Current Events > theres literally no reason fast food places should ever raise their prices

(+) Yeah! (+)

it costs like 5 cents to make a mc chicken lol

people will pay it

Pay went up for minimum wage workers. If the prices dont go up, then there is no way to conduct business while allowing upper management to afford multiple yachts and multimillion dollar homes.

The_Popo posted...

Pay went up for minimum wage workers. If the prices dont go up, then there is no way to conduct business while allowing upper management to afford multiple yachts and multimillion dollar homes.

Minimum wage has been stagnant for 14 years, yet prices still went up.

It's almost as if paying wages isn't the reason prices went up.

A while back ago, I went to Carl's Jr. (Hardee's for you East Coasters) and all I did was get a burger. No fries, no drink, no combo. Just a burger. It was over $10.

Also, more recently, I went to a local, mom & pop doughnut shop, and got a half dozen. $12. That's $2 a doughnut! WTF!!!??

Stallion_Prime posted...

it costs like 5 cents to make a mc chicken lol

it does?

Naysaspace posted...

it does?

idk. probably. theyre like 4 dollars tho. wack

Naysaspace posted...

it does?

I think product to make the sandwich is super cheap.

Kind of makes you wonder why anyone still has faith in capitalism.

mystic_belmont posted...

Minimum wage has been stagnant for 14 years, yet prices still went up.

It's almost as if paying wages isn't the reason prices went up.

Not paying wages, but paying salary and executive bonuses since that constantly skyrocketed

And soda is so cheap, it's ridiculous what the restaurant charges.

If prices didn't go up, they'd go out of business. That's why everything is a mess right now.

The_Popo posted...

Pay went up for minimum wage workers. If the prices dont go up, then there is no way to conduct business while allowing upper management to afford multiple yachts and multimillion dollar homes.

Most fast food is franchised. The franchise owners are not making millions. Profit margins on fast food are like 5%.

Kajagogo posted...

A while back ago, I went to Carl's Jr. (Hardee's for you East Coasters) and all I did was get a burger. No fries, no drink, no combo. Just a burger. It was over $10.

It's been a hot minute since I've been to a Hardee's, but their burgers were huge compared to other places I could drive through.

If ever there was a burger whose size was worth $10 (when the quality... could be argued if it was worth the same), it would be Hardee's.

Not like going to Steak n Shake. I like them, but... it's a higher price point than you should hope for at the size of the meal you're getting.

InfinityMonster posted...

If prices didn't go up, they'd go out of business. That's why everything is a mess right now.

That... is not how economics works. Not normally. Explain how you came to this conclusion.

TyVulpine posted...

And soda is so cheap, it's ridiculous what the restaurant charges.

it's best to have just water at restaurant.
think it's 2-3$ for a cup of soda (most of them at least offer 1 refill).

except for mcdonalds they charge 1.50$. for a large cup.

DnDer posted...

That... is not how economics works. Not normally. Explain how you came to this conclusion.

That's exactly how it works. 5% margin for even the biggest guys is $150k a year. You can only squeeze that so far, and it doesn't mean it's only prices that have to increase. Other sacrifices can be made as well like less workers or less hours.

mystic_belmont posted...

Minimum wage has been stagnant for 14 years, yet prices still went up.

In what country? Even Subway around here starts people out at $15 an hour. Seems like every year minimum wage goes up.

Kajagogo posted...

A while back ago, I went to Carl's Jr. (Hardee's for you East Coasters) and all I did was get a burger. No fries, no drink, no combo. Just a burger. It was over $10.

I went to Krystal's last week and got a 12 pack to split with my brother and his girlfriend. It cost $15.70 after tax. That's $1.30 for a fucking Krystal. Its basically a slider but with half an ounce of meat and a slice of pickle. Shit's nuts.

InfinityMonster posted...

That's exactly how it works. 5% margin for even the biggest guys is $150k a year. You can only squeeze that so far, and it doesn't mean it's only prices that have to increase. Other sacrifices can be made as well like less workers or less hours.

All the McDonald's here in Huntsville are owned by the same franchise owner, Johnson Partners, Inc.

LeoRavus posted...

In what country?

Federal minimum wage in the US has been $7.25/hour for a LONG time. That said, few if any national level brands still pay minimum wage anywhere in the US. Many states/cities have higher minimum wage laws than the federal one, and even in areas where it is only $7.25/hour *coughRedStatescough* they typically pay higher. McDonalds, for example, starts out at around $12/hour here in TN even though they technically could pay only $7.25/hour.

Greed

LeoRavus posted...

In what country? Even Subway around here starts people out at $15 an hour. Seems like every year minimum wage goes up.

Federal minimum wage has been $7.25 since July 24, 2009. Each state has the right to set it's own, as long as it's at or above Federal minimum (except in Georgia and Wyoming, which are both at $5.15, though employers in those states that are subject to Fair Labor Standards Act must pay $7.25). In fact, 20 states are at $7.25/hr minimum.

Naysaspace posted...

it does?

Obviously exaggerated, but generally the cost for the ingredients itself is only 25%>
But counting for wages and other stuffs like venue rent, you got the price.

To explain further
No it is not increased costs, neither rent, employee pay or ingredient cost

It is because companies are designed to make more every year

They make record amazing holy moly better than ever profit in 2020?

They can't just make the same next year. They have to make even more because capitalism is broke that way

It is called unsustainable infinite growth

Welcome to being awake about it

TyVulpine posted...

All the McDonald's here in Huntsville are owned by the same franchise owner, Johnson Partners, Inc.

That doesn't change that there's 300k franchised restaurants in the US.

A lot of corporations are structured pretty much like a pyramid scheme. The billions McDonald's makes and pays their executives is simply based off a percentage cut they get from franchises that sell the brand for them.

fire_bolt posted...

Federal minimum wage in the US has been $7.25/hour for a LONG time. That said, few if any national level brands still pay minimum wage anywhere in the US. Many states/cities have higher minimum wage laws than the federal one, and even in areas where it is only $7.25/hour *coughRedStatescough* they typically pay higher. McDonalds, for example, starts out at around $12/hour here in TN even though they technically could pay only $7.25/hour.

Minimum wage for large employers is $13.25 in my state, $12.80 for small, and as you say most employers do pay over that. It's gone up over $3 since 2019.

Ever since the pandemic businesses have had to be more competitive with pay to get workers in the door. A manufacturing place I used to work started hiring any grunt off the street at $20 an hour. Non-union.

If anyone thinks workers getting a spike in pay, even if it may seem small to some, won't be reflected in prices they're delusional. If prices didn't go up, net profits would go down and corporate heads would roll.

LeoRavus posted...

If prices didn't go up, net profits would go down and corporate heads would roll.

Yeah, because that CEO really needs that new yacht.....

LeoRavus posted...

If anyone thinks workers getting a spike in pay, even if it may seem small to some, won't be reflected in prices they're delusional.

No that would be you

LeoRavus posted...

If anyone thinks workers getting a spike in pay, even if it may seem small to some, won't be reflected in prices they're delusional

Reducing exec bonuses, overall, by just $1,000,000/year could provide a $1/hour pay raise for 500 full time employees without impacting a company's bottom line at all. McDonald's CEO made $19,000,000 in bonues last year. That's just the CEO. JUST their top 5 execs got $42,000,000 in bonuses, total, last year. This is on top of close to $1,000,000 base pay.

https://www1.salary.com/MCDONALDS-CORP-Executive-Salaries.html

fire_bolt posted...

Reducing exec bonuses, overall, by just $1,000,000/year could provide a $1/hour pay raise for 500 full time employees without impacting a company's bottom line at all. McDonald's CEO made $19,000,000 in bonues last year. That's just the CEO. JUST their top 5 execs got $42,000,000 in bonuses, total, last year. This is on top of close to $1,000,000 base pay.

https://www1.salary.com/MCDONALDS-CORP-Executive-Salaries.html

True, but they're not taking any pay cuts when they can have the consumer make up the difference.

Corporate greed is real. It's a cutthroat business to be in.

fire_bolt posted...

Reducing exec bonuses, overall, by just $1,000,000/year could provide a $1/hour pay raise for 500 full time employees without impacting a company's bottom line at all. McDonald's CEO made $19,000,000 in bonues last year. That's just the CEO. JUST their top 5 execs got $42,000,000 in bonuses, total, last year. This is on top of close to $1,000,000 base pay.

https://www1.salary.com/MCDONALDS-CORP-Executive-Salaries.html

Corporate has no control over franchise wages.

How can so many people confidently talk about things they don't even fully understand?

Let's not forget that the food itself is already garbage made from mass produced garbage ingredients

Never trust anything a corporation says about price increases and employee layoffs. They've always been proven to be liars.

InfinityMonster posted...

How can so many people confidently talk about things they don't even fully understand?

You still haven't explained how they would go out of business if prices don't go up.

They would have smaller profits. They would not need to close their doors. Those are two very different things.

mystic_belmont posted...

Minimum wage has been stagnant for 14 years, yet prices still went up.

It's almost as if paying wages isn't the reason prices went up.

Exactly.

Also don't forget it's better to support local businesses where the money re-circulates back into your community. Giant fast food corporations just suck that money out of your neighborhood and give it to their executives and shareholders - except for the tiny pittance they pay out to workers that just need a job.

nocturnal_traveler posted...

Never trust anything a corporation says about price increases and employee layoffs. They've always been proven to be liars.

When a corporation lays off employees, it's because of two reasons:

1) They believe they can maintain the same or increased profits with fewer employees

2) They fucked up and need to cut expenses, and labor costs were found to be a feasible solution at the time.

If corporations didn't need the workers they hire, they would have laid them off. Corporations don't benevolently "give people jobs" out of the kindness of their hearts, they employ people who sell their finite time and labor to exploit for profit and nothing more.

Kajagogo posted...

Also, more recently, I went to a local, mom & pop doughnut shop, and got a half dozen. $12. That's $2 a doughnut! WTF!!!??

Yeah I was going to buy a half a dozen Krispy Kreme donuts at one of those displays at Walmart, checked the price and it was $11. I immediately noped out.

DnDer posted...

You still haven't explained how they would go out of business if prices don't go up.

They would have smaller profits. They would not need to close their doors. Those are two very different things.

Because after some point, the money is not enough. If you are making $150k and then after all the increased costs, you're now making $75k, it's not worth it for a lot. That doesn't mean they all go out of business, but as factors inflate costs, they will have to eventually either increase prices or have more cuts. It costs a lot just to increase $1 for all employees in a single franchise, and that's not even the only thing that goes up.

Torgo posted...

Exactly.

Also don't forget it's better to support local businesses where the money re-circulates back into your community. Giant fast food corporations just suck that money out of your neighborhood and give it to their executives and shareholders - except for the tiny pittance they pay out to workers that just need a job.

Only like 5-15% of a cut is given to corporate with "giant fast food". The rest is still funneled back in the local community, at least at the same level that "local businesses" do.

InfinityMonster posted...

Only like 5-15% of a cut is given to corporate with "giant fast food". The rest is still funneled back in the local community, at least at the same level that "local businesses" do.

How did you arrive at that conclusion and those statistics?

What do you mean a "cut is given"... they take all the profits. They don't make hundreds of millions or billions by reinvesting into communities. They pay employees as little as they can get away with as business owners. That's how capitalism works: these are not negotiations between two equal parties.

Are you making a case for franchise owners? Most franchise owners now are multiple location owners that don't do any of the actual operation or live in the community. They call them multi-unit franchise owners, and that number is rapidly growing. So even these are no longer the mom-and-pop with a dream owners of past generations.

Torgo posted...

How did you arrive at that conclusion and those statistics?

What do you mean a "cut is given"... they take all the profits. They don't make hundreds of millions or billions by reinvesting into communities. They pay employees as little as they can get away with as business owners. That's how capitalism works: these are not negotiations between two equal parties.

Corporate does not "take all profits". Not sure where you got that. Depending on the franchise, they have to pay out 5-15% of the revenue for being able to use the franchise name.

Corporate also doesn't pay the franchise employees, so again, not sure where you're getting all this. Almost like you're just making it up.

Torgo posted...

Are you making a case for franchise owners? Most franchise owners now are multiple location owners that don't do any of the actual operation or live in the community. They call them multi-unit franchise owners, and that number is rapidly growing. So even these are no longer the mom-and-pop with a dream owners of past generations.

Can you provide data on how many of the 300k of them are owned by single franchises?

InfinityMonster posted...

Corporate does not "take all profits".

Do you know what profits are? Profits are the money made after paying your operating expenses.

InfinityMonster posted...

Can you provide data on how many of the 300k of them are owned by single franchises?

36% are owned by multi-unit owners, but that data may be a few years old and the number is on a sharp incline. Where did you get the 300K number from?

I also asked where you got the 5-15% from but you provided no data... it's not really a good discussion if you fail to provide your sources, then demand mine.

Fast food isn't a charity, they'll charge you as much as they can get away with.

Better to eat in or make your own food. You save money and eat healthier that way.

Kalk posted...

Fast food isn't a charity, they'll charge you as much as they can get away with.

Better to eat in or make your own food. You save money and eat healthier that way.

Hell yeah. That's what I do.

Here's the secret to why fast food is addictive: fat and salt.

If you crave that taste, make your own burger, buy cheap white bleached flour rolls, and make sure they have plenty of fat and salt.

Stallion_Prime posted...

it costs like 5 cents to make a mc chicken lol

Maybe in terms of raw ingredients.

Add the cost of labour, premises, utilities, insurance, taxes, advertising, packaging, etc.

Then it doesn't.

ai123 posted...

Maybe in terms of raw ingredients.

Add the cost of labour, premises, utilities, insurance, taxes, advertising, packaging, etc.

Then it doesn't.

True, it is definitely more than 5 cents... however you would then have to balance that against farm subsidies and special tax breaks negotiated by restaurant lobbies... if only workers had powerful organizations that worked to negotiate better conditions and pay for them collectively...

Naysaspace posted...

it does?

Like almost 10 years ago when I worked at burger King they told me a whopper patty (just the patty) was like a quarter. The meat is the most expensive part

Also a pound bag of fries was like a quarter where as they charge you like what 3 or 4 bucks for a large fry?

Stallion_Prime posted...

it costs like 5 cents to make a mc chicken lol

Where do you get this? do most of you guys believe this?

Torgo posted...

Do you know what profits are? Profits are the money made after paying your operating expenses.

And how is corporate taking them all?

Torgo posted...

Do you know what profits are? Profits are the money made after paying your operating expenses.

36% are owned by multi-unit owners, but that data may be a few years old and the number is on a sharp incline. Where did you get the 300K number from?

I also asked where you got the 5-15% from but you provided no data... it's not really a good discussion if you fail to provide your sources, then demand mine.

https://wolfoffranchises.com/mcdonalds-franchise/

That's 4% + 4% for McDonald's. This information isn't exactly hidden.

It's called fast food not cheap food. Prices in normal restaurants have gone up as well.