McDonald's, Other CEOs Tell Investors $15 Minimum Wage Won't Hurt Business

[riversedge]

Source: newsweek




By Julia Rock and Andrew Perez, The Daily Poster On 4/5/21 at 6:00 AM EDT


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.

"We share your view that a national discussion on wage issues for working Americans is needed—but the Raise the Wage Act is the wrong bill at the wrong time for our nation's restaurants," the National Restaurant Association wrote in a letter to congressional leaders in February. "The restaurant industry and our workforce will suffer from a fast-tracked wage increase and elimination of the tip credit."

The following day, a top executive at Denny's, one of the association's members, told investors that gradual increases in the minimum wage haven't been a problem for the company at all. In fact, California's law raising the minimum wage to $15 by 2023 has actually been good for the diner chain's business, according to Denny's chief financial officer, Robert Verostek.

"As they've increased their minimum wage kind of in a tempered pace over that time frame, if you look at that time frame from us, California has outperformed the system," Verostek said on an earnings call. "Over that time frame, they had six consecutive years of positive guest traffic—not just positive sales, but positive guest traffic—as the minimum wage was going up.".........................

Read more: https://www.newsweek.com/mcdonalds-other-ceos-tell-investors-15-minimum-wage-wont-hurt-business-1580978

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[cstanleytech]

1. I think a compromise for restaurant wages might be that a restaurant has to pay a far higher tax

for every employee that works for them that the IRS shows that does not earn more than 200% above the federal poverty level.
Of course to be fair the tips should then be collected by the restaurant first and then all of it must be given back to the wait staff at the end of their shift just to make sure all the money is accounted for.

[Tndem615]

2. Get both

I’ve held the position for quite some time that CEO’s that make exponentially more than their employees are often tone deaf to their struggles. Corporate tax increase COUPLED with a nationwide minimum guaranteed income equivalent to $25/hr. That’s right, $52k/year guaranteed minimum. I say equivalent because not all can work, and if you’re disabled, you deserve the same dignity.

[Claire Oh Nette]

3. Guaranteed income

UBI, what Yang was proposing?

That's over $1000 a week. :You may be onto something. WHat's the point of the poverty line if it requires 200-300% of it to live?

Whatever that living wage is, yes, disabled people should have that, and a % of that for retired people. Return to Clinton era tax rates, apply a 10% flat corporate tax minimum (a tithe, to make the religious nuts happy), and remove the cap income taxed for social security. Add in a financial transaction micro tax, and Tax wealth. We should have zero starving children or food insecure families. Homeless families, either. Plenty of empty Toy R US and commercial mall real estate that can be converted into housing.

Republicans bitch about the homeless, and having to pay for welfare and food stamps, but they don't see that they already do. Make Walmart and other big entities benefitting from cheap labor pay for their share of infrastructure, training, socialization, security, the works. Henry FOrd may not have been a nice man, all things equal, but he paid his people enough to afford his products.

We can't expect to outsource manufacturing to the lowest labor costs and still think Americans will have enough to by the cheap crap they're importing on a slow boat from China. Walmart style race to the bottom, or a rising tide lifts all boats?

Is a billion dollars not enough even in the most expensive, most exclusive enclave? Where are the university and library building philanthropists? Where are the scholarship foundations?

Realistically, as automation takes more and more white collar jobs, we'll have to do something. $500-$1000 a week is a good place to start.

[monkeyman1]

4. it will hurt only if trump becomes a vegetarian !

[melm00se]

5. The impact upon McDonalds

is misunderstood.

The vast majority of McDonald's revenue comes not from owning stores (they own less than 10% of the McDonald's stores worldwide and is aiming for owning less than 5%) but rather from the franchise fees and ownership of the land that most, if not all, McDonald's stores sit upon.

I would imagine if minimum wage were to increase, the total revenue of the stores would follow thus enriching McDonald's further thru increases in revenue based fees paid and increase in rent payments as the land valuation increases.

As these payments increase, the local franchisees will see their margins squeezed which may lead to increased pressure to automate various features of the store. I can easily see, in addition to the current kiosks, automation as it relates to the making of fries, the filling of drink cups and, quite likely, the automation of cooking burgers. The technology is there and available, it just a matter of time before the ROI exists to make the big move.