1y ago

I'm a California restaurant operator preparing for the $20-an-hour fast-food wage by trimming hours, eliminating employee vacation, and raising menu prices

www.businessinsider.com I'm a California restaurant operator preparing for the $20-an-hour fast-food wage by trimming hours, eliminating employee vacation, and raising menu prices

A Fatburger franchisee in Los Angeles shares survival strategies as California chains brace for $20-an-hour wage for fast-food workers in April.

I'm a California restaurant operator preparing for the $20-an-hour fast-food wage by trimming hours, eliminating employee vacation, and raising menu prices

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1y ago

I'm a California restaurant operator preparing for the $20-an-hour fast-food wage by trimming hours, eliminating employee vacation, and raising menu prices

www.businessinsider.com /fast-food-operator-kills-vacations-hikes-prices-calif-wage-law-2024-1

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20 comments

If your company doesn't pay its employees a living wage or better, then your business model sucks and should collapse.
Since anticompetitive practices and lobbying are the norm and the most profitable investments businesses can make, the whole capitalist system sucks and we should move towards socialized hamburger franchises.
- all these greedy fucks balking at the idea of paying employees a living wage are short sighted fucking morons.
  You know what happens when employees get better pay?
  They spend more
  Which means your business will see more customers, and wil earn more
  That is, if your business isnt run by a myopic jackass who cant see beyond the his own personal and immediate greed. *-
- Definitely, that will leave only one business model so it'll be the best business model (cause there are no others, you know).

Two Pizza Hut franchisees, who own hundreds of stores in California, are eliminating their in-house delivery fleets. The labor-gutting strategy has left 1,200 drivers without jobs.
"I feel that there will be a lot of pain to workers as franchise owners are forced to take drastic measures," Walberg said.
If you own hundreds of Pizza Hut restaurants, nobody is "forcing" you to do anything.
- https://longreads.com/2017/04/12/the-elements-of-bureaucratic-style/
  In short:
  “Our agents were left with no choice but to call Chicago Aviation Security Officers to assist in removing the customer from the flight. He repeatedly declined to leave.” The phrase, “left with no choice” is calculated and deliberate, and every rhetorical move of the preceding paragraphs is leading up to this moment. The bureaucratic state never acts of its own volition; it is always reactionary, and it always acts because the victim leaves it no choice.

What a jackass.
McDonald's, which has raised prices by 20% over a two-year period, said late last year that it was starting to lose low-income customers.
20% price increase over two years you say? Certainly that was necessary to keep the company afloat!
McDonald's annual/quarterly gross profit history and growth rate from 2010 to 2023. Gross profit can be defined as the profit a company makes after deducting the variable costs directly associated with making and selling its products or providing its services.
McDonald's gross profit for the quarter ending September 30, 2023 was $3.864B, a 12.12% increase year-over-year.
McDonald's gross profit for the twelve months ending September 30, 2023 was $14.317B, a 9.63% increase year-over-year.
McDonald's annual gross profit for 2022 was $13.207B, a 4.98% increase from 2021.
McDonald's annual gross profit for 2021 was $12.58B, a 29% increase from 2020.
McDonald's annual gross profit for 2020 was $9.752B, a 12.77% decline from 2019.
Other than a dip in 2020 that was more than replaced in 2021, McDonald's is right back on track with record profits and the only reason they are losing low income earners is pricing themselves out of that market.
- I can't for the life of me figure out how they're still in business. Why would anyone eat there? It used to be an okay option when you were in a hurry and wanted some cheap food. But now it's cheap (quality) food, that is worse than it has ever been, that costs a fucking fortune, and it isn't even a fun place anymore. Their food barely qualifies as food. Their buns, burgers, and fries taste like compressed napkins. The book Fast Food Nation and the documentary Supersize Me exposed how atrocious McDonald's food really is, and people just kept on going. What the fuck is wrong with people?!? Why are you spending $20 for a tasteless trash lunch that masquerades as food, that is terrible for your body, and the environment? WHY!
- I'm not low income but I do think McDonald's is pretty poor value for the quality. You can usually go someplace with much better food for the same or slightly more now - they're a long way from being 'cheap' food.
  
  You can usually go to a sit down diner for less now. McDonald's prices are ridiculous.
- One thing that I learned recently from the Modern MBA YouTube channel, is that these fast food brands don’t run stores – they primarily charge franchise/royalty fees, and the store operators/franchisees see a significantly different and lower-profit-margin situation.
  “McDonalds Corporation” is not where these expenses accrue.
  
  It's true that the McDonald's corporation is in the real estate business, not the burger business. But the franchisees are certainly in business selling hamburger analogues. They wouldn't be on every corner if they weren't profitable. I read once that if you want to open a McDonald's, they won't even talk to you unless you have a million dollars cash. It takes a fuck ton of money to open a McDonald's franchise and people still do it, because it's a license to print money.
  
  Those franchise fees are still tied to sales enough to have a dip during covid and continuous increases after which aligns with menu price increases.
- Really powerful reply here. Thanks for sharing the financial details as it makes it easier to evaluate.

The guy is giving people no reason to spend their money there: raise prices and treat your employees like an inconvenience?
No thanks. I'll support a more ethical business.

What did employees have to do to survive on the meager wages? It's always about the employers, but employees are left having to figure things out on their own, with much fewer resources at their disposal.

That's a rather long way of saying "I'm a greedy, capitalistic piece of shit."

“I’m a complete piece of shit.”

Me: Hi there, I'd like to apply for a loan for a new restaurant.
Bank: Okay, so you have a business plan?
Me: Yes, here it is.
Bank: Hmm... it says here under employee compensation, "slaves LOL" - what does that mean?
Me: Oh, haha, I'm gonna pay them pretty much nothing.
Bank: ...get out of my bank.
Why do we accept shitty business plans that would otherwise get laughed at?
- if you could show the bank you could get away with it they would be more than happy to fund you

If your business can't afford employees lives, your business sucks. Figure your shit out.

20 comments