Originally Posted by
Stormdash
The work of a burger flipper doesn't provide value to the employer commensurate with giving up lavish benefits or a $30k plus salary. There is a reason the "unskilled" job market is called that - and your first tier service industry and retail staff aren't doing anything that require any specialized knowledge or involved training that requires a deeper financial investment.
Gonna use the example of a small business, a restaurant. Generally speaking, to be profitable at all - like, to have more net money left over after everything running the business cost you, including everything you spend on licenses, taxes, utilities, rents, capital expenditures like the equipment, etc, all these essentially fixed costs - to even be turning a modest profit, like 4-10% - you need to be running your combined food/labor cost between 50-55% of revenue.
Now I should point out, that 4-10%, if the restaurant does $500,000 in a year in revenue, that profit is $20k-$50k for the year. That's the profit. That's what that small business owner lives on, and pays their own taxes. On average, a new restaurant in its first year across all sectors has revenue closer to $100k. Do that math.
Now perhaps the owner works and pays themselves a salary, but then they count on their own labor cost and it's really just robbing Peter to pay Paul, if you follow.
In a single-unit operation, the owner probably works the restaurant as well, nominally for free, to reduce labor costs.
So here's the thing - if you have this business owner, whose working their own restaurant at 40-50 hours a week and living just on the restaurant's profits, assuming this is a stable and quite successful restaurant, may be living on $40k-$50k a year. She is running F/L at 55%, trying to keep her food costs low to pay her staff enough to retain loyalty. A regulation comes in that requires her to give each of them an hourly wage equivalent to $30k a year and two weeks paid vacation - she'd be out of business, immediately. Best case, she can try to stay open by cutting everyone to part time and hope that they stay at all.
Now, understand that of all your big national chains like a Domino's or a Chick-Fil-A or a Subway... these are just that small one-unit restaurant owner. One of their fixed costs is the franchising fee and royalties they pay to have the brand value of that chain attached to their business. But they get hit with those burdens because BIG CORPORATION... and she was only ever living on a lower-middle class income in the first place.