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

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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:

--- Quote from: Oceander on September 08, 2014, 03:19:00 am ---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.

--- End quote ---

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.

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