Posted on 05/30/2014 11:53:50 AM PDT by NormsRevenge
CKE Restaurants' roots began in California roughly seven decades ago, but you won't see the parent company of Carl's Jr. and Hardee's expanding there much anymore. Related Stories
What's causing what company CEO Andy Puzder describes as "very little growth" in the state?
In part it's because "the minimum wage is so high so it's harder to come up with profitable business models," Puzder said in an interview. The state's minimum wage is set to rise to $9 in July, making it among the nation's highest, and $10 by January 2016.
In cities in other states where the minimum wage has gone up considerably, Puzder said "franchisees are closing locations" after riding out lease expirations.
(Excerpt) Read more at finance.yahoo.com ...
Re: “What do you think will happen to those franchises that overpay for their labor?”
(1) They will improve management.
(2) They will adjust their business model and product mix.
(3) They will purchase new software and labor saving devices.
I come from five generations of small business owners.
Money has always been our #2 concern.
What’s #1?
Personal independence, being your own boss.
Most business owners would contemplate suicide before giving up and going back to work as an employee for someone else.
Destroying jobs is all part of the Democrats’ plan to make the entire population dependent on govt.
“Go ask one of those illegal migrant agri workers what they are being paid, talk about a double standard!”
Most of them make $100-$150 a day, but they work their ass off for it.
Well thankfully they are here in Texas now.
I never found them to be "all that".
Now I can take you to a local diner that has really good burgers if you are ever in my area and you don't even have to stand in line.
Pizza in 2 minutes via a vending machine.... Other variations won’t take long
and then the need for onsite labor will be gone.
“I love situations like this one. It has three groups of people who deserve all of this grief coming to them. First you have the dumbass employees who think fast food work should pay $15 an hour. Then you have these companies selling grade c meat with sand stuffed in a tortilla and call it food. And then you have the vaunted customers, obese and too stupid to figure out that they are going to make themselves fatter and sicker. I can’t decide who to be more against!”
Why pick? They all deserve what’s coming with the exception of quality FF companies like In N’ Out Burger. There is so little real meat in a Mikey D’s burger that it should qualify as a “vegetarian” burger.
Fantastic! This is what capitalism is all about.
I’m all for $15 and hour min wage. Then let them complain.
They will no longer get all, their taxes back.They will be PAYING taxes.
They no longer qualify for Section 8 housing.
They no longer qualify for SNAP benefits.
They no longer qualify for credits to pay their light and heating bills.
They no longer qualify for subsidized health care.
They no longer qualify for an Obama phone.
Yea pay them $15 a hour!!!!!
There is a difference between good businesses and bad businesses.
They described good businesses, that need certain things to succeed, as well as those things they need.
Bad businesses, on the other hand, do not want to pay a reasonable wage, ever, and if slavery was still legal, they would fully support it, “as being good for business”. This is why today they strongly advocate for both amnesty, and open borders.
Bad businesses owe no loyalty to America, and are unhappy with increasing prosperity, which they figure comes at their expense.
So American conservatives owe them, like the Chamber of Commerce, no loyalty, either.
Okay, then tell me what effect scale has on what a hamburger chain’s decision on wages. How does more restaurants lead to minimum wage?
Eat mor chickin
In other words,In-N-Out is “Authentic” The prices have changed over the years but the product is still the same as when I went to the one across the street from my HS in 1965.
The wages, however do not seem to have kept pace with inflation. Back then an hours’ work at minimum wage, around $1.65, would buy 8 gallons of gas or six hamburgers.
Translate that $1.65 into silver or gold and you’ll get insight into the problem.
“On the other hand, In-n-Out starts employees at $11/hr., retains employees better and are routinely very busy. Maybe it says something about their respective business models.”
And that’s fine because it is In-n-Outs choice.
But when the gov dictates wages, not all fast food joints will survive by offering only a handful of items. Or whatever it is that creates enough profit with higher wages.
Pretty amazing story to have come from CNBC.
They just quote the CEO without the usual sarcasm and pointing out how wrong and uncompassionate he is.
As a company becomes larger you have to got for quantity over quality. As the quality goes down so does the value of their services.
How will it bring Americans back into the work force? Why wouldn’t the businesses just keep the workers they already have? In the case of illegal employees I would think they would be paid under the table so not sure how a minimum wage hike would effect that at all.
The money will bring them back.
Here in Seattle, $15/Hour take home pay is about $475 a week for a single person.
Re: “Why wouldn’t the businesses just keep the workers they already have?”
There is huge employee turnover in all physically demanding lower wage jobs.
Plus, with the flood of new applications, employers could easily phase out their least productive or most troublesome workers.
Re: “Illegal workers”
All the major restaurant and store chains and Temp agencies use E-Verify.
Plus, newly energized American workers will demand that government enforce the immigration laws and reduce work visas.
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