the thread.

 

[Camile.Bidan]

Bootstraps come in all shapes and sizes

It ain't about bootstraps. It's about economic efficiency. I could give a fukk less about bootstraps and people working-their-way-up.



I seriously doubt that a fast food worker adds 15 dollars (not including employer taxes) worth of output to the economy. What is the gross margin on a burger? then add all other operational costs per burger? How much value does a person of an IQ range of 90-100 really add to the burger production process?


So essentially we have to pay 15 dollars an hour for output that is worth less. Even the fast food workers output is worth 14.99, the .01 net loss in resource allocation leads to a long-term economic decline and total destruction in economy.


Imagine an economy of 1000 raw resources, and we waste $.01 on the village idiot just so he can have a "living wage". How long would it take for us to completely wipe-out our resources even at $.01 loss. Even if all members of the village were highly productive, the laggard's $.01 net deficit would have huge effect on long-term growth rates.

 

[Camile.Bidan]

Ok. Again, if people aren't willing to buy your shytty product for $5 and you can't lower costs. Your only option would appear to be try to make a better product and sell it for $5.50.

You asked specifically about wages, I pointed out that higher wages haven't driven foreign McDonald's out of busines or driven costs out of the range enjoyed in the U.S. If you want to incorporate other operating costs into the discussion go find some facts and bring them to the thread.

No the other option we be to shut down and pursue a more profitable business

 

[Tate]

No the other option we be to shut down and pursue a more profitable business

Do that then. As long as you're paying a living wage

 

[A Real Human Bean]

I like the singling out of "living wage advocates", as if paying people living wages is some sort of "special interest" issue.

 

[FaTaL]

An 11-page thread on how "expensive" fast food is.

http://www.thecoli.com/threads/im-far-from-cheap-but-fast-food-done-got-ridiculous-iculous.348341/


franchise owners have to deal with 70% to 120% increase in labors costs but they can't raise prices without losing customers. They have slim margins and increased competition from grocery stores, who offer quick food, and lower prices at "sit-down" restaurants.

Their only options would be technological innovations to increase automation or shut-down.


What are they supposed to do?

Kiosks

 

[tmonster]

Bootstraps come in all shapes and sizes

:zfg:

 

[tmonster]

I like the singling out of "living wage advocates", as if paying people living wages is some sort of "special interest" issue.

I sense a very high comedy potential in this thread

 

[tmonster]

Op since wages are gonna be so high at the restau. Owners can just work in their restaurants and make all that cash which then they would just pay themselves
Chaching!