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

[TLR Is Mental Poison]

Do what Ace did in Paid in Full.... Lower the price as much as possible and sell twice the product.

He was only able to do that because his margins were so high to begin with. If u are only making $0.50 on an $8 meal how can u cut the price in half and stay in business?

 

[TLR Is Mental Poison]

From McDonald's Franchise owner site:



I'm sorry but the entrepreneurs that open up these restaurants aren't struggling middle class families. You need at least a million dollars to start a franchise with $500,000 in cash sitting in an account and the average McDonalds' makes 2.5 million dollars a year.

Thats revenue my breh. Most of that 2.5 million goes back to paying leases, bills, franchise fees, wages and material costs. Plus everyone who starts a franchise doesn't do it with cash... they often get financing. Even if they had cash though, so wat.... should someone who invests in something have to give their money away? Why invest at all?

 

[DEAD7]

My thing is we know employment will be affected(negatively) to some degree by a wage increase... and as black men that this affect on employment will disproportionately hurt our community.
So why are we supporting it?
Is there some delusion going on that those at the bottom of the labor force are not minorities?

 

[Misanthrope]

The Five Eyes and France

Thats hilarious.

And the Australia is clearly most expensive to live

I see how you got that woat status now

 

[Ethnic Vagina Finder]

He was only able to do that because his margins were so high to begin with. If u are only making $0.50 on an $8 meal how can u cut the price in half and stay in business?

Find a new supplier. Scale down overhead. I'm pretty sure they throw out thousands of dollars in product a month. The problem is they're using a dated playbook. They don't know how to adapt. Fast food is bad for you anyway so people are gonna eat that bullshyt regardless ass long as it tastes good. This is the fattest country in the world. If you can't make money in the food and beverage business

 

[Broke Wave]

The point where the labor supply curve intersects the firm's marginal cost curve.

resource allocations should be determined by market valuations, which are the best measures of value available. Other alternatives lead to dead weight loss and inefficiencies.

I agree with this, but obviously markets are not ultra efficient. Furthermore, we have to consider the financial toll these low wages take on societt. There is an approximate true cost of labour... I.e the rate at which a worker can maintain living conditions adequte to continue employment. Thats where the subjectivity goes is injected in to it. If the workers cant afford basic food or shelter, then the company paying those wages is having that cost subsidized.

 

[☑︎#VoteDemocrat]

I see how you got that woat status now

So where's all this proof of other countries with a higher MW?

The controversy of the validity of PPP withstanding?

 

[TLR Is Mental Poison]

Find a new supplier. Scale down overhead. I'm pretty sure they throw out thousands of dollars in product a month. The problem is they're using a dated playbook. They don't know how to adapt. Fast food is bad for you anyway so people are gonna eat that bullshyt regardless ass long as it tastes good. This is the fattest country in the world. If you can't make money in the food and beverage business

U just throwing out arbitrary business terms. Unless u have visibility into the finances and operations of all these operations you dont know what you're talking about.

You also fail to name the easiest option. Sell the franchise, fire everybody and invest the money elsewhere. Then instead of a living wage, those workers get no wage, and the owner gets a return without being demonized by the public (well at least for not paying people enough.... he will still be demonized for having money to invest)

 

[☑︎#VoteDemocrat]

I see how you got that woat status now

So where's all this proof of other countries with a higher MW?

The controversy of the validity of PPP withstanding?

 

[Broke Wave]

My thing is we know employment will be affected(negatively) to some degree by a wage increase... and as black men that this affect on employment will disproportionately hurt our community.
So why are we supporting it?
Is there some delusion going on that those at the bottom of the labor force are not minorities?

Heres the thing ; ive been disputing that notion with facts for 3 pages.

 

[☑︎#VoteDemocrat]

From McDonald's Franchise owner site:



I'm sorry but the entrepreneurs that open up these restaurants aren't struggling middle class families. You need at least a million dollars to start a franchise with $500,000 in cash sitting in an account and the average McDonalds' makes 2.5 million dollars a year.

Do you know the difference between revenue and profit?

And stop saying these aren't middle class people. $500K isn't a fukk-ton either compared to millionaires many times over.

 

[TLR Is Mental Poison]

I agree with this, but obviously markets are not ultra efficient. Furthermore, we have to consider the financial toll these low wages take on societt. There is an approximate true cost of labour... I.e the rate at which a worker can maintain living conditions adequte to continue employment. Thats where the subjectivity goes is injected in to it. If the workers cant afford basic food or shelter, then the company paying those wages is having that cost subsidized.

A great point, though I doubt the folks calling for a higher minimum wage would be OK with trading that for all the govt subsidies that enable minimum wage workers to live.

Like I keep saying, the issue isn't minimum wage... it's why minimum wage is becoming the pay level for so many Americans. Avg American should be equipped with the skills to do better than a MW job.

 

[☑︎#VoteDemocrat]

Find a new supplier. Scale down overhead. I'm pretty sure they throw out thousands of dollars in product a month. The problem is they're using a dated playbook. They don't know how to adapt. Fast food is bad for you anyway so people are gonna eat that bullshyt regardless ass long as it tastes good. This is the fattest country in the world. If you can't make money in the food and beverage business

Yeah, none of this happens.

The supplier IS McDonalds. Scale overhead? Why do you think they're franchises? All of that is controlled.

 

[☑︎#VoteDemocrat]

I agree with this, but obviously markets are not ultra efficient. Furthermore, we have to consider the financial toll these low wages take on societt. There is an approximate true cost of labour... I.e the rate at which a worker can maintain living conditions adequte to continue employment. Thats where the subjectivity goes is injected in to it. If the workers cant afford basic food or shelter, then the company paying those wages is having that cost subsidized.

Do you think its utterly impossible to live on any minimum wage that ever gets established?

I do. Not 7.25, but around $10, I do. (state and local additions withstanding)

Its not comfortable, and you can't support kids, but theres a way to live.

 

[☑︎#VoteDemocrat]

A great point, though I doubt the folks calling for a higher minimum wage would be OK with trading that for all the govt subsidies that enable minimum wage workers to live.

Like I keep saying, the issue isn't minimum wage... it's why minimum wage is becoming the pay level for so many Americans. Avg American should be equipped with the skills to do better than a MW job.

This is my argument as well. Only 2% of all US workers make MW.

So the real argument is middle income earners not seeing increases.