Seattle approves $15 minimum wage

As a business owner that has 2 employees at $8.00 per hour. Tell 1 to bend over and kiss their job goodbye. If I'm forced to give them a raise, I'll fire 1, give his responsibilities to the other, and save myself $1 per hour in labor.

I know for a fact lots of other business owners feel this way too. This only affects people with their hands out looking to get something for nothing. Those of you that lose your jobs so that the next guy can make more, I salute you. That's a noble sacrifice.

a reply to: neo96

They may be easier physically, but not mentally. when you take out the physical aspect that means a computer has had to take over which which proves my point further because that computer may have taken 6 jobs away from humans, and now the one job that's left requires a degree in computer programming to get. So what are those six other people supposed to do?

back when McDonald's used real flat tops they might have had 3 guys on that flat top, and they would have been payed decent because they had to know how to properly cook a burger. then they brought in there sandwich cooker that just plops right on top of the burger, no need for all those workers or to pay them so much.

The issue your not comprehending is that we don't have the jobs for people to work at anymore. we have lost our manufacturing base so what is your solution for people to do?

originally posted by: Phage
a reply to: pointr97
Here's McDonald's (Corp.) P&L. Being publicly held, they need to report this stuff.

www.marketwatch.com...

Gross (excluding D&A because those just go to the balance sheet): 12.49B
Pretax Net: 6.61B
Posttax Net: 4.00B

Pretax margin: 5.3%
Posttax margin: 3.2%

25 cents on a Big Mac combo.

Insane?
Do you think the franchisees (who actually determine payroll rates) do a lot better?

I don't see how looking at the stock of the Franchisor helps to determine the profitability of a business that sells hamburgers. The vast majority of its stores are owned by individuals not by the company. It would indicate the profitability of a corporation that franchises though.

a reply to: Wrabbit2000

But see why are we fighting about the little man when we all really know what the real issue is. The issue is our government needs to stop letting all these corporations get away with there BS. People can talk crap about the poor guy being lazy or using the system but Googles the one who uses the system to not pay there billion dollar tax bill every year.

originally posted by: Phage
a reply to: KnowledgeSeeker81

Why is entry level job ONLY applied to the employees? If a business only offers entry level jobs, shouldn't they be considered an entry level business?

What does that mean?

That means they only (as a franchise operation) offer entry level positions.

At an average net sales of 2.3 million a year and 10% net profit, 230k average times however many stores equals quite the salary for doing nothing.

You're sort of high there. About 43%. 5.7% net profit is the average.
www.bluemaumau.org...
But "doing nothing?" Seriously? I've done business with McDonald's franchise owners. They tend to be very busy people, working very long hours. Not to mention the investment they have put into their franchise and the upgrades that McDonald's requires on a regular basis, upgrades for which the franchisee bears most of the cost. Shutting down a store for a week for construction takes a big bite out of the profits.

I do these same numbers FOR my boss, I don't know what the link you quoted is, but I will tell you it's NOT accurate. First off it has advertising and promotions as a "controllable expense". Those are set fees by McDonalds corporation and NOT controllable for a franchisee. So either that's the expense form from a corporate store, or completely inaccurate.

So while each franchisee is making millions a year, they go as far as to SPEND MONEY to have information for government benefits printed up for new hires.

Yeah, the government requires that. You can get a complete set of posters for about 40 bucks if you want a real nice set. www.google.com...

I'm talking about the printed paperwork in new-hire packets that is not required by the government. The 5-in-1 posters you are speaking of are usually given free by the payroll company hired.

If I'm not on swing, two people are working, so by logic I should be paid equal to what the other two make combined. I get a whole dollar an hour more than them for twice the productivity and a lot more responsibilty.

It good that you have a good work ethic, keep it up and figure out how to use it to find a better job. But twice the productivity does not directly translate to twice the pay but as a manager I think you probably are underpaid.

Tell me this, you're making more than minimum wage right now I take it, and feeling crappy about it. How would you feel if the minimum wage was raised to what you're making and now those other two are making the same thing you are? You think you're going to get a raise?

You are correct, my work ethic is second to none. As far as the minimum wage being increased to a living wage even for entry level jobs, I would not mind in the slightest if I made the same as my co-workers and that included my position with extra responsibilities. The percentage difference between my annual pay and theirs right now is so minimal it would literally mean nothing to me in those terms. I've done this math, and I'll see if I can find the chart on my old laptop, but an increase to $13 an hour per employee (compared to the $8.25/hr now) resulted in around a 5-10% increase in prices to compensate. My boss laughed and said no.

a reply to: whywhynot

I agree but that discussion was about corporate profits. For franchise profits see this post:
www.abovetopsecret.com...

originally posted by: undo
a reply to: Mamatus

i just wanna know what your avatar is supposed to mean.

It means this insanity and stupidity of the citizens of this planet make my head want to explode. I also used this avatar when I got sick and tired of trolls on ATS....

For your reading pleasure, In-N-Out Burger, starting wage $10.50. Seems like they are doing fine with their own minimum wagewww.triplepundit.com... -cant-mcdonalds/

Current minimum wage in Seattle is $9.32 and they feel confident in scheduling a rise to $15 by 2021 so companies can prepare.
The Federal reserve bankers are having trouble meeting their 2% annual inflation goal. To match inflation minimum wage would only have to go up to $10.71 in 2021. The actual annual minimum wage increase needed to reach $15 an hour by 2021 is closer to 7.1 percent per year.

The Seattle town council could be predicting higher cost of living in their local economy even if core inflation rate is subdued.
Seattle isn't exactly isolated like the Weimar republic was with their hyperinflation plan, but it still might show us the effects wage inflation have on a local economy in todays world.

Now the real question about the US economy is:

If seven maids with seven mops Swept it for half a year. Do you suppose, the Walrus said, That they could get it clear?

Aliens argg

a reply to: doobydoll

The rest can't make it work because they do not bring in the money I do in a few hours. I spend an average of $130.00 in labor costs to bring in 1200.00 to 1400.00 dollars. With labor costs about ten percent I can afford to pay them well. Also we make full use of the independent contractor laws in California so no workman's comp or unemployment insurance.

We have medical coverage for them in the event of an accident up to 100k in benefits but that's it. They type of gig I have allows hiring independents. Now if I had to pay all the benefits it would cost me about $20.00 an hour to pay them $10.00 an hour.

Most labor and retail based companies have huge costs for employees above and beyond the paycheck alone. In California it is nearly double the pay rate just to provide workman's comp and unemployment.... If they get paid 15.00 an hour in this state it will cost the employer about $30.00 an hour. Of course people that do not own businesses never factor these additional costs in when talking about pay hikes being "affordable" to business.

a reply to: KnowledgeSeeker81

Those are set fees by McDonalds corporation and NOT controllable for a franchisee. So either that's the expense form from a corporate store, or completely inaccurate.

I don't know about advertising but the figures are produced by this guy and he says an average for franchises. In any case, it doesn't show 10% net.
www.janney.com...

a reply to: bigcountry08

issue your not comprehending is that we don't have the jobs for people to work at anymore. we have lost our manufacturing base so what is your solution for people to do?

yes what I was saying this whole thread. Also population keeps growing. That means more competition for jobs with less to go around.

To answer another poster's question of "what would you have these people do"? Those with the mentality these posters such as Phage and Neo, to quote a very famous author, would be " have them die and decrease the surplus population already" that would be their reply.

originally posted by: Phage
a reply to: KnowledgeSeeker81

Those are set fees by McDonalds corporation and NOT controllable for a franchisee. So either that's the expense form from a corporate store, or completely inaccurate.

I don't know about advertising but the figures are produced by this guy and he says an average for franchises. In any case, it doesn't show 10% net.
www.janney.com...

Which is a mock-up average, provided with reference to a resume and no links to actual releasable data. The data shown in your original pic www.bluemaumau.org... ey-McDonalds%20Income%20Statement%20mock.pdf is without a doubt a mock-up for a corporate store, or apparently McDonalds doesn't count franchise fees as an independent uncontrollable expense like every other franchise I have ever worked for does. Since that is a 100% tax write-off as an expense while other expenses might not be, I would be shocked to find McD's franchisees don't demand that as a separate expense (90% of McD's is franchised).

a reply to: KnowledgeSeeker81

is without a doubt a mock-up for a corporate store,

Except it says franchise.

And it shows a 5.7% profit no matter how the costs are classified. Advertising is advertising. It's overhead whether or not corp requires it.

The guy surveys McDonald's franchises on an annual basis. I would assume he gets the numbers directly from them.
nrn.com...

originally posted by: Phage
a reply to: KnowledgeSeeker81

is without a doubt a mock-up for a corporate store,

Except it says franchise.

And it shows a 5.7% profit no matter how the costs are classified. Advertising is advertising. It's overhead whether or not corp requires it.

The guy surveys McDonald's franchises on an annual basis. I would assume he gets the numbers directly from them.
nrn.com...

Advertising is NOT just advertising. It is something ALL corporations that franchise set an expenditure for, it's in the freaking contract. Franchisee's have the OPTION to do additional advertising, and the multi-franchisees usually do, but it's local and cheap. Done with schools, church's, local community groups etc... There is NO set franchisee expense, and that is a very SPECIFIC expense on your linked guys resume. ANY franchise expense report will specify that. Instead of linking pictures to people that do studies tell me how many of these monthly P&L reports you have actually done. Then tell me the adjusted figures you got from the accountant to determine actual P&L. I do this every month.

originally posted by: strangechristian777
As a business owner that has 2 employees at $8.00 per hour. Tell 1 to bend over and kiss their job goodbye. If I'm forced to give them a raise, I'll fire 1, give his responsibilities to the other, and save myself $1 per hour in labor.

Wouldn't you save $8 an hour in labor if 1 of the 2 people making $8 an hour was given all the duties of the two? What if the one guy doing it couldn't do it? Would you do the extra labor? If so then you deserve the extra money. If you can't do it without employees you might want to re-think your mindset

a reply to: KnowledgeSeeker81

He'll do it or I'll fire him and hire someone that can do it for $15 per hour. Simple as that. People that want handouts have a 50/50 chance of keeping their job after the law is passed. I'm definitely not taking a $14 an hour loss just to pay out 2 employees. They'll take the losses.

a reply to: KnowledgeSeeker81
You're missing my point.
Go ahead any move advertising to non-controllable expenses. It doesn't change the bottom line. I'm don't really see why you're making such a big deal about what line it appears on.

Instead of linking pictures to people that do studies tell me how many of these monthly P&L reports you have actually done.

He is an accountant who has worked in the restaurant business for a long time. He consolidates information given to him by franchisees.

I've done my share of auditing and producing monthly financial statements. I have always calculated and made monthly adjusting entries myself. My books were reviewed on an annual basis by the CPA. Not in the restaurant business though, construction. How are you on work in progress adjustments? They can be tricky.

a reply to: strangechristian777

See you didn't say you would increase the others pay. I can respect paying one person nearly double if they can do it. A store I managed over 10 years ago payed $8.50 starting wage when minimum wage was $5.15. I had top notch employees, and a large amount of people to choose from to select those employees. Following minimum wage standards I get what i pay for employee-wise nowadays, a crap paying job gets crap employees.

originally posted by: KnowledgeSeeker81
a reply to: strangechristian777

See you didn't say you would increase the others pay. I can respect paying one person nearly double if they can do it. A store I managed over 10 years ago payed $8.50 starting wage when minimum wage was $5.15. I had top notch employees, and a large amount of people to choose from to select those employees. Following minimum wage standards I get what i pay for employee-wise nowadays, a crap paying job gets crap employees.

Not necessarily. I get crap pay but I do always exemplary work. Even my supervisors will back me up. If you do crap work you'll never get ahead. That's my motto. And I'm just a temp cause that's all I can get. But if I make my work memorable, then down the line it's gonna benefit me someday. I'm a low income worker, though I know I'm very smart I still gotta start at the bottom all over again because my work history is inconstant. I had children, stayed home with them, the father made enough then to do so. So basically people when you exit the workforce and re enter later you have to start from square 1 again. I even attended school but moved/ didn't finish due to circumstances. Not that it matters cause my peers that did graduate aren't much better either.

But I won't leave a bad impression at any job, because it will follow you. So on this I disagre