Chart: How Much Fast-Food Prices Would Rise If Employers Paid $15 an Hour

[mystery-ak]

http://dailysignal.com/2014/09/04/chart-much-fast-food-prices-rise-employes-paid-15-hour/?utm_source=facebook&utm_medium=social

Chart: How Much Fast-Food Prices Would Rise If Employers Paid $15 an Hour
Katrina Trinko    September 04, 2014

As thousands of fast-food workers participate in strikes today pushing for their wages to be raised to $15 an hour, it’s important to remember the consequences that such a steep raise could have.

According to a new report released today by James Sherk, a labor policy expert at The Heritage Foundation, such an increase could result in fewer hours of work overall at fast-food restaurants and higher prices for all.

[flowers]

When I was a young flower pod I worked at a fast food restaurant when the minimum wage was increased. A few days before the management increased the prices on many items on the menu. 

[Oceander]

Profits wouldn't stay down that much for long.  Enterprising franchisers and franchisees will simply start turning wholesale to automated self-service ordering systems, doing away with most of the live bodies they employ right now.  Food prep will also be further automated - when the costs of labor are so high, hitherto costly automation becomes a net cost-cutter.  And most of the folks who depend on jobs like these will be unemployed.

[MACVSOG68]

Profits wouldn't stay down that much for long.  Enterprising franchisers and franchisees will simply start turning wholesale to automated self-service ordering systems, doing away with most of the live bodies they employ right now.  Food prep will also be further automated - when the costs of labor are so high, hitherto costly automation becomes a net cost-cutter.  And most of the folks who depend on jobs like these will be unemployed.

No question about it.  For Finance 101, it's the results achieved when switching from variable to fixed costs.

[Oceander]

Quite honestly, I'd prefer automated ordering in fast food restaurants - put the "fast" back in "fast food" - regardless of whether this $15 inanity happens or not.  I prefer pumping my own gas, I prefer doing my own check-out at the grocery store and the hardware store, and I'd prefer to make sure that I ordered it "my way" instead of hoping the numbskull behind the counter got it correct.  It's like store clerks:  I don't want to be shadowed by someone who pops in to ask if I need help, if I'm finding everything, or what-have-you when I'm trying to figure out what I want and where it is; I just want them to be there behind the cash register when I'm ready to buy.

[MACVSOG68]

Quite honestly, I'd prefer automated ordering in fast food restaurants - put the "fast" back in "fast food" - regardless of whether this $15 inanity happens or not.  I prefer pumping my own gas, I prefer doing my own check-out at the grocery store and the hardware store, and I'd prefer to make sure that I ordered it "my way" instead of hoping the numbskull behind the counter got it correct.  It's like store clerks:  I don't want to be shadowed by someone who pops in to ask if I need help, if I'm finding everything, or what-have-you when I'm trying to figure out what I want and where it is; I just want them to be there behind the cash register when I'm ready to buy.

Can't disagree on any of that...except the grocery store.  I still hate the self-checkout.  But yeah, it's all coming sooner if the $15 minimum wage takes hold.

[EC]

Can't disagree on any of that...except the grocery store.  I still hate the self-checkout.  But yeah, it's all coming sooner if the $15 minimum wage takes hold.

Sooner, but not soon. There are a few things out there - was a thread about the automatic pizza machine that had a couple of other neat things down thread, but they are prototypes. They can be held up in testing for years if need be.

[Oceander]

Can't disagree on any of that...except the grocery store.  I still hate the self-checkout.  But yeah, it's all coming sooner if the $15 minimum wage takes hold.

I was a little dubious about it at first too - my wife still hates them - but I found that (a) I was faster than the clerks, and (b) I could scan things in the order I wanted to pack them, and with the heaviest stuff going first - scanning the gallon of milk after the package of cookies is a good way to have nothing but crumbs left when you get home - and didn't have to deal with a clerk who had no concept of putting more delicate things on top of, rather than underneath, heavier things, as well as not having to deal with the infrequent enviro-weenie clerk who insists on cramming as much as possible into each bag to "prevent global warming." (yes, I did come across one of those once).

[MACVSOG68]

Sooner, but not soon. There are a few things out there - was a thread about the automatic pizza machine that had a couple of other neat things down thread, but they are prototypes. They can be held up in testing for years if need be.

True, but as the liberal philosophy keeps moving toward the alleged "living wage" standard, business will demand alternatives.

[Oceander]

True, but as the liberal philosophy keeps moving toward the alleged "living wage" standard, business will demand alternatives.

Because consumers will demand alternatives.  And many of the idiots calling for the $15/hour nonsense will be right there with the rest of us patronizing the self-serve restaurants because they're less expensive.

[MACVSOG68]

Because consumers will demand alternatives.  And many of the idiots calling for the $15/hour nonsense will be right there with the rest of us patronizing the self-serve restaurants because they're less expensive.

Absolutely.  What many (most) forget is that when the minimum wage goes up, so does every other level of wage, especially union wages, which are tied to the minimum wage.