California: New minimum wage ($20/hr!) for fast food workers (1 Viewer)

[ttwtt78640]

lol, McDonald's thinks their McNuggets are made of gold, I guess.

Yep, yet enough fools still buy them.

 

[Uncensored2008]

People will continue to but fast food even with rising prices. The system works.

Is that what the evidence shows?

 

[Uncensored2008]

I'd rather see debt free post secondary education and job training. Then fast food wages wouldn't have to support a family. They'd most just support the miscellaneous needs of teenagers. Our system doesn't launch kids properly.

I'd rather see full liability for educational institutions. If that $500,000 degree in Lesbian Aboriginee studies leaves the graduate unable to get a job - because even fast food is out now in California - then they should be able to sue the pants off of the institution that defrauded them into thinking their mal-education had actual value.

 

[multivita-man]

Yep, yet enough fools still buy them.

They do, but increasingly not everyone can afford to. Sales are still growing but slowing down, and I wonder about the actual customer traffic (as opposed to nominal revenues). As others have mentioned, the pricing power they enjoyed coming out of the pandemic may be partly to blame. Looks like they're considering some deals again.

McDonald's plans to step up deals and marketing to combat slower fast food traffic

McDonald’s plans to step up deals and value messaging to combat slowing sales. The Chicago burger giant said inflation-weary customers are eating out less often in many big markets.

apnews.com

 

[ttwtt78640]

View attachment 67508107​

OK, but how much will entry level ($20/hour) fast food workers (the thread topic) make compared to what they made in 2014? $20/hour is likely more than 100% over what they were making (per hour) in 2014.

 

[ttwtt78640]

They do, but increasingly not everyone can afford to. Sales are still growing but slowing down, and I wonder about the actual customer traffic (as opposed to nominal revenues). As others have mentioned, the pricing power they enjoyed coming out of the pandemic may be partly to blame. Looks like they're considering some deals again.

McDonald's plans to step up deals and marketing to combat slower fast food traffic

McDonald’s plans to step up deals and value messaging to combat slowing sales. The Chicago burger giant said inflation-weary customers are eating out less often in many big markets.

apnews.com

Yep, but that’s due to competition.

In some areas, it’s losing out to competitors on customers’ perception of value and affordability, he said.

 

[HangLow]

OK, but how much will entry level ($20/hour) fast food workers (the thread topic) make compared to what they made in 2014? $20/hour is likely more than 100% over what they were making (per hour) in 2014.

The $20 wage floor has altered California fast food in various ways, depending on how chain operators incorporate pricier labor into their business strategies — and how customers react to the changes...

Higher menu prices are the obvious outcome, but consumers should expect to see chains offering more deals...

The cost of fast food is approaching what one might pay at more affordable sit-down eateries, and the competition for diners may curb price hikes for fast food...
-Peace

 

[ttwtt78640]

The $20 wage floor has altered California fast food in various ways, depending on how chain operators incorporate pricier labor into their business strategies — and how customers react to the changes...

Higher menu prices are the obvious outcome, but consumers should expect to see chains offering more deals...

The cost of fast food is approaching what one might pay at more affordable sit-down eateries, and the competition for diners may curb price hikes for fast food...
-Peace

Exactly, since (a lot of) the competition is exempt from the new $20/hour MW mandate.

 

[Helix]

I'd rather see full liability for educational institutions. If that $500,000 degree in Lesbian Aboriginee studies leaves the graduate unable to get a job - because even fast food is out now in California - then they should be able to sue the pants off of the institution that defrauded them into thinking their mal-education had actual value.

They didn't offer that major at my college.

 

[PeacefulWarrior]

So get this. I racked blueberries at the age of 15. Day after day in the hot sun. Ten hour days. Then I got wiser…and moved on to picking apples at an apple orchard after school when I was 16…another very physical job. By the time I was 17 I was on my own. I quickly learned through my past experience that I wanted better. That is part of growing and realizing life does NOT hand you good things on a silver platter. For the most part…fast food jobs are geared toward teens or young adults (maybe retired individuals looking for extra income). One must work to improve their lives and move beyond relying on a fast food job being your life ambition.

Reality Check: your dumb anecdotes are quite meaningless here.

 

[Lord Tammerlain]

I remember back to my teen years. Fast food work was never considered a career. You would be laughed at if that was all the ambition you had.

Just who do you think worked there during the day or night shifts?

 

[PeacefulWarrior]

The $20 wage floor has altered California fast food in various ways, depending on how chain operators incorporate pricier labor into their business strategies — and how customers react to the changes...

Higher menu prices are the obvious outcome, but consumers should expect to see chains offering more deals...

The cost of fast food is approaching what one might pay at more affordable sit-down eateries, and the competition for diners may curb price hikes for fast food...
-Peace

Maybe they'll have to keep prices competitive regardless of wages and just eat a few billion of those record profits? Oh the horrors....

 

[tshade]

Is that what the evidence shows?

100%

 

[Maidenrules29]

View attachment 67508107​

My question was about margins, not price increases. Just because all those brands raised their prices does not automatically mean their margins increased significantly, regardless if the price increases outpace inflation. There are many operating costs to consider. Restaurant business owners both large ( Say, McDonalds Corp) and small ( McDonalds franchise owners) are in business to make money. If they have to raise prices than so be it. If people don't like it they can vote with their wallets and not eat there.

 

[Maidenrules29]

And those who are currently earning $20 an hour will become minimum wage earners?

Hopefully not. And that is something that many are not adding to the equation. All this talk is mainly concerning the base employees. The shift supervisors, assistant managers, and G.M.'s of these establishments will also expect a bump in pay. Some positions may even be eliminated. I'm my experience, when restaurants start getting in trouble financially, the first positions to go are either the assistant managers, ( making the GM's work even harder and delegate more tasks ) or the actual GM's, whereby the franchise owners themselves must act as the GM. This is easier for a franchisee who only owns one or two units, but difficult if they are a multi-unit operator.

 

[TamleeB]

Reality Check: your dumb anecdotes are quite meaningless here.

Please feel free to carry on, as it’s all good. I somehow will manage to survive without your support. The sun is shining and my flower garden needs some weeding. Enjoy your day.

 

[Bodi]

People will continue to but fast food even with rising prices. The system works.

I don't eat much as it is ... but $5 for a basic teeny little cheeseburger is outrageous. If prices rise then forget about it.

 

[Bodi]

this will drive prices up on everything - poor will still be poor, middle class will be poorer (because they're not getting wage increases) and rich will stay rich

Then they are sticking to the plan.

 

[----------]

Just who do you think worked there during the day or night shifts?

Usually high school kids on some sort of COOP program or kids not going to school trying to get some working experience so they could get a better job somewhere else. Or possibly someone who wanted to move up into middle management in a restaurant chain. No one ever considered flipping burgers as a career. Do you disagree?

 

[Lord Tammerlain]

Usually high school kids on some sort of COOP program or kids not going to school trying to get some working experience so they could get a better job somewhere else. Or possibly someone who wanted to move up into middle management in a restaurant chain. No one ever considered flipping burgers as a career. Do you disagree?

I worked at Macdonalds when I was 15 and 16.

The day shift was staffed by adults, clearly adults. One woman had a 1969 Olds Cutlass 2 door in a great blue color. Man I wanted that car.

The night shift maintenance was done by a 30+ year.

If the US has that many teenagers not going to school it has much bigger issues than min wage at Macdonalds

 

[PeacefulWarrior]

Usually high school kids on some sort of COOP program or kids not going to school trying to get some working experience so they could get a better job somewhere else. Or possibly someone who wanted to move up into middle management in a restaurant chain. No one ever considered flipping burgers as a career. Do you disagree?

Well if you say so....I guess the only logical course of action then is for the US taxpayer to subsidize McDonalds payroll!!

LOL, just kidding. Come on man, think it through!!

 

[PeacefulWarrior]

I worked at Macdonalds when I was 15 and 16.

The day shift was staffed by adults, clearly adults. One woman had a 1969 Olds Cutlass 2 door in a great blue color. Man I wanted that car.

The night shift maintenance was done by a 30+ year.

If the US has that many teenagers not going to school it has much bigger issues than min wage at Macdonalds

Children deserve Right-To-Work FrEeDUmBz$™ just like adults. And the taxpayer should subsidize all their pay. LOL.

 

[Lord Tammerlain]

Usually high school kids on some sort of COOP program or kids not going to school trying to get some working experience so they could get a better job somewhere else. Or possibly someone who wanted to move up into middle management in a restaurant chain. No one ever considered flipping burgers as a career. Do you disagree?

Given the US job market, which jobs out there are better careers?

People used to make a career at a meat packing plant, but the pay there has dropped and so has what was poor working conditions. People used to work in apprenticeships to learn trades, but that has gone down as companies don't want to invest in workers ( broad generalization) but want workers to have all the skills and knowledge before getting a job.

There are for better or worse people that have limited job skills, and little aptitude to get better, beyond doing low skill manual labour. The last 40 years has been very harsh on them, between the destruction of unions, the loss of manufacturing jobs, and low skill labor being brought into the US. The above had been great for those in upper middle or upper income groups ( cheap goods and services, and high profits. But for the lower and low middle income groups things have gotten worse.

Just look at new car sales, they are at the same level per year as they were in the 80s, with the population growth they should be 5 million units higher

 

[ttwtt78640]

Given the US job market, which jobs out there are better careers?

People used to make a career at a meat packing plant, but the pay there has dropped and so has what was poor working conditions. People used to work in apprenticeships to learn trades, but that has gone down as companies don't want to invest in workers ( broad generalization) but want workers to have all the skills and knowledge before getting a job.

There are for better or worse people that have limited job skills, and little aptitude to get better, beyond doing low skill manual labour. The last 40 years has been very harsh on them, between the destruction of unions, the loss of manufacturing jobs, and low skill labor being brought into the US. The above had been great for those in upper middle or upper income groups ( cheap goods and services, and high profits. But for the lower and low middle income groups things have gotten worse.

Just look at new car sales, they are at the same level per year as they were in the 80s, with the population growth they should be 5 million units higher

How is that (bolded above) a reason (excuse?) to wish to limit CEO pay?

 

[Bum]

I'm sorry, maybe I'm wrong and will be willing to come back and admit so, but I think ole Gav' and the CA Dems are gonna regret this.

New $20 minimum wage for fast food workers in California is set to start Monday

Most of California's fast food workers are set to be paid at least $20 per hour. A new law mandating the minimum wage increase for fast food workers is scheduled to take effect on Monday.

apnews.com

I have no problem raising the minimum wages to compensate for inflation, but raising it 25% in one fell swoop for a business that has high intrinsic costs is pretty ****ing stupid. Moreover, it's still not really clear who's covered and who's not under the legislation, so imagine the horror of a local independent coffee shop or chain that serves scones, sandwiches, etc, thinks they're not covered by the new wages and then finds out they are.

Hillary Clinton had the right answer to Bernie's finger pointing and spittle back in the 2016 campaign: raise the rates to $15 if you want, but let's do it incrementally over time. That way if we find out it's putting pressure on hiring, there's time to change course.

All this is going to do is force businesses to double down on automation. Big chains like McDonald's can invest in automation and efficiency a lot more easily than smaller players. I think this is going to backfire spectacularly. Maybe it's not so bad that Gavin isn't banging on doors to replace Joe Biden as the nominee after all.

The failure to consider second and third order effects.