Fast food CEO: Minimum wage hikes closing locations

[Creedmoor]

CF has a strong training program with quality managers every day. Plus perks you don’t normally find in a dead end job.

Speed of the captain….speed of the crew.

Supposedly, all dead end jobs.

Most of all the fast food chains have the same perks for hourly employees available to them. Free meals, flexible hours, online education, 401 and so on.

Walmart has a huge amount of store management and corporate management that started as custodians. They also have a huge education opportunity's and perks like dollar a day college, for the hourly employees and easy advancement into management.

 

[firecadet613]

Supposedly, all dead end jobs.

Most of all the fast food chains have the same perks for hourly employees available to them. Free meals, flexible hours, online education, 401 and so on.

Walmart has a huge amount of store management and corporate management that started as custodians. They also have a huge education opportunity's and perks like dollar a day college, for the hourly employees and easy advancement into management.

You have to want to move up. Most do not have any desire..

That said, every major company has a C-Suite and a bunch of folks making 6 figures...

 

[Creedmoor]

You have to want to move up. Most do not have any desire..

That said, every major company has a C-Suite and a bunch of folks making 6 figures...

I always wonder what the company's really think about who they are hiring.
I have done work in more than a few places that hire those with felonies to those strait out of jail or prison whit ankle bracelets on have have to take the bus to work. Every mon is a new herd of 15 to 45 new hires to replace what left the week or two before. By first break and still in the HR enrollment, 3-8 will walk out the door and never come back. by the end of the week all but 2 or 3 will be gone forever. One place would rehire those that walked out, failed a drug test, pointed out and so on after 60 days. Then during meeting they would wonder why the retention was so bad.
One place in Marion has about 550 hourly employees working three eight hour shifts, they went through over 1,600 employees that year.

 

[actaeon277]

Anything that's a cost to the business, and it goes up, and it affects the price.
Doesn't matter if it's hamburger, buns, wages, taxes... etc.

If the business breaks even.
And then a change happens, to make it lose $1,000 a year, then the price must go up enough to make up for the $1,000 per year.

Unless some other circumstance happens to counter act it, of course.
If the cost of hamburger goes up for the business $1,000 for the year... BUT the cost of buns goes DOWN $1,000 for the year, then the price doesn't need to go up.


As for recently... the cost of goods, and service has gone up.
So, the prices have gone up.
You can't say the price is only up because of the one effect, when it's both.

Also, minimum wage HASN'T gone up, while prices have gone up, is not really an argument.
How many minimum wage places have raised their wages beyond minimum wage to keep staffed?
The wages went up, because of 'demand' (well, and government interference).

 

[Creedmoor]

Anything that's a cost to the business, and it goes up, and it affects the price.
Doesn't matter if it's hamburger, buns, wages, taxes... etc.

If the business breaks even.
And then a change happens, to make it lose $1,000 a year, then the price must go up enough to make up for the $1,000 per year.

Unless some other circumstance happens to counter act it, of course.
If the cost of hamburger goes up for the business $1,000 for the year... BUT the cost of buns goes DOWN $1,000 for the year, then the price doesn't need to go up.


As for recently... the cost of goods, and service has gone up.
So, the prices have gone up.
You can't say the price is only up because of the one effect, when it's both.

Also, minimum wage HASN'T gone up, while prices have gone up, is not really an argument.
How many minimum wage places have raised their wages beyond minimum wage to keep staffed?
The wages went up, because of 'demand' (well, and government interference).

I will say that fast food where I'm from has been well over minimum wage for at least the last 15 years or so.

 

[Trapper Jim]

The rise, struggle and demise of the S.S. Kresge story is a clear indicator of how business models have had to change to stay alive for the American customers.

Kmart treated and payed their people better. Look where that got them.

 

[Creedmoor]

The rise, struggle and demise of the S.S. Kresge story is a clear indicator of how business models have had to change to stay alive for the American customers.

Kmart treated and payed their people better. Look where that got them.

That's not what killed K Mart, poor upper management skills started killing K Mart in the early 60's.
They did not modernize in time or upgrade their technology, which prevented them from tracking inventory customer demographics and retailers better.

 

[Trapper Jim]

That's not what killed K Mart, poor upper management skills started killing K Mart in the early 60's.
They did not modernize in time or upgrade their technology, which prevented them from tracking inventory customer demographics and retailers better.

Yes, that could be some of it. However in the end the customer masses that want cheap and convenient will enable the success of all ChinaMarts.

We see it in the shooting industry as well. Evidenced by the third world empty ammo boxes strewn all around the range yesterday.

 

[jamil]

I will say that fast food where I'm from has been well over minimum wage for at least the last 15 years or so.

I suppose some people might say that proves the minimum wage should be increased. I think it proves that it's unnecessary.

Again, I think general labor jobs in fast food are not living wage type jobs. The reason people have to rely on them so such now is that manufacturing jobs have largely been removed from the US. I don't think the answer is to force fast food companies to pay a living wage. The answer is to bring manufacturing back here. **** China. **** Mexico. Let's build it here.

Of course getting THIS generation's workforce conditioned to do that kind of work might be a challenge. Too many think they should be able to borrow $100K for college on a degree program in *Studies, and then step right into a $80K/year job right after graduation.

 

[Creedmoor]

I suppose some people might say that proves the minimum wage should be increased. I think it proves that it's unnecessary.

Again, I think general labor jobs in fast food are not living wage type jobs. The reason people have to rely on them so such now is that manufacturing jobs have largely been removed from the US. I don't think the answer is to force fast food companies to pay a living wage. The answer is to bring manufacturing back here. **** China. **** Mexico. Let's build it here.

Of course getting THIS generation's workforce conditioned to do that kind of work might be a challenge. Too many think they should be able to borrow $100K for college on a degree program in *Studies, and then step right into a $80K/year job right after graduation.

I believe for the most part that pay for entry level employment will pay what the market demands.
One of the killers to that thinking is say, in small town America where there are 150 kids and only 20 jobs that are available locally.

 

[BJHay]

I see two separate issues; the shrinkage of the middle class and the portion of (any) society that cannot or will not obtain the skills or put forth the effort to add value to society and take a portion of that value as wages.

If properly done employers use productivity gains to fund increased compensation for middle-class employees. There are graphs all over the internet but here is one from the BLS. You can see the correlation with the reduction of the middle class over time. I think this is why we’re seeing a resurgence of unions in the US.

We all know people who began working life as unskilled labor and never had the desire or ability to progress past that into jobs creating more value for employers. Unskilled labor will always be at the economic bottom of a society (e.g. lifetime hourly workers at a fast food restaurant). I don’t think a tranquil society can exist long-term if this group doesn’t have a certain basic quality of life. Never mind moral considerations, there will be civil unrest. Right now government is supplying that basic quality of life through mandated wage hikes and welfare.

 

[jwamplerusa]

I see two separate issues; the shrinkage of the middle class and the portion of (any) society that cannot or will not obtain the skills or put forth the effort to add value to society and take a portion of that value as wages.

If properly done employers use productivity gains to fund increased compensation for middle-class employees. There are graphs all over the internet but here is one from the BLS. You can see the correlation with the reduction of the middle class over time. I think this is why we’re seeing a resurgence of unions in the US.

We all know people who began working life as unskilled labor and never had the desire or ability to progress past that into jobs creating more value for employers. Unskilled labor will always be at the economic bottom of a society (e.g. lifetime hourly workers at a fast food restaurant). I don’t think a tranquil society can exist long-term if this group doesn’t have a certain basic quality of life. Never mind moral considerations, there will be civil unrest. Right now government is supplying that basic quality of life through mandated wage hikes and welfare.


View attachment 321042

@BJHay

Where did your chart come from?

 

[foszoe]

@BJHay

Where did your chart come from?

Bureau of Labor and Statistics

 

[HoosierLife]

CF has a strong training program with quality managers every day. Plus perks you don’t normally find in a dead end job.

Speed of the captain….speed of the crew.

Plus it’s like the old school McDonald’s where the owner is the manager.

And last I heard, it was very rare for them to get multiple locations.

So one Franchise per Franchisee?

 

[GodFearinGunTotin]

 

[DoggyDaddy]

View attachment 321500

 

[jamil]

Well. California is the testing bed for all kinds of fringe ideas. This one isn’t off to a great start.

 

[Creedmoor]

Plus it’s like the old school McDonald’s where the owner is the manager.

And last I heard, it was very rare for them to get multiple locations.

So one Franchise per Franchisee?

I don't believe that is true.

 

[KLB]

View attachment 321500

The food delivery apps probably played a large part in that too. Why pay someone $20 an hour when you can outsource it to the apps.

 

[DoggyDaddy]

The food delivery apps probably played a large part in that too. Why pay someone $20 an hour when you can outsource it to the apps.

That's what Wingstop has done here. When I order delivery from Wingstop, it's delivered by DoorDash.