$15 minimum wage

[skipetex]

So when it comes to small businesses i can give a couple examples. Subway is one of the most profitable fast food chains out there. They demand a 72% margin. that means 18 to 20% labor or less. Food cost runs between 28 to 30%. building and grounds is 2 to 3% and utilities at 5%.all that meaning they want to keep about 42 cents on every dollar minus business taxes and payroll taxes. Chesters chicken is in line with that except their food cost runs 36 to 40% so they keep less.
My wife and I own a Daycare facility and labor alone is our highest cost. Pre covid we ran 20 to 25% labor. now because of the fewer in enrollment we are running 40 to 60% because we refuse to cut jobs. so tell me how 15$ an hour would not change our business. if we pay 15 then i either have to lay off employees or raise rates by at least 50% to keep afloat. people will not pay that much for childcare when the childcare alone becomes more than their bring home pay.
you that think 15 buck an hour is the answer or even ok because we small business owners can just raise rates then think again. Thants not how it works.

[Johnny44]

It very much is the point and you just told on yourself that you don't value your employees

I don’t value employees ?

I’m advocating current employees get a percentage raise above the minimum. (Thats the point)

Not so hard to understand unless you don’t want to.

Why would I have employees anyway, I retired at 39 years old, all I do is hunt, fish, hike, and camp every day.

[Let's go Brandon!]

[ATTACH]1036513[/ATTACH]

[rtp]

I think one unintended consequence will be that workers get fewer hours.


Sent from my iPad using Tapatalk

Or none at all......bring on the robots! Then we can pay those people $15/hr sit on their *** at home and do nothing because they dont have any skills that transfer to other employment.

[Let's go Brandon!]

Or none at all......bring on the robots!

Part of the plan. What most of them really want is GUI anyway.

[rtp]

Just thought about something else.....$15/hr at 40 hrs a week will put them at the point of losing most if not all of their govt handouts. This is really going to backfire on them lol.

[Neck]

If I am willing to pay someone $10 to make widgets and someone is willing to make widgets for $10 then what business is it of buffoon Biden's?

[Landrover]

I may be repeating others post on this subject but I am out walking. This is the Same argument for a century
....or more. The Robber Barron's were also having a fit. Minimum wage jobs were not designed to raise a family.....truth. They WERE entry jobs for 50 years I reckon. Now a large % of our economy is service type roles......so a shift must take place. PIVOT or geaux the way of the 🦤 bird. Nothing is supposed to stay static.......nothing. Anybody with a business of any value saw this coming 20 years ago.......if not longer. Technology is already filling gaps for us. It has been quite interesting to be on the cutting edge for once in my life. Costs will be pushed down way more evident than "trickle down economics!" Hours will be reduced, Technology will have to step-up or catch up. With incomes being relatively flat since the 80s or so we have left huge swats of Americans in the wake. I suggest plan on it and then rework that plan. [emoji120]

Sent from my SM-N986U using Tapatalk

[SabineHunter]

Biden announced he is going to push the $15 minimum wage... i'm no economic major , but here are my thoughts, so please tell me i'm wrong...

you now flip a $8 burger combo for $7.25 /hr... tomorrow the same job pays double ... would it not make sense that the $8 combo will soon become a $16 combo ? so now it costs double to get what you used to get ? you don't really think the company can survive without raising prices right ?

this also means that your $10k in savings is now only buying half what it used to....

but it doesn't stop there ... america sells a pound of sand for $1 , china does it for $1.20 ... Germany buys mostly america sand as it's cheaper.
here comes $15 minimum wage ... america's sand now costs $2 ... china's didn't change, so everyone now buys china sand ... looks like America's now screwed ...

China has devalued their currency for years to make it more appealing to buy their products ...

Looks to me like Biden is dangling a carrot in front of the american minimum wage people making them think it's going to help them while screwing the entire country, your savings and pretty much boosting china and every other competitive countries...

please tell me i'm wrong!

First off, I am anti-minimum wage at any level. But, you math is wrong. If that person made just one combo per hour then you would be close. But, there are many things that come into play that determines the cost/retail of that burger. Labor is a huge part of it but so are items such as fixed expenses, such as rent, advertising and admin cost. That worker might make 50 combos per hour, thereby spreading out the increase of cost. It comes to an additional $.15 per combo. I also see the number of hours/employees being reduced to keep the wage expense reasonable. Of course, less employees means reduced service but all fast food places would be in the same boat and same playing field.
While I agree that increasing minimum wage will make all items more expensive, it is not the killer of small business that this chinese flu is.

[muzzlebrake]

Look on the bright side. IF fast food become totally automated then we won't have to worry about workers coughing, spitting and wiping boogers on your burger. Or refusing to wait on poleeze officers

[texansfan]

Do you own a fast food place? I don't but a friend owns three. Labor is a big line in keeping services at costs given by the franchiser.
Wendy's sets the cost of the combo. Your job is to make a profit selling products at the costs given to you.
It won't double but it will significantly impact the cost of a happy meal.

Sent from my SM-G892A using Tapatalk

Funny thing is no one on my team makes less than $120k
Software engineers.
So you could argue that the minimum wage increase doesn't effect my business at all.

[texansfan]

First off, I am anti-minimum wage at any level. But, you math is wrong. If that person made just one combo per hour then you would be close. But, there are many things that come into play that determines the cost/retail of that burger. Labor is a huge part of it but so are items such as fixed expenses, such as rent, advertising and admin cost. That worker might make 50 combos per hour, thereby spreading out the increase of cost. It comes to an additional $.15 per combo. I also see the number of hours/employees being reduced to keep the wage expense reasonable. Of course, less employees means reduced service but all fast food places would be in the same boat and same playing field.
While I agree that increasing minimum wage will make all items more expensive, it is not the killer of small business that this chinese flu is.

Shhhhh
Stop making sense!!!!

[Turbo6]

First off, I am anti-minimum wage at any level. But, you math is wrong. If that person made just one combo per hour then you would be close. But, there are many things that come into play that determines the cost/retail of that burger. Labor is a huge part of it but so are items such as fixed expenses, such as rent, advertising and admin cost. That worker might make 50 combos per hour, thereby spreading out the increase of cost. It comes to an additional $.15 per combo. I also see the number of hours/employees being reduced to keep the wage expense reasonable. Of course, less employees means reduced service but all fast food places would be in the same boat and same playing field.
While I agree that increasing minimum wage will make all items more expensive, it is not the killer of small business that this chinese flu is.

Don't forget, what about all the ingredients in the combo? Labor to process meat, labor to farm vegetables, cost of manufacturing of cups and cardboard containers, labor to have it all delivered and distributed, fuel costs increasing for all logistics on their end, rent increases so the property management firm can cover their increased labor costs......It's more then the $.15 cents you think per combo.

Now extrapolate that across all business.......

[SabineHunter]

Don't forget, what about all the ingredients in the combo? Labor to process meat, labor to farm vegetables, cost of manufacturing of cups and cardboard containers, labor to have it all delivered and distributed, fuel costs increasing for all logistics on their end, rent increases so the property management firm can cover their increased labor costs......It's more then the $.15 cents you think per combo.

Now extrapolate that across all business.......

did you not make it to my last sentence where I said it would make 'all' things more expensive?

[twistedmidnite]

Ha, burger flippers aren't the only ones making less than $15 an hour. There's thousands of jobs that pay less than that. Some that are even skilled labor with licensing. Im one of them. However im against raising the minimum wage. You want more money, get a better job.