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Post by beejmi on Feb 26, 2024 19:41:51 GMT
I'll admit it. I'm fascinated. This thing can go so many ways. And let's be honest, enough ideas start in California and work their way east.
Just some random thoughts I have (follow with your own)
The $20 per hour fastfood worker 'law' starts in April. I would tell you they 'deserve' that number.
I see fastfood places increasing automation (touch screen menus)
I see workers that will go from 35 hour weekly to 25 hours weekly
I think I see a possible worker shortage in family dining restaurants as Chilis and Applebees employees check out Burger King
I see fast food companies not wanting to pay that wage and getting out of California
I see menu prices going through the roof. Customers not going to FF 'not worth it anymore'
Can this all happen at the same time?
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Post by beejmi on Feb 26, 2024 20:20:59 GMT
CA state minimum wage is $16 per hour if that matters
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Post by Papa on Feb 26, 2024 22:07:18 GMT
I think the automation response to higher wages is not a credible element.
Automation is here and will keep expanding whether the workers are making $20/hr or $6/hr.
Walmart is non-union and continues to look at ways to cut personnel in favor of automation.
If automation can produce a bigger profit, despite what workers are being paid, it will be embraced by corporations and they will not give a rat’s ass of terminating employment for hundreds or thousands.
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Post by Papa on Feb 26, 2024 22:18:03 GMT
As far as fast food companies leaving California, I think it will be based on the old economic theory of supply and demand.
If a fast food corporation pays $20/hr., are they saying that will bankrupt their company or are they saying it will decrease their profit?
I have no idea about the numbers of these things so this is all hypothetical.
Fast Food A is turning a profit of 80% to 85% with the workers at lower wages, and their profit will decrease to 68% to 72% if they start paying the increased wages of $20/hr. For this reason, Fast Food A will say “Hell with that” and move out of that state. Would it not be economically wise for another company to come in and open fast food stores with workers making 20/hr.? Fast Food B is perfectly fine making a lower profit since it is still a profit.
I find it hard to believe that the increased wage will bankrupt the company.
Just the way I see it.
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Post by Big Garea Fan on Feb 26, 2024 22:35:37 GMT
...I think I see a possible worker shortage in family dining restaurants as Chilis and Applebees employees check out Burger King... I see menu prices going through the roof. Customers not going to FF 'not worth it anymore' Chilis and Applebees seem to have jumped on the fast food price increases because I have seen many commercials for "3 for $10" deals that offer an appetizer, entree, beverage, and dessert all for $10. Of course, that doesn't factor in tipping. Considering that the meal combos at McDonalds in my area are now around $12, the "3 for $10" deals seem like a much better bargain. The only issue is that McDonald's has the speed and convenience of a drive-thru so you can get your food and go.
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Post by Big Garea Fan on Feb 26, 2024 22:42:20 GMT
I am waiting for the other shoe to drop. Who decided that only fast food workers should get $20 per hour? If fast food workers are making $20 per hour, when does the "more skilled" labor get their pay raises? The $15 minimum wage hasn't been fully enacted in all of the states yet prices for everything (rent, groceries, utilities, etc) have gone through the roof. I don't think anyone actually benefits from the wage hike. Instead, I think it winds up hurting everyone - especially those that it was meant to help.
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Post by Big Garea Fan on Feb 26, 2024 22:48:35 GMT
...If automation can produce a bigger profit, despite what workers are being paid, it will be embraced by corporations and they will not give a rat’s ass of terminating employment for hundreds or thousands. This. I also hate that there aren't any alternatives for the consumer to go elsewhere. Here, all of the Walmarts have shifted to self-checkouts. The store has 20 checkout lanes that go unused because they do not have cashiers to run them. Instead, they might have one checkout lane staffed with a cashier and expect people to wait in a ridiculously long line that snakes through the clothing section or to check themselves out using the self-checkout registers. All of the customers are bitching, many of them are hostile to the few employees staffing the self-checkouts. I would like to make my purchases elsewhere but ALL of the stores in my area are doing it. |
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Post by principalraditch on Feb 26, 2024 23:58:47 GMT
I am waiting for the other shoe to drop. Who decided that only fast food workers should get $20 per hour? If fast food workers are making $20 per hour, when does the "more skilled" labor get their pay raises? The $15 minimum wage hasn't been fully enacted in all of the states yet prices for everything (rent, groceries, utilities, etc) have gone through the roof. I don't think anyone actually benefits from the wage hike. Instead, I think it winds up hurting everyone - especially those that it was meant to help.
Three years ago all the hospitals in the KC area bumped their minimum wage up to $18 hr, regardless of position. So if you were a housekeeper making $13hr you went to $18. Kitchen worker the same. Transporter etc..No one else saw bumps, just the bottom end. It honestly hasn't shaken up the labor situation. We're still short RN's, but no RN is going to take a $18/hr job thats easier in lieu of a $30/hr job for a new grad and much higher for experienced |
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Post by benlen on Feb 27, 2024 1:22:58 GMT
I use to pay 8 bucks for 3 whopper meal deals in the 90s. 2 months ago it cost 45 dollars. Won't go to Burger King anymore. Taco Bell is still reasonable.
Walmart starting wage here is 19.50. Across the street starting pay is 21.50 at In and Out . Applebys and Chilli's have already left the area.It's tough living in Silicon Valley.
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Post by nyhack56 on Feb 27, 2024 1:56:37 GMT
They've been automating for years though. Companies are making record profits and the forst place they cut are employees. Wages, benefits, layoffs.
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Post by buddypshayesmarkii on Feb 27, 2024 1:57:22 GMT
So wait staff is still getting $2.75/hr? That's some bullshit.
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Post by Papa on Feb 27, 2024 1:58:30 GMT
They've been automating for years though. Companies are making record profits and the forst place they cut are employees. Wages, benefits, layoffs. i agree. First they got rid of legacy costs. Then they got rid of healthcare. If they can get rid of employees making $2/hr they would do it. |
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Post by Franchise on Feb 27, 2024 3:38:52 GMT
They've been automating for years though. Companies are making record profits and the forst place they cut are employees. Wages, benefits, layoffs. Employees are a huge expense especially non revenue generating employees. Ive never worked in the food world but i’m sure the managers in that world have KPI’s, Metric’s and P&L’s to answer for just like anywhere else. In my experience its difficult to reach those target numbers without keeping employee and inventory count as low as possible. I’m not a fan of just in time inventory and the pandemic exposed the issues associated with it but it’s here to stay as are layoffs and employee hour reductions. As most expect the squeeze will never stop. |
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Post by beejmi on Feb 27, 2024 7:52:37 GMT
I think when you start talking about $20 a hour for a part-time or full-time employee you're probably getting cloe to the wage a 'shift manager' or 'Assistant Manager' makes and now they'll have their hand out.
If I had to guess - between the higher wages and having to raise the menu prices (there will be backlash) I will say that places are going to get the hell out of California in the end.
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Post by Franchise on Feb 27, 2024 15:50:24 GMT
I think some might leave but i think it will more likely be a reduction of locations. Focus on the locations that are the top performers, cut the dead weight, shrink the menu, close the dining rooms etc.
California has so many people that even if half stopped eating at these places it wouldn't be enough to ruin them as a whole because the remaining population is so large.
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