Posted on 08/01/2015 7:41:59 AM PDT by Hojczyk
Researchers at Purdue University’s School of Hospitality & Tourism Management recently asserted that if McDonald’s were to pay their employees $15 an hour, the cost of a ‘Big Mac’ would go up by 17 cents. According to the study’s findings, the proposed minimum wage hike would, in general, spike the average meal cost at a limited-service establishment to upwards of 30 more cents a visit:
Another option proposed by Ghiselli to accommodate the minimum wage increase would be to downsize menu items. For example, burgers would see a 12% decrease in size at most establishments.
(Excerpt) Read more at ijreview.com ...
I hope that happens.
Me too, for you!
I don’t go to McDonald’s very often as the quality isn’t what it used to be. I won’t pay more for a burger that I can make better at home. And I won’t have to put up with them getting my order wrong.
The only time in the last 10 years that I've ever stopped in a McDonald's was on road trips. Give me a car with a power outlet that will accommodate a small microwave, and McDonald's is doomed.
The projected price of a Wendy’s Frosty is all I care about.
It already costs well over $6 for a combo meal at McD. I can get 2 pieces of chicken, a side, a biscuit, a cookie and a drink at KFC for $5. And McD wonders why their sales are plummeting...
No White Castles around me, darn it...but I stop when we’re traveling and I see one.
Sure don't - but we had a Burger Park that had an assembly line type system that sold burgers for a dime and cheeseburgers fro 15 cents - might have been similar or an offshoot..
No White Castles near me either, but you can get their frozen burgers in supermarkets and in BJ's Wholesale, and they're not bad microwaved at home or at work.
Liberals are terrible at math. They are counting a single person making the entire Big Mac meal.
When labor costs nearly double to $15/hr, and labor is 20% of a McD’s operating costs, it means costs must go up 20%.
That $7.68 Big Mac meal would be $9.21 to cover the added 20% labor expenses.
Of course, the market states how much a person will pay for a Big Mac meal. McDs might not get $9.21. They may have to hold prices down.
An average McDs makes only $2.5 million in sales with an average of 6% net profit, or $150,000. There isn’t much room for a 20% loss, taking profits down to $120,000. Some MD operators are not making but $40,000 profit, now they’ll make $32,000.
I remember when you could get an actual Quarter Pounder (not a kid’s meal attempting to pass itself off as such) meal for about two dollars. Now, not only is the meal twice as much, but the servings are even smaller. This has led to me rejecting BK and MD forever, whereas I used to get them pretty regularly.
I highly doubt the price increase for such a puny meal will be as easily accepted as the author would have us believe.
A Big Mac meal is approximately equal to 1 hour wage at minimum wage. Anybody care for a $15 Big Mac?
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