Fast food CEO: Minimum wage hikes closing locations

[2ADMNLOVER]

I wonder why the employees can't speak fluent English?

Because they don't have to , why not ?

Because there are people like ron marburger of marburger fine flooring ( in Fishers ) that will gladly work immigrants for 1/3 of what he has to pay Americans to do the same job .

Because his profit margin goes up and he gets to drive a company leased Corvette that way .

Because of human nature , greed .

 

[BigBoxaJunk]

As the owner/president/CEO/secretary...ad nauseum of my "corporation" anyone who tells me to lower my salary/profit margin/"bonus" can go fornicate themselves! That $10 or $8 am hour employee didn't risk a damned thing to work for me, he gets paid whether I make a profit or not. He works the hours allotted and gets his paycheck, some weeks and months I get nothing, yet he is still paid for the hours worked. Did HE start the business, no! Does he work 60 plus hours a week, no! Does he stress over payroll taxes, sales tax, personal property tax, no! Does he worry that there may not be money to put fuel in the trucks so he can do his job, no! His is to simply put in his hours, do his job, go home to his family, and pick up his paycheck on Friday. So far, My employees are under no illusion that the job they do is worth more than they are paid. When it comes that time, I will look for new ones. All this b..ching
about "fair wage" or "living wage" is absurd, when employees put out the same risk as the owners, then they can talk about fair wages. Until then work for what you are paid, if it isn't enough, find someone who pays you more for the same thing!

My dad felt the same way with his business. He always paid as little as he could get away with and he was constantly having trouble with his guys, since the only ones that would work for him were the ones who couldn't get a job somewhere else. When dad died, the first thing we did was give one particular guy a raise. That was almost ten years ago and the same guy is still with us and we don't know what we'd do without him. He appreciates that we take care of him and he goes the extra mile for us, and everyone's happy.

 

[TTB Yeee]

They (whoever made that quote in the article) forgot a couple.

* Lower the profit margin. This includes the salary(ies) paid to the 'top brass'.

I just trimmed it down to keep my post short and simple. Most companies evaluate individual store profitability. If store x has lost 5k+ for the last 5 years, when the lease is up, it is getting closed. They don't say "hey, we made 10 million dollars as a company last year, so let's keep this store that is losing money open."

If that same store is making 5,000 per year on average, increasing minimum wage for that store could very well make it a loser. Why keep a store in existence if it is doing nothing but losing money for you? Wages are the biggest factor that you can attempt to affect when it comes to expenses, utilities, supplies, rent, etc. are relatively fixed.

So bottom line, taking away CEO money won't keep a losing store open....period. Now if the company is losing money, then you have an argument of overpaying top executives, but for Carl's JR...I doubt that's the case.

 

[Mark 1911]

I am amazed at how many fast good employees can not even make correct change. There have been about 3 times in the last 6 months where I was actually given too much change (which I gave back), on one of those occasions I was given an extra $20 bill. Shouldn't counting change correctly be a basic prerequisite to for folks working the register?

 

[MisterChester]

These people aren't represented by a union. Why close locations instead of firing these idiots?

I was thinking that too. Who opens a business, sees their costs are too high, and throws in the towel immediately?

 

[Arthur Dent]

As the owner/president/CEO/secretary...ad nauseum of my "corporation" anyone who tells me to lower my salary/profit margin/"bonus" can go fornicate themselves! That $10 or $8 am hour employee didn't risk a damned thing to work for me, he gets paid whether I make a profit or not. He works the hours allotted and gets his paycheck, some weeks and months I get nothing, yet he is still paid for the hours worked. Did HE start the business, no! Does he work 60 plus hours a week, no! Does he stress over payroll taxes, sales tax, personal property tax, no! Does he worry that there may not be money to put fuel in the trucks so he can do his job, no! His is to simply put in his hours, do his job, go home to his family, and pick up his paycheck on Friday. So far, My employees are under no illusion that the job they do is worth more than they are paid. When it comes that time, I will look for new ones. All this b..ching
about "fair wage" or "living wage" is absurd, when employees put out the same risk as the owners, then they can talk about fair wages. Until then work for what you are paid, if it isn't enough, find someone who pays you more for the same thing!

Good luck finding someone who will go the extra mile for you.

 

[88GT]

Good luck finding someone who will go the extra mile for you.

I don't think he expects them to. But that's a function of today's society where the hedonism is now more highly valued than a sacrificial work ethic and adherence to doing what is right rather than what is easy or convenient.

 

[BogWalker]

The only way to keep CEOs and top level employees from being paid "too much" would be to set a cap on wages. Is INGO really suggesting that needs to happen?

 

[88GT]

The only way to keep CEOs and top level employees from being paid "too much" would be to set a cap on wages. Is INGO really suggesting that needs to happen?

There are at least a few we could count on for it.

 

[Crbn79]

Just to give an idea: Let's say a Mc Donalds has 10 employees making minimum wage. If each of these emps work 30 hrs a week, we are talking almost $50,000 increase just in wages each year. Sure, that money will certainly come off the top, not increases in the menu price....

 

[BogWalker]

Just to give an idea: Let's say a Mc Donalds has 10 employees making minimum wage. If each of these emps work 30 hrs a week, we are talking almost $50,000 increase just in wages each year. Sure, that money will certainly come off the top, not increases in the menu price....

Now, can someone explain a bit how the franchise system works. Wouldn't that $50,000 come out of the pocket, not of the company big-wigs, but of the owner of that particular store? The $10million CEO could spare $50k, but for the franchise owner this is a significant portion of his income he'd have to be paying out. Am I understanding the system correctly? Franchise owner pays employees and operating costs, corporate makes money off of franchising fees and probably a cut of profits.

 

[5.56'aholic]

Now, can someone explain a bit how the franchise system works. Wouldn't that $50,000 come out of the pocket, not of the company big-wigs, but of the owner of that particular store? The $10million CEO could spare $50k, but for the franchise owner this is a significant portion of his income he'd have to be paying out. Am I understanding the system correctly? Franchise owner pays employees and operating costs, corporate makes money off of franchising fees and probably a cut of profits.

Comes out of the franchisee's pocket. They still have to pay McD's on top of that. All it will do is squeeze out the the very person paying the employee's wages.

 

[Bunnykid68]

Now, can someone explain a bit how the franchise system works. Wouldn't that $50,000 come out of the pocket, not of the company big-wigs, but of the owner of that particular store? The $10million CEO could spare $50k, but for the franchise owner this is a significant portion of his income he'd have to be paying out. Am I understanding the system correctly? Franchise owner pays employees and operating costs, corporate makes money off of franchising fees and probably a cut of profits.

Comes out of the franchisee's pocket. They still have to pay McD's on top of that. All it will do is squeeze out the the very person paying the employee's wages.

Hush, nobody wants to talk about that.

 

[level.eleven]

Hush, nobody wants to talk about that.

We can talk about pyramid schemes if you want.

 

[88GT]

Pyramid schemes. Like Social Security?

 

[BehindBlueI's]

Just to give an idea: Let's say a Mc Donalds has 10 employees making minimum wage. If each of these emps work 30 hrs a week, we are talking almost $50,000 increase just in wages each year. Sure, that money will certainly come off the top, not increases in the menu price....

The math is out there. McDonald's is a publicly traded company, you can see their books for yourself and see what portion of their expenses stem from labor. If McDonald's raised their hourly workers to $15 an hour, a value meal goes up an average of 29 cents if profits aren't to be touched. Eat there once a week, and you're looking at $15 over the course of a year. Hardly Earth shattering to the consumer, potentially life changing for the employee.

 

[level.eleven]

All I feel like I get is trickled ON.

That's the point of supply side. It isn't about anyone on this board. I just think it is sad that some folks think they can be/are part of the club. They go as far to vote against their best interest.

 

[88GT]

The math is out there. McDonald's is a publicly traded company, you can see their books for yourself and see what portion of their expenses stem from labor. If McDonald's raised their hourly workers to $15 an hour, a value meal goes up an average of 29 cents if profits aren't to be touched. Eat there once a week, and you're looking at $15 over the course of a year. Hardly Earth shattering to the consumer, potentially life changing for the employee.

The problem with that is that it assumes static sales of said meals. It also assumes every other factor a consumer considers when purchasing a meal remains unchanged.

And if by life-changing for the employee you mean a greater income and stronger financial security, I doubt it. They'll just **** away the extra money the same way they **** away what they make now. Money problems aren't about income. And it's a rare "poor" person that isn't where he is because of the choices he makes rather than the circumstances he's faced with.

 

[RockofStrength]

The math is out there. McDonald's is a publicly traded company, you can see their books for yourself and see what portion of their expenses stem from labor. If McDonald's raised their hourly workers to $15 an hour, a value meal goes up an average of 29 cents if profits aren't to be touched. Eat there once a week, and you're looking at $15 over the course of a year. Hardly Earth shattering to the consumer, potentially life changing for the employee.

Here is my question: if it is truly so inconsequential why wouldn't McDonald's do just that and take the pick of the best employees?

 

[Bunnykid68]

Here is my question: if it is truly so inconsequential why wouldn't McDonald's do just that and take the pick of the best employees?

If it were that simple that is exactly what I would do.