McDonald’s Raises Menu Prices as U.S. Worker Wages Climb

[bigbird 60,565]

https://www.wsj.com/articles/mcdonalds-sales-rise-as-u-s-menu-prices-climb-11635332402

 

Interesting that a corporation is pushing it's cost onto the consumer. Who would've ever seen that happening?  $15/hr doesn't go very far when you're having to pay more for everything.

[AUDub 11,153]

1 minute ago, bigbird said:

https://www.wsj.com/articles/mcdonalds-sales-rise-as-u-s-menu-prices-climb-11635332402

 

Interesting that a corporation is pushing it's cost onto the consumer. Who would've ever seen that happening?  $15/hr doesn't go very far when you're having to pay more for everything.

They're having a hard enough time keeping employees. Something has to give. 

[bigbird 60,565]

5 minutes ago, AUDub said:

They're having a hard enough time keeping employees. Something has to give. 

I had to take James to his hematologist appointment yesterday and stopped by for breakfast. It took almost 15 minutes because they were so understaffed. I was surprised knowing that McD's pays one of the highest wages of their industry.

It's been argued that increased wages would limit the actual number of workers. It seem to be playing out that way 

[AUDub 11,153]

8 minutes ago, bigbird said:

I had to take James to his hematologist appointment yesterday and stopped by for breakfast. It took almost 15 minutes because they were so understaffed. I was surprised knowing that McD's pays one of the highest wages of their industry.

It's been argued that increased wages would limit the actual number of workers. It seem to be playing out that way 

The wages aren't the issue, at least not in the sense that they're paying too much. 

Just that nobody really wants to work in the hospitality industry in general right now. It's hard work for low pay.

[bigbird 60,565]

10 minutes ago, AUDub said:

The wages aren't the issue, at least not in the sense that they're paying too much. 

I think wages needed to be raised, maybe not to that level, but raised nonetheless.  Unfortunately, the outcome could be seen from far off. 10 workers making $7.50/hr are now 5 workers making $15 and hour.  

It's simple really, corporations aren't going to lose their profit margins (they own it to their investors not to). They are going to push all cost increases onto the consumer. It's the same argument about raising corp taxes. They won't pay it, they'll push the increase onto the consumer. It's basic econ 101. 

[AUDub 11,153]

24 minutes ago, bigbird said:

I think wages needed to be raised, maybe not to that level, but raised nonetheless.  Unfortunately, the outcome could be seen from far off. 10 workers making $7.50/hr are now 5 workers making $15 and hour. 

Wouldn't know it from their attempts to get employees. Practically everyone has a "WE'RE HIRING!" sign up. 

Quote

It's simple really, corporations aren't going to lose their profit margins (they own it to their investors not to). They are going to push all cost increases onto the consumer. It's the same argument about raising corp taxes. They won't pay it, they'll push the increase onto the consumer. It's basic econ 101. 

Yeah. We're seeing a "correction," as it were. 

[ShocksMyBrain 9,367]

1 hour ago, AUDub said:

The wages aren't the issue, at least not in the sense that they're paying too much. 

Just that nobody really wants to work in the hospitality industry in general right now. It's hard work for low pay.

And speaking from a retail point of view, customers have become dicks over the past year and a half. I can only imagine what they’re like for the fast food industry. 

My county lifted the mask mandate, so at least I don’t have to deal with the anti-masker crowd anymore. ”I’m not wearing a mask if you want my business”. Okay, bye.

Edited October 28, 2021 by ShocksMyBrain

[McLoofus 35,182]

 

1 hour ago, bigbird said:

It's been argued that increased wages would limit the actual number of workers. It seem to be playing out that way 

That's an opposite reading of the cause and effect relationship to mine. The labor shortages across multiple industries predate the wage hikes. 

Chick-Fil-A and Trader Joe's were already paying more and kicking the competition's asses. I'd be willing to bet they haven't seen the labor shortages that McDonald's has. Whole Foods and Costco, too. They actually get better returns by- gasp- investing in and producing better workers that provide a better product. 

I hope that the Great Resignation will lead to some fundamental changes but I'm sure the megacorps will buy whatever legislation they need to bend the workforce back to their collective will. 

[CoffeeTiger 5,127]

1 hour ago, bigbird said:

I think wages needed to be raised, maybe not to that level, but raised nonetheless.  Unfortunately, the outcome could be seen from far off. 10 workers making $7.50/hr are now 5 workers making $15 and hour.  

That's not a bad thing. 10 people making 7.50/hr do nothing to help the economy. The taxes they pay are minimal, and every single cent they make will have to go towards essentials like housing, food, and utilities , and they will almost assuredly have to have government assistance programs help subsidize those things for them. 

15/hr workers, while not making bank can at least hopefully have some money left over for other activities and other  spending and hopefully wont have to utilize as much public assistance just to survive. They are also having trouble even filling those 5 jobs for . We aren't having an "unemployment" problem in this country where people can't find work because high wages led to a vast decrease in available jobs. That's always been a strawman argument for not increasing wages and it doesn't hold water right now.  

 

Quote

 

It's the same argument about raising corp taxes. They won't pay it, they'll push the increase onto the consumer. It's basic econ 101. 

Well Econ 101 is almost as much theoretical as it is anything. Markets adjust. If prices go too high, consumers stop buying. 

 

Additionally, Corporate tax rates were VASTLY higher in decades pasts...and yet corporations still made money..inflation still happened....prices still increased. 

 

 

and as to the Opening post, I personally don't care if i pay a bit more for fast food if the workers are making better wages. 

 

Edited October 28, 2021 by CoffeeTiger

[AUDub 11,153]

22 minutes ago, ShocksMyBrain said:

And speaking from a retail point of view, customers have become dicks over the past year and a half. I can only imagine what they’re like for the fast food industry. 

My county lifted the mask mandate, so at least I don’t have to deal with the anti-masker crowd anymore. ”I’m not wearing a mask if you want my business”. Okay, bye.

I used to work retail and am glad as hell I don’t have to anymore. Dealing with the general public is awful. 

[McLoofus 35,182]

9 minutes ago, CoffeeTiger said:

That's not a bad thing. 10 people making 7.50/hr do nothing to help the economy. The taxes they pay are minimal, and every single cent they make will have to go towards essentials like housing, food, and utilities , and they will almost assuredly have to have government assistance programs help subsidize those things for them. 

This is a very good point. Especially since that housing isn't new construction. 

As for McDonald's, I have one practically in my office parking lot. I never go there, though. If I need a quick lunch, I'll drive to Chipotle. Ironic that McDonald's already has a brand where they pay okay and provide benefits, as well as a far superior- healthier, more flavorful, more sustainable- product at a very reasonable price. They're running into the same labor shortages, though. The problems in the food service and many other industries are big and wages are only part of it. See comments above about dealing with the public, among myriad other issues.  

[AU9377 4,966]

3 hours ago, bigbird said:

https://www.wsj.com/articles/mcdonalds-sales-rise-as-u-s-menu-prices-climb-11635332402

 

Interesting that a corporation is pushing it's cost onto the consumer. Who would've ever seen that happening?  $15/hr doesn't go very far when you're having to pay more for everything.

As though they had not already raised prices.  They make 90 cents when they sell a $1 sweet tea.  If we are lucky, people will eat healthier food at home, but either way Mcdonalds's will survive.

Edited October 28, 2021 by AU9377

[SaltyTiger 7,816]

4 hours ago, AUDub said:

Wouldn't know it from their attempts to get employees. Practically everyone has a "WE'RE HIRING!" sign up. 

And noticed several places on the coast earlier this month offering healthy sign on bonuses.

[AUDub 11,153]

2 hours ago, SaltyTiger said:

And noticed several places on the coast earlier this month offering healthy sign on bonuses.

Not rare. They're desperate. 

[ToomersRevenge 284]

Are people complaining about the free market when it dictates higher pay for certain jobs? 

[bigbird 60,565]

12 hours ago, ToomersRevenge said:

Are people complaining about the free market when it dictates higher pay for certain jobs? 

No

[TexasTiger 12,948]

McDonalds in other most other countries have always paid a living wage and do fine. Of course, providing people health care outside of their jobs gives stores in those countries a leg up on American companies where service industry employees live hand to mouth.

BTW, Mickey D’s is doing fine:

https://www.google.com/amp/s/retail.economictimes.indiatimes.com/amp/news/food-entertainment/food-services/mcdonalds-sales-soar-on-higher-u-s-prices-newer-menu-items/87324835

[TexasTiger 12,948]

I worked fast food long enough to know how much it sucks in this country:

https://www.washingtonpost.com/nation/interactive/2021/rebellion-mcdonalds-bradford-pa/?no_nav=true

 

[SaltyTiger 7,816]

1 hour ago, TexasTiger said:

BTW, Mickey D’s is doing fine:

Endorsements matter

https://theculturetrip.com/north-america/usa/articles/this-is-what-donald-trump-eats-in-a-day/

His preferred order, according to Lewandowski, is “a full McDonald’s dinner of two Big Macs, two Filet-O-Fish sandwiches, and a small chocolate shake – a total of 2,430 calories.” Trump spoke to CNN host Anderson Cooper about his order, saying: “It’s great stuff.”

 

[TexasTiger 12,948]

2 minutes ago, SaltyTiger said:

Endorsements matter

https://theculturetrip.com/north-america/usa/articles/this-is-what-donald-trump-eats-in-a-day/

His preferred order, according to Lewandowski, is “a full McDonald’s dinner of two Big Macs, two Filet-O-Fish sandwiches, and a small chocolate shake – a total of 2,430 calories.” Trump spoke to CNN host Anderson Cooper about his order, saying: “It’s great stuff.”

 

Keeping ‘em profitable all by hisself.

[AUGunsmith 666]

I'd rather a robot do the entire fast food process. Much less chance some societal waste of space messes my order up, is nasty, doesn't clean, etc. 

[SLAG-91 1,483]

10 minutes ago, AUGunsmith said:

I'd rather a robot do the entire fast food process. Much less chance some societal waste of space messes my order up, is nasty, doesn't clean, etc. 

Hire this woman to clean up! 👍

[CoffeeTiger 5,127]

34 minutes ago, AUGunsmith said:

I'd rather a robot do the entire fast food process. Much less chance some societal waste of space messes my order up, is nasty, doesn't clean, etc. 

Fast food workers aren't "societal wastes of space" sheesh.  

[AUGunsmith 666]

20 minutes ago, CoffeeTiger said:

Fast food workers aren't "societal wastes of space" sheesh.  

You're right. A good 20% are good people or kids

Edited November 10, 2021 by AUGunsmith

[bigbird 60,565]

46 minutes ago, CoffeeTiger said:

Fast food workers aren't "societal wastes of space"

100% agree

 

However, could the jobs, like those in fast food, be "societal waste of space".  In that, those jobs could be handled through technology and the worker's efforts be better used in another industry?

 

I don't have an answer, just a thought exercise.