Fast Food locations closing down rather than pay employees more

[Victorian Gray]

Well, considering we're seeing rising unemployment, price increases that outpace inflation, and an increase in credit spending...I'd say it kind of is coming true.

If it truly had a negligable effect, prices would be more or less tied to inflation and unemployment would not increase.

The rising unemployment, etc that you mention has nothing to do with the minimum wage levels anywhere in the United States.

 

[Engineer]

Well, considering we're seeing rising unemployment, price increases that outpace inflation, and an increase in credit spending...I'd say it kind of is coming true.

If it truly had a negligable effect, prices would be more or less tied to inflation and unemployment would not increase.

More of that has to do with offshoring better pay/benefit middle class jobs than minimum wage increases. Once corporations gutted the middle class jobs by sending them out of the country, they (corporations) had to have some way to keep it going. It's either government spending or credit and looks like they got both.

By the way, what 'price increases' are you talking about 'outpacing inflation'?

 

[ivwshane]

Well, considering we're seeing rising unemployment, price increases that outpace inflation, and an increase in credit spending...I'd say it kind of is coming true.

If it truly had a negligable effect, prices would be more or less tied to inflation and unemployment would not increase.

Not a single thing you said was true:

http://www.minneapolisfed.org/community_education/teacher/calc/hist1913.cfm

http://data.bls.gov/timeseries/LNS14000000

http://m.us.wsj.com/articles/BL-REB-25097


FYI, the federal minimum wage was increased in July of 2009.

 

[Hugo Drax]

Someone is paying for all that, and it's the consumer:

http://nomadcapitalist.com/2013/11/24/top-5-expensive-countries-on-the-big-mac-index/

Holy shit a whole dollar more for a totally discretionary item in a world of 100 monthly phone bills, 600 dollar iPhones and 150 dollar monthly cable.

So going from 7 dollars an hour to 25 dollars an hour only raises the cost of a Big Mac by 1 dollar?

Cigarette prices go up every year and people still buy.

 

[Hugo Drax]

A part-time minimum wage job will NEVER be enough to raise a family on. Ever. It doesn't matter if minimum wage is $1000/hr. It won't be enough.

That's why it's the minimum fucking wage.

Want more money and better standard of living? Get a better job.

If a restaurant is unprofitable because the government made the labor too expensive, then it should be closed. Businesses aren't charities.

Yeah but then I pay higher taxes to fund all kinds of government aid so that they can pay below market value. That does not sound free market capitalism.

It sounds like welfare for the rich, and I pay for it.

 

[Engineer]

Yeah but then I pay higher taxes to fund all kinds of government aid so that they can pay below market value. That does not sound free market capitalism.

It sounds like welfare for the rich, and I pay for it.

But that's 'you' paying for it, not them (the companies). Get your priorities straight and back in line, comrade!!!

 

[IGBT]

a blessing in disguise. there are way too many industrial fast food joints.

 

[MrPickins]

If the profits were "razor thin" to begin with all the more reason the business should be shut down.

So businesses with thin profit margins are not allowed to exist in Daveland? Or just restaurants?

 

[Paul98]

How do fast food places pay vs local type places?

For the same price or cheaper at local places I can get much better food of the same type.

 

[Joepublic2]

Supply and demand do not directly affect wages in any way. These people do get other jobs, I think it would be hilarious to watch a sitcom of the average member of P&N living on 7$ an hour part time.


It would basically be a show about the homeless.

Maybe if you're stupid or so unlikable/fucked in the head that you can't find roommates. I made about that much out of high school and money was fine after we split rent/utilities 5 ways (big place out in the country with a well). No, you're not going to have a new car and your own place if you're making that much. And yeah places say blah blah blah can't sublet but 99% of landlords DGAF as long as you pay the rent on time and don't tear the place up or make more work for them (most of the no subletting clauses are because of zoning/building/safety codes).

 

[Jaskalas]

If they have to raise the price of their product, then why don't they?

 

[cabri]

Does the economy handling an increase minimum wage also handle the lost jobs that the OP identifies as a result of the wage increase?

When a company lets go a part time worker; most times, that worker is not recorded in the system as a lost job. Nor is the reason for the worker being let go..

When a company folds due to wage increases, why would such show up in the labor stats.

Where did you get that from?

Labor stats for unemployment are created by the states based on unemployment claims active.

When do part timers become eligible to collect unemployment? A minimum amount of hours is required.
Where is the unemployment process is there tracking for the reason for the "layoff/firing"?

 

[Engineer]

Labor stats for unemployment are created by the states based on unemployment claims active.

When do part timers become eligible to collect unemployment? A minimum amount of hours is required.
Where is the unemployment process is there tracking for the reason for the "layoff/firing"?

I would be wrong but I thought unemployment was somwhow survey based??

 

[cabri]

How do fast food places pay vs local type places?

For the same price or cheaper at local places I can get much better food of the same type.

Fast Food (franchises) are required by contract to purchase supplies through the corporation suppliers.

Quality may not be the same and unable to negotiate costs.
There are also promotional costs & advertising that may not be needed for the particular market but required to be contributed to per contract.

 

[Londo_Jowo]

If they have to raise the price of their product, then why don't they?

The prices are set at the corporate level and all the franchises must sell at the set price. Therefore increased costs (wages) must be absorbed by the franchise. Rather than break even or take a loss the owners of the franchises chose to close the locations. Good ole business 101.

 

[Matt1970]

Labor stats for unemployment are created by the states based on unemployment claims active.

When do part timers become eligible to collect unemployment? A minimum amount of hours is required.
Where is the unemployment process is there tracking for the reason for the "layoff/firing"?

No.

"Some people think that to get these figures on unemployment, the Government uses the number of persons filing claims for unemployment insurance (UI) benefits under State or Federal Government programs. But some people are still jobless when their benefits run out, and many more are not eligible at all or delay or never apply for benefits. So, quite clearly, UI information cannot be used as a source for complete information on the number of unemployed.

Because unemployment insurance records relate only to persons who have applied for such benefits, and since it is impractical to actually count every unemployed person each month, the Government conducts a monthly sample survey called the Current Population Survey (CPS) to measure the extent of unemployment in the country. The CPS has been conducted in the United States every month since 1940, when it began as a Work Projects Administration project."

http://www.bls.gov/cps/cps_htgm.htm#why

 

[Matt1970]

Holy shit a whole dollar more for a totally discretionary item in a world of 100 monthly phone bills, 600 dollar iPhones and 150 dollar monthly cable.

So going from 7 dollars an hour to 25 dollars an hour only raises the cost of a Big Mac by 1 dollar?

Cigarette prices go up every year and people still buy.

If that were true, why hasn't one person in the tens of thousands of fast food restaurants tried it?

 

[Matt1970]

WTF is wrong with you are you really that retarded?


50 companies aren't looking for unskilled labor. Unskilled labor means UNSKILLED. Google it you stupid fuck.

I wouldn't call anyone a stupid fuck after claiming "Supply and demand do not directly affect wages in any way." Sorry, but that is the biggest piece of nonsense I have heard in a while.

 

[UglyCasanova]

So businesses with thin profit margins are not allowed to exist in Daveland? Or just restaurants?

Apparently to him a business is bad if they make too much in profits (evil banks) and a business is also bad if they make too little (evil restaurants). I guess there is a sweet spot in there where he gives his blessing? Hell maybe not and all businesses are bad.

Dave - Do you work? If so, at a....business?

 

[cabri]

Apparently to him a business is bad if they make too much in profits (evil banks) and a business is also bad if they make too little (evil restaurants). I guess there is a sweet spot in there where he gives his blessing? Hell maybe not and all businesses are bad.

Dave - Do you work? If so, at a....business?

He was unable to make it in the business world.
Claims that he was duped and would lose money.

Excellent news. These bastards should close.

I've always said a Company has no business being in business if it can't pay employees properly.

But he refuses to explain why he tried to make a go as a business person; that would go against he grain that business making a profit is bad.

 

[dmcowen674]

So businesses with thin profit margins are not allowed to exist in Daveland? Or just restaurants?

If restaurant profits are so thin then how does Chik Fil-A manage to survive when they leave an entire day of profits on the table?

 

[Spungo]

If restaurant profits are so thin then how does Chik Fil-A manage to survive when they leave an entire day of profits on the table?

Can you explain how closing the store affects profit margins?

 

[TreVader]

Maybe if you're stupid or so unlikable/fucked in the head that you can't find roommates. I made about that much out of high school and money was fine after we split rent/utilities 5 ways (big place out in the country with a well). No, you're not going to have a new car and your own place if you're making that much. And yeah places say blah blah blah can't sublet but 99% of landlords DGAF as long as you pay the rent on time and don't tear the place up or make more work for them (most of the no subletting clauses are because of zoning/building/safety codes).

Implying the average P&N is likable and in no way fucked in the head.

 

[Jaskalas]

The prices are set at the corporate level and all the franchises must sell at the set price.

Sounds like the root of the problem. Unrealistic business practices.

 

[MongGrel]

Implying the average P&N is likable and in no way fucked in the head.