BS. Meat/buns go up then the price on the menu goes up accordingly. Somehow the restaurant stays in business. But when wages go up then why don't the prices just go up accordingly? Wages are political, meat costs are not.
The values of these from a supplier change weekly. Prices
(except for those sold at market value) change reletavly
seldomly. I will acknowledge that prices since 2007 have been
rising. I merely pointed out the formule that resteraunts use as a model for sucess.If you mess with ANY of the first three parts of the equation, it WILL cut into profitability. If a business is not profitable, it is finished. the only question is wether customers will be willing to pay for these increases in cost. I DO agree with you on the point that these manditory labor cost increases are POLITICAL.
When the cost of the food goes up, it goes up everywhere, including in the grocery store, so the cost of a hamburger made at my house also goes up.
When the cost of labor goes up, the cost of my hamburger fixed at home doesn’t change much, given that grocery stores can spread the costs over more products.
When the cost of a fast-food burger (or any restaurant food) rises because of labor costs, I’m more likely to stay home.
Just my 2 cents, or maybe 3 now with wage inflation :)
Love,
O2