[QUOTE="rilpas"]
[QUOTE="WhiteKnight77"]
The problem with increasing pay, and as an accountant, you should see that an increase in wages means an increase in the cost of a product. It isn't McDonald's paying those wages, it is Greg Fisher Foods of Pasternak NJ (fictitious franchise name and city) paying those wages and probably making a very slim profit a year (maybe 6% for fast food joints). Increase the price of a product, and fewer people buy said product, thus decreasing an already slim profit margin (and a business should make at least a 15% if not more).
The Average Profit Margin for a Restaurant details much about different types of restaurants.
Giving people more than $8 an hour for working in a fast food joint is nothing but retail suicide.
WhiteKnight77
No offense, but your theory is flawed, alright, so restaurants have an 8% margin, but how much of that are the wages? a lot of it could be from renting the place, or food costs, health and safety costs, insurance, etc.
you're going off in a tangent with data that you don't have
No, it is not flawed and your answer shows that you didn't read what I wrote correctly. I said 6% not 8%.It also shows that you did not read the linked article that shows that limited service restraunts (fast food or other types) make marginally more than full service (ones with a wait staff, bartenders and the like). at fast food joints, wages are 29% while occupancy costs were more than other restraunts at 8%.
Increasing wages will do one of two things, raise prices of the products sold or put the fast food joints out of business. While a small increase might be warranted, anything more than a dollar would have a big impact.
yeah... I'm not worried about food increase costs then
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