McDonald’s CA franchisee on new minimum wage: The sheer scale of the impact is just breathtaking
HTML-код
- Опубликовано: 31 мар 2024
- Scott Rodrick, McDonald’s California franchisee, joins 'Squawk Box' to discuss news of the new fast-food minimum wage hike in California, the impact on franchise operators in the state, and more.
The bank approved me for a large number one with a coke!!
Just made me laugh! Kudos
@@sidra_games4551 made me full but it's gone now. Back to the salt mines.
A LARGE? Wow, you're killing it!
I can only afford the fries 😢 I pray for rain for my drink
LOL .I'll get a second mortgage to supersize my combo ,😎😎😎😎
"Too many disastrous laws get passed because those who pass them win political points for their good intentions, and nobody bothers to check up later to see what actually happened." - Thomas Sowell
Replace the word "good" with "ambitious" in the case of Newsome and I would agree this applies.
Dr. Sowell is just awesome.
Sowell is great
you get what you vote for in this case
Fast food workers pay is typically under %20 of profits.
This includes ssi, unemployment and management!!
To double workers pay by increasing prices would only account for a 10- %12 increase.
It's a BIG LIE that raising wages caused price increases , CEO pay and dividends caused inflation! ( and screwing with default weakened the dollar)
This is the problem with so-called "representatives" or "leaders" who have never run a business themselves, pass laws they expect others to obey who actually do work and do run businesses. It's pathetic.
Yes! Somehow we have allowed a small group of people the ability to make decisions about things that they obviously don’t know anything about. It’s like someone electing me to go run a nuclear submarine which I know nothing about. What could go wrong? 😂
Oh, keep voting blue!
You may not like what this man has said, but he said this:
“It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people who pay no price for being wrong." ~ Thomas Sowell
Let’s start a go fund me for these poor millionaire franchises
Do you own business??
Newsome does, he made himself and his friends exempt.
CA has the highest unemployment rate in the country, this will only make it worse
BS on that.
California has over 1.9 million on welfare . Fact
@@wa210Nevada is #1 with 5.3% and California is second with 5.2%:as of 3/14/24.
As of 3/24 that flipped California is 5.3 and Nevada is 5.2. It’s a competition 😂
@@wa210 Nope. It does. I checked. He's correct. Look it up........
Whatever the government touches, goes to crap.
Are you referring to Governor Newsence?
Did you know the military is a government complex with socialized healthcare? Finest military in the world is crap I guess
Whatever a demonrat touches 😉
Easy for you to say you make more money than that I'm sure are you would not have made a comment.$20 an hour is $40,000 a year at full time that's what it cost to rent an apartment in California. That does not include food.
@@alexshatner3907 Yes, but it's both state and federal governments.
Panera Bread is excluded from the fast food restaurants that will have to raise $20. One of the biggest donors of Newsom owns many Panera Bread stores. Coincidence?
nope it was changed panera pays 20 google it
No, they got caught and are not excluded ... Panera has to pay it as well.. not defending Newson, it was talked about weeks back..
he aint running, you guys lost. stop crying
The panera bread company alreday said they will comply with the $20... too much bad press to take that advantage
After it became an issue. The point is why they were excluded by Newsom. The result is irrelevant. @@williamhaynes7089
Say goodbye to entry level positions. The people who will suffer most will be workers and small business, next will be the communities that will lose the places of businesses.
My son has autism. He has worked at McDonalds for 4-1/2 years. Had his hours cut from 5 days to 2 per week. Others had the same problem. Newsom has screwed over the poor workers and poor customers.
-Curtis Loew
you get what you vote for. God bless.
@@lawrencehalpin6611 Simpleton statement. California currently has more conservatives than any other state other than possibly Texas. We are basically outnumbered 2:1. 40 million population. So to simplify, I didn’t vote for this communist crap. Just too many teachers’ union members and other corrupt unions such as public sector unions aka the state crooks.🇺🇸
So, your plan for your son was 20-30 years at McDonalds with no chance for promotion because he has autism? Poor health care always on food stamps because Mc Donalds wants to pay him $6.50 an hour?
@@herbtapp3031 His job is more than about the money. You would rather put him in a room and feed and water him for the rest of his life than give him a job and dignity and friends and social life. You don't understand the handi capped at all.
@@herbtapp3031 Wrong. But if he owns his own house outright then why could he not work at McDonalds 30 years? My point, genius, is that Democrats in California and the US are destroying jobs while at the same time saying they are helping. More lies, right?
$20 minimum wage will replace workers with robots even faster.
If it was possible, it would have been done a long time ago 🤷♂️ Complete BS🤡
@@GeorgeSchneider8889If labor costs more then your return on investment from automation is higher. Take a first year finance course at a university.
@@GeorgeSchneider8889 What are you talking about? We're already seeing automated kiosks in McDonalds.
@@KK-pm7ud The threat of robots replacing workers in fast food industries has been here for years, nothing happened. It is not $20 per hour that will change anything. We call it fear mongering. No economical concept works on fear 🤷♂️
@@BullsEye3333 Yes but the traffic at McDonald’s is in toilet. I made a prediction three years ago that places like Burger King, Wendy’s, Taco Bell or McDonald’s will start to close. My friend made fun of me. We already had three Burger King’s and two Wendy’s closed in my area. Unlike the industry adopts the Chick Fil A model, they will all disappear. No way around it
You should have donated to Newsom’s campaign, then he would have written your restaurant out of the law.
Lol yup!
Beginner strategy ;)
Pro would be to have the law written to bankrupt your competitors AND the state give you cheap loans and grants to buy up the properties for pennies on the dollar and very low interest.
Gov gets to be on your new board and draw a considerable salary for doing nothing when out of office naturally...
Funny how the massive profits made by CEO’s never take the hit they just pass the debt back to the consumer via price gouging what’s even the point of it all ?seriously…
@@SamyyCJR You act like fast food has inelastic demand.
If they raise prices unit sales will inevitably drop. Revenue may remain close to the same, but total profit may significantly suffer.
"Pass the debt" You seem like a bot TBH
@@sburns2421 the CEOs can afford to suffer but they choose not too and would rather make the little guy pick up the slack whether that’s through laying off employees or raising the prices they never know how to bite the bullet and take a financial hit
It's NOT going to be just fast food! Inflation will skyrocket in CA! How are supermarkets going to hire at less than $20 when they have to compete for labor at fast food shops that do. Or for that matter ANY place that hires at less than $20. Remember this is just the beginning in 2 years its $25 dollars an hour! There WILL be more and massive layoffs. There was a car factory in CA that I met a worker from there. He bragged that he was making so much money and all he was doing was watching TV, eating, and taking origami lessons, because they weren't making as many cars. Then he said the company couldn't fire them because they had a contract. Well, the company didn't "fire" them. They just closed the factory and left CA! This will happen to more businesses in CA as the $20-$25/hr for UNSKILLED labor gets around to all sectors of businesses.
All McDonalds needs to do is purchase a cheap bread maker for each store, put McBread on the menu as a stand alone item, and enjoy the exception that Gavain put in for his Panera buddy.
Easy peasy.
our local Taco Bell and Mc Donalds replaced the counter workers with Kiosks. And you don't have to tip them, they just blink.....
I drive for UberEats. The amount of places that have 2-3 people making food with NO human counter service is growing immensely. And I live in Dallas, TX, where there is no state or local minimum wage.
@@RKB-zl3zv me too. Saves time because it takes me 5 minutes to be faster and also more accurate than at least 80% of people who do the work for me in uniform.
Kiosks, online order should able to replace all the human there. Just need people to make food and service them to the customer.
Tip at Taco Bell???
They want you using the 'app'. I walked into my newly reno'd KFC (bathroom untouched, still old cruddy washroom) the menu is perpendicular to the counter and in the middle of the store, while above the cashier behind the counter, there is no menu. They are making it an inconvenience to order the old fashioned way with cash and debit.
CA consumer here. My wages didn't go up. So I'm simply eating wherever the price meets my budget. If that results in layoffs, really not my problem. Free market, right? The problem I see though is nobody will want to work for less than $20/hr if they can get that at fast-food joints. Pretty soon, the min wage will be $20 everywhere. When labor costs go up, the prices of EVERYTHING will go up. The SEIU workers who wanted this will then find that the increased wages did not bring about an increase in quality of life.
no one working for 5 bucks anymore unless cost of lving drops to that
You still think the USA is a free market? That's funny.
Yup. I was looking at indeed today just to see what these other trades are starting off and some are 20$. I want to message them so bad and tell them that they ain’t going to get anyone because burger flippers make 20$ an hour. All trades are going to have to pay at the lowest level at least 26 an hour to be competitive or they are going to have to hire illegals for low pay but even they are getting smart and avoiding the low offer wages.
You've bought into the garbage companies spew about your pay. Every single last business in the country underpays their workers and then gets the workers to cry about them not having enough money. You've been lied to about the whole system and now you're angry at the workers because the other companies sick and don't pay their workers a living wage. Its not the workers fault man. Its greedy corporations. Even small business will cut your pay down to barely anything to maximize profits. They'll be the ones going to bali for vacation when you can't even take one.
Maybe you’ll just get some of the best run and productive fast food restaurants in the world. You’re just shifting resources to this industry
Thank you for pointing out that most of these restaurants are franchise based and locally owned not corporate owned, this hurts the local owner not the corporation.
Excellent point. Folks forget about that.
Most local fast food joint are owned by very wealthy individuals. They may be local, but they definitely aren’t middle class. They make their fortunes poisoning people no differently than do cigarette makers or alcohol makers. So if every high fat, preservative, processed fast food restaurant goes out of business I for one will not shed a tear. What we need is much healthier fast food.
Fast food workers pay is typically under %20 of profits.
This includes ssi, unemployment and management!!
To double workers pay by increasing prices would only account for a 10- %12 increase.
It's a BIG LIE that raising wages caused price increases , CEO pay and dividends caused inflation! ( and screwing with default weakened the dollar)
@@matthewhuszarik4173 a franchises owner makes between 50 and 150k per year. Hardly rich.
@@winchestersons6258 Most franchise owners own more then one and some own dozens of even hundreds if each one returns $100k-$150k that is definitely rich. But even those who only own one with an average franchise returns about $40k-$50/year. Since you are a small business owner the tax advantages at least double the value. My step father owned his own roofing company I don't think he ever made over $50k yet we lived in a huge home on acreage, my Step Father had his new Caddilac, and got a new pickup every four to five years, my mother had her own car, they traveled to Europe and put my sisters through college.
My brother-in-law was a professional dog walker and he owned a home just north of San Francisco and retired before he reached fifty. Being in business has some incredible advantages.
Government has no legitimate authority to set a minimum price for unskilled labor or anything else.
Apparently ninety years of court decisions say otherwise, despite your belief.
@@frequentlycynical642 Is the authority of government defined by judges or by constitutions? The federal Constitution grants no authority to impose maximum or minimum prices. Does the California Constitution grant such authority? Even if it does, it is not a legitimate power of government because it violates the right of contract. The only purpose of government is to protect our rights.
If a court issues an opinion that says the moon is made of green cheese, would you believe it?
@@WildBill99x Don't display your ignorance. The Constitution doesn't do a lot of things, like set up regulatory bodies, but Congress does. No airplanes, no FAA in 1789. But here we are.
Exactly, the key word being "legitimate." The government has no business meddling with wages and prices. How much should the price of a 2x4 be? How much should an hour of labor cost? The market is pretty good at answering these questions. Government almost always gets it wrong, resulting in all sort of unintended negative consequences.
@@Mkundera And no business regulating airplanes and the airwaves right? Because aviation and radio/TV didn't exist in 1789. Don't be stupid.
On behalf of all Californians, I apologize for how incompetent our government is.
Then why do yall keep voting for them
Turn cali red. This is what democrats want. They will always mess with your pockets. If you want money vote for trump
@@kennethmorgan7949
Do we all still believe the votes are legitimate?
@@kennethmorgan7949 because a lot of former slave states need the taxes California pays so that their forever dependent on the federal government can fund the basic services their citizens need.
You don't speak for all Californians.
Anyone saying this is justified knows nothing about business.
I think you don’t understand life and business
I am business
No but… its cali
People respond to incentives. That’s how it works
@@ChristopherLoupe-hh6bj everybody some employees respond more to pets on the back than money. You should know this, if you ever ran a business.
Mass Layoffs Begin At California Fast Food Chains As $20 Minimum Wage Law Takes Effect
dont forget the shops that just out right closed their doors as soon as the new minimum wage went into effect
This morning I went to my once a week treat, having breakfast at my local franchise. I paid $3 more for less food, and had to pester the waitress for coffee refills. Needless to say, this once a week treat will more likely become a monthy event.
This will only accelerate the upcoming era of robot workers.
Who cares. Hopefully you'll be replaced with one, too. 😂
It totally makes sense for a highschool kid to make $20 an hour, with limited responsibilities while it took me over 15 years as an aircraft mechanic to reach $30 with a A&P license. I guessI can expect to be paying more for my burger so any dope smoking kid can make 2/3s of what Im making in my 40s.
And it's not like the service will get any better.
Looks like you should've bought some passive cash flow assets with all the money you made for the past 20 yeara
Maybe you're being underpaid? Also, do you live in California where it costs 2 grand or more to rent a studio apartment?
@ryder4508 I'm definitely underpaid as are many working class Americans. It's the exact point. You cannot raise one wage that steeply without there being ripples throughout the system.
@@Hello-pl2qe But do you live in California? The cost of living is extra high here. Plus this only effects franchises in California. If you live in Louisiana for instance, there's no reason the price should go up based on the 20.00 per hour in California.
How have McDonalds in Denmark been affording to pay workers $22 / hr while selling burgers at almost same price?
Remember $20 is the MINIMUM wage. People will get yearly raises etc, so many will be making $25/hr putting McNuggets in a container. That's over $50K/yr, without OT.
Minimum wage will inevitably be the maximum rate too. What pay rises? Staff retention won't be a problem until everywhere pays comparable rates, by which time no jobs left . . .
It does not automatically scale to skilled labor. A nurse may not get that COLA jump for a while. They will become functionally MORE POOR, in their hourly rates.
Fast food workers pay is typically under %20 of profits.
This includes ssi, unemployment and management!!
To double workers pay by increasing prices would only account for a 10- %12 increase.
It's a BIG LIE that raising wages caused price increases , CEO pay and dividends caused inflation! ( and screwing with default weakened the dollar)
get ready for 20 dollar cheeseburgers...oh wait, we already have those
Gonna be $40 for the meal soon 😅
Nah… they will just cut labor.
more like get ready to close stores
Greed. Might help
Fat ppl
Not
Go eat there
Who cares.
Layoffs ASAP!!!!😊
Yes layoffs and have the kids of the CEOs and corporations boards members start doing that work...
Here come the robots
@@widesp9137😂😂😂
@@widesp9137you really think a rich kid would ever do a soul crushing job like that?
@@widesp9137lol
My husband works on the railroad as an engineer on a class 1 railroad. They got a 4% raise! How in the world does a fast food worker get a 25% raise? Ridiculous. All that will happen is layoffs. This is what happens when you elect politicians that don’t have a clue what they are doing!
There should be no minimum wage set by government.
AGREE!!!!!
Why do people complain about the price of McDonald’s instead of just not eating there?
There’s a logical thought
Agreed. People complain and keep going which will do nothing but keep the cycle going.
I deleted my fast food apps, and no longer will be eating at a franchise fast food joint.
Havent eaten there for 10
Yeara but i still
Complain so whats ur point? Free country buddy
@@gigi9467 lol you win
As soon as the interview ends, that man will be firing a lot of workers. I guarantee it. 😂😂
not so sure. Businesses don't hire people out of the goodness of their hearts. They hire them because they can't meet the demand for their goods and services, without them. Giant tech companies have colossal piles of cash. But they're not hiring people out of the goodness of their hearts. Only when a job needs people, will they hire someone. And, try to pay the lowest wage possible.
@tryscience Yes, he will because he won't be able to afford the wage increase, which is among his many expenses. If he doesnt close, he'll have two choices. He can increase price to offset the wage increase and lose customers. Or, he can let go as many employees as he can so that he doesn't have to increase prices and lose customers. Which one do you think makes more sense? I'd rather keep my profits than lose them, so I'd cut the jobs instead. Those that remain will have to work harder and cover more positions.
@@madmonkey762 The business should be optimized by increasing prices somewhat, and reducing the staff a small amount to cover the perhaps reduced amount of business.
But given the other businesses may fold instead of pay living wages, it's also possible that he may get additional business when people can't go to the places that they are used to going to. So it's entirely possible that by increasing volume he may not even need to increase the price of his product. It depends on the situation. After all, driving a few miles more, to get your favorite fast food, costs money as well.
@@trysciencethey’ll fire legal Americans and hire illegals. They get paid nothing
@@tryscience - demand will go down when prices go up
Imagine going to McD's and spending $100 for a family of 4 then finding out the ice cream machine is broken again.
In your nightmare, maybe.
Imagine going to school and getting in debt to make $5 more than someone with no school or debt.... Healthcare workers min wage in CA is $25
Sounds like someone didn't do much due diligence for their desired career choice before enrolling in school. 😢
@@ctzoomie so what happens when everyone is a fast food worker and nobody is a nurse?
@bevanbray7126 Then the market will quickly figure out demand for Nursing is strong, wages will react accordingly (not by government dictate).
@@ctzoomie and then $20 minimum wage will be the same thing as $11 minimum wage and fast food workers will complain to raise again... endless circle of stupidity
@@bevanbray7126 Indeed, then everyone will act astonished when inflation rips higher but can't (or won't want to) connect the dots.
He'll be using robots soon enough.
As someone who works with actual heavy machinery "robots" like the type you're talking about each one cost 30k a year just to rent. And another 48k in parts and maintenance. EACH. you have no fing clue what you're talking about.
McDonald’s and other fast food chains will have to adopt In n Out or Chick Fil A models or they will just disappear. We already had three Burger King and two Wendy’s closed in my area. I made the prediction three years ago and it worked. Fast food chains only work in cheap labor environment.
@@PUREBOILINGRAGE55yeah but you don’t have to pay 401k or health insurance or workers comp or any benefits
@@PUREBOILINGRAGE55Last time I checked robots cam run om 12 hour amd6 sometimes 24 hour battery. Which means working all the way through until the battery dies and need to be recharges and guess what the robot did not get paid one cent during that time.
@@shadowslayer9988 Last time I checked, if it was that simple, corporations would already have automated food processing. I wonder why??!?🫣
I dont think they get the fact if you make the basic cashier 20 an hour that means they have to bump up everyone from managers to store managers to DM.
Why not instead rehire everyone as temporary contractors like paperboys contract ? Pay your contractors to run your McDonalds commission only. Now the business owner is free to pay what commission they decide to offer each contractor senior , junior on down to entry contractor. Set up a working plan like this and your $20 dollar hourly employee legal nightmare goes away . This is legal. This strategy would help save California food industry of mom and pop restaurants from going under by bogus legislation being forced upon their business. A team of contractors has a higher sense of self worth than a team of employees who feel like serfs with lowered self esteem. In summary , hire contractors not employees.
The IRS would likely re-classify every person working in a single restaurant as employees. I have extensive experience in this, dating back to the late 1980's.
Seems like a nice guy. Absolutely going to fire thirty percent of his work force within a month and I don’t blame him.
30???
Most fast food workers need to be fired. They just shuffle around at 1/10 mph.
Then he can flip the burgers. See how long he lasts in business.
@@wa210 He is going to use the automated robots to basically take orders and cook the food
@@Ratigast99 Yeah right. So a small biz owner is going to cough up like a million clams for some burger chef robot, to omit workers? Lol...
That California Koolaid isn't so sweet after all 🤔
then go, we are doing fine.
@@dd-uy5lx Over 1 million have left. They just found out in LA that their rich taxes on mansions just killed their tax base. Now who will you tax... the poor?
@@jacobew2000 thats noting, we lost more in 80s/ it comes and goes in los angeles dude, it the first time ain't the last time. Don't worry new rich will come, this is Los Angeles, everyone knows. Plus we got oil every inch of LA. YOu forget that
@@dd-uy5lx California is losing rich and middle class by the thousands a month. That is not coming back while the taxes are high, and Democrats are in control. The new rich are camping out in Texas, Florida, or anywhere other than blue states... unless they are in the back pockets of the Democrats, like Bloomberg is.
Just close your stores , in California.
And see what happens next .
Might be time for these corporations to revisit their ridiculous profit expectations.
oh right, they expect 300 percent profit on everything. that's why they are crying.
They want to keep people at $13 so they can make record profits. This guy owns 18 McDonald's. Show us his home. These business owners don't need to make as much as they do. They just to be greedy and keep as much as they can and not give more to the workers.
he won't be owning 18 after that hike. Less restaurants less jobs.
Wish I could take a bet on that. There will never be less greed.
Empirical studies show the opposite. When you raise incomes for workers, they spend more. It increases activities and more jobs are created.
@@GeorgeSchneider8889 lmfao not in this case
@@durkdiggler4346 Why?
@@GeorgeSchneider8889 mass layoffs happening daily check the statistics
Just put a small bread oven in each store...
In N Out Burger has been paying $20 per hour and more for years in the Bay Area.
They’ve been wildly profitable. And the workers are the best in the business.
3:50 I would work for this man in a heartbeat because of his statement: “People are my greatest asset.”
in CA, mckyD prices went up, but In N Out prices did not.
Not true, in&out Cheeseburger meal price almost doubled since 2020🤷♂️
In n Out is privately owned with a much simpler menu. And they get more traffic because the quality is much better than the others.
@@dougshankle7946quality over quantity
In and out was already paying over $20 an hour I believe in the bay area
Cencal they have been paying 20-22$ per hour for years.@@Joemoma-gu2pn
This will cause more harm than good. It will cause thousands of workers to be laid off. It's mind-boggling that Newsom and company would not know this. In addition, it will cause prices to go way up, which will hurt the lower class, who eat a lot of fast food.
already happening2 days later!
You have the intellect of an inanimate object.
So it's ok for other companies to pay their employees over $20 an hour but just not in Fast Food chains that make millions in profits huh? WTF are you so hell bent against paying people a living wage?
All these owners crying are driving around in their 100K Mercedes and living in their million dollar homes. They make millions in profit. More than most small businesses.
@@jroddy1 Do you understand that many fast restaurants are franchises? That means they aren't owned by the corporation. They are owned by an individual. Do you know how much a typical Starbucks franchise makes? They make around $125,000. So let's pretend you owned a Starbucks and you're making $125,000 a year. Do you know what the wage hikes would do to you? Instead of making $125,000 a year, you would all of a sudden only be making $60,000 a year. Would that would be acceptable to you? I don't think so. You'd be forced to either lay people off, raise prices, or both.
They know. Thats the plan. More people dependent on the government for their survival. Control is the goal.
None of the politicians who made this law have even a quarter of the business knowledge that this man laid out in under 4 minutes.
The rich stay rich by spending like the poor and investing without hesitating then the poor stay poor by spending like the rich yet not investing like the rich
YES!!! That's exactly her name (Gerladine lane) so many people have recommended highly about her and am just starting with herfrom Brisbane Australia
I have heard a lot of wonderful things about Gerladine lane on the news but didn't believe it until now. I'm definitely trying her out
Life is easier when the cash keeps popping in, thanks to Gerladine Lane services. Glad she's getting the recognition she deserves
Such a genuine personality!!, Sincerely speaking. I will continue to trade and stick to Gerladine lane daily signals and guides as long as it works well for me.
: I'm new to this and have heard that now is an excellent time to buy. However, I currently have cash sitting in my bank account tha I'mt I would really like to put to good use because inflation is at an all-time high. Who is this coach that you mention, and do you mind if I look them up?
Replace workers with kiosks, and keep prices somewhat manageable. Make jobs more competitive to get so you weed out the lazy and hire the better workers.
Have you ever worked in a kitchen before? Somehow I doubt you have. 😂
@@ryder4508 I have. Most jobs, like Fast food, are repetitive work. Ever looked at a Mcdonald's assembly line. It operates the same as FORD did his automobiles. We have fully automated prototype fast food restaurants being tested TODAY. My area went to kiosks to order about a year ago when we went to $12.50. They also lost people. All restaurants are either using kiosks or mobile apps. Only time they take an in person order is if someone is handicapped.
Sorry, I seen other chain fast food restaurants. Raise their wages for their employees. So shame on these mcdonald's chain owners for not doing it on their own. In&Out burgers did it and posted the new employees as a sign of pride to their employees. On top of that. The cost of their meals. Just about stay the same.
These fast food places need to increase their prices so everyday working people can make a wage that allows them a living. Twenty dollars an hour is a nice start. I'm all for it and I will pay the extra without complaint.
He owns 18 McD’s. That is not a small family business. A small family business is where a person owns and helps run one restaurant or similar business.
Yea no doubt this guy I’m sure is a millionaire. So he is not a good example of who this is going to hurt.
@@JuliaDevanLmaoooooooo. Really? You don't get it. Wow.
That doesn’t make what he said any less valid
Businesses need to make a profit. No profit? No reason to be in business, hiring employees, and serving customers.
You want businesses to grow so they can hire people, not let Government impose dictates in wages that strangle profitability.
Damn 25% increase.. wow.. most people get 3% a year
I am not going to go to fast food anymore. I protested this ridiculous increase
Let's not forget how fast food prices have been increasing long before this was ever even a thought. And the sizes of McDonald's burgers have gotten much smaller than what they were years ago. Not to mention the beef is all sorts of other things mixed in so McD's can keep increasing profits. I stopped eating at any place like McD's, BK, Wendy's, etc, over a decade ago due to their price increases and food size decreases and quality. It's been overpriced crap food for many years now.
BINGOOOO
You clearly don't understand business or the economy. Most of the restaurants you listed are franchised owned by local people, they are not corporate owned yet people like you and the media only post the corporate profits, the franchise does not get that money. Educate yourself.
@@mustangecoboosthpp3869I did not say anything about corporate. Read again.
@@mustangecoboosthpp3869 you clearly don't understand how to read english
Taxes, regulations, inflation
For the record McDonald's has hiked prices no less than 8 times already using the excuse. They are just price gouging. Ask why in n out already paid higher wages and had cheaper food.
I agree with you. In N Out does things differently. For starters, none of their restaurants are franchised. All are company owned. Another huge factor is that they have a permanent and simple menu. This saves them a lot of money on market research and development as well as money spent changing menu items. They even spend less on advertising. When's the last time we've even seen an In N Out commercial? This is also how Carl's Jr. saves at least some money. They only recently started doing promotional menu offerings again after a few years of not doing them. They also have few TV commercials, relying more on billboards which are cheaper. They have fewer locations compared to McD's too. Very few of their restaurants have self serve kiosk too. They've only raised their prices slightly compared to McD's.
👌
Businesses don't need "excuses" to raise prices, just like you don't need excuses to demand higher wages.
And In and Out has good food!! They have always paid more than the other restaurants.
@@jg1238 👍
The cost for one location can be over $2M, and this guy owns 18 of them. I feel so bad for him 🤨.
You're feeling bad for the wrong person. Do you feel bad for Donald Trump, too? 😂
The thing is he may not have 18, even 1, in a few years. The margins in fast food are not large, he didn't say it but probably knows any profit he may make today will be consumed in payroll tomorrow. So he can raise prices and see demand for his salty garbage food slip even further.
I sensed real fear and anxiety in his voice. He has done the numbers no doubt and knows that at $20/hr, cutting staff may be his only option to try and survive.
Or he could sell some of the less profitable, which undoubtedly will also be worth the least. Hopefully he owns his buildings as that may be the most valuable part of his portfolio.
@@sburns2421 That's kind of absurd when you think about it, though. Most of those fast food workers were probably already earning 17.00. That means 5 workers would only be costing him 15.00 more per hour. That's basically the cost of a combo at this point. I think he's being overly dramatic. Even if he only made 10K in profit per franchise, that's 180K per year to live on. Odds are he's earning much more than that.
@@ryder4508 If he was only making $10k/yr per $2M franchise that is 0.5% profit, unacceptable. More like $100k clear at a minimum, probably $200k. Maybe more.
But take 30 employees making an extra $3/hr,...that is $187,200 in wages plus employers portion of taxes. He would be losing money at each establishment.
In that scenario he would be better off finding a bigger fool, liquidating or selling everything and just parking the money in safe investments. Then his only risk is inflation eating the interest he is earning.
@@ryder4508 I was being sarcastic. 🤣 I do not feel bad for this guy.
Living wages is not and has never been expected to do that. We’re working at an unskilled job. Fast food or other Bottom skill, employment. Get to basics skill jobs or get an education getting a labor trained skill that’s worth paying you more for.
Many people do think that these franchises are run by the larger companies and are clueless about franchises. Im glad this is coming out. A ceo has 0 to do with these situations
ummm...when you own 20 of them, they are not "family operated".
IN-N-OUT begs to differ.
@@GameArmorGameplay He is saying they are no longer weak and helpless like the bald guy is claiming in the video but 50+ million net worth or more.
@@thesheepthemightythecrazy$50 million per restaurant on an annual basis. This guy could afford to pay his worker $20 bucks an hour or even more.
@@GameArmorGameplay Sure, Lynsi Lavelle Snyder-Ellingson, a billionaire, is really doing a hands on, family running of all 400 locations.
Yeah you are
Something about him makes me feel like he’s really not hurting for cash
I’m not trying to be totally rude, but I’ve run a small business for 30 years and it’s truly a small business my wife and I to people. You have people that are franchisees within the McDonald’s franchisee program they own 20, 30,40 even 50 McDonald’s. These people are multi millionaires. You can’t even buy a McDonald’s franchise unless you have a few million dollars. I really do get sick and tired of hearing big business saying that they are small business that these are family run businesses are you kidding? These are giant family, run corporations within California. These are not small businesses. These people don’t file as a individual person they file as corporations.
When you cook at home it tastes better. And you get more, All food places charge to much for what they give you.
Thank you for acknowledging the people in your company are your greatest single asset and you don't want to impact them negatively. More business owners should be like you.
How many years did you pay your employees a less than living wage?
these jobs should not be living wage jobs - sorry
@@garydurk1646 Don't be sorry its OK
Here comes the robots.
YOU GOT WHAT YOU KEEP ON VOTING FOR
Over here in Australia we've had minimum wage laws for decades.
Having said that, we're not a tipping culture. People working low paid jobs can subsist without tips.
Okay, you really didn't say that much of substance; I would love to get a look at your balance sheet. Regardless if this is good or bad for you or your employees the rise of labor costs will only push companies to employ greater levels of automation. I believe in higher income countries in Europe they have already done away with cashiers and everything is self checkout. For your McDonald's locations you will need to do as much automation as possible as it will be cheaper at this point, or sometime soon, to fully or partially automate your work force. This might even lead to deflation in some sectors of the economy.
I’m sorry. I do not feel sorry for these people who owns these fast food places. They make a lot of money.
and the fare they serve up is destroying the health of this country. Can hardly imagine what the cost to our health care system is that is related to fast food.
You have to make money in order to stay in business and be able to EMPLOY PEOPLE ….
Broke ass people like you , don’t understand… you need people with money to keep us working… yo don’t have money to invest in buying property, building a building, purchase the materials for the business and keep the business flowing…
People like you is the reason more minimum wage people will be unemployed and homeless..
You shouldn’t feel sorry for them. You should feel sorry for the lower middle class to lower class residents of California. This will make their lives harder.
I hope in-n-out Closes all CA stores
Corporate should allow these family owned franchisees to pay less fees. Why is he not asking for that?
The franchise operators got toooo used to being greedy.
Don't worry, they will jack up the prices. The fastfood workers will have to deal with the increased prices elsewhere too
@@Leumasleumas725 right, and people will stop buying the product and they will close. Free market action at work? If your business plan isn’t viable then it’s not viable and makes rooms for other businesses that are.
how come a govt. can tell a businessman you have to raise wages. if he doesn't he can't hire anyone. Who owns the business. The fascists or the businessman/.
The government owns everything with corporations by their side
Yup. You can pay someone $0 to do nothing, but apparently $15/hr for their time is unacceptably low, even if they're willing to take that pay. It's a joke.
its been working completely fine for decades in other countries
@@bjorn1583 It limits economic output. It's an arbitrary limit on free enterprise. Any and every country that does this could do better if they didn't. It's an irrefutable fact.
@@braceyourselvesfortruth2492 its an irrefutable fact if you dont give people a livable wage you limit the economical growth and the US is perfect evidence of that fact
"Impact" and "breathtaking" are always used when the average worker gets a raise, but those superlatives are never used about the tax breaks and tax incentives these huge corporations consume.
I live in a city of about 250,000. The price of eating out most EVERYWHERE is mucho dinero. Whether a fast burger, or an Italian Restaurant. We can afford some of these prices, but we refuse to pay them. We cook very well at home. We have found a few good restaurants in town at a decent price, but I don't know how long they can hold out. We also buy a book of coupons every year, and that helps a lot. Grocery stores are much higher than the govt posted rates of "core inflation". We pay $2.50 for a 2lb. pack of dry beans, v/s a buck a year or two ago. Obscene.
These places make people sick, close them down.
This guy owns 18 McDonald's stores? He is super rich! 💵
Show us his home. Show us his income. I bet he can afford to make less and his workers deserve to make more. Greed. Keep the little man down so he can add to his empire. Next thing you'll see on the news is record profits.
And you want him to stay that way because he offers tons of jobs. If you bleed him dry, he's going to be forced to close them down
@@mactownsend2890 You sound like a communist. I hope the guy automates 90% of his workers out of jobs and then these unemployed voters take revenge on the politicians who did this to them.
@@mactownsend2890show me a poor person that gives people jobs.
What's your point, has a poor person ever gave you a job?
I cannot imagine how this malicious bill will not result in worker layoffs. On more than one occasion I have visited a fast food joint that would be covered by this nonsense bill and saw many workers standing around. Why were they standing around? Should that context tell one that some of the workers are not necessary?
On the other hand I live in Colorado and have seen the effect of staffing hit two very different eateries. One is a local diner that prior to pandemic was open morning to night with 3 meals. Now the are only open breakfast and lunch due to staffing shortages. A couple of days ago I visited the local Arbys and was greeted by a locked door but an open drivethru. No signage explaining why. But my assumption is it had to do with shortage of workers.
Value pricing: $10- $20- $30 Will be available shortly
Meanwhile, every company can afford to pay the Execs MILLIONS in bonuses.
Only for back room deals
There's a reason why they're execs.. Many of them invested millions of their own money into the business. And once that business model fails, all the big corporations will cease to exist. McDonalds corp is a real estate business and make most of their money from that. However, the franchisees aren't usually big corps and are just family owned businesses.
@@AdellesAK47 They did not invest a PENNY into it, the Execs only TAKE TAKE TAKE, and even steal
@@AdellesAK47 well said, nobody gets that. They just throw shade at people who are sucessful.
@@fridge_mx4743because they’re corrupt
he owns 16 franchises? poor him. 😢Though, for smaller owners with like 1 or 2, I will admit that it hurts more.
It doesn’t. Ask yourself, why is the 🇺🇸 the only developed country where fast food had been thriving since the 80s? Cheap labor. Without cheap labor, family or locally owned restaurants become competitive.
So because he is successful he should have his business shut down?
@@jbp122 You are only successful if you can pay your workers a living wage. If you can’t, you don’t deserve to own a business 🤷♂️
Aww poor him
@@GeorgeSchneider8889
Well, no. Family run businesses can't be competitive with fast food when they are required to pay their family members $20 an hour.
I don't think you guys are thinking this through.
I can't comprehend how they can just increase minimum wage for only fast food?
So a fast food employee makes more than other people?
I would be outraged if I worked in position that paid less than fast food!
In the last 50 years the federal minimum wage has only gone up $5.25. 50 years ago a quarter pounder was 60¢. This needs to happen, productivity needs to reconnect with compensation, and why do you suppose the cost of a quarter pounder didn't go up when the CEO of McDonald's took a pay raise up to almost $20 million a year?
It’s not the wage increase that’s putting McDonalds out of business. It’s the terrible service and low quality food they’re producing. I can only speak to my area, but in my city, they might consider putting out a quality product and improving customer service.
You are half way through the issue 👍
Poor value for the money is why I stopped going to fast food restaurants here in California. Prices get higher while the quality of the food gets worse. It's only going to get worse now.
I had a Big Mac yesterday. I didn't finish it. It tasted off to me. It's been like that the last year to me. I'm no longer a McDs fan. The food taste wrong.
Yes. Customer Service Skills need to Improve especially "ENGLISH LANGUAGE SPEAKING" Skills.
Region always plays a part. I drive for UberEats and some areas I won't take orders from because I know they are slow, have employees with attitude problems, and tend to not be well maintained. That and panhandlers are always around.
Other areas are gems and customers tip more.
It's not the minimum wage's fault, but the corporate greed of not wanting to make less net earnings. In switzerland minimum wage goes fom 19 franks to 24 depending on the canton, and a big mac is 7,80, 14 if you get the menu with fries and soda. A swiss frank is the equivalent of 1,10 dollar btw
You asked for it, you got it!
This rate hike is not going to put McDonald's out of business but a lot of people are going to be out of work. This is a prime example of politicians disconnected with reality.
Californians are not going to stop eating fast food. Hard working Americans (and non-residents) are just going to have a lot more money in their pocket
To people complaining they make too much. Look at your job, and you're probably being underpaid. This is an absolute win for the regular CA citizen, and will be beneficial to society in the long run. Yes it'll hurt making the adjustments, but what change isn't hard. The economy will adapt, and better businesses will replace the old one. Every employee in any other industry in California should let this motivate them. They should be fighting to increase their minimum as well!
yeah sure it’ll really benefit society, especially when everyplace else has to raise wages to more than $20 because if it. Then grocery stores and everything will raise the cost of everyday foods on every person and people won’t be able to afford to eat. any time wages are raised, the cost of everything goes up right with it and offsets any pay increase. and if you aren’t someone who got a pay increase you are screwed because your groceries are gov to double in cost.
And of course when all prices go up because of wage increases, elderly and retired and disabled people’s incomes do not go up at all. So there’s more people who can’t afford basic needs, even elders, and there’s more potential homeless and food shelf using people for you. It doesn’t help the employees who are going to be let go, layed off, or given part time hours now either because of the increase. They will earn the same amount per month as before by ending up with their hours cut in half and then be forced to get second jobs also part time, and then lose their healthcare. So that’s more people not getting medical needs met, including mental health help, which means more problems in society in the long run too.
So how is this helping society in any way?
@@AKayfabe First of all, $20 today equates to about $8.40 in 1990. In terms of buying power it's worse because those in the executive positions are getting more profits by paying an UNFAIR wage. Second, groceries and other necessities are already going up, and minimum wages weren't changing. And most of those other quality of life cost don't directly correlate to wage rates, but affects how employers operate. For one, US Healthcare should NOT be tied to employment. Our healthcare is actually crippled by private insurance companies, and it burdens employers because they need to spend resources to meet law requirements. Finally, this helps society because this SHOWING HOW BAD WAGE DISPARTIY has become. Most of the average US worker is underpaid. This wage increase is about taking back from Greedy employers who are the one's making an ridiculous of profit's while paying their employees a starving wage.
People say $20 is too much but I can already tell you all wages need to be increased dramatically. In 15 years life expenses have almost doubled. Pick a ln area… housing , insurance, food, eating out, travel, contractors /.. $60k a year now requires $110k for the same life. Problem is the corporations are just gouging the people for increased profits.
My cousin owns a small restaurant in Oakland. This will make it tough for him to stay open. Shout out to all the mom n pop shops.
On the one hand, I feel sorry for owners that all of a sudden have to pay more to their employees. On the other hand, if you live in Los Angeles, San Francisco or many of the other areas of California, there's simply no way you can survive on $15 an hour. To me, the solution is simple: raise prices enough to pay for the increase in salary. If you live in California, you understand that everything is more expensive. If you have to pay $1 more for a Big Mac meal, then it is what it is. I'm more concerned about someone struggling to put a roof over their head than a man who owns 18 McDonald's and is upset he might not be able to fix the HVAC in one of them.
Fast food jobs are for teens/children -- you're not supposed to be able to survive on them.
Fast food wages are not meant for you to survive or raise a family on. They are for
teenagers, and usually a teenager’s first job.
"To me, the solution is simple: raise prices enough to pay for the increase in salary."
And where do people get the $$ to pay these raised prices? Oh yeah, from their increased salary, which leads to a zero sum gain.
Oh please McDonald's been making billions and billions of dollars for years off the backs of poor people and raising there prices as well. I don't want to hear the bs.
You did not hear the report, did you? 😅
You do know that the vast majority of McDonald's are ran by franchisees and McDonald's the corporation has NOTHING to do with paying any of these $20/hr. employees, correct?
Poor people aren't even going in their stores franchise or not! If you don't want wages up then fight for taxes to go towards income and homes to stay in not home up
Did u listen at all
Mcdonald's makes most of their money from their real estate holdings that's a fact.
Some of you people should try living on minimum wage and then see if you still would be complaining. I am 85 years old. In 1962 I was married to a WOMEN and we had 2 children
We bought a house for nothing down on a private contract for $3,500. My wife DID NOT work. This was in Eastern Washington. I worked in the orchards for $1.25 per hour minimum wage. It was a 2 bedroom house. NO ONE BUT NO ONE give us any money. Now you try that today. That same house today sells for over $200,000. At times I did work as a helper in a machine shop for $1.50 per hour. I never did here McDonald's complaining and the price of a hamburger was 15 cents. So tell me all about it.
The law of unintended circumstances will never be annulled.
20 bucks 💵 an hour, but after taxes, it's really 16. Bucks an hour? 😳
Less fast food, more health benefits for the communities 💪
Less jobs for Black teens working part time for extra cash. We all win! 🎉
And warehouse workers will be next at $80 an hour. It never ends, it's California. What do you expect?
Used my car as collateral for my meal loan. 😂
Don’t agree with the min wage hike, but who the hell still eats at fast food restaurants?
food stamp
@@dd-uy5lxwhat the hell does food stamps have to do with eating at fast food places? you can’t even buy pre cooked food with food stamps
@@AKayfabe food stamps are been used in fast food places. what you did not notice it? all of them take food stamps.
That’s just stupid, everyone is going be affected by this.
I love the contrast of this guy in his ivory tower and the image of a woman making a mcdonalds smoothie. "I will have less money for me if I give more to her!" *cries in money*