Operators will move their prices higher, let's day 10-20% for conversation purposes. McDonald's wins because their rent and service fees will increase. As well as OPNAD and their local co-op contribution.
Maybe someone with a little more accounting knowledge can give us some projections for the operators and the company.
California is just the beginning, coming to a town near you and me.
$9.99 EVM's here they come! Buy MCD stock and not restaurants better return. The new economic package is great for McD's corporation pass any rent increases on to franchisee and all other associated costs. McD's Corporation is going to be killing it in years to come; the returns are so out of whack franchisee vs franchisor. SET team has done an excellent job representing our interests, all I ever hear from SET is McD's wanted this and we were able to get.....I hate to say it but it's just like our politicians, Trump is right we elect the worst people to negotiate on our behalf.
Every $.25/hr. increase in the minimum wage adds 1% to your payroll costs. In California, that will mean a minimum 20% increase in payroll expenses by 2022, not including the "compression" factor effect with manager wages. Good luck passing the entire cost on to customers. And McD's has to pay California workers a $16/hr. min. wage! This is one big reason McD's is re-franchising their stores. Everyone wins: employees, state workers comp/unemployment, McD's, OPNAD/CO-OP's, FICA, the IRS, Unions. Loser: the operator and small business, as this wage spreads like wildfire to a city near you. And remember, Republican George W. Bush signed the last Federal Minimum Wage hike. So don't expect any help, politically, from any side on this. Modern and progressive.
Co-Ops & McDonald's will still probably be arguing how $1 drinks is the reason for our TC decreases and we need to be on $1 drinks. No plan ever or long-term strategy as it relates to pricing to address higher operating costs in the restaurants.
5 comments:
McDonald's wins again
Operators will move their prices higher, let's day 10-20% for conversation purposes. McDonald's wins because their rent and service fees will increase. As well as OPNAD and their local co-op contribution.
Maybe someone with a little more accounting knowledge can give us some projections for the operators and the company.
California is just the beginning, coming to a town near you and me.
If the government really want to help with minimum wage they should raise it to 50.00 a hour and not over a few years do it now. why wait so long?
Now the entry people will be a little happy with the 50 but they are still at an entry wage,so they will soon be unhappy.
The shift managers now can go to 70-90 a hour based on their experience level. And GM can rise to 100 or a little more.
Now maybe we can get together as operators and raise our pre-debt cash flow from 400K to 600K. That increase would be acceptable to me.
So let's kumbaya with one another, let's all hold hands and sing "if your happy and you know it clap your hands" and stick it to the man.
In a year or two we can see each other in the unemployment line.
Only in AMERICA
$9.99 EVM's here they come! Buy MCD stock and not restaurants better return. The new economic package is great for McD's corporation pass any rent increases on to franchisee and all other associated costs. McD's Corporation is going to be killing it in years to come; the returns are so out of whack franchisee vs franchisor. SET team has done an excellent job representing our interests, all I ever hear from SET is McD's wanted this and we were able to get.....I hate to say it but it's just like our politicians, Trump is right we elect the worst people to negotiate on our behalf.
Every $.25/hr. increase in the minimum wage adds 1% to your payroll costs. In California, that will mean a minimum 20% increase in payroll expenses by 2022, not including the "compression" factor effect with manager wages. Good luck passing the entire cost on to customers. And McD's has to pay California workers a $16/hr. min. wage! This is one big reason McD's is re-franchising their stores. Everyone wins: employees, state workers comp/unemployment, McD's, OPNAD/CO-OP's, FICA, the IRS, Unions. Loser: the operator and small business, as this wage spreads like wildfire to a city near you. And remember, Republican George W. Bush signed the last Federal Minimum Wage hike. So don't expect any help, politically, from any side on this. Modern and progressive.
Co-Ops & McDonald's will still probably be arguing how $1 drinks is the reason for our TC decreases and we need to be on $1 drinks. No plan ever or long-term strategy as it relates to pricing to address higher operating costs in the restaurants.
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