Skip to comments.Carl's Jr CEO Explains Why Nobody Is Hiring Young People
Posted on 06/10/2014 8:41:34 AM PDT by george76
In February the Bureau of Labor Statistics (BLS) recorded the lowest percentage of 16- to 19-year-olds working or actively looking for work (32.9%) since the bureau started tracking the data in 1948...
Over the past two years, the BLS has recorded some of the worst labor participation rates for 20- to 24-year-olds since 1973...
Looking at the seasonally unadjusted datawhich is what the BLS makes publicly availablefor 25- to 29-year-olds, the April 2014 labor-participation rate was the lowest the BLS has recorded since it started tracking the data in 1982
Nonetheless, various states and municipalities have increased their minimum wage, thereby increasing the cost of employing inexperienced workers. Minimum-wage jobs have always been a gateway to better opportunities. ..
The bottom line on labor: Make something less expensive and businesses will use more of it. Make something more expensive and businesses will use less of it. The Congressional Budget Office has forecast a loss of 500,000 jobs should the president's proposal to increase the federal minimum wage to $10.10 an hour become law.
ObamaCare is also increasing the cost of hiring inexperienced workers. The health-care law requires that businesses with more than 50 full-time employees offer medical insurance to employees working 30 or more hours a week. The administration knows that the employer mandate will kill jobs and has twice delayed implementing it. With an election on the horizon, American businesses know that these delays were political and that the mandate's economically damaging impact is in the pipeline, coming their way.
(Excerpt) Read more at zerohedge.com ...
Pretty soon fast food outlets will have self serve checkout.
Fine with me. I don't eat at fast food joints.
Bingo -- and that's why they are hiring government subsidized labor.
Neither do we, (wife and I); my wonder is whether we’ll see a big contraction in that industry. My son complains of the rising prices at McDonalds. He claims they’re way over priced for the faux food they serve.
Does he grocery shop much? Follow the price of beef at all?
Not to mention the effect of Obamacare of labor costs.
True. And that's not the only fast food trend that is easily spotted. McDonald's just tore down a perfectly good building near me to allow the addition of a new one with a super-small seating area plus a Drive-Through. Most days at the busy time there are 10 or more cars lined up and no place to sit inside.
Not for me. Off to Del Taco I go.
$4 for a box of cottage cheese.
Most McDonalds do about 75% of their business at the drive through.
48% of all statistics are made up 87% of the time.
I believe the FRIDAY’S restaurant chain is experimenting with touch-screen ordering at their tables. That means that the person who normally busses the table will probably deliver the food. A lot of fairly decent waiting jobs for college-age students and new graduates will disappear.
I would have to agree that most of your statement is at least partially true.
Does that mean I won’t get snarled at and have my order purposely messed up because I am a crackah? Bring on the burger-bots!
Chili’s has touch screen terminals where I usually eat
dinner. I pay my check directly. Drink re-order and games
for a fee as well.
Actually a Taco Bell near me, they have a Kiosk or whatever it is called. You can bring up the menu and place your order and pay. It gives you a receipt and number and someone will call your number to pick up at the counter. So it is not that far away.
Re: “Five years of 2% average yearly GDP growth simply doesn’t produce enough jobs to absorb the natural increase in the labor force.”
The increase in the American labor force is NOT natural.
Legally, we issue 1 million new Green Cards each year, and most of them go to low skill workers.
Legally, we issue or renew about 1 million work visas each year, and most of them go to foreign workers who directly compete against American born workers.
Finally, today, both Republicans and Democrats make almost no attempt to enforce the laws against nearly 10 million illegal workers, most of whom have limited skills.
America has flooded - deliberately flooded - its own labor market with cheap foreign labor.
That deranged policy has crushed the wages for millions of American born workers.
There are only two solutions:
(1) Stop importing foreign labor.
(2) Or, dramatically increase the minimum wage.
Fast food is a total 100% rip off...
And most of those franchise are now owned by foreign nationals, Muslims, Chinese etc...
You couldn’t force that garbage on me.
I was thinking the same thing.
I see the prices and wonder the same thing. How can people eat that crap and pay those prices? For the same or less you can get a nice sit down meal at Applebee's or similar. Heck, I could even buy the food and cook a better, more nutritious meal for 4 for the same as it costs to feed one teenager at McD's.
Are people in THAT much of a hurry? If so, they need to plan their time better. But I guess it's par for the course when you see people reading papers and talking on their cell phones while driving...to McDonald's et al.
It's a real head scratcher.
don’t worry you poor, stressed out ceo’s, the GOPe has cheap, invisible, illegal labor in the pipeline for you to make up for the “expensive” US youth that the gov’t has hamstrung with obamacare. and as a bonus for you, it’ll keep legal wages for hardworking US families low, and it’ll take care of the last part of the working US economy—the ruling political and crony capitalist elites must destroy: the part of the economy that can still give local jobs to US citizens.
isn’t that great news chamber of comerce? since china and india are already welcoming the gov’t sanctioned transfer of US technology and skilled jobs from well-paid, experienced, quality workers here in the US, to cheap, semi-skilled, quantity-over-quality workers overseas, and now with the gov’t subsidy of illegal aliens lowering wages here, the jobs you can’t move overseas can be converted to lower wages!
salad days for you, you crony capitalists; all you have to is keep those contributions coming to the dems and GOPe, so they can crush those “knuckle dragging” tea partiers.
So is Applebees.
I felt the same way until recently. It seems the average waiter/food order person cannot understand English (and not just foreigners is the sad part) and they screw my order 1/3 of the time.
And it makes me wonder why Paul Ryan has been all for all of this nonsense. The only thing I can think of is the SSI ( and or Medicaid and Medicare ) "Trust Funds" ( yes don't laugh ) are so FUBAR'd that they need these cheap workers to pay into it to keep it afloat, and they know it and they are afraid to tell us. And if they told us how Fubar'd it is... Well you know that drill....
All my meat and produce come from the surrounding woods, my garden, or local suppliers.
Pretty soon fast food restaurants will be mostly automated. One person who alternates between re-stocking the machines, and cleaning/restocking the dining area, and one manager and one tech who float between 4-5 restaurants. . . .
I don’t like dealing with Obama voters. But when I do, I get the large fries.
They have been arround since 1902. They are called Automats.
From Wikipedia, the free encyclopedia
An automat is a fast food restaurant where simple foods and drink are served by coin-operated and bill-operated vending machines.
Originally, the machines in U.S. automats took only nickels. In the original format, a cashier would sit in a change booth in the center of the restaurant, behind a wide marble counter with five to eight rounded depressions in it. The diner would insert the required number of coins in a machine and then lift a window, which was hinged at the top, to remove the meal, which was generally wrapped in waxed paper. The machines were filled from the kitchen behind. All or most New York automats also had a cafeteria-style steam table where patrons could slide a tray along rails and choose foods, which were ladled out of steaming tureens.
I read the whole article. What nonsense — “if there was no minimum wage, I’d hire more young people!”
I worked at Carl’s Jr. in high school. The entire staff, except the managers, was high school students. And we worked for minimum wage.
So what’s changed? There are no teens working at Carl’s Jr. anymore because there’s a new, better source of labor that wasn’t around when I was in high school: middle-aged Mexican and Central American immigrant mothers.
You don’t have to schedule them around school hours. They will go the extra mile because they’re supporting children. They don’t call in sick to go to a concert.
Carl’s Jr. gets a better return on their labor dollar with middle-aged immigrants than American teens. It’s disingenuous to suggest that little Madison and Dylan would be slinging fries if only there were no minimum wage.
He’s perfectly fine with his labor force; he just wants to pay them less.
Last year I visited a McDonalds after having not gone for five years or so. A friend wanted to go there. I got a Big Mac, and was shocked at the lack of quality and the higher price. It was a small fraction of the size it used to be, and much thinner, and tasted bad while being expensive. Which justified my not buying fast food.
Yes most people ARE in hurry. They eat to live not live to eat.
I automated 4 activities that comprised 80% of the service
rep workload in 1986. A big financial impact at PacBell.
There was room to automate more. Much additional automation
was applied to less publicly visible processes.
Self-checkout in many more stores. ‘Tablet Waiters’ in many airport pubs now. Yep.
I agree concerning cash flow in the Social Security and Medicare programs.
I’ve made the exact same argument on other threads.
But I think the political factor trumps everything else.
New immigrant citizens vote 80% for the Democrat Party.
If the situation was reversed, if they voted 80% for Conservatives, the immigration door would slam shut in a microsecond.
I’m talking no human cooks either: everything generally made to order, and delivered to the counter or your car window by purely robotic means. . .
Once upon a time, I believed Obama, like many politicians, was just ignorant when it came to economics. But I’m now of the opinion that you don’t push the stuff he’s pushing out of ignorance.
A few years back I remember Americans coming back from Europe complaining a Big Mac there was like twice the price at $3... Now they are like $4....
I can get a Nice gyro sandwich at that price at my local Indian food mart.
Indeed, it is migrants who will vote left, not the ones voting right or adopted and home schooled by right wing families they want. They want this juvenile prison kids.
Some history and historical pictures at the source link of this FR thread.
I have already seen it, daughter took me to one in El Paso a couple years ago. When you walk in there is what looks like an ATM, you order on the screen, check to make sure it is correct and pay with cash or card. It prints your receipt and you go pick up your order. The only people I saw working in there were preparing orders. I think it was being tested then, only saw the one. I thought it was great, my limited experience with fast food places is they always seem to mess up the ordering process.
Yeah, no thanks. I won’t eat cooked food out of a vending machine.
Neither will a lot of people. The CEO of Carl’s Jr. knows that. He can’t automate everthing.
So he’s going to keep hiring people as cheaply as he can. That’s why he’s lobbying against the minimum wage. But I repeat my original premise: he’s straight up lying when he says he’ll hire more teens if only he can pay them less. He won’t. He’ll keep hiring middle-aged immigrant women because they don’t call in sick to go see Transformers on opening day.
He loves his immigrant labor force — he just wants to pay them less than the law says he can.