Lets assume 15 dollars an hour happens

[MCMLXXXII]

LOL at the US-bussiness-owners. But now I have to pay my employees a normal,decent wage so that they don't need to work 3 jobs.

[Dewragg]

well, let's first start with the fact it will vary depending on where you live, but all in all, the costs and wages of everything else will follow suit, negating the "fat raise" your Mc Donalds working ass just got. As of right now $15 per hr in NYC or LA, that pay doesn't go far at all.
Now if you live in Swampville Mississippi that $15 would go further but the cost of everything else would jump so fast that the raise did nothing for you.

[ThrowAwayForAReason]

Would rise of minimal wage impact only McDonald's? OR that would impact other who used to earn 15$ before rise and so on up to CEO's? And would this rise of minimal wage impact rental prices?

Rental prices are already going up without minimum wage increasing. For example, three years ago a 2 bed 2 bath apartment in my area was going for $750 to $800 a month. Now a 2 bed and 2 bath is going for around $1100 a month. It's actually cheaper to just get a mortgage and buy a house and your month payments (assuming you don't have to pay to fix something that breaks in your house) for a 150,000 house would be something like $900 dollars a month.

[MCMLXXXII]

$15/hr minimum wage would have little effect on big corporations and chains. Proponents will claim the mom and pop type places (under x amount of employees) will be exempt from this and thus will have no effect on them. Yet the smaller mom and pops will be hurt because they will need to raise compensation in order to compete with a $15/hr wage.

If you can't afford a normal wage for your personnel you shouldn't be in bussiness.

[zenkai]

I suggest you largely underestimate McDonalds margin.

That small, private, burger joint may have difficulty is a given. McDonalds won't feel the difference, at all.

You don't understand what a franchise is do you? Have you ever managed a fast food restaurant?

[breadisfunny]

LOL at the US-bussiness-owners. But now I have to pay my employees a normal,decent wage so that they don't need to work 3 jobs.

pst hey buddy move to the u.s. and live like a king. you even get your own indentured wage slaves. in my state your only legally obligated to pay 7.25 an hour. thats right folks. 7.25 AN HOUR.

[Shadowferal]

pfft...looking at other jobs.

I know too many that haven't had a raise in the past five years at least.
A min wage raise like that would have them quitting en masse at that place and working elsewhere on the chance that since they won't get a raise again at that one place and another might give them one in the following year.

[Darththeo]

Current hourly rate: 7.25 (let's assume all at at this level)
Current Burger sold per year: 225 million each year world wide (let's assume ALL are sold in the US).
US Employee for McDonalds: 300,000 to 420,000 ... let's take 420,000.

New hourly rate: 15/hr ... so that would be an increase wage cost of: $130,200,000 per year (assuming 40 hr/wk worked).
So, 130,200,000/225,000,000 = 0.57/hr

You are talking about less than a dollar increase.

This is assuming that all McDonald workers are paid 7.25/hr, that the 420,000 is correct and not a lower value. I tried to balance this out with assuming all burgers are sold in the US rather than worldwide.

[GennGreymane]

If you can't afford a normal wage for your personnel you shouldn't be in bussiness.

Pretty much this. Plenty of restaurants near me under pay their employees below the minimum or fire them the minute the contract says they get a pay raise of a few cents an hour. Yet they keep struggling. Maybe their business just is not that good.

[Shadowferal]

If a company closes, another will take its place.

[breadisfunny]

Current hourly rate: 7.25 (let's assume all at at this level)
Current Burger sold per year: 225 million each year world wide (let's assume ALL are sold in the US).
US Employee for McDonalds: 300,000 to 420,000 ... let's take 420,000.

New hourly rate: 15/hr ... so that would be an increase wage cost of: $130,200,000 per year (assuming 40 hr/wk worked).
So, 130,200,000/225,000,000 = 0.57/hr

You are talking about less than a dollar increase. As to get over a dollar, you have to assume A) less than half the hamburgers sold are sold in the US and B) they don't sell anything other than burgers.

but then people can't stuff their faces for 1.00 a burger!

[MCMLXXXII]

pst hey buddy move to the u.s. and live like a king. you even get your own indentured wage slaves. in my state your only legally obligated to pay 7.25 an hour. thats right folks. 7.25 AN HOUR.

Lol that's about the amount people over here pay on taxes an hour on minimum wage.

[Naxere]

Minimum wage in Australia is around $17 I think, and when I was there a couple of years ago, it seemed the average combo meal price was around $10.

[alexkeren]

The increase would be substantial, and those in this thread thinking it won't change, or only 20 cents, have no clue about the following:

The various suppliers for McDonalds will also have to pay the higher minimum wage. They will have to increase the prices they charge.

Gas will go up, but will be the smallest increase, as gas stations will have to increase what they charge for things.

McDonalds doesn't sell their sandwiches to make a lot of profit off them, they make most of their profit through the fries and drinks. Thus because of increase in supplies costs the burgers will dramatically go up in price. Otherwise the labor force will be minimized.

[GennGreymane]

You don't understand what a franchise is do you? Have you ever managed a fast food restaurant?

Have you?
/10

[DisposableHero]

While it depends on what percentage of their costs are labor. Being generous and assuming 50% of their cost is labor, 20-25% is ingredients and 25-30% is profit, and assuming (again generously) 80% of their labor costs is salary for minimum wage workers, and 100% increase in minimum wage labor costs therefor translates into a 40% increase in overall cost, which means your $0.99 hamburger becomes a $1.39 hamburger.

[judgementofantonidas]

Exactly how much would the price of a McDonald's hamburger cost?

The damage would not be in increased hamburger costs. The damage would come when all the people who work in skilled trades demand higher rates to offset the handout to McDonald's workers and the equivalent.

[Dewragg]

LOL at the US-bussiness-owners. But now I have to pay my employees a normal,decent wage so that they don't need to work 3 jobs.

I find it disturbing that you think the small business owners getting legally shut down cause they can't compete with McD's is funny.
this $15 per hr will in fact raise your property taxes as well. Just think about that, why should I bust my ass for a small company for $12 when I can go flip burgers for $15? before you know it there will be nothing but the big corporations left..

[TITAN308]

The same as it would without.

Can you prove without a doubt?

Can we hold people like you personally accountable if a good idea turns bad?

I don't side either way, I think it will be an interesting experiment that will either work out for the best or break something terribly and be added to the history books as a failure.

I just want to know what your skin in the game is.

[MCMLXXXII]

The damage would not be in increased hamburger costs. The damage would come when all the people who work in skilled trades demand higher rates to offset the handout to McDonald's workers and the equivalent.

Basic economics: let lower incomes spend more and the rest will follow.