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Drudge Retort: The Other Side of the News
Monday, April 05, 2021

Big restaurant chains are telling investors that a national minimum wage hike wouldn't be a big deal -- even as their corporate lobbying groups in Washington fight plans for a $15 minimum wage.

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What does mcdonalds know about wages and business? We should listen to the real experts like fox news talking heads.

At this point, repubs are giving up their whole "we're on the corporations side" thing. They think they can survive by only relying on white supremacy and thwarting democracy.

#1 | Posted by SpeakSoftly at 2021-04-05 06:00 PM | Reply

Yes, corporate giants obviously will be the least impacted.

#2 | Posted by sitzkrieg at 2021-04-05 06:25 PM | Reply

This could work because frankly fast food needs to attract a higher caliber of employee.

People who can think on their feet and read the screen and want to push food out the window as fast as possible with a smile.

It will require higher volume of sales for pay for this.

$15 isn't a bad idea.

Attract better employees.

#3 | Posted by BillJohnson at 2021-04-05 06:28 PM | Reply

I worked at McDs a long time ago. During a rush I would do a 10 turn lay on the quarter grill, that is 10 burgers every 90 seconds. 9 seconds a burger. $15 an hour works out to 4 cents a burger. Yes there are other staff involved fulfilling the order, maybe 2 others and double that for slow times and you are looking at about 25 cents per burger for labor. Double that for management and it is still a small part of sales. Customers will not notice the price hike related to $15 an hour wages.

#4 | Posted by bored at 2021-04-05 06:41 PM | Reply

Yes, corporate giants obviously will be the least impacted.

#2 | Posted by sitzkrieg

McDonalds are franchises. The employee wage is payed by a small businessman, not a corporate giant.

#5 | Posted by SpeakSoftly at 2021-04-05 06:42 PM | Reply

McDonalds are franchises.

Have you ever seen how much money you need to open one of those franchises? It ain't no lemonade stand.

#6 | Posted by REDIAL at 2021-04-05 06:47 PM | Reply

McDonalds are franchises. The employee wage is payed by a small businessman, not a corporate giant.

#5 | POSTED BY SPEAKSOFTLY AT 2021-04-05 06:42 PM | FLAG:

Supported by a corporate giant that subsidizes training, benefits, etc. McDonalds is not small business.

#7 | Posted by sitzkrieg at 2021-04-05 06:48 PM | Reply

McDonalds are franchises. The employee wage is payed by a small businessman, not a corporate giant.

#5 | POSTED BY SPEAKSOFTLY AT 2021-04-05 06:42 PM | FLAG:

20 percent are under corporate ownership.I looked at buying one 20 years ago in Edmonton was going to be over 3 million upfront for a used store.

#8 | Posted by Scotty at 2021-04-05 07:26 PM | Reply

$15 isn't a bad idea.
Attract better employees.
#3 | POSTED BY BILLJOHNSON

California's minimum wages is $14. Alabama has none, so they default to the Federal minimum of $7.25.
Do you think California has better McDonald's employees than Alabama?

#9 | Posted by snoofy at 2021-04-05 07:30 PM | Reply

Also, how does McDonald's stay in business in California, where wages, rents, and gas prices are double Alabama?

Eberly balked on that question, maybe someone else can step up and answer....

#10 | Posted by snoofy at 2021-04-05 07:31 PM | Reply | Newsworthy 1

Snoofy,

Troll.

Ignoring you.

Don't bother.

#11 | Posted by BillJohnson at 2021-04-05 07:52 PM | Reply

Snoofy,

Troll.

Ignoring you.

Don't bother.

#11 | Posted by BillJohnson

The response of a man who can offer no valid rebuttal.

Might as well say "you're right i surrender"

#12 | Posted by SpeakSoftly at 2021-04-05 08:01 PM | Reply

Business hating a higher minimum wage is just greed and lame excuses. They can afford to pay more,they just don't want to. Keep the little people Small. They're less dangerous when they're constantly struggling for survival. If they start to see hope they might get uppity and we all know how bad that can get.

France devolved into the Terror,Russia went Commie. Little people making big demands gets elite -------- killed. They fear it more than you might think.

#13 | Posted by Effeteposer at 2021-04-05 08:02 PM | Reply | Newsworthy 1

"Keep the little people Small."

Strange way to describe people who eat at McDonald's! :)

#14 | Posted by snoofy at 2021-04-05 08:06 PM | Reply | Funny: 2

Also, how does McDonald's stay in business in California, where wages, rents, and gas prices are double Alabama?

They charge more for burgers? $4.08 for a 1/4 Cheese in San Diego as opposed to $2.99 in Alabama? (2013 numbers)

#15 | Posted by REDIAL at 2021-04-05 08:06 PM | Reply

#15 I thought that too, but last time this came up a spot-check of GrubHub menus doesn't really support that McD costs more in CA than AL.

In fact, prices vary even in the same city.

#16 | Posted by snoofy at 2021-04-05 08:08 PM | Reply

I just posted numbers I found.

#17 | Posted by REDIAL at 2021-04-05 08:10 PM | Reply

And here is a list of corporations that
gave to voter suppression drives by the
GOP...

apnews.com

spread their shame...

#18 | Posted by earthmuse at 2021-04-05 08:23 PM | Reply

Then why aren't they already paying it now?

#19 | Posted by BellRinger at 2021-04-05 08:34 PM | Reply

I don't eat fast food. It isn't "food" in my opinion, but carry on....

#20 | Posted by BellRinger at 2021-04-05 08:39 PM | Reply

Then why aren't they already paying it now?

#19 | POSTED BY BELLRINGER

Because they are mandated to "maximize shareholder value", thanks to "conservative" SCOTUS decisions.

#21 | Posted by WhoDaMan at 2021-04-05 10:20 PM | Reply

Who the F cares what happens to McDonald's? You short-sighted losers.

#22 | Posted by LegallyYourDead at 2021-04-06 12:16 AM | Reply

You stupid Liberals just don't get it. Of course McDonald's doesn't think $15 minimum wage hurts business - they are already well on their way to automating their locations. They will reduce the number of employees long term to keep running costs low. Meanwhile, the mom and pop and value restaurants will be forced to raise prices to offset the wage increase. Only the largest corporates are capable of investing the needed amount in R&D to automate their restaurants so it gives them a long term price advantage.

It makes it all the funnier as the Liberals on this site are the exact same people without real world skills that already settle for jobs not in their degree field and will get their wages permanently suppressed as a result.

#23 | Posted by Family_values at 2021-04-06 02:01 AM | Reply

#23

8th grade edumacation showing.

"Denny's is one of several publicly-traded restaurant chains whose executives have told investors in recent months that Democrats' proposed minimum wage hike is not a real threat to their business and may even be a net positive, according to a Daily Poster review of corporate earnings calls."

"The Cheesecake Factory is now partially owned by private equity firm Roark Capital Group, whose fast food chain recently bragged that it helped convince Congress not to include a $15 minimum wage measure in the American Rescue Plan.

"Labor input is just a cost input," said Matt Clark, Cheesecake Factory's chief financial officer. "And you can try to put some technology around it to improve efficiency and such. But at the end of the day, most competition prices for it. And I think that's the necessity to maintain margin structures that are competitive and attractive for continued investment."

Clark added that a wage hike could affect some of the company's competitors, and "ultimately the stronger survive and take market share."

The comments were hardly anomalous: over the last two months of earnings seasons, top executives from DiamondRock Hospitality, Kroger, HCA Healthcare, Hilton and Six Flags all downplayed the negative effects of a prospective minimum wage increase, and some have argued it would boost consumer spending. The statements from leaders across various service industry sectors undercut corporate lobbying groups in Washington that have pretended such a wage increase would destroy the economy.

"Many including me are supportive over time that the minimum wage needs to move up," said Hilton CEO Chris Nassetta in a February earnings call. "I think we should all assume that the minimum wage is going to be going up over time. In fact, because it needs to."

"To the extent that there is minimum wage increases in certain of our demographics where we operate, that has got a halo effect on the revenue side," said Six Flags chief financial officer Sandeep Reddy during a February earnings call, in response to a question about whether a higher wage helps boost spending at its parks.

Six Flags' CEO Michael Spanos added: 'We're roughly half teens and young adults and roughly half families and children and to Sandeep's point, we think it absolutely helps in that regard [to] put more money in their pockets."

MORE

www.newsweek.com

Thanks, Family Jewels, for being such a softball poster!

#24 | Posted by Corky at 2021-04-06 02:13 AM | Reply

Ok, so let's get everything straight here. Liberals demonize rich people of large companies. They constantly want those people to be silenced and earn less because they are hurting the wage gap. Yet, now Liberals are clinging to their words about an increase in wages? What does a guy making millions a year know about mom and pops restaurants, of which there are thousands across the country? Why would Libs EVER consider any of this as proof of anything?

This article and the Liberal backing is EXACTLY what you have been fighting against for decades. You complain the CEOs are out of touch. You complain they don't know the plight of the average person. Yet, now you think they are right and have the answers about something that OF COURSE isn't going to impact them because they can absorb any increase in supply chain costs.

Are you for or against the little guy? Dems have completely blurred the line just to suit their partisan narrative. This is actually quite disappointing for the country. The only party actually walking the walk to protect the little guy is now accepting advice from the big bad rich people. Every day there are big bad rich people making claims that don't fit the Left's narrative and they get blasted in the news and social media. But now you are showing you don't care anything about the little guy. You care about your party's narrative only. Quite disappointing.

#25 | Posted by humtake at 2021-04-06 11:54 AM | Reply

"Customers will not notice the price hike related to $15 an hour wages."

They would in Hale County, Alabama.

If you were working 40 hours per week at a $15 minimum wage, you would be making $31.2K per year. That's median household income that county (using 2010 Census reporting adjusted for inflation). That means that 50% of the people in hale County, assuming they remained employed, would see their income go up by some amount

Large MNC's could easily funnel money into low income areas, even if it meant taking a loss, but what about everyone else? Unless money were able to come in from other, wealthier communities, many of these jobs would simply disappear. And if I'm McDonald's I know it's an easy transition from traditional order takers to technology and Kiosks. I know this because that's how it works here in Europe.

But we know this. It's been widely acknowledged that an increase in the minimum wage will result in refer jobs. Whether you agree with that or disagree is a matter of perspective.

#26 | Posted by madbomber at 2021-04-06 12:16 PM | Reply | Funny: 1

"It's been widely acknowledged that an increase in the minimum wage will result in (fewer) jobs."

Reread those studies again. A hike in MW results in a temporary drop in jobs, followed quickly by a restoration.

"Whether you agree with that or disagree is a matter of perspective."

Not really. It's a matter of timing. Cherry-pickers stop the clock right before the restoration, because it screws up their talking point.

#27 | Posted by Danforth at 2021-04-06 12:57 PM | Reply | Newsworthy 2

McDonalds are franchises. The employee wage is payed by a small businessman, not a corporate giant.

#5 | POSTED BY SPEAKSOFTLY AT 2021-04-05 06:42 PM | FLAG: Correct as approx 80% of McDonalds are individual franchises. Those families live off the profits. and I am aware of this because my [now deceased] uncle bought one and that was theie 'family business' and income. The increase would become a decrease of family income.

ps: It is not just 15 an hour as the employer also has to match the Social/FICA on top of that wage and health insurance costs.

#28 | Posted by MSgt at 2021-04-06 02:04 PM | Reply

"won't hurt business"
Tell us again when a Big Mac combo costs $10.
Coming soon to all restaurants near you.

#29 | Posted by e1g1 at 2021-04-06 02:21 PM | Reply | Funny: 1

"ps: It is not just 15 an hour as the employer also has to match the Social/FICA on top of that wage and health insurance costs."

But they already have to pay that anyway, so it's the difference between the current wage and $15, plus 6.2% of that difference.

#30 | Posted by snoofy at 2021-04-06 03:18 PM | Reply

"Reread those studies again. A hike in MW results in a temporary drop in jobs, followed quickly by a restoration."

Really?

I'm looking at the most current study I know of, conducted by the CBO and reported back in February.

There was zero mention of restoration of jobs. The trade off for the implementation of a $15 MW was the loss of 1.4 million jobs, offset by ---- no longer being in poverty.

maybe the restoration thing is your little addition...not really sure where it came from. What we do know is that you would have 600k people who were previously employed at a lower wage rate, but can no longer find legal employment since the value of their labor is less than $15 an hour.

Oh, the other key finding was that it would increase the debt by $54 billion...which is really a statistically insignificant amount, but it also pointed out the resulting higher inflation. So we all get to pay more for goods and services.

All of this, of course, is completely predictable through contemporary economics...if you choose to believe in that sort of thing. You don't. obviously. You can't be a progressive and economically literate without understanding that human nature will always put these two things at odds.

#31 | Posted by madbomber at 2021-04-07 09:06 AM | Reply

" maybe the restoration thing is your little addition...not really sure where it came from."

History.

Jobs have always returned after wage increases. If your theory was true, jobs would go away and not come back. Or else we would have long periods of lower employment immediately after a wage hike. That doesn't happen, and hasn't happened. And your observation that the amount of hit would be minuscule is correct.

Maybe they didn't talk about restoration of jobs, because that wasn't part of their purview. It could've also been because it undercut the predecided talking points.

#32 | Posted by Danforth at 2021-04-07 10:04 AM | Reply

" the other key finding was that it would increase the debt by $54 billion...which is really a statistically insignificant amount, but it also pointed out the resulting higher inflation. "

WTF? How on earth is $54 billion able to move the needle on inflation? That's barely a rounding error in the federal budget.

#33 | Posted by Danforth at 2021-04-07 10:06 AM | Reply

"Jobs have always returned after wage increases."

I thought you were smarter than this? I still think you may be...you're just letting your progressive judgement get the better of you. Some people are more concerned about being morally right than precisely, factually, and semantically correct.

Jobs haven't always returned. Shifts in labor demand result in some jobs being eliminated, some jobs seeing a decline in wages, and some jobs seeing skyrocketing incomes. Just ask Snoofy about practically all gains in the US since 1975.

But if you ever took an econ class, you would know that there isn't a correlation between minimum wage increases and higher employment. There is a correlation when it occurs as a result of an increase in the demand for labor that drives up wages, which also has the tendency to pull non-participants in the labor market back in, but that's because the market is demanding it. In this case, there is no increasing demand for low-skilled labor, so the result will be 600k additional former workers who will have been thrust into the ranks of workforce non-participation. Not because they chose, but because the government chose for them. And all other things being equal, they will remain non-participants because the value of their labor is too low for them to regain legal employment.

#34 | Posted by madbomber at 2021-04-07 02:02 PM | Reply

"WTF? How on earth is $54 billion able to move the needle on inflation? That's barely a rounding error in the federal budget."

Two separate things. The inflation will come as a result of all of those making less than $15 an hour who now will be.

It's common. Normally it happens in smaller populations. During the oil boom in ND, you couldn't hire someone for less than $15 an hour. For anything. Sounds good until you consider that apartments in Minot, ND were pushing $3k per month, and if you wanted to buy something locally, you were going to pay more than market price. There was never a shortage of oil guys flush with cash and no common sense.

#35 | Posted by madbomber at 2021-04-07 02:06 PM | Reply

It makes it all the funnier as the Liberals on this site are the exact same people without real world skills that already settle for jobs not in their degree field and will get their wages permanently suppressed as a result.
#23 | POSTED BY FAMILY_VALUES

what is it with you and your broad brush, huh?

You sound like a fnkcin' moron.

#36 | Posted by rstybeach11 at 2021-04-07 03:33 PM | Reply

#36 He's here to troll, nothing more.

Trolling the libs (and yes, you're a Lib if you didn't support Trump) is its own reward.

I don't know what's so amazing about it, but they are like moths to the flame.

One consistent personality trait you see from the bulk of right-wingers here is they have to put others down to feel good about themselves. Like the kind of person who bullies people in grade school and loves it so much she becomes a cop.

#37 | Posted by snoofy at 2021-04-07 03:39 PM | Reply | Newsworthy 1

He's here to troll, nothing more

QAnonValues parrots QAnon talking points and brings up Hunter Biden to derail every thread.

Talk to him about Matt Gaetz and he won't respond.

The guy is a pedophile supporter who has nothing but conspiracies and trolling.

#38 | Posted by ClownShack at 2021-04-07 03:43 PM | Reply

"Shifts in labor demand result in some jobs being eliminated..."

Yes. And those are the normal rolls of the evolving economy. That worker gets another job, better suited for the new(er) economy. Isn't that exactly what's supposed to happen? You know...supply and demand?

#39 | Posted by Danforth at 2021-04-07 03:51 PM | Reply

MadBomber, believe it or not, Plato (through the mouthpiece of Socrates) described your attitude 2500 years ago. You're one of the drones who hopes to get close to the honeybees (hangers-on around the queen (government)) to get some of the free honey. Don't be deceived. You are never going to be counted among those in the "golden" class of humans. No matter how high you rise in the Air Force. You'll always be seen as simply a "silver"-classed underling. Most of the rest of us are in the lowest class referred to as the "bronze/iron" class...workers doing menial jobs. So be thankful for what you have, but remember, the "golden" office holders of this country still view you as an expendable tool. Not a colleague or friend.

#40 | Posted by madscientist at 2021-04-07 03:51 PM | Reply

"It makes it all the funnier as the Liberals on this site are the exact same people without real world skills that already settle for jobs not in their degree field and will get their wages permanently suppressed as a result."

What a riot. I worked my entire adult left in the jobs in my degree field...and that's exactly what suppressed my wages!
~Danforth
BFA, Acting

#41 | Posted by Danforth at 2021-04-07 03:54 PM | Reply

It makes it all the funnier as the Liberals on this site are the exact same people without real world skills that already settle for jobs not in their degree field and will get their wages permanently suppressed as a result.
#23 | POSTED BY FAMILY_VALUES

How much more ludicrous a statement has never passed before my eyes as this.

Family Values, most if not all the Liberals and Conservatives, as well, are over 50 here and have a wealth of experience and information to offer. That the conservatives have decided to spin-doctor it is par for the course on a liberal website. You simply have to learn to un-spin it to get to the heart of conservatives motives. Liberals, on the other hand, don't spin-doctor their posts. But simply, by observation alone, discuss tangents to the topic according to each ones' professional experience.

I doubt you'd have much left if dunked in HF acid as a baptism of truth.

#42 | Posted by madscientist at 2021-04-07 04:03 PM | Reply

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