What Will a Minimum Wage Increase Cost You at McDonald's?

Whenever the debate about the minimum wage comes up it's inevitable that a comment about the impact on McDonald's (NYSE: MCD  ) dollar menu comes up. In New York, McDonald's workers began protesting in 2012, demanding a $15 per hour wage, to which one commenter quipped, would lead to a $10 hamburger.

It's true that increasing wages on companies like McDonald's would likely lead to higher costs and prices, but labor is less than a quarter of the cost of what you pay for at the fast food giant, so the impact may not be as big as you think. McDonald's has not commented directly on the financial impact of a minimum wage increase, so we don't have company estimates to go on right now. McDonald's also doesn't break out detailed labor data like how many workers make minimum wage, manager salaries, or what percentage of labor costs go to wages and benefits, but we can glean some insights from their financial reports. Below, I'll estimate what a higher minimum wage could mean for McDonald's and what it might cost you, something others have done in the past but with little consensus even in the academic community.

For the purposes of this analysis, I'll limit the scope to McDonald's direct store labor costs, although input costs from food packaging, and other inputs into the business may also increase if the minimum wage were raised. I'll use a simple analysis that should give us a ballpark idea of what increased labor costs would mean for prices at McDonald's.

Labor ends up being about a quarter out of every dollar you spend at McDonald's.

What makes up a hamburger?
Based on McDonald's company owned store data, we can approximate the costs that go into producing food at stores around the world. From there, we can approximate just what a $10 or even $15 minimum wage might mean for the cost you could pay for a Big Mac in the future.

McDonald's company -owned stores brought in $18.9 billion in revenue last year and spent $4.8 billion on employee payroll and benefits. We can ballpark the total increase in cost of a burger if we assume that all labor related costs will rise uniformly with the minimum wage, which probably overestimates the impact but without more detailed data it's a good approximation.

Based on those assumptions, I've built a table that shows how costs may increase if the minimum wage goes up. To do this I've used company-owned store data and assumed that McDonald's company-owned store profit remains flat.

Minimum Wage




Labor costs-company-owned stores

$4.82 billion

$6.65 billion

$9.98 billion

Projected price increase




Source: Data from McDonald's SEC filings, calculations are the author's. 

You can see that prices would go up but a $10 minimum wage would cost consumers about a dime more per dollar spent and a $15 minimum wage, or more than doubling pay, would cost about $0.27 more per dollar. What's interesting is that labor is only the second largest cost component and food costs should be watched more closely than the minimum wage debate.

Labor isn't the problem
While labor gets the headlines at McDonald's, if you want a cheaper hamburger you should be putting a focus on global food prices. Since the minimum wage was last increased, the consumer price index for beef is up 38% and vegetable and soft drink costs are up as well.

US Consumer Price Index: Beef And Veal Chart

US Consumer Price Index: Beef And Veal data by YCharts

Food costs account for 33.7% of everything you buy at McDonald's versus 25.6% for labor. So, you should be mad about the cost of beef that caused the $1 double cheesburger to become a $1 McDouble (which has one less slice of cheese) in recent years.

How does this stack up to previous studies
Others have gone about trying to figure out the impact a higher minimum wage would have on costs with widely varying results. Some, like Time Worstall at Forbes have argues that demand will drive prices, not costs, meaning that McDonald's may have little recourse to rising costs.

A report by John Schmitt for the Center for Economic and Policy Research found that a 10% increase in the minimum wage would raise food prices about 4%. If we extrapolate, a $10 minimum wage would raise food costs about 15% and a $15 minimum wage would raise costs about 43%.

Meanwhile University of Kansas School of Business student Arnobio Morelix created a model that found a $15 minimum wage would the cost of a Big Mac about $0.68, or 17%.

Any calculation involves assumptions and some level of guess work, but I think my estimate is in a reasonable range using public data that's easy to understand. My estimate of a 27.3% increase in McDonald's prices with a $15 minimum wage also falls between the studies cited immediately above and I would be the high end of any possible price increase.

Food is a bigger component of McDonald's costs than labor but a higher minimum wage would cost you.

Prices are already going up
Whether the minimum wage is going up or not, McDonald's is getting more expensive. $2.99 value meals that were once commonplace are now almost nonexistent and the "dollar menu" has become the "dollar menu & more" with items like the $2 Bacon McDouble.

Small changes like taking a piece of cheese off an item or adding bacon and increasing the price are subtle ways to increase prices and McDonald's does it well. If labor costs go up to $10 or even $15 per hour you would see more subtle changes similar to this along with small price increases on regular items.

The bottom line is that a $10 minimum wage won't lead to a $5 cheeseburger at McDonald's. The increase in price would be 10% at most and more than likely any price increase would be hidden to most consumers like they have been since the minimum wage was last increased in 2009.  

A little food for thought the next time McDonald's comes up in the minimum wage debate. 

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Note: A previous version of this article inaccurately assessed the potential price impact from a raise in the minimum wage rate. The Fool regrets the error.

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Comments from our Foolish Readers

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  • Report this Comment On June 08, 2014, at 10:32 AM, jasperpolly wrote:

    If you think prices are high now?!!? wait until minwa increases...Its not a wage increase its a mandatory tax hike and a big one at that if you do not think so then remember the prices you pay now then compare and you will see Federal and local government are the only ones who will make out on this you...........will .....see...

  • Report this Comment On June 08, 2014, at 11:25 AM, TruthBe wrote:

    It won't cost me anything at McDonalds because I prefer to eat actual food.

  • Report this Comment On June 08, 2014, at 11:29 AM, insatiable381 wrote:

    Its stupidity like this that gets us in trouble, Raising the minimum wage doesnt just raise McDonalds labor costs, but the costs of every supplier along the chain. From people that work at the farm, the slaughterhouse, the trucking company etc.

  • Report this Comment On June 08, 2014, at 11:31 AM, insatiable381 wrote:

    The company is there to make money, not provide jobs, if I was a stockholder, I would want every job automated that could be in the min wage increased. The job isnt meant to raise a family.

  • Report this Comment On June 08, 2014, at 11:33 AM, Littlejoea wrote:

    You only considered the direct labor costs for the McDonalds store. The goods and services they purchase involve labor, and those costs will also go up.

  • Report this Comment On June 08, 2014, at 11:39 AM, Josey2006 wrote:

    It won't cost me a nickel because I don't eat their garbage.

  • Report this Comment On June 08, 2014, at 11:40 AM, eddietheinvestor wrote:

    Why is this issue always about McDonald's? Burger King, Wendy's, and Hardee's also sell hamburgers, yet news organizations and media such as the Fool always make the minimum wage issue about McDonald's--as if the other companies already pay much more than the minimum wage. Because all the companies do the same thing, it's wrong to always blame and focus on one company. Why not try using Burger King, Krystal's, or Wendy's as an example one time?

  • Report this Comment On June 08, 2014, at 11:40 AM, Cody700 wrote:

    What people apparently do not understand is that what it will cost the customer isn't as important as what it will cost those that work at these places. Many will LOSE THEIR JOBS, or they will never get the job in the first place. This idea that we can just raise the wages for a given group of people, just because they believe they are helping them, is absurd. The best, and only way you can help this stagnant and awful economy is to grow it. Growing the economy is about business creation, and this requires an environment where business can grow and prosper. Mandating that existing business raise their operating costs is NOT how you create an environment where business creation is possible. This liberal notion that we need to raise the wages so that those in lower economic classes can rise is ludicrous. The only way that lower class people can rise above their status is by getting a job that will pay them more money. We do not improve the lower class by robbing the middle class of their status and lowering it to that of the lower class. That is precisely what will happen. You cannot rob from the rich, they have their money, and you cannot take it from them. Get over that fact. Remember this if you remember nothing else, the ONLY way an economy grows is by creating new business, or expanding existing business. You CANNOT pilfer more money from existing companies and expect things to improve, they will not. There are countless authorities that will agree with my view here. Don't want to buy it? Don't, but you will be wrong if you do.

  • Report this Comment On June 08, 2014, at 11:41 AM, bobgould123 wrote:

    The article assumes that only labor at fast food restaurants will increase. Inflation across the board will take place and then the buying power of everyone will decrease dramatically. The article doesn't address those at $15-25 an hour and not receiving an equal wage increase, will lose substantial buying power. This equates to "bottom up, top down and the middle class is gone". The only ones to benefit would be the Government with increased tax revenue. Which would mean more spending in Washington DC.

  • Report this Comment On June 08, 2014, at 11:43 AM, RHO1953 wrote:

    An increase of between 10 and 27% would be staggering. If you don't think that would horrifically impact business, you are an imbecile. I quit McDonalds a couple of years ago because they are simply too expensive for the quality of food. Add even more cost for employees who already aren't worth their wages, and you can watch them simply go away. Fast food jobs aren't supposed to be living full time wages. They are supposed to be learning jobs for teens, emergency transition jobs for out of work folks. They can't replace real full time jobs.

  • Report this Comment On June 08, 2014, at 11:44 AM, garysund wrote:

    We are all hooked in living in a false economy at the expense of the lower paid workers. So you have to pay a extra dollar for a big mac. I would rather see the workers get paid fair for the hard work they do than put a extra dollar in my own pocket at their expense. People would adjust to the new prices just like they do when prices increase due to inflation. It is time we pushed for a wage that gives what is considered the lower end of the work force the ability to have a better life.

  • Report this Comment On June 08, 2014, at 11:46 AM, roughroad wrote:

    These fast food jobs where not meant to be a life long career! These jobs are a starting point for young people joining the work force like your first line of credit! If you are that uneducated, why should I have to pay more my lunch? If you get a raise that high everything else will go up and you will be in the same place you started. Education is the key!

  • Report this Comment On June 08, 2014, at 11:48 AM, confirm99 wrote:

    What is really increasing costs is the tax burden everyone pays when employees aren't paid enough to live on. When Walmart & McDonald's employees are paid so little that they qualify for food stamps & medicaid, taxpayers foot the bill. This whole issue is a non-issue created by these multi-billion dollar corporations so that they can increase their profits at the expense of their workers -- but not their CEO's.

  • Report this Comment On June 08, 2014, at 11:53 AM, VermontNative wrote:

    First I would like to point out an error in your story. "

    While labor gets the headlines at McDonald's, if you want a cheaper hamburger you should be putting a focus on the global food market, not the 16-year old behind the counter."

    When were you last in a fast food restaurant? Most of the people working there are middle aged. That is one of the biggest parts of the minimum wage fight. Jobs that used to be part time for high school students are now held by people who had to take something when they were laid off from a better paying job.

    If raising the minimum wage means that some of these workers will no longer need government assistance to buy groceries or pay the rent then it should be done. I can't knock a business person who is trying to control their costs. However if their wage structure means that the taxpayers are involuntarily subsidizing their profits then government has a legitimate interest in raising those wages to a level that does not require government assistance to put food on the table or a roof over their employees head.

    One of the hardest things for employers to face is that any job that needs to be done for the success of a business should be worth a living wage for the person you hire to do the work.

    In fact it is a necessity for the success of an economy. Spending by consumers, companies and governments is what defines economic activity not profits. Of the three consumer spending is far and away the largest piece of the pie.

    Profits are a result of economic activity, they are not the activity itself.

  • Report this Comment On June 08, 2014, at 11:55 AM, segarolow4 wrote:

    It won't cost me a thing. I don't eat at Mc Craps.

    And if people don't get it.. They will.

    McD's will let go about 60% plus of all its workers. And have 5 people doing 18 peoples jobs..

    And this will = more out of work....

  • Report this Comment On June 08, 2014, at 11:55 AM, 3371984 wrote:

    well here is how I see it .the prices for whats in the products is way to high as it is. my family has fond it more healthy to eat at home.we have found it cheeper to make a big M or Qp at home and more healthy for you.MORE THEN 50% OF ONE OF MC DS HAMBURGER IS GARBAGE. And in my home I know for a fact its cleen and my family is healthy un like some fast food worker stugling to servive.

  • Report this Comment On June 08, 2014, at 11:56 AM, sagehopper wrote:

    If you are an employee..It could cost you your job.

  • Report this Comment On June 08, 2014, at 11:56 AM, csyburg wrote:

    this far too simplistic an approach to cost increases that would be passed along to customers. you are postulating that the only cost increase McDonald's would be the direct increase in labor costs.

    what about all the costs of goods and services supplied to McDonald's by vendors who would also have to pass along their increased costs.

    McDonald's (as you point out) only spends 25% of it;s sales in labor expense. those costs would go up directly.

    But as a major purchaser, the cost of everything they buy would also go up. Food, paper goods, banking services, utilities, maintenance expense, equipment expense, etc etc.

  • Report this Comment On June 08, 2014, at 11:56 AM, rw93003 wrote:

    So the people who now make $8 an hour will make $15 an hour the same as the people who had skills and attributes worth twice as much as them in the first place--So, will the people who now make $15 an hour get their wages doubled to $30 an hour?.....Then, what about the people who now make $30....they'll have to get $60.

  • Report this Comment On June 08, 2014, at 11:57 AM, usarules wrote:

    All that raising the minimum wadge will do is force companies to go to automated machines and raise prices, thus hiring less workers. Then most of these uneducated morons wont have a job and they will be making 0 and hour.

  • Report this Comment On June 08, 2014, at 11:57 AM, PhillipDeCooch wrote:

    The numbers used are not typical industry wide. The stores owned my McDonalds are higher volume than most franchise owned stores which lower food and labor costs and do not have the associated franchise fees which reduce profit margin. Company owned stores account for only 10% of total restaurants.

  • Report this Comment On June 08, 2014, at 11:58 AM, HoosierNative wrote:

    Finally, a Fool who actually understands. IT WON'T COST US MUCH. How about all those top corporate executives taking a little pay cut? That would quickly keep the price the same.

    BTW - I haven't eaten in/from Micky Ds for about 3 years. Gee, wonder why.

  • Report this Comment On June 08, 2014, at 11:58 AM, RainbowRider27 wrote:

    You can show all the data you want, but this will not just affect McDonalds. If and when there is a wage hike all over, ALL prices everywhere will go up and even if your data shows only a 27cent increase per dollar doesn't mean that's what they'll abide by. More than likely all companies will use this as an excuse to raise prices a lot higher than this article has projected. Every 3 to five years there has been an average of 1 dollar and change hike and even with that low of an increase, prices always go up to compensate for it. But to have it almost double is insane!! Minimum wage was never designed to be able to "live off of". It's designed as the starter wage. You have to work harder to move up the ladder to make more money! Sorry but no one that flips burgers deserves to get 15 an hour!

  • Report this Comment On June 08, 2014, at 11:58 AM, Amberyerno wrote:

    Costs of living have been increasing REGARDLESS of the increase in the minimum wage. In fact, the cost of living has been increasing EXPONENTIALLY by comparison to the increase in wages over time. Goods and services are more and more expensive, but the wages of consumers have NOT been increasing with them.

    Where is all that extra money going?

  • Report this Comment On June 08, 2014, at 12:00 PM, miguelcreditor wrote:

    what the schmuck sheeple should be asking , demanding are lower prices! not higher wages, stop buying the corporate swill, it's killing your dumb assess if you don't buy they will either lower prices offer better quality, higher wages is a good thing to ask for but all the automation is coming whether they raise wages or not, stop supporting the intl. corporations!!! buy local hire local and lets try to get out of the commercial system lets get back to EDEN

  • Report this Comment On June 08, 2014, at 12:00 PM, TWGIII wrote:

    Unfortunately you ignore the fact that increasing the labor would impact all their costs not just their direct labor costs. Food would be more expensive, deliveries would be more expensive. New restaurants would cost more so the capital costs would increase. As usual people want to ignore all the facts.

    Plus how much do we have to pay people now that are making $15/hr ($30,000) a year. They will want a raise since they do more are more valuable than those working a MacDonalds. So when you get done - everything will cost a heck of lot more. So will anyone really be better off?

    The only way people can get a sustainable pay increase is to provide greater value. No value low pay. When restaurants start using kiosks for you to order food - a lot of people will lose their jobs. So great you now have a $15/hr job that you no longer have. That was a great idea.

  • Report this Comment On June 08, 2014, at 12:00 PM, ktbonner wrote:

    Raising minimum wage will hurt every aspect of the economy. Companies do not operate in a vacuum, which is what many people doing these price calculations assume.

    That 27% price increase with a $15 minimum wage will not be confined to McDonald's, it will effect every price you pay for anything. If you follow the supply chain back for any product or service, you find minimum wage jobs involved. Every minimum wage job will add a percentage to prices.

    The only effect will be that the numbers are higher, their buying power will remain the same, and the economy as a whole will suffer.

  • Report this Comment On June 08, 2014, at 12:00 PM, JoeWazzzz wrote:

    The current unskilled workers will be displaced by more educated workers who will work for $15/hr. It will put the current workers out of work.

  • Report this Comment On June 08, 2014, at 12:01 PM, islanders1986 wrote:

    This doesn't factor into the cost that the food will go up because they have to pay higher wages as well.

  • Report this Comment On June 08, 2014, at 12:02 PM, NavyProwlerGuy wrote:

    What this article isn't taking into account is that is the supply chain. When it says that McDonald's labor is only a quarter of the price of the goods sold that may be true. But, the labor at the slaughter houses will go up, the labor costs at the farms where the vegetables and potatoes are grown will go up, the warehouses where goods are distributed from will go up and so on and so on. This is the problem with the argument that the point of sale labor costs won't affect the cost of goods by much. The rosy picture folks aren't looking at the whole picture.

  • Report this Comment On June 08, 2014, at 12:02 PM, skracker wrote:

    We don't need a mandatory minimum wage hike. We need companies to recognize their social responsibility and do the right thing by cutting a bigger piece of that huge pie to give back to employees and not worry about pleasing the stock market casino players.

  • Report this Comment On June 08, 2014, at 12:06 PM, TWGIII wrote:

    A study was revealed last month - that if you take all income from the top 1% and divide it up amongst everyone else, they would get a $7600 a year increase. However, those with a college degree earn $22000 a year more than those without a degree.

    Society can't pay people high wages for low value - it's not sustainable. What's need is finding ways to increase worker's value so that they "earn" their wage. Wages are not set based on what people need or want - but on the value they deliver.

    The unions got all kinds of pay increases in manufacturing and then complained the jobs went overseas - often because the company couldn't sell it's product because it cost too much. The consumer wants low prices so that what they earn goes further. It's a balancing act between income and expenses. Low income people save about $2000 a year by shopping at Walmart. So raise the cost and they lose that benefit.

    People need to take responsibility for getting an education or learning a skill - not spend their time complaining that they aren't paid enough for a low value job. Increase your value if you want a pay increase.

  • Report this Comment On June 08, 2014, at 12:06 PM, welldressedman wrote:

    To me it is more about unskilled labor being paid such high wages, fast-food is an entry-level job that was never meant to be a career choice unless you decide to own a couple of them.

    A minimum wage of $15/hr takes away any motivation that young people would have to better themselves through education or skilled trades training. Talk about setting your sights low, how much skill does it take to flip a burger? (actually nowadays it is pushing the start button on the microwave)

    All I can say is that if these people want to make that kind of money, go get the education or gain the skills needed to earn it!

  • Report this Comment On June 08, 2014, at 12:11 PM, jmp355 wrote:

    MCD`s is paying a $3.24 annual dividend per share today. Up about 600% from 2003`s .40 cents per share. The average MCD`s employee make`s under 8 bucks an hour. If MCD payed their 760,000 American employees a starting wage of 10 bucks it would cost them under $100 mil more a year. Last year MCD payed out over 5 billion in dividends , this year they`r paying out more.

  • Report this Comment On June 08, 2014, at 12:11 PM, lyleg wrote:

    All of you naysayers have already been proven to be flat-out wrong.

    There was an interesting case that was thoroughly documented a few years back that involved two towns located on the Idaho-Washington border. The towns were located right across the border from each other and when the minimum wage increased in Washington (but not in Idaho) the naysayers predicted that jobs would flee from the town in Washington to the town in Idaho.

    Nope, didn't happen. In fact, the economy in the Washington town grew slightly more than the economy in Idaho so that kind of shoots your theory in the head.

    What I really find interesting is how many of the minimum wage naysayers completely bought in to "trickle down" economics--which has been proven to be flat-out wrong.

  • Report this Comment On June 08, 2014, at 12:12 PM, daprez1963 wrote:

    I can go into a red robin, Fridays and Applebee's (their employees..cooks and wait staff make more than min.) and get a hamburger/fries for 6-8 and at least the patty is visible, McDonald's should be ashamed to charge what they already do. I am not saying they should make as much as I do and I work in an ER/Trauma Center as a tech specialist, but if they would make enough to get off food stamps and save tax payers instead of lining the pockets of the owners of Mcdonald's simple...why should I help subsidize their employees with my tax dollar while McDonald's bottom line is so profitable to their home office and stockholders..??? I don't eat at fast food places because of the overall value and because of its choices...i would rather sit down in a restaurant and get healthier food for the same cost. McDonald may not realize it, but they overcharge for what you get and it's certainly not because of labor cost...they are maximizin their profit as much as they can and under pay their does the biggest

  • Report this Comment On June 08, 2014, at 12:13 PM, dubujul wrote:

    And us Seniors, with a fixed income are going to be screwed up as usual by the liberals. We vote also, but our life is shorter than the majority of voters, and with the death panels in position by our Socialist President it will be shorter and will pass away broke.

  • Report this Comment On June 08, 2014, at 12:13 PM, TWGIII wrote:

    Growth creates jobs - no growth no new jobs. When you consider the number of people coming into the economy every year - we must grow.

    However, if companies don't make a profit they have no capital to build new stores, new factories, or whatever.

    Companies must make money. Henry Ford pointed out you only get capital one of two ways. You either earn (profits) or you borrow it. However, if you borrow it, you must earn it then to pay it back.

  • Report this Comment On June 08, 2014, at 12:13 PM, ohiojack wrote:

    Travis Hoium have you ever worked at McDonalds? Have you worked on a farm? And when you say McDonald's company -owned stores brought in over 18 billion. What about the owner that bought a franchise in a small town of say 30,000 what is their profit margin?

  • Report this Comment On June 08, 2014, at 12:14 PM, antigov wrote:

    the WINNER.......IRS..........wages go up =pay more in income taxes, food goes up = more tax from purchase. workers now let go because more qualified people want that job veterans preferred. and me with one hand will be there. all you young people are out. College students along with mom and dad are in. everything catches up and you are back in the same boat in 20 years.....except the government has just increased your taxes by yeap 27% if we are lucky that's all they do ,,,,,,,,,,,,. uneducated people suck.

  • Report this Comment On June 08, 2014, at 12:15 PM, ozzlefinch wrote:

    True, the cost will go up 27% assuming all other costs stay the same. But if labor costs go up for Micky D's, then it is also going up for all of the suppliers and support industries along the way, leading to an increase in raw materials and other overhead. The 27% increase in labor will be added to a similar increase in overhead, giving a roughly 50% increase in business cost. The $7 combo meal will now in fact cost $10.

  • Report this Comment On June 08, 2014, at 12:17 PM, fusionservices wrote:

    I didn't read thru all the comments, so I may be rehashing....but, the inequality issue seems to always be left out of this scenario. By that I mean the shift managers wages. The shift manager is maybe already paid 15 per now all his/her subordinates are making the same wage, including the newbies coming in to train.....that he/she are responsible for. So to keep it equitable, these people will get a bump also to around 20 something in order to maintain the separation and the acknowledgement of their efforts to be loyal and benefit the company. Now there is the issue of the manager, and so on. There is a point at which the discrepancy in compensation is great enough that it would be of no real affect. However the reality is that when the percentages are broken down realistically, it drives the labor percentage to well above 30-35%. This will affect the costs at the register and also on the discrimination in hiring. I can say with all confidence, that at 15 per hour, I WILL NOT hire an American black or Hispanic or white kid with their hat on sideways and their pants around their ankles. Same goes for a tattoo strewn female or male. I'll weed them out and hire grandma first. As a matter of fact I may look into hiring ALL my next staff from an AARP list.

  • Report this Comment On June 08, 2014, at 12:18 PM, TWGIII wrote:

    What people don't seem to want to accept is that people that earn minimum wage are typically only worth that. So if you raise the rage to $15/ companies will hire people who are worth $15/hr. and all those people who the increase was supposed to help will lose their jobs.

  • Report this Comment On June 08, 2014, at 12:19 PM, ozzlefinch wrote:

    The minimum wage can go up to $100/hr and it wouldn't make a dent in any business at all since operating costs are passed down to the consumer. The customers will be paying the increases, not the companies.

    But since costs will be going up across the board, there will be no relative gain from raising the minimum wage. And don't think for one moment the government wouldn't tax the living daylights out of any wage increase.

  • Report this Comment On June 08, 2014, at 12:20 PM, rge wrote:

    It's sad that so many people aren't intelligent enough to recognize the same old phony claims from the greedy capitalists and the political party that looks after only their interests. Some actually believe those ridiculous assertions that a hamburger will cost $10 if workers were paid a living wage. First of all, few would pay ten dollars for a hamburger so the corporation wouldn't even try that. The increases quoted in the article seem very accurate and people would probably save more from not having to subsidize underpaid workers than the few cents more they would pay for their meal. I miss the days when unions were strong and there was a healthy middle class before uninformed people allowed vulture capitalist and republicans to turn workers against one another.

  • Report this Comment On June 08, 2014, at 12:21 PM, Leftofcenter wrote:

    Higher prices for junk food would benefit the employees and the consumer. Red meat laced with growth hormones and antibiotics, white bread rolls, fries and soda are all no good. The less bought and eaten the better.

  • Report this Comment On June 08, 2014, at 12:22 PM, RobertJG wrote:

    It's true that increasing wages on companies like McDonald's would likely lead to higher prices, but labor is less than a quarter of the cost of what you pay for at the fast food giant.

    Really writer?

    Labor is the single largest expense most businesses with employees have.

    You make it sound like it's of little or no consequence.

    An increase of more than 100% will have a huge impact on micky d's bottom line.

    Say hello to ordering kiosks instead of cashiers.

  • Report this Comment On June 08, 2014, at 12:26 PM, daprez1963 wrote:

    Not saying they are a high value skilled position, but even the work they do is work. I could list several jobs that are overpaid for their raw work and even skilled training. Let's not argue that they are not hard working people with no brains...i have seen several people who wear suits that don't even know what a real days work is simply because they have a college education and think they are problem solvers...the fact is, people with common sense and work experience can do just as good if not better than these diploma carrying individuals. Oh, is it wasn't for these and other positions like porters, retail workers, maids, etc, and the services they provide, a lot of you would definitely notice it and be crying. It's all about the have and have nots, the 1% versus the 99%, the rich and poor...they don't want the system to change and allow people to support their families and get off of government assistance which is paid by the Americans paying taxes instead of the stockholders who want more profit over paying a fair wage that would allow for their workers to earn enough not to need help...

  • Report this Comment On June 08, 2014, at 12:27 PM, abujayman wrote:

    you have only looked at the company store owned data. If you had any sense of how a business runs then you would understand that there other people involved in bringing the food to your tray. How about the wharehouse workers wage? Is the manager going to get an increase over 15/hr since they currently get 12/hr? how about the cost of gas to bring the food in? the gas station attendant is going to get an increase too. Before you come up with these crazy numbers and percentages please dig deeper and understand how an economy runs.

  • Report this Comment On June 08, 2014, at 12:32 PM, rayrock1 wrote:

    In your calculations for the price increase did you use just the labor costs for McDonald's or did you also include the labor costs for the suppliers?

    If the minimum wage increases that means the bakery making the buns will face increased labor costs, so they’ll raise the price McDonald's pays for the buns. The suppliers of the lettuce and mayo etc will also face increased labor costs and will likewise charge more for their products.

  • Report this Comment On June 08, 2014, at 12:34 PM, RobertJG wrote:

    If raising the minimum wage means that some of these workers will no longer need government assistance to buy groceries or pay the rent then it should be done.

    Typical liberal non-thinking.

    A lot of minimum wage workers will be zero wage workers when they're let go.

    There are a lot of people who aren't worth $15 an hour.

  • Report this Comment On June 08, 2014, at 12:35 PM, WalkingMan wrote:

    If the stockholders are concerned, then demand lower salaries at the executive level and a review of their marketing/advertising budgets.

    Freeze prices, even roll them back. If stockholders are so concerned, then they are unconcerned with profit-making.

    Stock market is fixed anyway - no connection with supply and demand - Marxist planned economy.

    And, IF (it will never happen) demand comes into the picture, then stop eating at McD's. And, other restaurants, as well. Eat at home. Roll back to the 19th C. when people (most) ate at home.

  • Report this Comment On June 08, 2014, at 12:37 PM, RobH1952 wrote:

    Welcome to the great capitalistic conundrum! Every year, workers want to make more money. Companies want to make more money. Yet shoppers want to pay less, or the same as they did last year. CAN'T HAPPEN! My wife refuses to by things we like when their prices rise. That's because the workers want a raise, the company wants to increase profits over last year, energy costs go up along with transportation costs for deliveries. Everything goes up every year. That's how capitalism works. Keeping MINWA the same for 12 plus years, has created a growth in poverty level workers. They may get a raise, but 25 cents an hour get you bupkas. I remember when McDonalds sold their regular hamburgers for 10 cents a piece. Fries, 15 cents. What do you expect? Costs go up? Prices go up. Corporate America isn't going to stand for price stability.

  • Report this Comment On June 08, 2014, at 12:38 PM, daking83 wrote:

    Everyone above has some very good points which I would like to add my two cents too. First, I agree that fast food workers should make a little more money, but not anything over $10 dollars an hour. I have worked in production carreers where temp services pay only that amount for employees whose responsibilities far outweigh flipping burgers. I have been a temp myself and that low wage was an incentive to learn, work hard and move up the "food chain" by being hired on or by getting experience and moving on. to know that 10 years after college and myself being a skilled machinist (I live in WA where Seattles min wage is now $15 - just a dollar less then my $16.25) makes the same as a student in HS or college is disheartening. If working in the low-skill fast food industry had looked so promising then I wouldn't have taken on 20,000 in student loans or broke my back at lumbermills, general production plants and various temp assignments (for min. wage to $10/hr) and worked at McD's instead.

    I also want to point out that as a consumer fast food prices make me decide to make my own food instead. Labor may not be the only cost in a burger but take a few million hamburger purchases out of the equation and it'll hurt. maybe we'll start seeing fast food companies start closing thier doors as like all those retail mall jobs......

  • Report this Comment On June 08, 2014, at 12:39 PM, rayrock1 wrote:

    If the minimum wage increases we can expect to see some changes in operating hours. A store may open from 6:00AM -9:00AM and then close and reopen again from 11:00AM – 2:PM and close again until the dinner hours. This way the manager can do the after breakfast clean up, the paperwork and then prep for lunch without the need for hourly employees to be paid during the hours they’re closed.

    When the price of a something increases people use less of it, and labor is no exception. If the price of labor increases people will buy less of it.

  • Report this Comment On June 08, 2014, at 12:39 PM, rayrock1 wrote:

    In your calculations for the price increase did you use just the labor costs for McDonalds or did you also include the labor costs for the suppliers?

    If the minimum wage increases that means the bakery making the buns will face increased labor costs, so they’ll raise the price McDonalds pays for the buns. The suppliers of the lettuce and mayo etc will also face increased labor costs and will likewise charge more for their products.

  • Report this Comment On June 08, 2014, at 12:40 PM, notthisagain wrote:

    This talk of wage hike and it's problems treats the topic as if this is the first time it has been addressed. Minimum wage was $1.25 in 1965 when I got my first job. I looked at the US Dept. of Labor and found that the wage has increase 19 times.

    The last was in 2009 to $7.25. Most have a short span and a small raise. Now the span is 5 years and cost of living has increased so a jump to $10 is huge. That is the price we all pay for not increasing it as we go along. Wages are just part of a cycle of cost and demand.

    Oh and McDonalds has made it through every one of the increases.

  • Report this Comment On June 08, 2014, at 12:42 PM, bkmobal wrote:

    The cost will not only increase at McDonalds but all along the food chain or service. So maybe only 27 cents on the dollar at McDonalds but how about the workers who raised, prepared and transported the food to McDonalds. Why not just increase the min wage to $25.00 an hour or $100.00 and then increase everybodys wages and wind up right at where we started. $15.00 is not that great if everything else goes up to compensate for the increase. But I do forget that these are the new high paying service sector jobs that were supposed to be left when NAFTA passed.

  • Report this Comment On June 08, 2014, at 12:43 PM, daprez1963 wrote:

    $15 might be a stretch, $10-12 is closer to the amount...but instead of billions in profit, they would feel better knowing their employees were able to support their daily living cost and provide for their families which would trickle down to a more loyal worker knowing they had a employer who valued their hard work which affords the company to making their billions in profit. It would only cost them some of their already huge profits...not bankrupt them. Costs have always gone up and certainly wasn't because of any huge wage was because people in higher positions wanted more fancier stuff while getting them off of the sweat of their low level workers who are the main reason companies make their profit...if it is like you said, then maybe some of the ceo should take their suits off and get behind the counters and give up their millions for a low wage...

  • Report this Comment On June 08, 2014, at 12:43 PM, Gorm wrote:

    REALITY is if minimum wage increases:

    1) Everyone above minimum wants a proportionate increase.

    2) Cost of goods rises to cover THEIR suppliers new wage cost hikes.

    I see McDonald's employing the SAME labor cost technology employed in Europe and what Applebee's is implementing - USE technology to ELIMINATE JOBS!!

  • Report this Comment On June 08, 2014, at 12:47 PM, markinroyahoo wrote:

    Truth be told, motley has no clue how much prices will go up but prices WILL increase. In the case of seattle we're talking an almost 100% increase in salary over the next 3(?) years. That's 33% PER year. I'm all for increasing the minimum wage but the economy is only growing at 2-3% and the only reason the wage is being raised is because a liberal bunch are demanding the increase.

    Motley is also ignoring that all the suppliers rates will increase (shipping, packaging, etc) which will impact the consumers cost

    I double mcd will be checking with motley to get permission if they want to raise prices more than 10%

  • Report this Comment On June 08, 2014, at 12:52 PM, soundersfan wrote:

    What articles like these fail to take into account are other costs that the employer must pay. For example, the employer is required, by law, to match the 1.45% and the 6.2% that is taken out of each employee's paycheck for Medicare and FICA taxes, respectively. Increase pay you increase the taxes...which means an added expense for the employer. Each state may vary slightly, but state Unemployment tax returns that the employer must file (and which doesn't not come out of the employee paycheck) are based on wages. Increase wages, you increase that cost to the employer. Finally, what this article fails to recognize is this. The cost of increased labor is not just within the restaurant itself. ALL labor costs will increase. That means that the labor costs for the people who make the buns or the people who process the hamburger patties, the people who drive the trucks, the people who service the machinery or the people who supply the soft drinks.....all of these are associated with vendors that the local franchise must deal with. These companies will see an increase in their costs due to higher labor costs and WILL pass them along to the local McDonalds, etc. in the form of higher costs for their products, which will, in turn, increase the costs for the local McD who will, in turn, pass it onto the consumers. Such a drastic increase in the minimum wage won't just affect the increased labor costs at the local will affect ALL labor costs and all employer related expenses....meaning yep, HIGHER prices for all of us.

    Let's face one other point. Minimum wage jobs were NEVER meant to be one's life long job. These types of jobs were meant to be for high school and college kids as a way to supplement their income or for the stay at home mom or perhaps even the retired person who wanted a little extra cash. Instead of focusing so much on increasing the wage to make it 'livable', the administration should focus on creating jobs that truly DO make a livable wage.

  • Report this Comment On June 08, 2014, at 1:02 PM, cityperson wrote:

    The minimum wage at McD's will not do a thing for me and my family, we will just stop going there like many of the the other eating places. All this minimum wage will do is lose some business to the public and some going out of business. Liberals do not not understand economics and how this works and the politicians are just for votes..

  • Report this Comment On June 08, 2014, at 1:05 PM, LeeG3 wrote:

    While many of the comments point out the problem with only using the direct labor cost increase of 23% as the only increase, there is a bigger problem with the whole min wage issue. When I started working at 16, the min wage was 1.25 per hour. The average engineer out of school could make 10K per year. So now if min wage goes to $12.50, should the engineer make over $100K per year? Nope, isn't going to happen as the average currently is about $60-70K at most for a degreed engineer. Which is to say that the rest of society is not received anywhere need as great an increase as the proposed min wage earner over the last 50 years.

    I am not saying the you can live on the current min wage but that the wage has to match the ability of the employer to make a profit on the worker's labor. To increase the min wage is a "feel good" story for many but it doesn't help society in general. As pointed out, why was so much manufacturing moved overseas? Because the costs were less even when factoring in the extra costs of transportation. When the min wage is increased only the IRS makes more money.

  • Report this Comment On June 08, 2014, at 1:07 PM, Steveareno wrote:

    the price may not change but when you ask for a double cheeseburger, don't be surprised if it looks like one serving of cheese and crackers with three wafers of something pink, something orange, and something green---the french fry is extra.

  • Report this Comment On June 08, 2014, at 1:08 PM, NoLongerProud wrote:

    i tweeted the blogger, i dont know if he'll respond. He only tells us what happens at McD's, I dont know the exact % but say most americans buy mcd's 1x a week. what will happen when we go to target, walmart, menards, homedepot, grocery store, etc? he fails to mention what will happen at most everyday business' that you and i shop at? if Mcd's is 27% well you can assume that 10-20% increase everywhere else. or maybe 27% since all of those business already feel their employees are worth more than minimum wage. which i would agree. i mean i dont go ask a mcd's employee, how to lay a deck!

  • Report this Comment On June 08, 2014, at 1:10 PM, elroi714 wrote:

    "The bottom line is that a $10 minimum wage won't lead to a $5 cheeseburger at McDonald's. The increase in price would be 10% at most and more than likely any price increase would be hidden to most consumers like they have been since the minimum wage was last increased in 2009". Current price of a double quarter-pounder with cheese at McD's? $4.29. At the proposed $10 increase, the 9.7% rise would equal $4.70- not quite $5 yet. However, at the $15/hr or 27.3% increase, we have a $5.46 burger. Of course, this goes without even mentioning how the minimum wage increase would send a rippling effect through out the economy, simply raising the prices of everything so that the "value" of our newly priced burgers and increased wages would be relatively equal to what they are today in terms of what they can actually purchase. Great! So "nothing" gets effected- right? WRONG!!! The money in your banking accounts gets effected- as it no longer buys what it could have before these increases! In fact, increasing minimum wage to combat inflation is as smart as using gasoline to put out a fire!

  • Report this Comment On June 08, 2014, at 1:14 PM, Pluto57 wrote:

    "One of the hardest things for employers to face is that any job that needs to be done for the success of a business should be worth a living wage for the person you hire to do the work."

    It is hard to face because it isn't true.

  • Report this Comment On June 08, 2014, at 1:23 PM, milkmoney666 wrote:

    hey morons who want 15 dollars an hour to flip burgers I got some bad new for you.If they pay 15 an hour people with better work ethic will apply for the job and you will be unemployed you are and always will be bottom feeders

  • Report this Comment On June 08, 2014, at 1:24 PM, windergard wrote:

    You seem to be leaving out the fact that it would also increase the costs of ALL the products going into the hamburger, not just the labor rate directly from McD's. The buns will cost more, the hamburger meat will cost more, etc. Looks like you are just trying to push an agenda, not make a logical argument.

  • Report this Comment On June 08, 2014, at 1:26 PM, MrE wrote:

    I find the chicken better than the beef so this doesn't affect me

  • Report this Comment On June 08, 2014, at 1:35 PM, huge821 wrote:

    Let's be honest folks, the minimum wage hasn't gone up in year's now and prices at McDonald's, any grocery stores, etc. have gone through the roof so what that tells me is that the minimum wage has NOTHING to do with an increase in price.

    But there is something that has continued to go up and it is the root of all the problems now days. Anything that comes into McDonald's, or Wal Mart, or any other place at some point in time is on a tractor trailer truck which is run on GASOLINE! When Obama took office, gas was less than $2.00 a gallon. Now you see places over $4.00 a gallon.

    That is why prices of everything have gone up; it has nothing to do with minimum wage! It has EVERYTHING to do with the rising costs of fuel to get products from point A to point B!!!!!!!!!!

  • Report this Comment On June 08, 2014, at 1:38 PM, TTES wrote:

    Wow, the comments on this topic just amaze me.

    We are complaining that we don't want these people to get $15 an hour because it will increase inflation, raise the cost of a burger, or brings us even closer to becoming a socialist state.

    But we barely bat an eye when a college coach gets paid over $6 million a year, or a high-end executive who fails miserably at his job gets the "golden parachute" treatment, or our cable bill goes up every year to help pay for all those channels we don't watch.

    These arguments against raising the minimum wage sound just like all those original arguments against installing a Federal income tax. And so far, capitalism still seems to be running fine.

    BTW, how many anti-minimum-wage-increase commenters here currently hold a job that pays you minimum wage?

  • Report this Comment On June 08, 2014, at 1:44 PM, scorpio1953 wrote:

    I a not very smart, but this is how I see it. If the McD employee gets his wages doubled, then everything should cost more because the wages should increase on up the food chain. Everything ends up costing more so essentially we are back to square one. The only thing that happens is the buying power of a dollar decreases.

  • Report this Comment On June 08, 2014, at 1:48 PM, Qbert2001 wrote:

    This article is flawed in its logic as it assumes a place like McDonald's would only raise prices enough to cover paying the employees' new minimum wage. And why should a fresh-out-of-high-school kid earn $15 an hour at McDonald's? These are entry level jobs designed to give people experience in the work place. And rather than raise prices to cover a higher minimum wage, it would make much more sense to cut employee hours and jobs than drive away customers with higher prices.

  • Report this Comment On June 08, 2014, at 1:54 PM, FoolsTeacher wrote:

    Mr. Hoium seems a little lazy. He only studied the direct cost of labor. Other items that McDonald's needs will also rise since a rise in minimum wage will not only apply to McDonald's. You can see that all supplies and services will increase. If we make the assumption that the total revenue stays constant and cost of supplies increase, labor is the only thing left is to cut. They won't need as many people because the number of lunches will be down. So simple even a fool can understand, except Mr. Hoium.

  • Report this Comment On June 08, 2014, at 2:12 PM, donteatthatcrap wrote:

    made the decision not to eat at McD's, Wendy's, Burger King anymore because their food sucks it doesn't matter how much they pay their workers if they don't start making better tasting food nobody will be in there. and i don't see many teens working at these places anymore they are all grown ass men and women who suck at their jobs and don't want to be there and let everyone know it.

  • Report this Comment On June 08, 2014, at 2:34 PM, LoneStar23 wrote:

    Yesterday I saw something totally new and unexpected...a boarded-up McDonalds on a busy thoroughfare in a thriving community. A sign of the times or the promise of things to come?

  • Report this Comment On June 08, 2014, at 2:40 PM, darjo wrote:

    LOL no mention of what the cost of Obamacare is going to do to the price once it is implemented fully.

  • Report this Comment On June 08, 2014, at 2:45 PM, FrankJHornik wrote:

    The article has one flaw in it as to the projections of price increase. It took the labor cost and divided by the minimum wage and then multiplied it by the new minimum wage proposals. Does that include the higher amounts of the employers parts of taxation or increases in Workers compensation or unemployment insurance rates that follow with higher wages? Also how does that effect the individual franchisees with regards to the increased cost.

  • Report this Comment On June 08, 2014, at 2:46 PM, Honeycomb888 wrote:

    How much did burger prices increase when McDonald's raised its CEO's compensation package? Was there a furor over that? Were there lots of discussions in the company about how unfair that would be to consumers, how costly that one fool is, etc.?

  • Report this Comment On June 08, 2014, at 2:48 PM, Kummin wrote:

    Looks like Travis is a shill for the lefties. His "analysis" is Bul*sch*tte. count on big increase in all these fast food joints. Course, as previous posters have said, it won't affect me at all. I go into these places, like, once every 8 or 9 months, mostly to remind myself why I don't go in them. Oh! I take that back - I will go thru the drive thru more often than that for a cup of coffee.

  • Report this Comment On June 08, 2014, at 2:48 PM, Honeycomb888 wrote:

    Paying decent wages is a cost of doing business. Period. You could buy slaves from another country, but that would be not only illegal but unethical, right? But boy that sure would keep the cost of burgers down. You could cut their employees' wages in half. That would increase profits a lot and keep burger cost down. But that would be unethical, too. The hourly wage of the rank & file employee should be decent, no matter the effect on product cost or profit. If a company can't pay a decent wage, maybe it's not a viable business. I'm tired of paying for food stamps for big corporate employees who live in poverty despite working full time.

  • Report this Comment On June 08, 2014, at 3:04 PM, GuitarJim wrote:

    80% of McDonald's restaurants are not owned by the corporation. They're owned by franchisees. The average annual profit at those stores is around $230K. Curiously, that's almost exactly the same as the additional labor costs would be to keep a restaurant staffed for 16 hours a day with five employees making $15 an hour. Nobody is going to operate a franchise just to break even. They're going to raise their prices enough to keep that profit level the same. That means more than just adding a slice of that additional cost to the price of each item. Higher prices will mean lower sales volume, and the price increases will have to accommodate that decrease, as well.

    The article mentions the "16 year old behind the counter". These jobs were meant for people like those 16 year olds. They weren't meant to be careers for older people raising families. If you need to earn a living wage then you shouldn't be working at McDonald's - you should be going to school and learning a trade.

  • Report this Comment On June 08, 2014, at 3:04 PM, Breastonia wrote:

    In n Out pay and Chipotle pay way above minimum wage and both companies are way more profitable than Mcdonalds. Cities with higher minimum wage have less poverty and better economies. Remember people who make less money tend to spend a greater percentage of their income. This will be an economic boom for Seatle. This woman who pushed this through will probably run for mayor then governor and maybe become president one day.

  • Report this Comment On June 08, 2014, at 3:07 PM, kennyhobo wrote:

    I doubt this analysis. Labor costs will also affect the supply chain, increasing the costs to McDonald's. By passing on increase product costs, McDonald's will lose customers and will have to take action. That would likely be to shut down the stores in the poorer neighborhoods that would be most affected by higher prices. That means the workers in the poorer areas would get a massive hourly decrease - to ZERO!

  • Report this Comment On June 08, 2014, at 3:19 PM, NotSoMotley wrote:

    I see that many of the readers understand something that the writer missed ...

    Not only will McDonald's labor costs increase, but the labor costs that go into everything McDonald's buys will also increase.

    In addition, this general price increase throughout the economy will in turn require an increase in the earnings necessary for owners to maintain the same profit level.

    As a result, the best prediction of the percentage increase in McDonald's prices from a substantial increase in the minimum wage is that the prices will increase at about the same percentage as the percentage of the minimum wage increase.

    Indeed, it is just as likely that the final average price increase at McDonald's from a significant minimum wage jump will be higher than the percentage increase in the minimum wage as it is to be lower.

    Sorry Motley, buy your writer is an actual fool.

  • Report this Comment On June 08, 2014, at 3:25 PM, jonfraer wrote:

    WRONG !

    The writer assumes too much. I don't eat there. So it really does not matter what they charge.Neither do others.

    So many burger jpoints that of course are so much better.

    Same with wal-mart I won't shop ther either.

    These publiclt traded coerporaations are not as much concerned about quality and customer satisfaction as the mom abd pop places.

  • Report this Comment On June 08, 2014, at 3:27 PM, Zonniwoop wrote:

    Unless (or until) McDonald's comes up with better food at a much better price, I for one will not go there unless I absolutely have to... Their so-called, 'Dollar Menu' items are horrid and to get a premium sandwich there, you'll pay about 6 to 8 bucks just for a sandwich! --I'd rather spend my money at Subway, Firehouse Subs, Quiznos or the local Publix Deli for a better sandwich selection for that kind of cost. Burger King and Wendy's are not much better. The best choice for a fast food burger, I've found, is actually Hardee's (or Carl's Jr. as it is called in some cities). They use better beef by far and are at least worth the higher prices which are about the same as today's McDonald's.

  • Report this Comment On June 08, 2014, at 3:33 PM, maxsdad53 wrote:

    The article ignores the FACT that it won't just be McDonald's that is paying $15 an hour, but EVERY SUPPLIER ALONG THE LINE will have to. And just like Mickey D's, all those support business will HAVE to pass along their increased costs. And people who claim that cities with higher minimum wage have less poverty, they have less BUYING POWER! Feel free to make your $15 an hour and see how far that goes in my city (Santa Clarita), where the AVERAGE home is $625k. Or try getting along in Calabasas where the average home price is over $1m. $15 an hour doesn't look so rosy anymore, huh? Hell, the median home price in Seattle is $452k... let's see how far that $15 gets you. Oh, and if you're being paid $30k a year to flip burgers, you better NEVER mess up an order... your owner couldn't afford you, and therr are too many people who will WANT that job!

  • Report this Comment On June 08, 2014, at 3:33 PM, Zonniwoop wrote:

    --IF the economy is to be 'turned in a better direction', America NEEDS LOW and STEADY GAS PRICES AND LOW FUEL COSTS THAT STAY LOW... PERIOD!! They can do anything else that want, like cash for clunkers or attempt to raise minimum wages, but UNLESS WE HAVE CHEAP AND STEADILY CHEAP FUELS, NOTHING WILL HELP! The entire country and world today bases its respective economies on fuels and without cheap abundantly cheap fuels, the economy will NEVER GET BETTER! --NO MATTER WHAT!

  • Report this Comment On June 08, 2014, at 3:39 PM, Disgustedman wrote:

    I won;t see any difference. I no longer eat there ever since they got rid of the Angus beef burgers....Those were the ONLY reason I'd hit them.

  • Report this Comment On June 08, 2014, at 3:41 PM, Disgustedman wrote:

    I know of several people who work $9.50-$12 an hour jobs...Think they'll stay if they can get $15 an hour flipping burgers?

  • Report this Comment On June 08, 2014, at 3:43 PM, skipgainer61 wrote:

    Your numbers are screwed if you take a $4.00 burger and add 27% to its cost you have an increase of $1.08. Oh I know you will say that increase should be figured on just the wage part of the burger but when the base wage for everyone is $15.00 an hour that increases everything not just the labor. The minimum wage is a joke, always has been a political tool and smoke screen. Anyone staying on minimum wage is not trying to better themselves. the only time I worked for minimum wage was when In was in HS, I started in construction in June of 1968 and minimum wage was $1.60 an hr I started at $2.25 an hour and never looked back when I retired in 2007 I was making total package $50.00 an hour and barely staying middle class. So you can not raise a family on $15.00 an hour so why lie to the people, because it buys votes for the lying politicians hat is why the lie!

  • Report this Comment On June 08, 2014, at 3:49 PM, altargirl11 wrote:

    Mcdonalds is disgusting . I stopped eating there when Lent started. I than came back after a month in a half after it was over. they be asking wwhere I been. I said...I gave up Mcdonalds for Lent! they said that ended a long time a go. I said EXACTLY. I only get the regular black coffee. that's about it. nothing else. everything is all disgusting......I hate mcdonalds because before my sister passed away we use to always go there as a family and now that she is gone. I rarely go there just for one thing. it still makes me sad when I go there..its so sad.

  • Report this Comment On June 08, 2014, at 3:52 PM, bluesscout wrote:

    About once a year I "slum it" and eat 3 to 5$1 cheeseburgers way Jose am I gonna eat this crap garbage.

  • Report this Comment On June 08, 2014, at 3:59 PM, LaryB wrote:

    It won't cost me a penny. I will simply stop eating at McDonald's or any that might be unionized. If I am going to have to pay higher prices I might as well go into a sit down restaurant. Since most fast food workers are teenagers I just don't see the price being worth the cost.

  • Report this Comment On June 08, 2014, at 4:02 PM, kenrmills wrote:

    Prices don't necessarily rise because the inputs are more expensive. The consumer must be willing to pay more.

  • Report this Comment On June 08, 2014, at 4:08 PM, Analyst wrote:

    Prices at McDonalds isn't the problem, it is that everything must go up to keep the bottom line going in all forms of business due to this "pay raise"-everything with one exception: the fixed incomes of the aged, weak and disabled. The increase in costs across the board to support this new "pay raise" will be partially FUNDED by those on fixed incomes which is shameful, inexcusable, and every negative word possible to describe what will happen to them.

  • Report this Comment On June 08, 2014, at 4:12 PM, Porkchop1 wrote:

    Well, It really doesn't matter to me how much they go up on their prices. I haven't eaten at a McD's in 9 years. I quit eating there when they did a trial run of mizing your cream and sugar in your coffee thru the drive-thru. I kept asking them not to and they kept doing it. I emailed them and called them and asked the managers what to do to get this stopped. And they told me to tell them when I ordered. I would do that and they kept on doing it anyway. So I stopped altogether eating there. And to tell you the truth the only thing I have lost by doing so is some weight. And even made my wallet bigger with money that I have saved all around. And I actually the only fast food that I eat these days is Chick-Filet, Checkers, and Zaxby's, and Cookout and I only eat certain things at the establishments. I usually fix my own meals at home and always save money and have plenty of left overs. Doing the same with Wal-Mart, have stopped shopping there as well. Got tired of the way they do things and the way they treat communities across America. You should too. they move in and put the Little man out of business!! And they say they don't, but they do.

  • Report this Comment On June 08, 2014, at 4:24 PM, dianrib wrote:

    Yes workers deserve a livable wage . I will pay a bit more to achieve that . $ 10 Mc D burger ? Ridiculous . . When workers do well, they can afford to spend and that helps US economies , companies , local business's . It helps everyone ! Why are people so short sighted and gullible ? GOP wants slave wages- no pensions no perks so they can make more billions at our expense. Wal mart Pays little so workers have to go on food stamps - medicaid etc. So Taxpayers wind up making up for those low wage jobs. Can folks understand that basic concept or will you take word of pro wealth anti middle class hucksters like Fox 's Hannity Rush Drudge

    & 800 right wing radio talk shows that spin yarns every single day. Their loyal followers love it !

  • Report this Comment On June 08, 2014, at 4:25 PM, pns123 wrote:

    If you follow The Motley Fool, is the price of your next McDonalds meal, or related expenses such an important part of your life? Really?

  • Report this Comment On June 08, 2014, at 4:28 PM, jellie123 wrote:

    Considering this company is making an unrealistic profits because the public is subsidizing those workers who aren't making a living wage in the form of Food Stamps, Healthcare, etc. It is about time McDonald's bites the bullet and starts paying its way in this world and not depend on the Taxpayer to pick up the cost of underpaying their can add that to Walmart - I consider these two companies and many others no more than predators - just consider the tax breaks they get and probably taxpayer subsidies...when you consider what these and others companies sell in this country is nothing but crap and they are making billions....

  • Report this Comment On June 08, 2014, at 4:28 PM, sonoftroy wrote:

    This article is deliberately misleading. If your profit margin is 15% or roughly 2.8 billion dollars ,and I would question a 15% profit margin but for sake of argument. Raising the minimum wage to 10 an hour would cut into profits 1.83 billion or roughly 65%. Also the ingredients become more expensive because of wage increases alone the distribution line. If you believe it would be covered by a ten cent increase in food your delusional. In America it is possible to become anything you want, if you have the skills and determination. The minimum wage is a starting point and was never meant to be a final destination.

  • Report this Comment On June 08, 2014, at 4:32 PM, damilkman wrote:

    Here is another way to look at the problem. Certain countries with a command economy have artificial subsidies for certain foodstuffs aka the consumer can purchase it for much less than it really is worth. When countries like Greece, or Egypt get in trouble and go to the IMF the first thing the IMF does is demand the subsidies end. This often ends in riots as bread or gas have to be purchased at their real rate instead of the host country footing the bill.

    An unrealistic minimum wage is the same thing. Any action that distorts the value of an item being purchased or an individuals work will manifest the distortion throughout the economy. If the action is compensated more than its real value someone has to foot the bill just as Egypt foots the bill for cheap break or Ukraine for cheap gas.

    Some claim someone may or may not be getting rich and those executives out of the goodness of their heart should give these employees more compensation than their value. That is called charity. Beyonce will probably generate 100 milion dollars of profit this year. If I mow a lawn from one of her many estates or do any mundane service for her instead of someone making much less should I demand a cut of her profits just because she is rich? Your value is based on what you do not the wealth of your employer. If your employer is generous that is their decision. But the exec's of McDonalds are not the owners. We the public shareholders are the owners. If McDonalds dividends were to go down everyone including the MTF folks who say they want a minimum wage increase would all ditch McDondalds stock. And that is where they get their orders from.

    As an aside I will share an experience from the Ann Arbor Michigan area that gives insight to the impact of a higher minimum wage. During the internet bubble the wage market in the Ann Arbor/Ypsilanti region became very tight. Because of the shortage fast food companies raised wages and were offering over ten dollars an hour for peak shifts. However, there was a cap where beyond 10 dollars the model was unsustainable. The choice was to run short staffed or if a minimum number was not there not open for that given shift. The moral is that employees given a choice would rather do anything else other than work at a fast food joint. Even at ten dollars an hour in a region with a 95 cost of living index they would rather do something else. Regardless of what we say there is a labor cost threshold that makes the cheap fast food franchise untenable.

  • Report this Comment On June 08, 2014, at 4:41 PM, seniorcrown1 wrote:

    90% of McDonalds are Franchise owned. The article is about "company owned" stores.

    The chart even says "company owned stores".

    That's the problem with headlines of McDonalds and $15.00 per hour for workers and workers picketing McDonalds. 90% of the stores are not owned by McDonalds.

    Sure give the McDonald's corporate employees a minimum of $15.00 and see how many of those employees remain McDonalds employees, hen McDonalds sells their corporate stores to franchisees. The workers are then not McDonald's employees.

    I'll bet McDonalds reduces the number of Corporate owned stores to just 10 if that.

  • Report this Comment On June 08, 2014, at 4:44 PM, blaziac wrote:

    Okay, the price of the burger at Mickey D's itself goes up 10 to 27% depending on the minimum wage hike...IN THE STORE. But what about the SUPPLIERS that are effected by the same increase.

    All the stuff these chains buy comes from somewhere with farmers and middlemen of all types involved. Each of them employs a good number of minimum wage workers in their companies. when you add that extra money into ALL the stages that go into a simple Mcdonalds hamburger, the actualy cost increase is much higher. It would depend on how many suppliers and middlemen are involved.

    Same goes for ANY buisness. We can look at the base increase for that single buisnesses pay outs to their employees, but it doesn't factor in the buisnesses that SUPPLY them. each level will add to the cost increase and jack the prices up even more.

  • Report this Comment On June 08, 2014, at 4:48 PM, jellie123 wrote:

    The workers are not high school students - the stats are 1 out of 10 workers are teens - the rest are adults and many of those adults used to have high paying jobs until the Recession - most have college degrees - these people have car payments, mortgages, have kids in school, pay taxes - what I am reading is pretty amazing in that people on this blog are blaming middle class people for their losing their jobs during a time when 60,000 manufacturers were allowed to leave this country along with our jobs...I would assume most people on this blog are Middle Class - I don't understand why there is little to no support for middle classers from others who are in the Middle Class - it is offensive to hear 'I have mine so screw you, you must have done something wrong'! Just remember, what goes around comes could find yourself in the same predicament.

  • Report this Comment On June 08, 2014, at 4:52 PM, ThisIsUnReal wrote:

    So the 99cent menu becomes the 1.09 or 1.26 menu

    Except, "Prices are already going up", so in reality it's NOT 10 or 27% it's higher than that...

    They WILL lose some business, that's a given... which means profits will suffer since the cost of the staff will not be as well offset due to a lack of sales... so will that result in lay offs? And if it does what happens to Customer service when they are short staffed? How quick are disgruntled customers going to return?

    Unskilled labor should not be getting skilled labor rates... and YES, I have worked fast food... OBAMA COULD DO IT RIGHT..

  • Report this Comment On June 08, 2014, at 5:00 PM, sidewayslogic wrote:

    I bet most of the people commenting against raising the minimum wage make significantly more than that, and I bet they never complain about the income CEO's get. Some of these people even think there should be no minimum wage. I'd be inclined to listen to them if they also supported a maximum income law.

  • Report this Comment On June 08, 2014, at 5:01 PM, j1rose wrote:

    Yes as everyone says here, all the suppliers and their suppliers will raise prices also in reality , costs will probably go up 50 -100 %

    Then as economists can tell you higher prices mean less sales . Less sales = less profits = leading to less sales outlets and less jobs.

    Plus a rush to robotics IE France MCD's have computer sales clerks

  • Report this Comment On June 08, 2014, at 5:05 PM, laethyn wrote:

    Perhaps it'll make a few people think twice about going out and contributing to the obesity of America by not eating already over-priced, terrible, disgusting, "food".

  • Report this Comment On June 08, 2014, at 5:15 PM, dcjohn992 wrote:

    Disappointed that this article did not cover more facts. For example, the author seems to build his theory on the statistics of company owned stores for McDonalds. The problem is that a large number of these stores are not company owned but are franchises that the owners pay large fees to McDonalds for the right to use the company name. Why is that important? Most franchise owners may own only one store or at the most a handful. So while the author is trying to tell you that a 27% increase in labor cost is no big deal for a corporate entity like McDonalds...tell that to the franchisee who is basically a "mom & pop" business with the purchased rights to use the company name. A 27% increase in labor is a huge hit that would send many franchise owners out of business. However, even corporate McDonalds is preparing for such a labor increase. McDonalds Europe is ordering 7,000 kiosk that can take the place of employees! Simple rule...when you increase the cost of doing business (higher wages) than the market will bear....the business owner has two choices...cut cost in other areas...or raise prices. This push to raise minimum wage for 1% of the working population (2012 numbers) will put far more people out of work than you will help with higher wages. Now, want to earn $15 an hour in fast food? Go to the Oil Boom areas in Texas and North Dakota. Because of the boom in industrial areas with the Oil drilling the need for labor is high...and just like in supply and demand when the supply of workers goes down the employers can and will pay more. So, when our government decides it wants real manufacturing jobs the kind found in Oil Drilling...then wages will go up...otherwise this pipe dream of making a livelihood out of low-skill jobs will do nothing but wreck our country.

  • Report this Comment On June 08, 2014, at 5:19 PM, GeaugaTruck wrote:

    Since the "Dollar Menu" is already a thing of the past, what difference does it make? I can never have a handle on what it will cost before I turn into their driveway, I simply don't bother. Thee demise of the "Dollar Menu" with items that all cost $1, there is no certainty.

  • Report this Comment On June 08, 2014, at 5:25 PM, exmortgageguy wrote:

    A small increase for eating out is not that important to people already living beyond their means.

  • Report this Comment On June 08, 2014, at 5:26 PM, JR1969 wrote:

    So there are no labor costs associated with their materials costs? No labor in the production of the buns, the transportation of their goods, the supplies they buy, etc? Interesting article from a usually noteworthy source that just swipes past the issue. Do some research and project how much the actual COGS goes up with a similar wage hike. Any FOOL should know that wage increases are direct inflation. You know, that funny word that we aren't experiencing today even though the article clearly lasts out the rampant increases in the actual prices of food.

  • Report this Comment On June 08, 2014, at 5:26 PM, erkaye wrote:

    A higher minimum wage is probably the best possible outcome. We forget that most customers of McDonalds are low wage earners. As their income rises across the board, McD will sell them more product, easily covering increased cost of labor. For this reason alone, my guess is after all the hand wringing is over, MCD will be more profitable with a higher national minimum wage, not less.

    As a side note, a lot of us resent paying taxes so "welfare kings and queens" at the C-level of McD, WMT, etc, are able to shift their businesses' costs to society at large through food stamps and other programs for the working poor.

  • Report this Comment On June 08, 2014, at 5:33 PM, jugjug007 wrote:

    hey fool mcdonalds and all your fast food org have already increased costs for a long time in advance knowing min. wage increases were coming. there the ones benefiting with increased profits its the wage earners still waiting for increased min. wage

  • Report this Comment On June 08, 2014, at 5:38 PM, erkaye wrote:

    Sorry, hit POST to soon. Meant to add:

    Let these companies pay their own way. They may have to have to restructure the pay scale at the top to give more to the restaurant staff. If my figures are correct, the CEO at MCD makes 1000 times more than the lowest level workers. Multiples for management could easily move lower and they would still be very well paid,

  • Report this Comment On June 08, 2014, at 5:39 PM, Budapeter wrote:

    Please do not forget that McDo's does business throughout the world. The salaries, taxes and benefits paid in Europe are higher than in the U.S. Whether you eat at McDo or not, you are subsidizing low wages through your taxes when workers find themselves applying for government benefits to offset their low wages.

  • Report this Comment On June 08, 2014, at 5:42 PM, mgd325 wrote:

    McDonald's is already over priced. A family of four (4) can't afford to eat there anyway. When it cost over $12.00 for a family of two (2) to eat at McDonalds. I've ate my last meal there. !!!!!

  • Report this Comment On June 08, 2014, at 5:44 PM, FacetheFacts69 wrote:

    This is funny. since, most articles by millennials, have declared that union workers are overpaid and have cost jobs in the USA.

    Since most manufacturers have refused to pay US workers $15 an hour and would rather send the jobs to China.

    For a job, that has no skill level and very little advancement; $15 an hour is extreme overkill.

    It will not improve the service at fast food places.

  • Report this Comment On June 08, 2014, at 5:45 PM, BayCountry wrote:

    I'm already at the limit of what I'll pay at McDonald's or any other fast food place (about $12 for two). Any price increase and I'll be using that proven economic principle - substitution.

  • Report this Comment On June 08, 2014, at 5:49 PM, JohanStrauss wrote:

    I go to Mickey D's once every 5 or 10 months, so they can charge what they bloody well please.

  • Report this Comment On June 08, 2014, at 5:52 PM, VegasSmitty wrote:

    Won't cost me anything extra because I don't want colon cancer.

  • Report this Comment On June 08, 2014, at 5:57 PM, spintreebob wrote:

    Let's grow food to feed cattle. Then have government pay agribusiness to sell that food to big oil companies so it can be burn with their gasoline. Sound OK?

  • Report this Comment On June 08, 2014, at 6:02 PM, cchamb2 wrote:

    Sorry, but 25.6 percent of gross sales for labor? No wonder McDonald's management is nervous. The competition (Jack's place) shoots for 15 percent and usually hits it.

  • Report this Comment On June 08, 2014, at 6:05 PM, nbodine wrote:

    This article only talks about the corporate owned stores, not the individually owned franchisee owned. Sure the corporate owned could afford it, but the local guy that started his store would have a much more difficult time meeting the $15 an hour costs. It's just stupid really. On top of everyone always talking about the Walmarts and McDonalds of the world and low wages how about the men and women of this world like me. I make $18 an hr for a job that I started at $8 an hour 10 years ago. If the minimum wage were to double to $15 an hour then does that mean that my pay would double as well? What about the people that are in my pay range does our pay rate double as well to adjust to for the increase? People don't think about that and the cost that comes from that. I know that my company couldn't afford to pay us that amount. So basically instead of me being worth more than twice what someone who can't do what I can and only has the ability to do something as low skilled as a fast food job I'm only worth a few dollars more. But hey we all have to be equal and fair right? TOTAL BS

  • Report this Comment On June 08, 2014, at 6:11 PM, mogulracer wrote:

    You want $15 an hour? Learn how to stack food properly on a sandwich. If your too lazy to properly stack food items between buns why on earth do you deserve $15 per hour?

  • Report this Comment On June 08, 2014, at 6:30 PM, eddabraham wrote:

    McD CEO and executives pay packages have been climbing for years, yet nobody called them job killing hikes. McD prices have been going up without any increases at all from minimum wage laws. These are silly arguments.

  • Report this Comment On June 08, 2014, at 6:31 PM, RFTECH3000 wrote:

    Proponents of raising the min wage always use Mc Donalds and Wal Mart to make their case , it is true that those giants can very easy absorb a increase even beyond the $15 a hour mark by raising prices due to the sheer amount of sales each month.

    What is left out of the picture though are two very important factors , whether those facts are left out intentionally or not I cant say !

    The first truth is that there is more to it than just Mc Donalds and Wal mart , in fact employees at those companies only account for a fraction of the overall workforce making below $15 a hour right now , many of them working in small businesses including family owned resturants , construction businesses, hospitality and manufacturing and most of those businesses due to their lower sales volumes simply can not absorb a increase of the min wage to $15 per hour !

    Of course this can be countered by making the min wage voluntary for businesses below a certain size but then there is the second problem and this one is by far bigger than the price increase at MC D or Walmart , its the impact of raising the wage floor on the entire economy !

    There are many people making $10.10 or $15 a hour right now , many of them in skilled trades , it is foolish to believe that a electrician or auto mechanic who went to school to learn the trade and has spend time and money to obtain certifications and licenses needed to work in his trade will be happy to work for min wage , most of them will - and rightfully so - ask for a proportional raise of their salaries which in turn will drive up the cost of everything from transportation to construction !

    But lets go back to the fast food industry for a minute - price increases are by far not the only consequence , the majority of fast food locations are not corporate owned but franchised locations and off course the revenue situation differs by location , as a result many franchise owners may decide to close locations that do not have a favorable outlook to produce sufficient revenue after the min wage being raised !

    This is already in full swing in CA and Seattle surely will follow the trend shortly , one major fast food chain which owns Carls and hardees already reported that CA has been stagnant in the development of new locations and that many franchise owners simply riding out current leases with the intent to close locations once the leases expire !

  • Report this Comment On June 08, 2014, at 6:36 PM, RFTECH3000 wrote:

    the impact is not going to be immediate but will hit later !

    this is because franchise agreements are usually signed for 2-4 years and getting out early is very hard and costly .

    On top of this comes the fact that the real estate in many restaurants that are not free standing is leased on usually 2 year leases !

    So from the business standpoint it makes sense for the franchise owner to just wait until the lease runs out !

  • Report this Comment On June 08, 2014, at 6:40 PM, bemo78 wrote:

    easy solution , do not buy any products from these greedy companys, lets run them out of business! if you cant play fair with your own country and fellow americans, we don't need you !!!!!

  • Report this Comment On June 08, 2014, at 6:44 PM, anolesman wrote:

    It will cost me nothing. I eat at home or brown bag it.

  • Report this Comment On June 08, 2014, at 7:14 PM, edsel918 wrote:

    I just love listening to everyone who says raising the minwa at MickeyD's won't affect them. Let's see if they're still saying that when they go get gas, or check out at the supermarket, WalMart, Target, and every other retail store, restaurant, or business entity that pays their employees on an hourly basis. What about hourly managers who are making $10-$15 an hour already? Think they'll want that responsibility for the same rate as an entry level, no experience, employee?

    Also did anyone also consider the hidden additional costs here? Increased payroll taxes Worker's Comp Insurance (which is partly calculated based on expected yearly payroll). Oh, and speaking of insurance, ObamaCare anyone? Gee, I wonder who will be the beneficiary of all this new tax revenue?

    Kaching to the state coffers! Kaching to the federal coffers!

  • Report this Comment On June 08, 2014, at 7:41 PM, daschkerw wrote:

    Let's solve the whole worlds problem, Stop giving aid, keep it here in the Good Old USA, and tell them all their problems can be solved by raising their people wages.

  • Report this Comment On June 08, 2014, at 7:47 PM, quasimodo2013 wrote:

    what the write of his story forgot to mention was that not only the mcdonalds worker will get an increase in wages most likely at least half of every single person involved in every part of that burger will get a raise also.

    people that are already paid more then minimum wage will be getting raises also someone who has worked for years to achieve a $15 an hour wage is going to be screaming bloody murder when new people that don't know squat are making the same hourly wage so they will have to increase that persons wages also.

    it seems easy for people to skip that side effect to minimum wage increases and the liberal media seems to do it on a regular basis. take it from me every time we have a modest increase in minimum wage here in Oregon every single thing you buy increases by at least 20 %

  • Report this Comment On June 08, 2014, at 7:48 PM, Burstedbladder wrote:

    I don't eat fast food aka junk food, so its not gonna cost me a dime.

  • Report this Comment On June 08, 2014, at 7:48 PM, phantasm1958 wrote:

    im glad min raised, when I retire and need a small supplemental income, I know I can make 300 a week working 20 hours... that is kick ass to me

  • Report this Comment On June 08, 2014, at 8:01 PM, quasimodo2013 wrote:

    ya know if any reporter out there was worth their weight in salt they would do a story on why $7.25 an hour isn't a livable wage and how to fix that!

    it isn't a problem with wealth inequity it isn't a problem with a low minimum wage.

    what we have is a problem with uncontrolled inflation , corporate greed and stock market manipulation!

    say what you will about deregulation but the facts are when things started getting deregulated every thing increased in price. the theory was that deregulation would create competition and thus lower prices but it had the exact opposite effect.

    before deregulation things were controlled by the government who set levels of increase on most of the basic things we need on a daily basis to live. now have a free for all to gouge us in any way the corporations see fit.

    the only way this country will ever get back on track and obtain the quality of living we had after WW2 is thru regulation and tarrifs on imported goods

  • Report this Comment On June 08, 2014, at 8:07 PM, gatoraide wrote:

    You might get a hamburger that is not laced with a blow fly under the cheese that a disgruntled underpaid worker caught.

  • Report this Comment On June 08, 2014, at 8:18 PM, Chaseagee wrote:

    The progressive liberal scam.

    Raise minimum wage. Those now on minimum wage now get a pay increase, which the employer immediately raises prices. The problem being those that did not get a wage increase now have to pay higher costs for whatever the item on the same money they made.

    When I take my family out to any burger joint it costs about $36 for our meals. As it is we don't eat out too much. If the price is raised higher then its doubtful that I will go to a burger joint. Then sales will drop off and McDonalds will lay off.

    If you could get McDonalds and other joints to pay the increase out of profits and not raise prices that would work except that is not going to happen.

  • Report this Comment On June 08, 2014, at 8:28 PM, fitness wrote:

    I guess Motley Fool lets any fool write an article and post it here. The writer mentions the cost of meat going up. Has it crossed his mind that demand is going up faster than supply? For his information this is called the Law of Supply and Demand. What this writer is in support of is Labor Supply being increased daily while the Demand remains much lower. If the Meat Supply was increasing by thousands of pounds every day and Demand was remaining steady, does the writer think the price of meat would remain the same? How loud would the writer squeal if the Govt. arbitrarily ordered everyone to pay double the cost of meat next month?

  • Report this Comment On June 08, 2014, at 8:38 PM, ChMacQueen wrote:

    The report failed to account for that its not just min wage at McDonalds going up but min wage at the dairy farms, min wage at the slaughter house, min wage at the food processing factories, and so on. All of the products in the US would have their costs go up that lovely 10-27%. on labor if the job is a low paying job which most are.

    Now you think on how many steps are involved to get the McDonalds burger to your mouth. This is where the math above fails and the $10 burger comes into play. Every one of those steps must raise min wage and then raise costs to compensate.

  • Report this Comment On June 08, 2014, at 8:44 PM, smallcastle wrote:

    A lot of people have made a lot of hay about how much more it would raise the cost for there food. What this article should read is "What McDonalds raising the minimum wage would save the U.S. taxpayers." McDonalds is estimated to have a workforce in the U.S. of 739,055. McDonalds has an revenue of $27.6 billion. McDonalds net income is $5.5 billion. there CEO has a compensation package in excess of $13.8 million per year. McDonalds employees on the average make about $9.00 per hour. McDonalds employees are encouraged to apply for welfare and/or food stamps. If they paid them more (which they can certainly afford to do) a lot of there employees would fall off the welfare and food stamp rolls. Which would save the U.S. taxpayers money. But then I guess all of the U.S. taxpayers should pay higher taxes to underwrite corporate welfare. Than make the ones that eat at McDonalds pay more for their burgers!

  • Report this Comment On June 08, 2014, at 8:44 PM, CSET wrote:

    For all you business owners out there I understand that when minimum wage goes up your profit margin goes down for a time. I am seeing comment after comment how an increase in wages will put shops out of business.

    When I start working for a living in 1976 minimum wage was $2.10 an hour. Would someone care to tell me why there are more businesses today than ever before?

  • Report this Comment On June 08, 2014, at 8:50 PM, Onemansvoice wrote:

    A lot of you have posted comments on the unfairness to workers currently making a higher wage for more skilled or labor intensive work if such a minimum wage hike is instituted. I think you fail to realize that most who favor such a move are socialistic by nature and do not believe there should be such delineation. To work is to work is to work and all should be paid enough to live on. These are the same folks who believe everyone is a winner, everyone is of equal value, everything is relative, etc. etc. I was born in 1960, raised up in and fully bought into the American Dream (learn all you can, work as hard as you can, you will go up) and it has worked pretty well for me, but for a few decades now the reality has steadily moved away from the dream. More companies than not, for some time now, have tended to pay everyone the same regardless of ability or effort; wages have continued to fall below inflation fairly steadily from the late 1980s on; more educated people than not will never find work to match their education. It was also in the 1980s that payday and car loan stores sprang up on damn near every corner of every city and motels converted to apartments in like numbers. We have had the rich, poor and in between since the dawn of time. The middle class boom created in this country by WWII was an aberration that made for a nice dream, but it is, for more than not. over.

  • Report this Comment On June 08, 2014, at 8:57 PM, TEXIZZ wrote:

    It won't cost me anything because I won't eat there any more! I suggest lowering wages on those that seem to get an order correct! Unbelievable that the cash register does all the work yet they still get orders wrong! $15.00 an hour is for someone who can count to ten! WORD!!!

  • Report this Comment On June 08, 2014, at 9:04 PM, gmvalentine wrote:

    McDonald's will simply automate more and, thus, not require as many workers. They will find a way to cut their labor costs.

  • Report this Comment On June 08, 2014, at 9:07 PM, Freddyfreebe1 wrote:

    If mc Donalds made a 100 billion last year they would still look for ways to make more the next year. Just like big oil, if the Atlantic Oceans was an ocean of oil, you will still pay at the pump, they will still look for cheaper labor and look for more tax breaks. When is enough enough ? For the greedy and the stock market, ( never enough )

  • Report this Comment On June 08, 2014, at 9:19 PM, kordun1111 wrote:

    What the author of the article fails to consider is that their food costs will go up as well. It is impossible for them not to. Remember, if the minimum wage goes up then it will not be just for their employees it will be for the whole country. So now McDonalds suppliers will also have to pay their people more as well and those suppliers will build that cost into the price of their beef, chicken, potatoes, napkins, ketchup packets, paper cups, etc. The word "assume" was used by the author several times during the article but looks like they also assume that nobody but McDonalds employees will be getting a raise.

  • Report this Comment On June 08, 2014, at 9:26 PM, kev12801 wrote:

    I love the people who write comments on here..."Well raising the minimum wage wont cost me a dime because I don't eat at McDonalds." Okay what you don't realize is you are paying for McDonalds without even eating there, here is why; With the wages being so low at McDonalds their employees have to also be on public assistance, like foodstamps. So yes you are currently paying McDonalds money by subsidizing their employees. Guess what you will by paying less if the minimum wage went up...think about it!

  • Report this Comment On June 08, 2014, at 9:48 PM, sabebrush6 wrote:

    Time to start BROWN BAGGING it. I did that a year before I retired and couldn't believe the amount of money I saved.

  • Report this Comment On June 08, 2014, at 9:52 PM, inreality01 wrote:

    There should be no such thing as a minimum or maximum wage in a free nation. This is absurd.

    This isn't about how much a burger costs. This is about individual freedom and economic liberty.

    The government has no role in controlling wages.

  • Report this Comment On June 08, 2014, at 10:01 PM, rubberbandman wrote:

    The CEO of McD's was paid $11 million last year. How did this impact corporate profits? It is all ways the little man who gets whacked when it comes to cutting costs. I will promise you, the CEO of McD's is not cutting his costs. Why not start trimming at the top of the tree instead of the bottom?

  • Report this Comment On June 08, 2014, at 10:03 PM, Golferdude2 wrote:

    I'm a district manager for Burger King and I can tell you that 15,16, and 17 year olds will be hard pressed to find their first job. There's more to the cost, don't forget about the indirect labor that is used daily to keep a restaurant daily maintenance and cleaning accomplished.

  • Report this Comment On June 08, 2014, at 10:40 PM, beverlyhillskidd wrote:

    This actually reverts back to the whole immigration issue. We have a massive influx of low-skilled workers who are taking jobs at McDonald's, Domino's Pizza and Taco Bell and are expecting to raise families on their wages from there. Well, guess what, these types of jobs are not intended for that. Never have been, and they never will be. So, as minimum wage is raised, jobs will be cut to avoid the cost of Big Mac going from $5 to $15. Unfortunately the radical left in this country can't get that through their head.

  • Report this Comment On June 08, 2014, at 10:40 PM, econnofool wrote:

    The writer of this article must think we're all fools. He forgot to tell you that in addition to the salary causing the McDs prices going up everything they use including food cost will rise also because many of those businesses don't pay $15 per hour either. So start adding up the added cost of paper products, food products, cleaning products, and all the other products they use. Then how much will it add to the cost. Guarantee more than 27 cents. Do the math fool.....

  • Report this Comment On June 08, 2014, at 10:51 PM, unefinbelievable wrote:

    The writer of this article i don't think figured in for the increase in social security and medicare tax that will be added to the labor costs because $15 per hour will not reach the cut off and employers have to match what the employees pay in for those tax items so these numbers are not accurate. It also fails to talk about the repercussions in other industries and job titles that are currently making $15 or less doing a more skilled job then fast food. Employers will then be forced to increase the salaries of these more skilled positions. People in skilled positions are not going to work for less or equal pay as a non-skilled mcdonalds employee. Ghe article also does not mention tbat since unions are involved in this they will also want to negotiate for benefits another added cost and the employees will also be required to pay union dues so that $15 will not really be $15 per hour after the unions rake tbeir cut. Bug in the end you will pay more than 27 cents extra for your burger and if you lime me i cut back aboug half of what i used to spend af mcdonalds when there was a 19 cent increase for tbe mcdouble.

  • Report this Comment On June 08, 2014, at 11:49 PM, adamlin747 wrote:

    You get paid what your job is worth. There is no reason you should get 15 dollars an hour to flip burgers. People have this sense of entitlement, why stop there why not 100 dollars an hour or 1,000 dollars an hour? Screw it Federal minimum wage should be 1,000,000 dollars an hour. I'll work for a day and then retire. Oh wait reality kicks in when minimum wage goes up the price of ALL goods goes up, because at some point in the wheel of commerce is a $#!t job anyone can do making minimum wage that has a part in the process. Therefore everyone pays more for the goods including people with the wage increase, which means they really don't get more with their wage increase unless you mean more inflation, and the dip in the US economy as our goods cost more to sell overseas.

  • Report this Comment On June 08, 2014, at 11:51 PM, Markomyt1 wrote:

    A 27% increase in your bill is substantial. I think that it will be much more than that because many of their supplies are going to have similar markups.

    Why does Seattle think that minimum wage is the problem? Everyone should have to work for minimum wage sometime to get the drive to educate yourself and get a better job.

  • Report this Comment On June 09, 2014, at 12:04 AM, rrwwss49 wrote:

    I don't eat at Mickey-Ds.. Almost for certain fewer employees will be hiried/retained, and automation will be increased. Maybe a stock buy opportunity in specialized robotics and/or point of purchase machines? Burger flipper Robots!

  • Report this Comment On June 09, 2014, at 12:05 AM, robw1949 wrote:

    this is a very simple solution to a no big deal issue here.....stop going to Big Mac.

  • Report this Comment On June 09, 2014, at 12:24 AM, lilys wrote:

    I just started working at a fast-casual restaurant. Believe me, there are no 16-year-olds behind the counter where I work! I was nervous before I started because I thought I would be the only person in their mid-30s with a college degree working a minimum wage food service job. I was shocked to find out that nearly half of my co-workers are college grads and most have families. My last job was as a middle school science teacher. There are at least three other people I work will who are currently or who have previously been professional teachers. There are also a lot of people with degrees in social sciences or human services fields. While it's nice working with people who share common interests and backgrounds, it's also sad that these people do not have more opportunities to use their skills to help better society.

  • Report this Comment On June 09, 2014, at 12:34 AM, odowner75 wrote:

    I've been in business for over 50 years and one of the first things I learned was giving a employee a un-earned wage increase doesn't make them a better employee. If you want a better employee just hire one at the wage you want to pay. A $7.50 a hour employee -- is a $7.50 employee. Paying them $15.00 a hour doesn't make them produce more for the job. I agree every person wants more money, but the government does not earn any income--they only know how to spend our money.

    I was once told people in Government have never had to make "payroll" --they just spend your pay.

    When the government wants more money in the economy--they just print it.

  • Report this Comment On June 09, 2014, at 12:52 AM, kdavis860 wrote:

    A 27% price increase is a lot. For the dingbats who claim they won't have to pay it because they don't eat there, quit being silly, this is a real debate. I'm sure you eat or purchase something where somebody in the supply chain is paid less than $15 per hour. If not, I would love to know what you spend your money on.

  • Report this Comment On June 09, 2014, at 1:35 AM, djwyldchild wrote:

    Why do they always focus on the McDonalds owned stores? They only own 20% of the stores. The rest are owned by franchisees who don't have the deep pockets that McDonalds corp has. Those are the stores that are going to be hurt the most by the wage increase. Those are the ones who are going to have to fire workers or in some cases close the doors all together. Every time you hear this argument about how prices aren't going to go up they erroneously focus on the small, small minority of McDonalds owned stores. They need to be more honest.

  • Report this Comment On June 09, 2014, at 2:37 AM, Gotlift wrote:

    You will pay more everywhere--not just at McDonalds. Probably more than 27%. Everyone associated with minimum wage increase will need to charge more. A bigger deal than a Big Mac Meal.

  • Report this Comment On June 09, 2014, at 2:49 AM, Shogun wrote:

    27 cents on a dollar doesn't sound like a lot until you have 4 people eating there and the bill is $12.00 ... Now it's MORE THAN an additional $3.00 on the bill...

    THANKS OBOZO... I really needed to pay some minimum wage hack that money... PHUCK YOU... I won't eat there if McDonald's prices go up by that amount... I just won't and I suspect that many other people won't either.

  • Report this Comment On June 09, 2014, at 5:34 AM, thekat wrote:

    Using the author's 10% figure in a price raise, it would probably mean a 10% raise as the minimum wage would be reflected in most goods and services. Therefore it would be like a 10% cut in pay. Would you like a 10% cut in pay?

  • Report this Comment On June 09, 2014, at 6:54 AM, billy095 wrote:

    It isn't just the burger flippers that would receive the raise. It would have to be an increase across the board. You wouldn't be able to find anyone to be a manager making $17 an hour when you can sweep the floor and make $2 less. Plus this article only specifies labor, it doesn't account for the increase in taxes that McDonalds would have to pay for the increased wages.

  • Report this Comment On June 09, 2014, at 7:08 AM, leobowdyo1 wrote:

    this article is missing the point...if your raise the minimum wage for one you must raise it for all...meaning the pickers on the farm..the workers at the warehouse...those that work at the slaughter house etc

    so there are three mark ups/cost that are passed along with the product before it even enters the individual stores.

    Now you have to increase your employees wages on top of all that...the store owner isn't going to just absorb the cost..s/he is gonna pass it along to the consumer...

    So in your example instead of it just costing 10 cent to every dollar( every meal is like 9 dollars already folks)..your adding 90 cents on the store times that by 3 or 4 to cover the cost of the outside laborforce ( the farm/the docks etc)

    Now that meal cost like 12 dollars....noone is gonna pay 12 dollars for a mcdonalds meal!

    The profits won't be there so noone is gonna buy franchises...therefore there will fewer restraunts and places for people to earn this amount.

  • Report this Comment On June 09, 2014, at 7:10 AM, leobowdyo1 wrote:

    fUNNY how everyone is on mcdonalds to provide a living wage...yet noone cares that mcdonalds got an exemption for the obamacare mandate...

    ...Mcdonlads is passing it's employees onto the exchange for healthcare...

  • Report this Comment On June 09, 2014, at 7:13 AM, leobowdyo1 wrote:

    okay instead of mcdonalds lets use walmarts....if you force the min wage to 15 dolllars an hour you know well that the cost of all their good is gonna skyrocket.

    It just isn't the increase of cost for the stores' labor...all that labor cost gets passed down the food chain until you reach the store...

    Plus walmart has more employees so that 10 cents for every dollar adds up quickly...

    so this mean no more hiring of employees..this means getting by with skeleton crews or hiring illegals under the table to clean the floors/bathrooms etc.

    Chances are walmart will do a lil bit of both because they have share holders to please...

  • Report this Comment On June 09, 2014, at 7:20 AM, leobowdyo1 wrote:

    if it is only 10 cents on a dollar sold then why not raise it to 30 dollars an hour wage...I mean why not make it a slippery slope argument and really give the employee a living wage..

    Oh 30 dollars min is too much?? well you said it is only 10 cents what is so bad about 27 cents .

    You can't justify the raise in min wages but saying it won't raise prices..

    sure there is a breaking point where stores can't raise prices or people just won't shop there...

    Mcdonalds is already close to can't have a 12 dollar big mac meal.

    Walmart already found this out the hardway..40 percent of their customers are super poor...when the economy tanked and government reduced benefits..these people shopped at the dollar store instead.

  • Report this Comment On June 09, 2014, at 7:29 AM, leobowdyo1 wrote:

    Have you been to mcdonalds lately? There are no burger flippers..everything is pulled out of bins.

    Meaning you don't need a large staff anymore...which lays the foundation to the future stores being more self serv/automated...or staffed entirely by illegals like chipolte.

    Mcdonalds will get this down to a science and you will end up with one manager and some overworked assistant manager..they will hire an outside contractor to do things like stock the paper products/clean the bathrooms etc.

  • Report this Comment On June 09, 2014, at 7:33 AM, jerry0213 wrote:

    they are putting in kiosks for cashiers where you order what you want on the screen.

    the other thing coming is a robot machine that can make any sandwich in 3 minutes.

    it takes 3 workers to run the whole place.

    so i see 3/4 of all workers getting laid off.

    15 an hour and only 3 workers is a deal MC DONALDS can not pass up.

    hahahah where are the labor unions whop started this when all those workers are unemployed.

  • Report this Comment On June 09, 2014, at 7:44 AM, Boone123z wrote:

    I didn't read the whole thing, being foolish and all, but I did not see the calculation that took into account that workmans comp (for states that require it) is based on a percentage of payroll. If someones comp rate is 18% for every 100 of payroll and then you jump to 15 an hour the cost of workmens comp doubles...also what doubles is the payroll tax on every 100 dollars of payroll.

  • Report this Comment On June 09, 2014, at 8:04 AM, computersurplus wrote:

    But that is only if food cost the same they are buying in. Now the deliverers will get a raise. The packing will get raises/. Everyone will get a raise so that $40 box of 20lb patties will now be $50 or more and so forth. Everything will go up what they buy then you add the $15 MW into the equation it goes up by 0.40¢-0.75¢ per item then you have cost increase out the azz

  • Report this Comment On June 09, 2014, at 9:41 AM, brixabrax wrote:

    Isn't this a glass jar example?

    I mean the cost of everything is going to go up because of the increase in labor.

    If minimum wage goes up to $15.00

    The guy who delivers the meat and buns will get paid more, the guy who makes the patties and turns on the oven for the buns will get paid more.

    The guy who mixes the meat and the dough will get paid more. The guy who delivers the meat to the processor will get paid more. The guy who kills the cow will get paid more. The guy who provides the feed for the cow will get more. On and on and on. And all of that will be passed on to the next consumer and eventually to the final consumer.

  • Report this Comment On June 09, 2014, at 9:43 AM, Royp57 wrote:

    The issue here is not the increase in pay for many at McDonalds at the lower level, but the OVER COMPENSATION at the high levels. That is the first area that should be CUT!! How much do the top executives make at McDonalds???? They can cut that along with there extremely over paid bonus structure and actually give raises to the people doing the work while reducing the cost to the consumer. This is an issue at all companies in America!!!!

  • Report this Comment On June 09, 2014, at 9:44 AM, PJB wrote:

    I worked as a manager for Pizza Hut for almost 10 years and our labor target was 22%, which is consistent with the article's math, but our management labor was pooled with our hourly labor and management labor, depending on the day of the week, tended to be higher than our hourly labor. This would be especially true if you factored in health, dental and 401k (which was included on our P&L but not our daily labor calculations). Only one of our four managers was typically hourly and they ranged from $10/hour to $13/hour. If you wanted to make more than that you needed to go to salary and thus make yourself available for increased hours and obligations when necessary (salaried managers were not allowed to hold another job, though PH respected family obligations as much as possible).

    Anyway, the reason I mention that is because simply doubling labor costs with a doubling of minimum wage would obviously be an inaccurate number if salaried labor consumed 40-50% of your overall labor costs. I would call that a significant difference.

  • Report this Comment On June 09, 2014, at 10:17 AM, fillinthegap wrote:

    I enjoyed reading this article and the comments. One of the things that the comments do not seem to reflect is that whether you do or do not people pay the cost of low wage jobs. The article talks about increasing the minimum wage to a more livable wage and what the impact on price will be. I like that he hinted at price elasticity without bogging down the article with it. With keeping wages below a liveable wage, I will assume that the worker will need to rely on government assistance, which comes from tax payer money. In a sense, this shifts costs away from the company and on to the tax payer.

    Most people who leave a comment understand that prices will go up. And this will lead to a loss of jobs. However, it appears that there understanding stops here, so I'll try to fill gap here. GDP = C + I + G + NX. C = consumer spending, which accounts for about 70% of GDP, whereas I (investment) accounts for about 10%. In Business 101 I learned - you must spend money, that is how the economy runs, spend money. (now that i have laid the pipe) My thinking is this: If we increase the min. wage to a more liveable wage then: 1. those who work these "low wage jobs" are more likely to rely less on government assistance. Which could result in less taxes. 2. More money will flow down the social-economic ladder. These people tend to spend more of their income than their rich counterparts. This should result in more money being spent (AKA an increase in velocity of money or an increase in consumer confidence; and money flowing back up stream). Which should result in the economy expanding. So yes it seems likely that raising the min wage could cause some contracting of the economy, it also seems likely that it will cause some expansion.

    Regardless of which side of the issue you are on or which policy you prefer, if you pursue one it will produce some winners and losers.

  • Report this Comment On June 09, 2014, at 10:17 AM, corplyn wrote:

    Interesting that TWGIII mentioned Henry Ford, because Henry Ford payed his people very well. Of course, he didn't have a CEO making 3500% more than the people doing the work, either.

  • Report this Comment On June 09, 2014, at 10:20 AM, DanielGoodwin wrote:

    This is a fairly well balanced look into the cost of labor and the resulting increase in prices should a mandatory minimum wage increase be enacted. However, it makes an inaccurate assumption which results in the final prognosis being completely wrong.

    The author assumes that McDonalds operates in a vacuum, and that if minimum wage was increased it would only affect McDonalds. The author correctly points out that the largest expense for the golden arches is from their food suppliers but then forgets to mention that if minimum wage was raised, the increase would affect the food suppliers as well which would increase the cost of the food again. The people who harvest the vegetables get a pay raise, the people who drive the trucks get a raise, the packaging employees, etc etc. Raising the minimum wage increases the costs for ALL industries and services which results in a greater cost to McDonalds on ALL fronts, not just in the percentage they pay to their employees. Economics is a complicated beast, but I give the author credit for looking into as deeply as they did, most people don't even go that far.

  • Report this Comment On June 09, 2014, at 10:25 AM, scottykirk wrote:


  • Report this Comment On June 09, 2014, at 12:56 PM, thatlldopig wrote:

    The author makes an extremely dangerous and completely false assumption that McDonald's functions as a monopoly with a completely flat demand curve. Not accounting for the cost of the downward sloping demand as prices increase renders the entire article moot.

  • Report this Comment On June 09, 2014, at 1:17 PM, noch8574 wrote:

    If raising the minimum wage had zero effect on prices, we would still be paying a nickel for Hershey's candy bars.

  • Report this Comment On June 09, 2014, at 2:04 PM, Scott91370 wrote:

    For those of you saying it won't cost you because you don't eat at McDonald's - YOU ARE WRONG. When the wages go up so will the cost of goods - ALL GOODS. The cost of living will rise for everybody and since you aren't getting the 50% raise that people making $10 are it will actually hurt you more.

  • Report this Comment On June 09, 2014, at 2:12 PM, youstink wrote:

    I feel so Sorry for the Poor multi-millionaire Owner.

  • Report this Comment On June 09, 2014, at 2:25 PM, RMengineer wrote:

    A problem with this analysis, which is a common mistake in the public debate: it only considers the _direct_ labor cost. But don't forget, that higher minimum wage affects the entire supply chain. So labor is only a portion of the cost of producing the burger and things like food supplies etc are also a significant contribution? Ok, so what do you think is going to happen to the cost of _those_ things if the minimum wage is increased? What about the higher cost of the supplies die to the minimum wages increasing the cost if those things adding to the cost of that burger?

    And there is basic supply and demand - if the cost of that burger goes up, the demand will go down. Paying a few more cents may not seem like much, but it is the AGGREGATE behavior that counts. If it costs more, people _will_ start to question how often they go out to eat. Maybe they cut out every 4th or 5th outing. Well, that's still less demand. And with people eating less, even marginally less, that still means fewer jobs.

    And those people faced with eating out less because it costs more? You think they are going to just suck it and take their eroded purchasing power because they either have to give up such outings or give up something else as a consequences of those higher costs (and not just the higher cost of a burger that impacts their quality of life)? No, _they_ are going to expect to recover their eroded quality of life. _They_ are going to start demanding more raises too. Which means the cost of the goods and services _they_ produce go up as well.

    Ultimately, the economic re-establishes the previous equilibrium and then a $15 wage is no better than was the original wage and everything is back to _exactly_ what it was before - only now everything just has higher numbers associated with their prices. Everything is returned to the same allocation of _purchasing power_ as it was before. Sure, the minimum wage earners are now making $15 but they again have no more actual _purchasing power_ than they did before, that $15/hr now still doesn't confer a "living wage".

    You can't give someone more purchasing power (in a sustainable sense) by fiat and decree. If you want them to have the purchasing power (sustainably), you can't give it to them by fiat and decree, you have to enable them to create and generate that purchasing power in their economic productivity.

  • Report this Comment On June 09, 2014, at 2:40 PM, Mathman6577 wrote:

    I agree with many of the previous comments. The real "unintended" impact of a min wage increase is that many people would lose their jobs. A small business owner friend of mine said that he can hire 10 people at $7/hr. or 7 people at $10/hr. While 7 people might benefit from an increase, 3 would not.

  • Report this Comment On June 09, 2014, at 4:58 PM, Zension wrote:

    Ok then. Up the wage to $15 per hour. Replace the human order takers with computer touch screens, only keep small skeleton crew of cooks who also bring out the food to you. There you have it! Get your wage increase, lose your job in the process!

  • Report this Comment On June 09, 2014, at 8:02 PM, sourcecodewizard wrote:

    With those labor rates it will only increase the incentive to automate the entire process.

  • Report this Comment On June 26, 2014, at 10:01 AM, dimestop wrote:


    a. instead of ARGUING about "whose speculative THEORY" on cost increase of McDonalds...

    b. trying "looking at Australia" WHERE THE

    "NATIONAL MINIMUM WAGE" is like $16. in most large urban areas... (some people in McD's are making $22. with a bit of seniority...)

    c. So "screw the argumentive BS..."

    ...the economist who wrote this article ABOUT AN AUSTRALIAN the wage levels I indicated above...

    d. SAID "the price of a BIG-MAC" was JUST .70 cents MORE THAN IN THE U.S. STATES...

    e. oh, and the McDonalds WAS FULL because the "high national Min Wage" FLOODED all their malls and "consumer" small biz... WITH LOADS OF "PAYING CUSTOMERS"

    f. so the BIG-MAC was so much more expensive...BECAUSE THE "high-min" wage was OFFSET by the HUGE CONSUMER TRAFFIC LEVELS... not just in McDonalds BUT IN "ALL OF RETAIL AND MALLS" ETC.




    or ..."huge national debt and budget deficits EITHER...

    because they "didn't let a bunch of "moderated Repubs gov spend on a multi-trillion dollar war ...making expendable weapons...


    putting the "money in their hands" (instead of lobby defense contractor buddies of mostly moderated Repubs)

    resulted in a THRIVING DOMESTIC ECONOMY compared to ours...

    in fact AUSTRALIA is the "only one of sixteen large Western Economies" THAT HAS little impact from the "global economic recession" ...



  • Report this Comment On June 01, 2015, at 1:59 PM, econ101 wrote:

    All this talk of fast food, broaden your minds. Think of gas station clerks, who make minimum wage. Station owners work on even smaller margins than fast food. Now add 27% to their overhead for wage increases. You will see that increase translated to the pump prices. Now you are not just effecting giant companies, but the entire economy.

  • Report this Comment On July 26, 2015, at 2:07 PM, BlueGrits wrote:

    "We can ballpark the total increase in cost of a burger if we assume that all labor related costs will rise uniformly with the minimum wage, which probably overestimates the impact but without more detailed data it's a good approximation."

    Not really

    The labor costs of interest are only those associated with workers at the minimum wage -- not "all labor related costs". Subtract out pay associated with MCD corporate and perhaps 5-10% of each franchise (to allow for mgmt and owners) and then you might be able to ballpark some first-order effects.

    Why doesn't TMF screen articles like this to omit these kinds of obvious flaws?

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Travis Hoium has been writing for since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things.

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