McDonald’s CA franchisee on new minimum wage: "The sheer scale of the impact is just breathtaking"

I worked at a McDonalds back in 1967. Started at $.75 an hour. Shortly after, the minimum wage went to $1.25.

Somehow, they managed to survive.

I know, I know. Things are different now, right?
 
I knew the BRAINIACS would do this a few years ago and I said they would cut hours and replace humans with the Kiosk ordering systems.
 
I worked at a McDonalds back in 1967. Started at $.75 an hour. Shortly after, the minimum wage went to $1.25.

Somehow, they managed to survive.

I know, I know. Things are different now, right?
We were a creditor nation then. Now a debtor nation. That is different. A good percentage of sons and daughters in their late 20's and older still live at home. That is different. Tens of millions of manufacturing employment is gone. That is different. We lost control of the Fiat Currency. That is different. As a nation declines this is what happens. We were a rising nation in 1967.
 
Sounds like Kramers’ “Make Your Own Pizza “ idea.
That’s the way it worked at my yacht club after the Wednesday night races, you bought a bun and raw hamburger patty, the rest was up to you. The club provided the grills and condiments but you did the labor.
 
I worked at a McDonalds back in 1967. Started at $.75 an hour. Shortly after, the minimum wage went to $1.25.

Somehow, they managed to survive.

I know, I know. Things are different now, right?
Before the pandemic...they were saying they couldn’t pay $15 an hour. Amazingly they survived the pandemic when they had to pay $15 an hour shortly thereafter.

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Yes, and it was a job for a young person to learn the job market.


or an older person as well who just needed a little extra money in retirement.
Its going to be much tougher now for these people. Not only will they be priced out of work, but employers will be more likely to hire illegal immigrants who will work much harder. Not that working harder is a BAD THING,, but this was always, just like you say, almost a rite of passage for many of our youth who just need to learn how to work and feel good about themselves earning some money.
 
Looks like Newsome's buddy will be exempt from the law:

Why Panera is causing a stir in California politics​



The minimum wage for fast food workers in California is set to increase to $20 per hour on April 1, but one curious carve-out in the new minimum wage law has ignited controversy in the state. And Panera Bread has been caught in the middle.

The law exempts businesses that produce and sell bread as a stand-alone menu item, meaning those bakeries are not required to pay workers the higher minimum wage and can continue paying the state’s current $16 minimum wage. That’s confounding some in the restaurant industry.

Democratic California Gov. Gavin Newsom has faced accusations – particularly from Republican lawmakers and conservative media – that Panera may have received this unlikely and specific exemption because of Newsom’s ties to Greg Flynn, a billionaire Panera franchise owner who is a former classmate of Newsom’s. He has donated to the governor’s campaigns in the past.


 
Oinkonomics

What was McD's profit margin before? How much can they afford to give back to those who produce the revenue? Let's have some independent figures on that, instead of trying to drag the customers in as the determining factor.

How much do you produce for your company? What it pays you must be called "take-home pay," or else you're giving to Wall Street what you resent giving to the government.
Are you smoking banana peels again?
"A restaurant operator makes anywhere from 5% to 15%, the bottom line at the end of the day, and if your labor cost is one-third of your cost, so 30%, and you raise the wage from $15 to $20 or $25 over the next couple years, you're almost doubling that cost. And so they're going to have to raise prices."
Typical McD franchisee profit is 3.5.4% range.
Then I found this. I despise the internet!!! what is the real truth? Impossible to find using Google skewed search engine.

McDonald's has recently received heavy criticism over its Big Mac combo, which is priced at nearly $18, among other menu hikes, and has promised to focus on affordability, the New York Post reported.
That is based on ONE McD's, which is at a service plaza on a tollway and so charges more. $10-11 is more typical.
 
labor is worth only as much as it produces in goods and services plus a reasonable profit for the employer. When labor costs more than it produces in goods and services plus a reasonable profit for the employer, it becomes an expendable commodity and the job will usually go away or the worker will be replaced with somebody who can and will produce sufficient goods, services plus reasonable profit.

Nobody is in business for any reason than to make sufficient profit to support himself and his family. Few people are in a position to donate their labor for a greater good.
You're Letting the Owners Determine What a "Reasonable" Profit Is

Typical of the Netrix, you're slanting everything to make the owner seem to be the victim, while pretending you're being realistic and only explaining a proven way the economy has to work. This glorification of the owner creates an overwhelming imbalance of power. I've even heard an owner claim that his employees would be homeless if it weren't for what he pays them.
 

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