General Discussion
In reply to the discussion: Fast-Food Strikes Expand Across U.S. to 50 Cities [View all]delete_bush
(1,712 posts)There are thousands of locales outside the high rent areas where one can purchase a home for less than $150K. For example, properties in the Indianapolis metropolitan region (population 1.7 million) are among the largest in the country at a median 1,940 square feet. However, the median listing price in the area, according to Realtor.com, is just $133,000. Or Wichita KS, or Toledo or etc. If you can put 10% down and obtain financing the payment before taxes/insurance would be around $725.
Regarding my hypothetical, the intention was to show that an increase in wages has a tremendous effect on the bottom line of small businesses. I looked up the average annual sales for Subway, theyre around $450K. On the other hand, Baskin-Robbins comes in at $220K. The main point is that in the FF business you can count on wages being 20-25% of sales. For the average McDonalds doing $2.4 million this is $480K to $600K. Doubling this amount requires a lot of additional revenue for the owner to make the same amount as before, the other point being that a lot of small business owners are barely making it the way it is, although I will admit that Im of the opinion that some of these folks should just fail and be done with it. Ive seen too many Crappy Deli #1 that should just fold - their customers will end up across the street at Crappy Deli #2, allowing at least one of the two to make a few bucks. But that also means more people unemployed.
How about this idea. There must be tens of millions of folks who support this. Why not start a chain of fast food restaurants which pay a minimum wage of $15/hour. Those who support the raise could refuse to patronize any establishment that paid 'slave wages'. If they're successful, they will provide a model for the other venues to either follow or go bust. And they wouldn't necessarily even have to raise prices to compete, just reduce the portion sizes by 10% or so, we consume too many calories the way it is.