http://bluemaumau.org/sites/default/files/Janney-McDonalds Income Statement mock.pdf
I had never seen this before, so hopefully it provides some interesting facts...of which most people are not aware.
Assume you are the owner of a McDonald's franchise. The attached analysis from Janney Capital Markets gives the income statement of a typical franchise. Key items are net sales of $2.7 million, operating income of $153.9k and an operating margin of 5.7%. Notice that crew payroll of $540k represents 20% of expenses. Since average hourly crew salaries are about $7.80, an increase in the minimum wage to $15 would essentially double this expense...maybe even a little more than that after factoring in payroll taxes additions, etc.
If nothing else changes, operating income would turn red and become a loss of $387,000. If the store had the ability to charge anything it wanted to offset the cost increase, prices would have to increase 20%. The price of a typical quarter pounder meal would increase from $5.49 to $6.59. Some layoffs would seem likely as well.
When the price of anything, in this case labor, doubles...less of it will be purchased. Automation and business closures will result in unemployment for people whose marginal productivity is less than their cost to employ. Somehow, too many retards have gotten the idea that the owners of small businesses exist to meet some bureaucrat's vision as worthy tools of social equity.
I had never seen this before, so hopefully it provides some interesting facts...of which most people are not aware.
Assume you are the owner of a McDonald's franchise. The attached analysis from Janney Capital Markets gives the income statement of a typical franchise. Key items are net sales of $2.7 million, operating income of $153.9k and an operating margin of 5.7%. Notice that crew payroll of $540k represents 20% of expenses. Since average hourly crew salaries are about $7.80, an increase in the minimum wage to $15 would essentially double this expense...maybe even a little more than that after factoring in payroll taxes additions, etc.
If nothing else changes, operating income would turn red and become a loss of $387,000. If the store had the ability to charge anything it wanted to offset the cost increase, prices would have to increase 20%. The price of a typical quarter pounder meal would increase from $5.49 to $6.59. Some layoffs would seem likely as well.
When the price of anything, in this case labor, doubles...less of it will be purchased. Automation and business closures will result in unemployment for people whose marginal productivity is less than their cost to employ. Somehow, too many retards have gotten the idea that the owners of small businesses exist to meet some bureaucrat's vision as worthy tools of social equity.
