Former McDonalds CEO Warns Minimum Wage “Will Wipe Out 1000s Of Jobs”

by Arthur Foxake

This blog is not a big fan of McDonald’s, their food does not appeal to us and their business practices are appalling. but they have been a very successful business over the past 50 years and so when a former CEO speaks out against one of the left’s great sacred cows, the minimum wage.

For some reason that can only be related to their economic illiteracy, the left; USA’s Democratic Party, UK’s Labour Party and Europes Social Democratic parties seem to think the imposition of a minimum wage must improve the lot of ‘the poor’.

Nothing could be further from the truth, we have written on the negative effect of minimum wage laws on the income of low wage workers. The first minimum wage scheme, The Speenhamland Poor Relief System, introduced in the late eighteenth century in England was disastrous for the people it was supposed to help. Faced with having to pay a legal minimum hourly rate, employers simply cut workers hours. Things are no different now, as former McDonalds chief Ed Rensi explained in a Forbes op – ed recently:

(While his words might shock the big government worshipping, Nanny State tit suckling ‘progessives’ should be no surprise to any rational businessman or accountant.)

“A $15 minimum wage won’t spell the end of [fast-food brands]. However it will mean wiping out thousands of entry-level opportunities for people without many other options.” The $15 minimum wage demand, which translates to $30,000 a year for a full-time employee, is built upon a fundamental misunderstanding of a restaurant business (and we add simple supply and demand fundamentals) – just “do the math” Rensi rants…

“They’re making millions while millions can’t pay their bills,” argue the union groups, suggesting there’s plenty of profit left over in corporate coffers to fund a massive pay increase at the bottom.

In truth, nearly 90% of McDonald’s locations are independently-owned by franchisees who aren’t making “millions” in profit. Rather, they keep roughly six cents of each sales dollar after paying for food, staff costs, rent and other expenses.

Let’s do the math: A typical franchisee sells about $2.6 million worth of burgers, fries, shakes and Happy Meals each year, leaving them with $156,000 in profit. If that franchisee has 15 part-time employees on staff earning minimum wage, a $15 hourly pay requirement eats up three-quarters of their profitability. (In reality, the costs will be much higher, as the company will have to fund raises further up the pay scale.) For some locations, a $15 minimum wage wipes out their entire profit.

Recouping those costs isn’t as simple as raising prices. If it were easy to add big price increases to a meal, it would have already been done without a wage hike to trigger it. In the real world, our industry customers are notoriously sensitive to price increases. (If you’re a McDonald’s regular, there’s a reason you gravitate towards an extra-value meal or the dollar menu.)

Instead, franchisees can absorb the cost with a change that customers don’t mind: The substitution of a self-service computer kiosk for a a full-service employee.

Rensi concludes on a sombre note…

I suspect that the labor organizers behind this campaign for a $15 minimum wage are less interested in helping employees, and more interested in helping themselves to dues money from their paycheck.

They’re unlikely to succeed in their goal of organizing the employees of McDonald’s franchisees, but they may well succeed in passing $15 into law in other sympathetic locales.

You’ll see their legacy every time you visit the Golden Arches, where “would you like fries with that” is a button on a computer screen rather than a phrase spoken by an employee in their first job.

While Mr. Reni is referring specifically to a familiar situation at McDonalds, similar things will happen in other businesses and industries. A business can only survive if it pays what the job is worth. And what the job is worth must be dictated by market rules and not by Barack Hussein Obama, Killary Clinton and their elitist cronies.

Unsurprisingly, while governments are prepared to condem the children and grandchildren of their own nationals to the gringing poverty of part time work and zero hours contracts, there are some groups who have contributed nothing to society and in many cases have no legal right to be in the country, for whom special arrangements are made

Denmark Gives Large Bonuses To Get Migrants To Work – How Is That Fair To Danes

In a move that tells us much about what is wrong with the politically correct Culturalk Marxism that dominated European politics, the government of Denmark has announced a plan to persuade migrants to work for a living instead of claiming state handouts by offering companies 40,000 kroner to hire them.

This new plan for migrants is part of the ‘integration basic education’ plan that hopes to get migrants working so they are not as huge a drain in the Danish welfare system as they are becoming more and more in places like Germany and Austria. It is difficult to see any logic behind that, surely it is no more expensive to pay out doles than to employ people who have no skills and cannot speak the national lanugage to do nothing. How many office cleaners and kebab stuffers does a sma;; country like Denmark need?

The programme announcement follows the leaking to Danish media of figures showing non-Western migrants made up a startling 84 per cent of all Danes on welfare. Migrants currently cost the government around 1.1 billion pounds every year.

TheLocal.dk reports the new programme aims to get migrants into short-term jobs at an apprentice salary of around 50 to 120 kroner an hour. This is the equivalent of around 12 pounds an hour which is almost double the current wage for British apprentices who are paid the legal minimum wage of £6.70 an hour, although that will increase to £7.20 in April.

The migrant jobs will last up to two years and they will also be offered 20 week courses to increase their skill development and further their education. The companies that participate in the scheme will also be eligible for a bonus of 40,000 kroner (£4,179), if the migrants remain employed for the two-year term of the contract.

The Danes will also pay for accommodation for the migrants who take part, making sure that they are able to live close to their employer or at least in the same city or town. Relocation and transportation costs will likely also be paid for by the state.

This is just another example of the wrong headedness of political elites, it will do nothing to help integrate new immigrants into Danish society, but by sending out the message that foreigners are given special treatment and their interests are prioritised over those of local people it will encourage more to come and thus make the crisis worse.

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Macology, The Science of Burger Flipping …

Today it became public knowledge that MacDonald’s have become an officially recognised education service provider and as such, qualificatins awarded in their training schools are accepted nationally as the equivalent of A levels in Burger Flipping and shucking fries or, as they prefer to call it, Macology.
Ever eager to stay ahead of the media rat pack, Boggart Network News have managed to secure an interview with MacManagement trainee Darren Chavver (for non Brit readers, that’s chav-ver with a double “v” It’s a British thing) who later this week will become the first graduate to receive an A level certificare in Macology after studying for four hours at Slagtown Macademy of Burger Education.

BNN:
Darren, you must feel very proud of your achievement in becoming the first student to get a qualification in Macology.

Darren:
Yeah, whatever.

BNN:
We assume the course involved an in depth study of the fast food industry, so how much do you know about burgers now.

Darren:
Evr’fink

BNN:
Everything, well that is certainly impressive because the scope is enormous. It must be fascinating to learn how meat is produced for example.

Darren:
Wha’

BNN:
You know, where burgers come from.

Darren:
They come from the freezer.

BNN:
But before they are in the freezer, where do they come from?

Darren:
They comes inna van.

BNN:
And are there any animals involved in the process at all?

Darren:
Yeah, Tracy what drives the van sometimes, she’s a right dog.

BNN:
But that’s a rather unkind way of saying Tracey is a not very
attractive young woman. Are there any real animals involved?

Darren:
Not reely, there’s Gloria but she’s frunna’house manager, don’t
do Burgers. She’s a real animal, she’ll shag anyone, even takes
it up th…

BNN:
I’m sure Gloria is a charming young woman Darren and we should
remember her private life is her own business. Now moving
quickly on, have your studies focused on burgers or did they
take in other products such as McNuggets and Milk Shakes.

Darren:
She’s OK Gloria, I gi’ ‘er one agin’ the waste bins last week,
she ended up wi’ onion and ketchup all over her arse. But she
had a laugh abou’ it.

BNN:
I think we should forget Gloria for now Darren. Tell our readers
what you know about milk shakes for example.

Darren:
Exam were Macology, not ple.

BNN:
Sorry, I don’t understan… oh yes, exam – ple, so you studied
lateral thinking?

Darren:
No burgers and fries, chocolate milkshakes and shit.

BNN:
Shit?

Darren:
Yeah, well mos’ people call ’em McNuggets.

BNN: I’d like you to talk about Chocolate Milkshakes. Do you know
what they are made from?

Darren:
Yeah, chocolate milk and bubbles.

BNN:
And where do we get chocolate milk from?

Darren:
’Fridge.

BNN:
To make chocolate milk Darren we have to mix chocolate with
milk. Do you know where we get milk from?

Darren:
‘Fridge.

BNN:
Darren, do you know what we get from cows?

Darren:
Tampax.

BNN:
Pardon?

Darren:
Skanky tampax. This cow come in one day with her two kids and I
was in charge cos the manager was off, an’ she come to the
counter an’ holds up this skanky tampax and says “I found this
in one of my kids burgers, you got give me my money back.”

BNN:

And did you?

Darren:
Fink I’m stoopid or wha’ I seen that trick loadsa times. They
puts dead cockroaches in the tray, mouse turds, slugs maggots.
Make out they only finds ’em when they nearly finished the meal.

BNN:
That’s very interesting darren, but do you know we get meat from
cows.

Darren:
Meat what you eat? Yeuch, that’s cabinnalistism.

BNN:
Not really Darren, you are thinking of an insulting term for
women, I was thinking more of cows with horns.

Darren:
Like Lezzas with strap-ons. I seen that on a DVD. Kewl.

BNN:
Cows are big aminals, they have horns and live in fields and we
get milk from them.

Darren:
NO! You’re ’avvin a laugh aint yer? Like you feed cows on
chocolate and get chocolate milk? I don’ believe ya. An’ we get
meat from the meat factory. I seen it.

BNN:
Well thank your for talking to us Darren, we have all learned a
great deal. Your course in Macology has really given you a good
education in all aspects of the fast food indistry.

Darren:
Yeah, whatever.

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Paid to get slim?

Today we read of the craziest plan yet devised by government health advisers to encourage obese people to lose weight.

They suggest people who are grossly overweight because they constantly pig out on ready meals, takeaways, pizzas and fatty snacks should be paid to get slim.

Do you see the flaw here? Because of the chemical composition of fast foods, they are addivtive. The food scientists have taken the Chinese idea of “thirty minutes later you could eat it again,” and perfected it. Now with fast foods we find that thirty minutes later we HAVE to eat it again, but double portions. These meals and snacks are addictive.

So what is the point giving food addicts money to get slim. They will only spend it on fast food.