The facts are in liberals - and as usual - they
prove you overwhelmingly
wrong.
From McDonald's former CEO:
"The $15 minimum wage demand, which translates to $30,000 a year for a full-time employee, is built upon a fundamental misunderstanding of a restaurant business such as McDonald’s. “They’re making millions while millions can’t pay their bills,” argue the union groups, suggesting there’s plenty of profit left over in corporate coffers to fund a massive pay increase at the bottom.
In truth, nearly 90% of McDonald’s locations are independently-owned by franchisees who aren’t making “millions” in profit.
Rather, they keep roughly $0.06 of each sales dollar after paying for food, staff costs, rent and other expenses.
Let’s do the math: A typical franchisee sells about $2.6 million worth of burgers, fries, shakes and Happy Meals each year, leaving them with $156,000 in profit. If that franchisee has 15 part-time employees on staff earning minimum wage, a $15 hourly pay requirement eats up three-quarters of their profitability. (In reality, the costs will be much higher, as the company will have to fund raises further up the pay scale.) For some locations, a $15 minimum wage wipes out their
entire profit."
It really become astounding when you hear liberals talk about business and economics becuase you realize how much they don't know about the very basics (like the fact that McDonald's restaurants are not a "corporation" but rather independently owned franchises - as pointed out
many times here on USMB by conservatives who actually know what they are talking about). Once you see the actual profit margins (
$0.06 on every dollar?!?) it becomes even more obvious just how unqualified liberals are to discuss anything with regards to business or economics. A $0.06 profit margin is
horrible. In most businesses, it would be considered unsustainable for survival. I can only
assume (and I'm admitting I don't know here) that the McDonald's Corporation shows potential franchise owners a sales model which demonstrates how volume and efficiencies make that paltry profit margin worth going into business for. As a frame of reference - the
low end of a sustainable profit margin is considered 14% (or more than double McDonald's profit margin) and even that is
really bad.
The Ugly Truth About A $15 Minimum Wage