From Facebook: (And no, I did not respond this way on Facebook.)
Actually, your Facebook post is based upon a faulty premise. No one actually thinks the world would end if the minimum wage were $15 an hour. The price of a meal might rise, and some restaurants would cut back hours and install automation…
Poor people would become poorer, since they would have less work, and people of moderate means might eat out less. Some products produced in America would become more expensive, but there’s always Chinese made stuff. Oh, the employees would be hurt. Those folks who used to earn the lower minimum wage.
People do object to the government mandating the wages of anybody, as the government has no business doing this.
Also, I think the boards of directors of major corporations set the pay for the CEO’s. There’s a limited supply of people with the skills to run a major corporation. I can’t do it. Can you?
If the boards pay too much to the CEO, the stockholders would object, and the situation would be fixed. Not being a stockholder, I don’t really care what they pay the CEO, as long as I can get a quality product at a reasonable price. Oh, and if they pay the ground-level workers too much, the price will go up. That I’ll notice.
For more information, see this article.
Let’s do the math: A typical franchisee sells about $2.6 million worth of burgers, fries, shakes and Happy Meals each year, leaving them with $156,000 in profit. If that franchisee has 15 part-time employees on staff earning minimum wage, a $15 hourly pay requirement eats up three-quarters of their profitability. (In reality, the costs will be much higher, as the company will have to fund raises further up the pay scale.) For some locations, a $15 minimum wage wipes out their entire profit.
Recouping those costs isn’t as simple as raising prices. If it were easy to add big price increases to a meal, it would have already been done without a wage hike to trigger it. In the real world, our industry customers are notoriously sensitive to price increases. (If you’re a McDonald’s regular, there’s a reason you gravitate towards an extra-value meal or the dollar menu.) Instead, franchisees can absorb the cost with a change that customers don’t mind: The substitution of a self-service computer kiosk for a a full-service employee.