General Discussion
In reply to the discussion: Fast-Food Strikes Expand Across U.S. to 50 Cities [View all]delete_bush
(1,712 posts)A fast food operator paid $100,000 after all is said and done to acquire a lease, purchase fixtures and equipment, and do all the other things required to open a business. After struggling for the first several years she is finally at a point where her net income (with no consideration to the $100K) is $50,000 per year. As an owner, she puts in a 60 hour week, equal to $16/hr WITHOUT any consideration for overtime, holiday pay etc.
She employees 8, some full, some part time, with a total annual expenditure for wages of $80,000 with the average employee earning $9.00 per hour. The immediate effect of paying a minimum wage of $15/hr would be to increase her payroll to $125,000 (notwithstanding the fact that her highest paid employee at $14/hr is now demanding $20/hr). The new wage structure will reduce her 'earnings' to $5,000 per year, or $1.60 per hour. Her larger cash rich competitors are not raising prices, knowing that she will soon go out of business and at that point they'll take her customers.
Do you really believe she will continue on at this level rather than close the doors? You've already accused her of paying 'slave wages', what is your next slam against this person? That by not staying in business she's putting her employees out on the street?