Here's what fast food will cost with $17 an hour wages

That your take on foreign policy, too?

 

Last I checked, 5 percent is less that 12.5 percent.

If I make $100 in sales, and giving $12.50 to the company and keeping $5 for myself, I believe that means the company is making more than me.

So let's say I decide to open my own place, and not bother with McDonald's. So I get less in terms of customers because of the brand name, and marketing, but I can charge a little more for my food since I'm offering a bit better quality than McDonald's. Let's say I get $40 in sales, instead of $100. If I go with a 15 percent profit margin, that means I'm getting $6 instead of $5.

 

How much overtime does your wife work, does she get time and a half, or is she working for free?

I'm asking this because, as with the other thread on overtime, she may either be in line for a raise to a $50K salary, have her hours cut, or get paid the time in a half.

 

Baron-o-nomics - where you just throw out numbers for the hell of it.

 

Um, the 5 percent came from Ragu, and 12.5 percent was cited (I know, citing sources is considered a weakness by you). I thought I was being quite generous by saying that the sample restaurant was going to get 40 percent of the business of a McDonald's. As I said, my sample restaurant was offering better quality food, so they had a bit higher prices. So say they had 1/3 the customer base of the McDonald's, which was 100 customers an hour on average (this was also cited, BTW). So that's 33 people an hour. Not that unreasonable.

 

15 percent profit margin in a restaurant? Please.

The Average Profit Margin for a Restaurant | Chron.com

Plus, factor in 60 percent of restaurants close within three years of opening.

 

But that's . . . GREEDY. You should BE NICE and give these customers a break. How dare you charge more . . . JUST BECAUSE YOU CAN.

 

Slightly better quality, slightly more expensive. No more so than McD's, and we're paying the same $15 an hour. The difference is I'm not kicking 12.5 percent back for a big arch in front of my restaurant.

 

Having those Arches increases your chances of staying in business. Plus, McDonald's requires $750,000 of non-borrowed capital. Joe's Slightly Better Slop likely won't have that kind of capital.

 

And yet, McDonald's is able to take 12.5 percent off the top from the franchisees.

 

I found this Motley Fool columnist, who says that a hike to $15/hour will cost McDonald's $5 billion a year, and a price increase on food of 27 percent.

What Will a Minimum Wage Increase Cost You at McDonald's?

Now, that would essentially wipe out the McDonald's profits for the year, using current profit numbers.

MCD Annual Income Statement - McDonald's Corp. Annual Financials

Which of course, sounds bad. But that's counting on the $18.9B revenue staying the same, which it wouldn't with the 27 percent price increase. That would equal about an additional $5.1 billion, if the increase is included.

Now, you may say that a 27 percent increase in prices is going to piss off some customers. Certainly, it will, that the $3 cheeseburger is now $3.81. But you have your other people, who had been making $8 an hour, now making nearly double. Instead of worrying about paying 37.5 percent of an hour's pay for a cheesburger, now they're paying. 25.4 percent.

So it may all end up evening out.

 

And the name of your restaurant is......