Current Events > Rough economics of paying Burger King employees $15/hr.

(+) Yeah! (+)

Average salary of a cashier, crew/team, and shift/assistant manager, from 865 reported salaries on Glassdoor: $9.124/hr/employee

Salary difference = $15 - $9.124 = $5.876/hr/employee

Average BK is open from 6am to 12am. It is assumed that the BK is staffed during this entire time. Thus:
18 hours/day = 6,570 hours/year

Salary difference in a year = $38,605.32/year/employee

Number of employees: 34,283 (FY 2015 RBI)

Therefore BK has to pay out:
$1,323,506,185.56 more a year.

...........................wut?

let them eat fries
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They're going to answer this by cutting hours, raising prices, and laying people off and replacing them with machines
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REMercsChamp posted...

They're going to answer this by cutting hours, raising prices, and laying people off and replacing them with machines

Cutting hours doesn't matter to these numbers, because these numbers don't include the cost of benefits you get for being full time employees.

We should cut taxes for the richest people instead!
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Raising min wage in a fast food place does nothing but fuck everyone over.
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IdiotMachine posted...

REMercsChamp posted...

They're going to answer this by cutting hours, raising prices, and laying people off and replacing them with machines

Cutting hours doesn't matter to these numbers, because these numbers don't include the cost of benefits you get for being full time employees.

They'll put people 1 hour below the minimum number of hours required to be a full time employee so they don't have to give them benefits. Then they'll outsource the whole outfit to India where they pay the people peanuts. Standard procedure.
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REMercsChamp posted...

They'll put people 1 hour below the minimum number of hours required to be a full time employee so they don't have to give them benefits. Then they'll outsource the whole outfit to India where they pay the people peanuts. Standard procedure.

The hourly rates calculated in post #1 does not include benefits paid.

Unless you mean cutting the hours that the restaurants are open for, it won't change the math in the OP.

You also have to consider that turnover would be less and thus less money is spent hiring and rehiring.
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IdiotMachine posted...

REMercsChamp posted...

They'll put people 1 hour below the minimum number of hours required to be a full time employee so they don't have to give them benefits. Then they'll outsource the whole outfit to India where they pay the people peanuts. Standard procedure.

The hourly rates calculated in post #1 does not include benefits paid.

Unless you mean cutting the hours that the restaurants are open for, it won't change the math in the OP.

Dude you have no idea what the fuck you're even talking about
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REMercsChamp posted...

Dude you have no idea what the fuck you're even talking about

You're comparing apples to oranges here. The OP attempts to calculate the hourly pay BK has to pay out more; it does not attempt to calculate the benefits paid (if more or less), nor does it calculate the other effects this may have (like turnover rates that post #9 mentioned).

Unless GlassDoor hourly rates include benefits, the math attempted in the OP does not care for full time vs. part time hours.

IdiotMachine posted...

REMercsChamp posted...

Dude you have no idea what the fuck you're even talking about

You're comparing apples to oranges here. The OP attempts to calculate the hourly pay BK has to pay out more; it does not attempt to calculate the benefits paid (if more or less), nor does it calculate the other effects this may have (like turnover rates that post #9 mentioned).

Do I have to take off my belt?
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REMercsChamp posted...

Do I have to take off my belt?

Enlighten me, then.

NightMarishPie posted...

You also have to consider that turnover would be less and thus less money is spent hiring and rehiring.

Shitty employees won't magically stop being a thing.

If anything, turnover would increase.
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REMercsChamp posted...

They're going to answer this by cutting hours, raising prices, and laying people off and replacing them with machines

Miraculously, when wages remain stagnant, they still cut hours, raise prices, and bring in machines to replace workers.
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loafy013 posted...

REMercsChamp posted...

They're going to answer this by cutting hours, raising prices, and laying people off and replacing them with machines

Miraculously, when wages remain stagnant, they still cut hours, raise prices, and bring in machines to replace workers.

Companies are always looking to lower the costs that get spent on unskilled labor.
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IdiotMachine posted...

Average salary of a cashier, crew/team, and shift/assistant manager, from 865 reported salaries on Glassdoor: $9.124/hr/employee

Salary difference = $15 - $9.124 = $5.876/hr/employee

Average BK is open from 6am to 12am. It is assumed that the BK is staffed during this entire time. Thus:
18 hours/day = 6,570 hours/year

Salary difference in a year = $38,605.32/year/employee

Hmm, suddenly 5.87 an hour translates to a $38k salary.

Number of employees: 34,283 (FY 2015 RBI)

Therefore BK has to pay out:
$1,323,506,185.56 more a year.

...........................wut?

I didn't even realize BK workers had 126 hour work weeks.

YMIHere posted...

Hmm, suddenly 5.87 an hour translates to a $38k salary.

$5.876 BK has to pay extra per employee over a year = $38,605.32.

YMIHere posted...

I didn't even realize BK workers had 126 hour work weeks.

It's not one employee that works 126 hours. It doesn't matter who works that many hours, but rather the hours are worked.

NightMarishPie posted...

You also have to consider that turnover would be less and thus less money is spent hiring and rehiring.

lol yeah, because they'll be lucky to have a job at all.

Lmfao imagine how the left will feel when fast food places have to slash employees because they pushed for a ridiculous jump in min wage
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IdiotMachine posted...

YMIHere posted...

Hmm, suddenly 5.87 an hour translates to a $38k salary.

$5.876 BK has to pay extra per employee over a year = $38,605.32.

YMIHere posted...

I didn't even realize BK workers had 126 hour work weeks.

It's not one employee that works 126 hours. It doesn't matter who works that many hours, but rather the hours are worked.

Except that you multiplied your BK hours needed by the total number of BK employees. You made all the workers have 126 hour work weeks.

Burger King is already the Sears of fast food. It'll be gone long before this happens.
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YMIHere posted...

Except that you multiplied your BK hours needed by the total number of BK employees. You made all the workers have 126 hour work weeks.

That's absolutely true. Thanks for catching that error. D'oh...

Let's do location based instead:

6,570 hours/year/location * 15,000 locations = 98,550,000 hours/year

If each extra hour costs an extra $5.876/hr, that is:
$579,079,800,000 more a year.

Wait shit... wtf

IdiotMachine posted...

YMIHere posted...

Except that you multiplied your BK hours needed by the total number of BK employees. You made all the workers have 126 hour work weeks.

That's absolutely true. Thanks for catching that error. D'oh...

Let's do location based instead:

6,570 hours/year/location * 15,000 locations = 98,550,000 hours/year

If each extra hour costs an extra $5.876/hr, that is:
$579,079,800,000 more a year.

Wait shit... wtf

It doesn't strike you as odd that you now have a higher bill than when all workers were doing 126 hour work weeks?

YMIHere posted...

It doesn't strike you as odd that you now have a higher bill than when all workers were doing 126 hour work weeks?

That number is crazy. And I think that only applies to one employee getting that much more money, because 6,570 hours/year only accounts for the location to be open with one employee... I feel like I'm doing something wrong again, like you pointed out.

I don't think you morons understand how much these enormous corporations actually make and how little of a tangible effect it would actually have on their overhead. They would do the cost-cutting measures already mentioned ITT, yes, but not out of necessity; they aren't worried about not making enough, they're worried about making a marginally less obscene profit. The CEOs/higher ups make so much that even cutting their pay to compensate would likely have no effect on them whatsoever unless they are literally planning to buy a fucking country.

Fighting for the status quo will never benefit you or anyone you even know. The number of people benefitting from the current system is so astronimcally low that supporting it is borderline suicidal. It's insane how brainwashed Americans are into wanting to be kept on a leash.
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Kazi1212 posted...

Lmfao imagine how the left will feel when fast food places have to slash employees because they pushed for a ridiculous jump in min wage

How do you feel when you realize the employees are slashed when wages are staying flat? Minimum wage increase is just a great excuse so they don't look like the bad guys in this situation.
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loafy013 posted...

Kazi1212 posted...

Lmfao imagine how the left will feel when fast food places have to slash employees because they pushed for a ridiculous jump in min wage

How do you feel when you realize the employees are slashed when wages are staying flat? Minimum wage increase is just a great excuse so they don't look like the bad guys in this situation.

It's like we live in a world where businesses sometimes fail to turn a profit and have to cut back on expenses to stay operational for more than a quarter. Weird, huh?

Annihilated posted...

loafy013 posted...

Kazi1212 posted...

Lmfao imagine how the left will feel when fast food places have to slash employees because they pushed for a ridiculous jump in min wage

How do you feel when you realize the employees are slashed when wages are staying flat? Minimum wage increase is just a great excuse so they don't look like the bad guys in this situation.

It's like we live in a world where businesses sometimes fail to turn a profit and have to cut back on expenses to stay operational for more than a quarter. Weird, huh?

I just always find it disingenuous when people are like "Raising minimum wage will result in X", when X still happens without a change in minimum wage.
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IdiotMachine posted...

REMercsChamp posted...

Dude you have no idea what the f*** you're even talking about

You're comparing apples to oranges here. The OP attempts to calculate the hourly pay BK has to pay out more; it does not attempt to calculate the benefits paid (if more or less), nor does it calculate the other effects this may have (like turnover rates that post #9 mentioned).

Unless GlassDoor hourly rates include benefits, the math attempted in the OP does not care for full time vs. part time hours.

I believe he's just trying to say that as a result of your OP stats Burger King will try to recoup some of that money by cutting hours and saving money on employee benefits.
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IdiotMachine posted...

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CensorErik posted...

I believe he's just trying to say that as a result of your OP stats Burger King will try to recoup some of that money by cutting hours and saving money on employee benefits.

oh

IdiotMachine posted...

YMIHere posted...

It doesn't strike you as odd that you now have a higher bill than when all workers were doing 126 hour work weeks?

That number is crazy. And I think that only applies to one employee getting that much more money, because 6,570 hours/year only accounts for the location to be open with one employee... I feel like I'm doing something wrong again, like you pointed out.

I can't quite figure where the disconnect is on this one, but if we go with the employee numbers that you already have it seems more manageable.

$5.876/hr raise for all 34,283 assuming they all work full time and not accounting for overtime.

5.876 * 40 hours = 235.04 more per week

235.04 * 52 week = 12222.08 per year

12222.08 * 34,283 employees = $419,009,568.64 per year

IdiotMachine posted...

Average salary of a cashier, crew/team, and shift/assistant manager, from 865 reported salaries on Glassdoor: $9.124/hr/employee

Salary difference = $15 - $9.124 = $5.876/hr/employee

Average BK is open from 6am to 12am. It is assumed that the BK is staffed during this entire time. Thus:
18 hours/day = 6,570 hours/year

Salary difference in a year = $38,605.32/year/employee

Number of employees: 34,283 (FY 2015 RBI)

Therefore BK has to pay out:
$1,323,506,185.56 more a year.

...........................wut?

Just so you know... Your math is wrong.
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loafy013 posted...

Annihilated posted...

loafy013 posted...

Kazi1212 posted...

Lmfao imagine how the left will feel when fast food places have to slash employees because they pushed for a ridiculous jump in min wage

How do you feel when you realize the employees are slashed when wages are staying flat? Minimum wage increase is just a great excuse so they don't look like the bad guys in this situation.

It's like we live in a world where businesses sometimes fail to turn a profit and have to cut back on expenses to stay operational for more than a quarter. Weird, huh?

I just always find it disingenuous when people are like "Raising minimum wage will result in X", when X still happens without a change in minimum wage.

How is it disingenuous if it very obviously amplifies an already existing problem? Subway is closing down a bunch of their restaurants and as many as 25% of them could be unprofitable. Same with McDonald's. Franchises are run like small businesses so sometimes people can't get paid.

IdiotMachine posted...

Average BK is open from 6am to 12am. It is assumed that the BK is staffed during this entire time. Thus:
18 hours/day = 6,570 hours/year

And what are you basing the number of staff on?

butthole666 posted...

I don't think you morons understand how much these enormous corporations actually make and how little of a tangible effect it would actually have on their overhead. They would do the cost-cutting measures already mentioned ITT, yes, but not out of necessity; they aren't worried about not making enough, they're worried about making a marginally less obscene profit. The CEOs/higher ups make so much that even cutting their pay to compensate would likely have no effect on them whatsoever unless they are literally planning to buy a fucking country.

Fighting for the status quo will never benefit you or anyone you even know. The number of people benefitting from the current system is so astronimcally low that supporting it is borderline suicidal. It's insane how brainwashed Americans are into wanting to be kept on a leash.

This post proves that the poster has no idea how fast food businesses are run.
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Dash_Harber posted...

And what are you basing the number of staff on?

34,283 employees come from Wiki:
https://en.wikipedia.org/wiki/Burger_King

IdiotMachine posted...

REMercsChamp posted...

They're going to answer this by cutting hours, raising prices, and laying people off and replacing them with machines

Cutting hours doesn't matter to these numbers, because these numbers don't include the cost of benefits you get for being full time employees.

They'll cut full time employees.
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darkjedilink posted...

butthole666 posted...

I don't think you morons understand how much these enormous corporations actually make and how little of a tangible effect it would actually have on their overhead. They would do the cost-cutting measures already mentioned ITT, yes, but not out of necessity; they aren't worried about not making enough, they're worried about making a marginally less obscene profit. The CEOs/higher ups make so much that even cutting their pay to compensate would likely have no effect on them whatsoever unless they are literally planning to buy a fucking country.

Fighting for the status quo will never benefit you or anyone you even know. The number of people benefitting from the current system is so astronimcally low that supporting it is borderline suicidal. It's insane how brainwashed Americans are into wanting to be kept on a leash.

This post proves that the poster has no idea how fast food businesses are run.

Whenever I hear anyone on the left talking about economics or business, it always reminds me of that episode of King of the Hill where Bobby overhears his dad talking about a $1,000 annual bonus he got in one day. Bobby then assumed that he got paid that much every day, then extrapolated about how rich his dad actually was, didn't even consider things like expenses, insurance, and other liabilities, and figured they were probably secretly millionaires. It's literally that same exact conversation with any leftist.

IdiotMachine posted...

$1,323,506,185.56 more a year.

and how much do you think the average fast food place in a busy city makes a day?

Annihilated posted...

loafy013 posted...

Annihilated posted...

loafy013 posted...

Kazi1212 posted...

Lmfao imagine how the left will feel when fast food places have to slash employees because they pushed for a ridiculous jump in min wage

How do you feel when you realize the employees are slashed when wages are staying flat? Minimum wage increase is just a great excuse so they don't look like the bad guys in this situation.

It's like we live in a world where businesses sometimes fail to turn a profit and have to cut back on expenses to stay operational for more than a quarter. Weird, huh?

I just always find it disingenuous when people are like "Raising minimum wage will result in X", when X still happens without a change in minimum wage.

How is it disingenuous if it very obviously amplifies an already existing problem? Subway is closing down a bunch of their restaurants and as many as 25% of them could be unprofitable. Same with McDonald's. Franchises are run like small businesses so sometimes people can't get paid.

What I bolded. The message always seems to be that the problem ISN'T something is currently going on, and that instead it will only happen with an increase in wages. If a post was to point out that raising minimum wage will speed up existing problems, I can understand that. But what I always see is that is the cause of problem, not just one factor of it.
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